Synopsys (SNPS) Stock: Shares Rise After Earnings Beat and Strong 2026 Outlook

TLDR

• Synopsys reported Q4 adjusted earnings of $2.90 per share, beating analyst estimates of $2.78 per share
• Quarterly revenue jumped 37.8% year-over-year to $2.26 billion, matching Wall Street expectations
• The company projects fiscal 2026 revenue of $9.6 billion, including $2.9 billion from its Ansys acquisition
• Synopsys closed fiscal 2025 with record revenue of $7.1 billion, up 15% from the prior year
• Nvidia recently took a $2 billion stake in Synopsys as part of a partnership to develop design tools

Synopsys shares climbed in after-hours trading Wednesday following a solid quarterly earnings report that topped Wall Street expectations. The electronic design automation software provider delivered results that suggest the business remains on track despite market uncertainty.

Synopsys, Inc., SNPS

The company posted adjusted earnings of $2.90 per share for its fiscal fourth quarter. That beat the consensus estimate of $2.78 per share. Revenue came in at $2.26 billion for the quarter, up 37.8% from the same period last year. The figure matched analyst expectations of $2.25 billion.

Shares initially jumped as much as 6% after the results were released. They later settled to a gain of 2.5% in extended trading. The stock closed regular trading up 2.1% at $475.83.

The fourth quarter saw adjusted earnings decline from $3.40 per diluted share in the year-ago period. However, the year-over-year comparison was complicated by the company’s acquisition activity and business mix changes.

Looking Ahead to Fiscal 2026

CFO Shelagh Glaser highlighted the company’s backlog of $11.4 billion. She said the company expects to set another revenue record in fiscal 2026 while integrating its recent Ansys acquisition.

For the first quarter of fiscal 2026, Synopsys expects earnings of $3.41 per share on revenue of $2.4 billion. The full-year fiscal 2026 outlook calls for earnings of $14 per share on revenue of $9.6 billion at the midpoint.

The guidance includes $2.9 billion in expected revenue from Ansys. The engineering simulation software maker contributed $667.7 million in revenue during the fourth quarter. For the full fiscal year, Ansys added $756.6 million to the top line.

The company’s projections also factor in the impact of divesting its Optical Solutions Group and PowerArtist RTL businesses. Those divestitures represent $110 million in revenue.

Partnership With Nvidia Takes Shape

Synopsys announced earlier this month that Nvidia took a $2 billion stake in the company. The investment is part of a broader arrangement where the two companies will jointly develop design tools.

Mizuho analysts described the quarterly results as “better than feared.” The firm pointed to the strong backlog as a positive sign for future performance. The brokerage noted that when adjusting for divestitures, the fiscal 2026 guidance effectively met or exceeded market expectations.

Synopsys stock has declined about 2% year-to-date through Wednesday’s close. Over the past 12 months, shares are down 7.1%. The company closed the quarter with revenue of $2.26 billion and a backlog of $11.4 billion.

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