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California State Teachers Retirement System cut its stake in shares of Synopsys, Inc. (NASDAQ:SNPS – Free Report) by 5.8% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 272,251 shares of the semiconductor company’s stock after selling 16,810 shares during the quarter. California State Teachers Retirement System owned approximately 63.42% of Synopsys worth $121,443,004 as of its most recent SEC filing.

Other hedge funds have also made changes to their positions in the company. Ameritas Advisory Services LLC grew its stake in Synopsys by 399.3% during the 2nd quarter. Ameritas Advisory Services LLC now owns 3,011 shares of the semiconductor company’s stock worth $1,343,000 after buying an additional 2,408 shares during the last quarter. Wedmont Private Capital lifted its stake in Synopsys by 6.1% in the second quarter. Wedmont Private Capital now owns 3,194 shares of the semiconductor company’s stock valued at $1,423,000 after buying an additional 185 shares during the last quarter. HB Wealth Management LLC boosted its holdings in shares of Synopsys by 14.9% during the second quarter. HB Wealth Management LLC now owns 8,351 shares of the semiconductor company’s stock valued at $3,725,000 after acquiring an additional 1,081 shares during the period. Saudi Central Bank boosted its holdings in shares of Synopsys by 80.4% during the second quarter. Saudi Central Bank now owns 12,739 shares of the semiconductor company’s stock valued at $5,682,000 after acquiring an additional 5,677 shares during the period. Finally, Angeles Wealth Management LLC grew its position in shares of Synopsys by 11.9% during the second quarter. Angeles Wealth Management LLC now owns 830 shares of the semiconductor company’s stock worth $370,000 after acquiring an additional 88 shares during the last quarter. Institutional investors own 85.47% of the company’s stock.

Synopsys Price Performance NASDAQ SNPS opened at $393.84 on Monday. Synopsys, Inc. has a 1 year low of $366.00 and a 1 year high of $615.79. The business’s fifty day moving average is $412.27 and its two-hundred day moving average is $439.48. The stock has a market capitalization of $75.48 billion, a P/E ratio of 69.58, a P/E/G ratio of 2.16 and a beta of 1.23. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.24 and a current ratio of 1.34.

Synopsys (NASDAQ:SNPS – Get Free Report) last released its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, topping the consensus estimate of $3.67 by $0.24. The business had revenue of $2.48 billion during the quarter, compared to analyst estimates of $2.44 billion. Synopsys had a return on equity of 6.24% and a net margin of 11.43%.The company’s revenue was up 42.4% compared to the same quarter last year. During the same period last year, the company posted $3.39 EPS. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. On average, research analysts forecast that Synopsys, Inc. will post 10.97 earnings per share for the current fiscal year. Analysts Set New Price Targets A number of analysts recently weighed in on SNPS shares. KeyCorp reaffirmed an “overweight” rating on shares of Synopsys in a report on Wednesday, August 19th. Needham & Company LLC reissued a “buy” rating and set a $580.00 target price on shares of Synopsys in a research note on Thursday, August 27th. Berenberg Bank set a $633.00 price target on shares of Synopsys in a research note on Wednesday, May 27th. BNP Paribas Exane lifted their price target on Synopsys from $425.00 to $450.00 and gave the company an “underperform” rating in a report on Thursday, May 28th. Finally, Citigroup increased their price objective on Synopsys from $600.00 to $610.00 and gave the stock a “buy” rating in a report on Thursday, May 28th. Twelve research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $561.28.

Get Our Latest Stock Report on SNPS

Insider Activity at Synopsys In other Synopsys news, insider Aart de Geus sold 25,000 shares of the company’s stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $441.76, for a total transaction of $11,044,000.00. Following the completion of the sale, the insider directly owned 120,421 shares of the company’s stock, valued at approximately $53,197,180.96. This represents a 17.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of the company’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the sale, the chief executive officer directly owned 75,020 shares of the company’s stock, valued at $34,431,179.20. This represents a 16.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 92,638 shares of company stock worth $40,747,732 in the last quarter. 0.56% of the stock is owned by company insiders.

Key Headlines Impacting Synopsys Here are the key news stories impacting Synopsys this week:

Positive Sentiment: Synopsys reported fiscal third-quarter revenue of approximately $2.48 billion and non-GAAP EPS of $3.91, exceeding analyst estimates of $2.44 billion and $3.67, respectively. Revenue grew 42.4% year over year, underscoring continued demand for electronic-design automation and semiconductor IP. Synopsys Results Analysis Positive Sentiment: Analysts continue to see significant long-term upside, with reported price targets generally ranging from $450 to $610 and a consensus “Moderate Buy” rating. The bullish case centers on Synopsys’ strategic importance to advanced chip and AI design. Synopsys Wall Street Price Targets Neutral Sentiment: Institutional positioning is mixed: 769 investors added SNPS shares in their latest reported quarter, while 764 reduced positions. This suggests continued interest but limited consensus among large investors. Synopsys Institutional Activity Negative Sentiment: The earnings beat did not translate into a sufficiently large outlook increase for a stock priced for stronger growth. Full-year guidance implies approximately $9.715 billion of revenue and $15.07 of non-GAAP EPS at the midpoint, prompting a potential “sell-the-news” reaction. Negative Sentiment: Investors remain concerned about execution and margin pressure from the Ansys integration. Synopsys reported roughly $236.3 million in restructuring charges during the first nine months of fiscal 2026, while acquired-intangible amortization and approximately $10 billion of debt add to acquisition-related financial risks. Synopsys Ansys Integration Analysis Negative Sentiment: Executive Chair Aart de Geus sold 49,641 shares for approximately $21.4 million across August 28, August 31 and September 1. The transactions were made under a pre-arranged Rule 10b5-1 plan, reducing their value as a discretionary bearish signal, but the selling may still weigh on sentiment. Synopsys Insider Selling Negative Sentiment: SNPS remains sensitive to higher interest rates and semiconductor-sector weakness. Its valuation remains demanding, with a reported P/E ratio above 69, while the stock is trading below its 200-day moving average. Is Synopsys Stock Underperforming the Nasdaq? Synopsys Company Profile (Free Report)

Synopsys, Inc is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) used to design, verify and manufacture integrated circuits and complex systems-on-chip (SoCs). Its product portfolio spans tools and technologies for front‑end design and synthesis, simulation and verification, physical implementation and signoff, and design-for-manufacturability, enabling chip designers to move from architecture through tape‑out.

In addition to core EDA offerings, Synopsys supplies a broad set of semiconductor IP building blocks — such as interface, memory and analog/mixed-signal cores — that customers integrate into SoCs to accelerate development.

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Synopsys just posted explosive revenue growth that dwarfs its closest EDA rival, yet the market prices it at a fraction of that rival's multiple. Something in that gap tells a story most investors are missing.

Synopsys (NASDAQ:SNPS | SNPS Price Prediction) delivered one of the cleanest earnings reports in the electronic design automation (EDA) space, and the market is discounting how much AI-driven design complexity favors the incumbent.

My 24/7 Wall St. price target for Synopsys is $552.60 over the next 12 months, implying +24.85% upside from $442.61. The recommendation is buy with a 90% confidence reading.

Metric Value Current Price $442.61 24/7 Wall St. Price Target $552.60 Upside +24.85% Recommendation BUY Confidence Level 90% Post-Earnings Reset Changes the Setup Shares jumped roughly 13% after the Q3 FY26 report on August 26, up 11.24% over the past week and 18.44% over the past month. Year to date it remains down 5.77%, well below the 52-week high of $615.79.

Q3 revenue came in at $2.477 billion, up 42.37% year over year, with non-GAAP EPS of $3.91 beating the Street by 6.44%. Management raised full-year revenue guidance to $9.690 billion to $9.740 billion and non-GAAP EPS to $15.04 to $15.10.

Bull Case for $600+ Three pillars support the bull thesis. First, the Ansys integration is ahead of schedule on cost synergies, with first joint solutions expected to contribute to EDA growth in fiscal 2027.

Second, agentic AI workflows co-developed with NVIDIA showed up to 50x faster time-to-validated RTL, and CEO Sassine Ghazi noted agents “orchestrate our underlying EDA tools at a significantly higher rate,” creating a consumption-based revenue kicker.

Third, IP momentum is broadening: more than 95% of PCIe 7 opportunities, die-to-die IP on pace to double, and USB IP crossing $2 billion in lifetime bookings. Our bull scenario points to $646.18, roughly +46%.

Risks to Consider Bears cite approximately $10 billion of total debt from the Ansys deal, export-control exposure to China, and Morgan Stanley’s prior deceleration concerns. Q3 EDA growth of 8.5% cleared a tough 16% compare, so the reacceleration story must materialize.

Management repaid term loans early, and Q2 GAAP profitability was compressed by Ansys purchase accounting, a non-operating factor. Our bear scenario still lands at $485.64, above today’s price.

Synopsys vs. Cadence and Autodesk Cadence Design Systems (NASDAQ:CDNS) is the direct EDA duopoly partner and trades at a forward P/E of 43 with 24.2% quarterly revenue growth. Synopsys is growing revenue 42% against Cadence’s 24.2%, yet trades at a much lower forward P/E of 27. That gap is the crux of our target: on Cadence’s multiple, SNPS would price well north of our number.

Autodesk (NASDAQ:ADSK) is the closest simulation-plus-design analog post-Ansys, trading at a forward P/E of 21 on 16.1% revenue growth. Synopsys is growing faster with higher operating margins, making the 27x forward multiple look fair-to-cheap. The peer set makes our 24/7 Wall St. price target reasonable, if anything conservative versus Cadence.

Company Forward P/E Rev. Growth YoY Synopsys 27 42.4% Cadence 43 24.2% Autodesk 21 16.1% Buy It Here My verdict is buy at $442.61 with a 24/7 Wall St. price target of $552.60 and 90% confidence. The tipping factor is the widening valuation gap versus Cadence while Synopsys is growing faster and integrating a transformational asset.

Conviction would build if Q4 EDA delivers double digits organically as guided (the same early-signal pattern we cataloged in a free playbook on spotting the next Nvidia-scale winner). Caution would rise if China export controls tighten materially or if the Investor Day walks back FY27 expectations.

Year 24/7 Wall St. Price Target 2026 $475.98 2027 $556.07 2028 $653.12 2029 $724.11 2030 $802.80 These projections assume Synopsys executes on Ansys synergies and agentic AI monetization. Significant upside or downside could come from custom-silicon royalty adoption or export-control policy shifts.

Contact [email protected] for any questions or corrections.

Synopsys (SNPS - Free Report) closed the last trading session at $439.59, gaining 12.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $551.18 indicates a 25.4% upside potential.

The mean estimate comprises 22 short-term price targets with a standard deviation of $57.6. While the lowest estimate of $420.00 indicates a 4.5% decline from the current price level, the most optimistic analyst expects the stock to surge 44% to reach $633.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

But, for SNPS, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why SNPS Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The Zacks Consensus Estimate for the current year has increased 3.3% over the past month, as six estimates have gone higher compared to no negative revision.

Moreover, SNPS currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much SNPS could gain, the direction of price movement it implies does appear to be a good guide.

Much of the conversation around artificial intelligence still revolves around what it could do for chip design. Synopsys, Inc. (NASDAQ:SNPS) says that the future may already be here.

In an exclusive email interview with Benzinga, Synopsys Chief Product Development Officer Shankar Krishnamoorthy shared rare quantitative evidence of AI’s real-world impact, saying customers are already reporting productivity gains of up to six times while autonomous engineering workflows are reducing tasks that once took weeks to just hours.

• What should traders watch with SNPS?

Synopsys Says Agentic AI Is Delivering Measurable Productivity GainsTechnology companies often describe AI in broad terms, but Synopsys backed its claims with specific performance metrics.

Krishnamoorthy said, “One of our customers is observing a 5x-6x productivity gain using our agentic flow for formal verification.”

Beyond accelerating work, the AI-driven workflow also improved outcomes by identifying “a bug, which pointed to a persistent modeling issue that traditional tools had not identified,” added Krishnamoorthy.

The findings suggest AI is doing more than automating repetitive engineering tasks. It is also helping engineers uncover problems that conventional verification methods can miss, potentially reducing costly design iterations later in the development process.

That shift is becoming increasingly important as semiconductor designs grow more complex and verification consumes a larger share of engineering time.

Read Next

AI Is Compressing Weeks of Engineering Into HoursSynopsys also pointed to early results from its autonomous debugging workflow, developed in collaboration with Microsoft Discovery.

According to Krishnamoorthy, early evaluations have shown “reductions of 25%-40% in debug cycle time,” “saving many weeks of engineering efforts and improving productivity.”

He added that the company’s end-to-end autonomous verification workflow “compresses weeks of manual labor into hours of agentic execution,” helping address one of the industry’s biggest engineering bottlenecks.

Rather than replacing engineers, Krishnamoorthy said AI is enabling them to focus on higher-value work by automating complex tasks, orchestrating end-to-end workflows and exploring more design alternatives before a chip reaches production.

The broader implication is that AI’s value may ultimately be measured less by how quickly it generates code and more by how much engineering time it eliminates across the product development cycle.

Why Investors Should Watch Productivity, Not Just AI AdoptionAs AI spending accelerates across the semiconductor industry, investors are increasingly asking whether those investments are producing measurable returns.

Synopsys’ customer examples offer an early answer. Instead of discussing AI as a future productivity tool, the company says customers are already reducing debug cycles by as much as 40%, completing engineering workflows in hours rather than weeks and achieving productivity gains of up to six times.

For investors, the next milestone to watch is whether these early results become commonplace across the semiconductor industry. Synopsys is scheduled to report earnings after the market closes Wednesday, giving investors a timely opportunity to assess whether demand for its AI-enabled design and verification tools is translating into broader financial momentum.

If autonomous engineering continues to deliver measurable improvements in productivity, quality and time-to-market, AI could become as important to designing the next generation of chips as it has been to powering them.

Read Next

Photo: Shankar Krishnamoorthy, courtesy Synopsys Inc

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Results Summary

Quarterly revenue of $2.477 billion; reflects broad-based strength with outperformance in Design Automation Quarterly GAAP earnings per diluted share (EPS) of $2.84, and non-GAAP EPS of $3.91, exceeding high-end of prior guidance Raising expectations for full-year total revenue to $9.715 billion at the midpoint and full-year non-GAAP EPS guidance to $15.07 at the midpoint on continued AI-driven demand strength , /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today reported results for its third quarter of fiscal year 2026. Revenue for the third quarter of fiscal year 2026 was $2.477 billion, compared to $1.740 billion for the third quarter of fiscal year 2025.

Synopsys headquarters in Sunnyvale, Calif. "AI is driving unprecedented complexity and increasing demand for the silicon IP and engineering solutions necessary to deliver next-generation AI compute, infrastructure and physical AI systems," said Sassine Ghazi, president and CEO of Synopsys. "One year after the transformational acquisition of Ansys, we are executing with focus, extending our leadership and gaining momentum."

"Synopsys delivered an outstanding third quarter, with revenue and earnings per share exceeding the high end of our guidance range. Results were driven by broad-based strength across the business, led by EDA, a strong quarter from Ansys, and our design IP business returned to year-over-year growth," said Shelagh Glaser, CFO of Synopsys. "Given our strong performance and expectations for double-digit growth in EDA, we are raising our full year revenue, non-GAAP operating margin, EPS and cash flow guidance."

GAAP Results
On a U.S. generally accepted accounting principles (GAAP) basis, net income for the third quarter of fiscal year 2026 was $545.8 million, or $2.84 per diluted share, compared to $242.5 million, or $1.50 per diluted share, for the third quarter of fiscal year 2025.

Non-GAAP Results
On a non-GAAP basis, net income for the third quarter of fiscal year 2026 was $752.5 million, or $3.91 per diluted share, compared to non-GAAP net income of $548.9 million, or $3.39 per diluted share, for the third quarter of fiscal year 2025.

For a reconciliation of net income, earnings per diluted share and other measures on a GAAP and non-GAAP basis, see "GAAP to Non-GAAP Reconciliation" in the accompanying tables below.

Business Segments 
Synopsys reports revenue and operating income in two segments: (1) Design Automation, which includes our advanced silicon design, verification products and services, Ansys products, system integration products and services, digital, custom and field programmable gate array integrated circuit design software, verification software and hardware products, manufacturing software products and other; and (2) Design IP, which includes our logic libraries, embedded memories, wired interface IP, memory interface IP and security IP.

Financial Targets
Synopsys also provided its consolidated financial targets for the fourth quarter and full fiscal year 2026. These targets assume no further changes to export control restrictions or the current U.S. government "Entity List" restrictions. These targets constitute forward-looking statements and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see "Forward-Looking Statements" below.

Fourth Quarter and Full Fiscal Year 2026 Financial Targets

(in millions, except per share amounts)

 Range for Three Months Ending

Range for Fiscal Year Ending

October 31, 2026

October 31, 2026

Low

High

Low

High

Revenue (1)

$         2,530

$         2,580

$         9,690

$         9,740

GAAP Expenses

$         2,225

$         2,300

$         8,667

$         8,742

Non-GAAP Expenses

$         1,450

$         1,480

$         5,670

$         5,700

Non-GAAP Interest and Other Income (Expense), net

$           (119)

$           (115)

$           (485)

$           (481)

Non-GAAP Tax Rate

18 %

18 %

18 %

18 %

Outstanding Shares (fully diluted)

192

194

192

194

GAAP Operating Margin

Midpt: ~10.4%

Non-GAAP Operating Margin

Midpt: ~41.5%

GAAP EPS

$           0.60

$           0.85

$           3.84

$           4.08

Non-GAAP EPS

$           4.10

$           4.16

$         15.04

$         15.10

Operating Cash Flow

~$2,800

Free Cash Flow (2)

~$2,600

Capital Expenditures

~$225

(1) Fiscal year 2026 revenue includes $2.98 billion of expected Ansys revenue, and reflects the impact of
approximately $110 million of the divested Optical Solutions Group and PowerArtist RTL businesses, and $40
million related to the recently completed divestiture of the Processor IP Solutions business.

(2) Free cash flow is calculated as cash provided from operating activities less capital expenditures.

For a reconciliation of Synopsys' fourth quarter and fiscal year 2026 targets, including expenses, earnings per diluted share and other measures on a GAAP and non-GAAP basis, a discussion of the financial targets that we are not able to reconcile without unreasonable efforts and a discussion of why management believes such measurements provide useful information to investors, see "GAAP to Non-GAAP Reconciliation" in the accompanying tables below.

Earnings Call Open to Investors
Synopsys will hold a conference call for financial analysts and investors today at 2:00 p.m. Pacific Time. A live webcast of the call will be available in the investor relations portion of Synopsys' corporate website at www.synopsys.com. Synopsys uses its website and social media channels as tools to disclose important information about Synopsys and to comply with its disclosure obligations under Regulation Fair Disclosure. A webcast replay will also be available on the corporate website from approximately 5:30 p.m. Pacific Time today through the time Synopsys announces its results for the fourth quarter and fiscal year 2026.

Availability of Final Financial Statements
Synopsys will include final financial statements for the third quarter of fiscal year 2026 in its quarterly report on Form 10-Q to be filed with the Securities and Exchange Commission (SEC) and available at www.sec.gov on or before September 9, 2026.

Continuing Operations 
On Sept. 30, 2024, Synopsys completed the sale of its Software Integrity business. Unless otherwise noted, Synopsys' Software Integrity business has been presented as a discontinued operation in Synopsys' consolidated financial statements for all periods presented herein and all financial results and targets are presented herein on a continuing operations basis.

Reconciliation of Third Quarter Fiscal Year 2026 Results
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income, earnings per diluted share, and tax rate for the periods indicated below.

GAAP to Non-GAAP Reconciliation of Third Quarter Fiscal Year 2026 Results

(unaudited and in thousands, except per share amounts)

Three Months Ended

Nine Months Ended

July 31,

July 31,

2026

2025

2026

2025

GAAP net income from continuing operations attributed to Synopsys

$         545,800

$    242,509

$    627,863

$    887,424

Adjustments:

Amortization of acquired intangible assets

402,426

74,941

1,210,292

99,193

Stock-based compensation

231,604

267,723

712,631

655,725

Restructuring charges

2,164

—

236,340

—

Acquisition/divestiture related items

(402,556)

120,012

(363,315)

264,355

Loss on sale of strategic investments

—

1,200

—

3,635

Tax adjustments

(26,945)

(157,477)

(309,115)

(315,553)

Non-GAAP net income from continuing operations attributed to Synopsys

$         752,493

$    548,908

$  2,114,696

$  1,594,779

Three Months Ended

Nine Months Ended

July 31,

July 31,

2026

2025

2026

2025

GAAP net income from continuing operations per diluted share
attributed to Synopsys

$              2.84

$        1.50

$        3.27

$        5.61

Adjustments:

Amortization of acquired intangible assets

2.09

0.46

6.30

0.63

Stock-based compensation

1.20

1.66

3.71

4.15

Restructuring charges

0.01

—

1.23

—

Acquisition/divestiture related items

(2.09)

0.74

(1.89)

1.67

Loss on sale of strategic investments

—

0.01

—

0.02

Tax adjustments

(0.14)

(0.98)

(1.60)

(2.00)

Non-GAAP net income from continuing operations per diluted share
attributed to Synopsys

$              3.91

$        3.39

$       11.02

$       10.08

Shares used in computing net income per diluted share amounts:

192,319

161,682

191,981

158,176

GAAP to Non-GAAP Operating Margin Reconciliation

(unaudited)

Three Months Ended

July 31, 2026

GAAP operating margin

14.4 %

Amortization of acquired intangible assets

16.2 %

Stock-based compensation

9.4 %

Restructuring charges

0.1 %

Acquisition/divestiture related items

0.9 %

Non-qualified deferred compensation plan

0.6 %

Non-GAAP operating margin

41.6 %

GAAP to Non-GAAP Tax Rate Reconciliation

(unaudited)

Three Months Ended

Nine Months Ended

July 31, 2026

July 31, 2026

GAAP effective tax rate

20.2 %

19.8 %

Stock-based compensation

(5.0) %

(4.6) %

Restructuring charges

(3.3) %

(3.3) %

Income tax adjustments (1)

6.1 %

6.1 %

Non-GAAP effective tax rate

18.0 %

18.0 %

(1) The income tax adjustments are primarily due to differences in the tax rate effect of certain deductions, such
as the deduction for foreign-derived intangible income and credits.

Reconciliation of 2026 Targets
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP targets for the periods indicated below.

GAAP to Non-GAAP Reconciliation of Fourth Quarter Fiscal Year 2026 Targets

(in thousands, except per share amounts)

 Range for Three Months Ending

October 31, 2026

Low

High

Target GAAP expenses

$      2,225,000

$      2,300,000

Adjustments:

      Amortization of acquired intangible assets

(400,000)

(405,000)

      Stock-based compensation

(230,000)

(240,000)

      Restructuring charges

(145,000)

(175,000)

Target non-GAAP expenses

$      1,450,000

$      1,480,000

Range for Three Months Ending

October 31, 2026

Low

High

Target GAAP earnings per diluted share attributed to Synopsys

$             0.60

$             0.85

Adjustments:

      Amortization of acquired intangible assets

2.10

2.07

      Stock-based compensation

1.24

1.19

      Restructuring charges

0.91

0.75

      Tax adjustments

(0.75)

(0.70)

Target non-GAAP earnings per diluted share attributed to Synopsys

$             4.10

$             4.16

Shares used in non-GAAP calculation (midpoint of target range)

193,000

193,000

GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2026 Targets

(in thousands, except per share amounts)

Range for Fiscal Year Ending

October 31, 2026

Low

High

Target GAAP expenses

$      8,667,091

$      8,742,091

Adjustments:

      Amortization of acquired intangible assets

(1,610,000)

(1,615,000)

      Stock-based compensation

(945,000)

(955,000)

      Restructuring charges

(380,000)

(410,000)

      Acquisition/divestiture related items (1)

(62,091)

(62,091)

Target non-GAAP expenses

$      5,670,000

$      5,700,000

Range for Fiscal Year Ending

October 31, 2026

Low

High

Target GAAP earnings per diluted share attributed to Synopsys

$             3.84

$             4.08

Adjustments:

      Amortization of acquired intangible assets

8.37

8.34

      Stock-based compensation

4.95

4.90

      Restructuring charges

2.12

1.97

      Acquisition/divestiture related items (1)

(1.88)

(1.88)

      Tax adjustments

(2.36)

(2.31)

Target non-GAAP earnings per diluted share attributed to Synopsys

$           15.04

$           15.10

Shares used in non-GAAP calculation (midpoint of target range)

193,000

193,000

(1)  Adjustments reflect actual expenses incurred by Synopsys as of July 31, 2026, and do not fully reflect all
potential adjustments for future periods for the reasons set forth in "GAAP to Non-GAAP Reconciliation"
below.

GAAP to Non-GAAP Reconciliation of Operating Margin at Midpoint of Full Fiscal Year 2026 Targets (1)

Fiscal Year Ending

October 31, 2026

At midpoint of revenue and expense guidance ranges

GAAP operating margin

10.4 %

Amortization of acquired intangible assets

16.6 %

Stock-based compensation

9.8 %

Restructuring charges

4.1 %

Acquisition/divestiture related items (2)

0.6 %

Target non-GAAP operating margin

41.5 %

(1) These numbers represent the midpoint of targets in the prepared remarks provided on August 26, 2026,
and do not represent official guidance for fiscal year 2026.

(2) Adjustments reflect actual expenses incurred by Synopsys as of July 31, 2026 and do not fully reflect
all potential adjustments for future periods for the reasons set forth in "GAAP to Non-GAAP Reconciliation"
below.

Forward-Looking Statements
This press release and the investor conference call contain forward-looking statements, including, but not limited to, statements concerning our short-term and long-term financial targets, expectations and objectives; our businesses, business segments, strategies, partnerships, initiatives and opportunities, including, among other things, the reallocation of resources in our Design IP segment to higher growth opportunities and planned restructuring activities; industry growth and technological trends, such as artificial intelligence, including our development and planned commercialization thereof; business and market outlook; the potential impact of the uncertain macroeconomic environment and global economic conditions on our financial results; the impact of current and future U.S. and foreign trade regulations, government actions and regulatory changes, such as export control restrictions and tariffs; the ANSYS, Inc. (Ansys) integration and its expected impact, including expected synergies and the timing thereof, our ability to create joint solutions as a combined company, and related accounting changes; planned and recently completed acquisitions or divestitures, and their anticipated timing and impact; our key customers, customer concentration, customer engagement, customer demand and market expansion; results and strategies related to our products, technology and services, including product development and our planned product releases and capabilities; the expected realization of our contracted but unsatisfied or partially unsatisfied performance obligations (backlog); planned stock repurchases; our expected tax rate; and the status, expected outcome or expected impact of litigation and/or regulatory investigations. These statements involve risks, uncertainties and other factors that could cause our actual results, time frames or achievements to differ materially from those expressed or implied in such forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: macroeconomic conditions and geopolitical uncertainty in the global economy; uncertainty in the growth of the semiconductor and electronics industries; the highly competitive industry we operate in; actions by the U.S. or foreign governments, such as the imposition of additional export restrictions or tariffs; consolidation among our customers and our dependence on a relatively small number of large customers; risks and compliance obligations relating to the global nature of our operations; failure to realize the benefits expected from the transactions we complete, including the acquisition of Ansys (the Ansys Merger) or unexpected difficulties or expenditures arising therefrom; risks related to inaccuracies in, or failures to achieve, our operational and business metrics or forecasts of growth; and more. Additional information on potential risks, uncertainties and other factors that could affect Synopsys' results is included in filings we make with the SEC from time to time, including in the sections entitled "Risk Factors" in our latest Annual Report on Form 10-K and in our latest Quarterly Report on Form 10-Q. The financial information contained in this press release should be read in conjunction with the consolidated financial statements and notes thereto included in Synopsys' most recent reports on Forms 10-K and 10-Q, each as may be amended from time to time. Synopsys' financial results for its third quarter of fiscal year 2026 are not necessarily indicative of Synopsys' operating results for any future periods.

Effectiveness of Information
The targets included in this press release, the statements made during the earnings conference call, the information contained in the financial supplement and the corporate overview presentation, each of which are available in the investor relations portion of Synopsys' corporate website at www.synopsys.com (collectively, the Earnings Materials), represent Synopsys' expectations and beliefs as of August 26, 2026. Although these Earnings Materials are expected to remain available on Synopsys' website through the time Synopsys announces its results for the fourth quarter and fiscal year 2026, their continued availability through such time does not mean that Synopsys is reaffirming or confirming their continued validity. Synopsys undertakes no duty, and does not intend, to update any forward-looking statement, including any targets, provided in the Earnings Materials, whether as a result of new information, future events or otherwise, unless required by law.

SYNOPSYS, INC.

Condensed Consolidated Statements of Income

(Unaudited, in thousands, except per share amounts)

Three Months Ended

Nine Months Ended

July 31,

July 31,

2026

2025

2026

2025

Revenue:

  Time-based products

$        1,002,792

$          892,364

$        2,899,957

$        2,548,928

  Upfront products

665,223

516,404

1,953,005

1,395,204

    Total products revenue

1,668,015

1,408,768

4,852,962

3,944,132

  Maintenance and service

808,807

330,969

2,308,643

855,186

      Total revenue

2,476,822

1,739,737

7,161,605

4,799,318

Cost of revenue:

  Products

275,622

230,895

750,921

615,953

  Maintenance and service

156,514

103,301

451,849

290,309

  Amortization of acquired intangible assets

247,252

46,368

743,850

62,624

      Total cost of revenue

679,388

380,564

1,946,620

968,886

Gross margin

1,797,434

1,359,173

5,214,985

3,830,432

Operating expenses:

  Research and development

719,737

625,301

2,134,849

1,732,496

  Sales and marketing

385,889

259,480

1,164,262

683,700

  General and administrative

176,979

280,550

532,129

584,133

  Amortization of acquired intangible assets

155,174

28,573

466,442

36,569

  Restructuring charges

2,164

—

236,340

—

      Total operating expenses

1,439,943

1,193,904

4,534,022

3,036,898

Operating income

357,491

165,269

680,963

793,534

Interest expense

(133,234)

(146,502)

(429,313)

(251,977)

Other income (expense), net

459,665

170,543

530,601

335,061

Income before income taxes

683,922

189,310

782,251

876,618

Provision (benefit) for income taxes

138,216

(52,967)

154,961

(12,080)

Net income from continuing operations

545,706

242,277

627,290

888,698

Loss from discontinued operations, net of income taxes

—

—

—

(3,900)

Net income

545,706

242,277

627,290

884,798

Less: Net income (loss) attributed to non-controlling
interest and redeemable non-controlling interest

(94)

(232)

(573)

1,274

Net income attributed to Synopsys

$          545,800

$          242,509

$          627,863

$          883,524

Net income (loss) attributed to Synopsys:

 Continuing operations

$          545,800

$          242,509

$          627,863

$          887,424

 Discontinued operations

—

—

—

(3,900)

 Net income

$          545,800

$          242,509

$          627,863

$          883,524

Net income (loss) per share attributed to Synopsys - basic:

  Continuing operations

$             2.85

$             1.51

$             3.29

$             5.67

  Discontinued operations

—

—

—

(0.03)

  Basic net income per share

$             2.85

$             1.51

$             3.29

$             5.64

Net income (loss) per share attributed to Synopsys - diluted:

  Continuing operations

$             2.84

$             1.50

$             3.27

$             5.61

  Discontinued operations

—

—

—

(0.02)

  Diluted net income per share

$             2.84

$             1.50

$             3.27

$             5.59

Shares used in computing per share amounts:

  Basic

191,536

160,174

190,858

156,536

  Diluted

192,319

161,682

191,981

158,176

SYNOPSYS, INC.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands, except par value amounts)

July 31, 2026

October 31, 2025

ASSETS:

Current assets:

Cash and cash equivalents

$        3,606,286

$        2,888,030

Short-term investments

1,383

72,929

      Total cash, cash equivalents and short-term investments

3,607,669

2,960,959

Accounts receivable, net

1,318,747

1,505,427

Inventories

479,129

365,190

Prepaid and other current assets

1,238,791

1,180,526

      Total current assets

6,644,336

6,012,102

Property and equipment, net

749,598

696,693

Operating lease right-of-use assets, net

694,603

702,008

Goodwill

26,834,774

26,899,215

Intangible assets, net

11,458,656

12,679,591

Deferred income taxes

95,515

112,159

Other long-term assets

1,248,781

1,122,693

      Total assets

$      47,726,263

$      48,224,461

LIABILITIES AND STOCKHOLDERS' EQUITY:

Current liabilities:

Accounts payable and accrued liabilities

$        1,480,598

$        1,326,211

Operating lease liabilities

137,837

128,205

Deferred revenue

2,331,173

2,245,961

Short-term debt

1,020,247

22,117

      Total current liabilities

4,969,855

3,722,494

Long-term operating lease liabilities

666,592

680,698

Long-term deferred revenue

383,936

382,557

Long-term debt

9,017,113

13,462,398

Other long-term liabilities

1,537,388

1,649,299

      Total liabilities

16,574,884

19,897,446

Stockholders' equity:

Preferred stock, $0.01 par value: 2,000 shares authorized; none outstanding

—

—

Common stock, $0.01 par value: 400,000 shares authorized; 191,605 and 185,994
shares outstanding, respectively

1,916

1,860

Capital in excess of par value

20,711,069

18,640,947

Retained earnings

10,943,350

10,315,487

Treasury stock, at cost: 433 and 1,222 shares, respectively

(193,292)

(398,278)

Accumulated other comprehensive income (loss)

(310,504)

(232,414)

      Total Synopsys stockholders' equity

31,152,539

28,327,602

Non-controlling interest

(1,160)

(587)

      Total stockholders' equity

31,151,379

28,327,015

      Total liabilities and stockholders' equity

$      47,726,263

$      48,224,461

SYNOPSYS, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

Nine Months Ended July 31,

2026

2025

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$          627,290

$          884,798

Adjustments to reconcile net income to net cash provided by operating
activities:

Amortization and depreciation

1,362,021

211,307

Reduction of operating lease right-of-use assets

109,254

80,789

Amortization of capitalized costs to obtain revenue contracts

70,835

38,920

Stock-based compensation

712,631

655,909

Allowance for credit losses

21,847

23,559

Loss on sale of strategic investments

—

3,635

Gain on sale of building

—

(51,385)

(Gain) loss on divestitures, net of transaction costs

(380,527)

8,299

Amortization of bridge financing costs

—

41,996

Amortization of debt issuance costs

21,280

6,790

Deferred income taxes

(121,720)

(326,610)

Other

21

(737)

Net changes in operating assets and liabilities, net of effects from
acquisitions and dispositions:

Accounts receivable

165,337

(27,989)

Inventories

(133,944)

(34,068)

Prepaid and other current assets

(70,709)

120,348

Other long-term assets

(125,304)

(427,793)

Accounts payable and accrued liabilities

90,610

31,384

Operating lease liabilities

(109,757)

(78,360)

Income taxes

(56,728)

(140,347)

Deferred revenue

116,166

(19,932)

Unrealized loss on settlement of interest rate treasury lock

—

(121,643)

Net cash provided by operating activities

2,298,603

878,870

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from maturities of short-term investments

20,995

53,630

Proceeds from sales of short-term investments

68,761

148,809

Purchases of short-term investments

(18,524)

(47,558)

Proceeds from sales of strategic investments

—

3,470

Purchases of strategic investments

(1,402)

(4,086)

Purchases of property and equipment, net

(156,089)

(134,908)

Proceeds from sale of building

—

74,279

Acquisitions, net of cash acquired

—

(16,681,257)

Proceeds from business divestiture, net of cash divested

440,022

142,546

Other

—

(611)

Net cash provided by (used in) investing activities

353,763

(16,445,686)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from debt, net of issuance costs

—

14,329,340

Repayment of debt

(3,463,726)

(2,579)

Issuances of common stock

124,585

138,101

Payments for taxes related to net share settlement of equity awards

(262,761)

(242,791)

Common stock issuance for private placement

2,000,000

—

Purchases of treasury stock

(300,000)

—

Redemption of redeemable non-controlling interest

—

(30,000)

Other

—

(463)

Net cash provided by (used in) financing activities

(1,901,902)

14,191,608

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(33,409)

8,649

Net change in cash, cash equivalents and restricted cash

717,055

(1,366,559)

Cash, cash equivalents and restricted cash, beginning of year

2,893,721

3,898,729

Cash, cash equivalents and restricted cash, end of period

$        3,610,776

$        2,532,170

Synopsys provides segment information, namely revenue, adjusted segment operating income and adjusted segment operating margin, in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 280, Segment Reporting. Synopsys' chief operating decision maker (CODM) is our Chief Executive Officer. In evaluating our business segments, the CODM considers the income and expenses that the CODM believes are directly related to those segments. The CODM does not allocate certain operating expenses managed at a consolidated level to our business segments and, as a result, the reported operating income and operating margin do not include these unallocated expenses as shown in the table below. These unallocated expenses are presented in the table below to provide a reconciliation of the total adjusted operating income from segments to our consolidated operating income:

SYNOPSYS, INC.

Business Segment Reporting (1)

(Unaudited, in millions)

Three Months Ended
July 31, 2026

Three Months Ended
July 31, 2025

Nine Months Ended
July 31, 2026

Nine Months Ended
July 31, 2025

Revenue by segment

- Design Automation

$           2,003.0

$            1,312.1

$             5,826.6

$             3,454.6

% of Total

80.9 %

75.4 %

81.4 %

72.0 %

- Design IP

$              473.8

$               427.6

$             1,335.0

$             1,344.7

% of Total

19.1 %

24.6 %

18.6 %

28.0 %

Adjusted operating income by segment

- Design Automation

$              905.0

$               583.8

$             2,641.6

$             1,447.2

- Design IP

$              125.4

$                 86.0

$                302.2

$                363.1

Adjusted operating margin by segment

- Design Automation

45.2 %

44.5 %

45.3 %

41.9 %

- Design IP

26.5 %

20.1 %

22.6 %

27.0 %

Total Adjusted Segment Operating Income Reconciliation (1)

(Unaudited, in millions)

Three Months Ended
July 31, 2026

Three Months Ended
July 31, 2025

Nine Months Ended
July 31, 2026

Nine Months Ended
July 31, 2025

GAAP total operating income – as reported

$                357.5

$                165.3

$                681.0

$                793.5

Other expenses managed at consolidated level

Amortization of acquired intangible assets

402.4

74.9

1,210.3

99.2

Stock-based compensation (2)

231.6

267.7

712.6

655.9

Restructuring charges

2.2

—

236.3

—

Acquisition/divestiture related items (3)

22.9

118.4

62.1

218.7

Non-qualified deferred compensation plan

13.9

43.4

41.5

42.9

Total adjusted segment operating income

$               1,030.4

$                669.8

$               2,943.8

$              1,810.3

(1) Synopsys manages the business on a long-term, annual basis, and considers quarterly fluctuations of revenue and profitability as normal elements of our
business. Amounts may not foot due to rounding.

(2) The adjustment includes non-GAAP expenses attributable to non-controlling interest and redeemable non-controlling interest.

(3) The adjustment excludes the amortization of bridge financing costs entered into in connection with the Ansys Merger that was recorded in interest
expense, and certain divestiture related items that were recorded in other income (expense), net in our unaudited condensed consolidated statements of
income.

GAAP to Non-GAAP Reconciliation
Synopsys continues to provide all information required in accordance with GAAP but acknowledges evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, Synopsys presents non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Synopsys' operating results in a manner that focuses on what Synopsys believes to be its core business operations and what Synopsys uses to evaluate its business operations and for internal budgeting and resource allocation purposes. This press release includes non-GAAP earnings per diluted share, non-GAAP net income, non-GAAP operating margin and non-GAAP tax rate for the periods presented. It also includes future estimates for non-GAAP expenses, non-GAAP interest and other income (expense), net, non-GAAP tax rate, non-GAAP operating margin, non-GAAP earnings per diluted share and free cash flow. These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.

When possible, Synopsys provides a reconciliation of non-GAAP financial measures to their most closely applicable GAAP financial measures. Synopsys is unable to provide a full reconciliation of certain fourth quarter and full fiscal year 2026 non-GAAP financial targets to the corresponding GAAP financial measures on a forward-looking basis because Synopsys believes that it would not be possible for it to have the information necessary to quantitatively reconcile such measures with sufficient precision without unreasonable efforts due to, among other things, the potential variability and limited predictability of the excluded adjustment items necessary for a full reconciliation such as certain acquisition/divestiture related items, tax deduction variability, changes in the fair value of non-qualified deferred compensation plan, and gains (losses) on the sale of strategic investments. For the same reasons, Synopsys is unable to address the probable significance of the unavailable information. 

Synopsys' management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, as superior to, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures are meant to supplement, and be viewed in conjunction with, the corresponding GAAP financial measures. Synopsys' management believes the presentation of non-GAAP financial measures, when shown in conjunction with the corresponding GAAP financial measures, provides useful information to investors allowing them to view financial and business trends relating to our financial condition and results of operations through the eyes of management. Synopsys' management evaluates and makes decisions about our business operations using both GAAP financial measures and non-GAAP financial measures to help facilitate internal comparisons to Synopsys' historical operating results and forecasted targets, planning and forecasting in subsequent periods and comparisons to competitors' operating results.

The following are descriptions of the adjustments made to reconcile non-GAAP financial measures (other than free cash flow, which is defined in the footnote to the Financial Targets table above) to the most directly comparable GAAP financial measures:

(i) Amortization of acquired intangible assets. We incur expenses from the amortization of acquired intangible assets, which may include impairment charges from write-downs of acquired intangible assets. Acquired intangible assets include, among other things, core/developed technology, customer relationships, contract rights, trademarks and trade names, and other intangibles related to acquisitions. We amortize the intangible assets over their estimated useful lives. We do not enter into acquisitions on a predictable cycle. The amount of an acquisition's purchase price allocated to intangible assets and their estimated useful lives can vary significantly and are unique to each acquisition. From time to time, we incur impairment charges due to write-downs of acquired intangible assets. We believe that the presentation of non-GAAP financial measures that adjust for the amortization of intangible assets, including impairment charges, provides investors and others with a consistent basis for comparison across accounting periods. We also exclude this item because such expenses are non-cash in nature and we believe the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding our core operational performance and liquidity, and ability to invest in research and development and fund future acquisitions and capital expenditures.

(ii) Stock-based compensation. Stock-based compensation expenses consist primarily of expenses related to restricted stock units, stock options, employee stock purchase rights and other stock awards, including such expenses associated with acquisitions. We exclude stock-based compensation expense from our non-GAAP financial measures primarily because it is not an expense that typically requires or will require cash settlement by us. Further, the expense for the fair value of the stock-based instruments we utilize may bear little resemblance to the actual value realized upon the vesting or future exercise of the related stock-based awards and, therefore, is not used by management to assess the core profitability of our business operations.

(iii) Acquisition/divestiture related items. In connection with certain of our business combinations and/or divestitures, we incur significant expenses that we would not have otherwise incurred as part of our business operations. These expenses include, among other things, compensation expenses, professional fees and other direct expenses, concurrent restructuring activities and divestiture activities, including employee severance and other exit costs, bridge financing costs, costs related to integration activities, debt forgiveness, changes to the fair value of contingent consideration related to the acquired company, and amortization of the fair value difference of below-market value assets arising from arrangements entered into or acquired in conjunction with an acquisition. We also recognize the gains and losses from the divestitures of business, as well as the mark-up of equity or cost method investments to fair value upon obtaining control through acquisition. We exclude these items because they are related to acquisitions and divestitures and have no direct correlation to the core operation of our business. Further, because we do not acquire or divest businesses on a predictable cycle and the terms of each transaction can vary significantly and are unique to each transaction, we believe it is useful to exclude such expenses when looking for a consistent basis for comparison across accounting periods.

(iv) Restructuring charges. We initiate restructuring activities to align our costs to our operating plans and business strategies based on then-current economic conditions, and such activities have a specific and defined term. Restructuring costs generally include severance and other termination benefits related to voluntary retirement programs, involuntary headcount reductions and facilities closures. Such restructuring costs include elimination of operational redundancy, permanent reductions in workforce and facilities closures and, therefore, are not considered by us to be a part of the core operation of our business and are not used by management when assessing the core profitability and performance of our business operations.

(v) Gains (losses) on the sale of strategic investments. We exclude gains and losses on the sale of equity investments in privately held companies because we do not believe they are reflective of our core business and operating results.

(vi) Deferred compensation. We exclude changes in the fair value of our non-qualified deferred compensation plan because we do not use these to assess the core profitability of our business operations.

(vii) Income tax effect of non-GAAP pre-tax adjustments. Excluding the income tax effect of non-GAAP pre-tax adjustments from the provision for income taxes assists investors in understanding the tax provision associated with those adjustments and the effect on net income.  Beginning in fiscal year 2026, we transitioned from an annual non-GAAP tax rate to a three-year normalized non-GAAP tax rate of 18.0%. We believe this will provide better consistency across reporting periods by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency and do not necessarily reflect our normal operations. This rate is based on our projected annual rate through fiscal year 2028, primarily due to the completion of the acquisition of Ansys in the third quarter of fiscal year 2025 and the enactment of the One Big Beautiful Bill Act (the OBBB), which affects taxable income starting in fiscal year 2026 over the next several years. In projecting this rate, we evaluated our historical and projected mix of U.S. and international profit before tax, excluding the impact of stock-based compensation, the amortization of purchased intangibles and other GAAP only adjustments described above. We also considered other factors, including our current tax structure, U.S. tax law changes, such as the OBBB which impacts Synopsys' expensing of U.S. research expenditures commencing in fiscal year 2026, and changes to foreign derived intangible income commencing in fiscal year 2027.

About Synopsys
Synopsys, Inc. (Nasdaq: SNPS) is the leader in engineering solutions from silicon to systems, enabling customers to rapidly innovate AI-powered products. We deliver industry-leading silicon design, IP, simulation and analysis solutions, and design services. We partner closely with our customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow. Learn more at www.synopsys.com. 

©  2026 Synopsys, Inc. All rights reserved. Synopsys, Ansys, the Synopsys and Ansys logos, and other Synopsys trademarks are available at https://www.synopsys.com/company/legal/trademarks-brands.html. Other company or product names may be trademarks of their respective owners.

INVESTOR CONTACT:
Tushar Jain
Synopsys, Inc.
650-584-4289
[email protected]

EDITORIAL CONTACT:
Cara Walker
Synopsys, Inc.
650-584-5000
[email protected]

SOURCE Synopsys, Inc.

Synopsys (SNPS.O) on Wednesday raised its annual revenue and profit forecasts, as the AI boom drives investments in chips and infrastructure, ​boosting demand for the firm's chip design software.

AI-related design ‌demand has risen sharply as chipmakers invest in more advanced semiconductor systems, while tech giants, including Amazon (AMZN.O) and Alphabet (GOOGL.O), ramp up in-house chip efforts ​as well.

Here are more details on the results:

Synopsys expects fiscal ​2026 revenue in the range of $9.69 billion to $9.74 billion, ⁠compared with its prior forecast of between $9.63 billion and $9.71 billion.

The ​forecast is higher than analysts' estimate for annual revenue of $9.68 billion, ​per data compiled by LSEG.

The company's design IP business, which licenses pre-designed chip interfaces that customers can directly embed into their systems, returned to year-over-year ​revenue growth in the third fiscal quarter ended July 31.

"The ​growth is really underpinned by the strong design environment we're seeing, and ‌the ⁠main thing driving it is AI," CFO Shelagh Glaser said in an interview.

"Customers are building more and more complex chips and in shorter time frames. And we offer the tools for them ​to simplify that ​complexity," Glaser ⁠said.

Synopsys expects a further sequential increase in the design IP business in the current quarter.

The company projected ​annual adjusted earnings of $15.04 to $15.10 per share, up ​from its ⁠prior expectation of $14.72 to $14.80 per share. Analysts were expecting a full-year profit of $14.76 per share.

Synopsys reported revenue of $2.48 billion for the third ⁠quarter, ​compared with estimates of $2.44 billion. Adjusted ​per-share earnings of $3.91 topped estimates of $3.67.

Shares of the company were down about 2% in ​extended trading.

Synopsys (SNPS - Free Report) reported $2.48 billion in revenue for the quarter ended July 2026, representing a year-over-year increase of 42.4%. EPS of $3.91 for the same period compares to $3.39 a year ago.

The reported revenue represents a surprise of +1.68% over the Zacks Consensus Estimate of $2.44 billion. With the consensus EPS estimate being $3.67, the EPS surprise was +6.54%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Synopsys performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Revenue- Maintenance and service: $808.81 million versus the four-analyst average estimate of $564.01 million. The reported number represents a year-over-year change of +144.4%.Revenue- Total products revenue: $1.67 billion versus $1.88 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +18.4% change.Revenue by segment- Design IP: $473.8 million compared to the $487.38 million average estimate based on three analysts. The reported number represents a change of +10.8% year over year.Revenue by segment- Design Automation: $2 billion compared to the $1.97 billion average estimate based on three analysts. The reported number represents a change of +52.7% year over year.Revenue- Upfront products: $665.22 million compared to the $598.23 million average estimate based on three analysts. The reported number represents a change of +28.8% year over year.Revenue- Time-based products: $1 billion compared to the $1.34 billion average estimate based on three analysts. The reported number represents a change of +12.4% year over year.View all Key Company Metrics for Synopsys here>>>

Shares of Synopsys have returned +6.5% over the past month versus the Zacks S&P 500 composite's +3.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Synopsys, Inc. (SNPS) Q3 2026 Earnings Call Transcript

Synopsys remains a Buy despite a 14% stock decline and recent underperformance versus the benchmark. SNPS delivered its fourth consecutive double-beat quarter and upwardly revised FY guidance, reinforcing confidence in management execution. At a 24x 15-month forward P/E, SNPS trades at only a modest 3% premium to peers, justified by consistent top- and bottom-line growth.

Key Takeaways Synopsys Q3 earnings rose 15.3% and revenues jumped 42.4%, both topping consensus estimates.EDA strength, Ansys contributions and Design IP growth drove broad-based gains across Synopsys.Synopsys raised fiscal 2026 revenue and earnings guidance and expects double-digit EDA growth. Synopsys, Inc. (SNPS - Free Report) reported third-quarter fiscal 2026 non-GAAP earnings of $3.91 per share, which increased 15.3% year over year and beat the Zacks Consensus Estimate by 6.5%. Broad-based strength, led by EDA and Ansys, supported the earnings outperformance.

Revenues rose 42.4% year over year to $2.48 billion, topping the consensus mark by 1.7%. Backlog remained strong at $10.9 billion, while Design IP returned to year-over-year growth.

SNPS Revenue Mix Shows Broad-Based GrowthTime-based product revenues were $1 billion, which increased 12.4% from the year-ago quarter. Upfront product revenues increased 28.8% to $665.2 million, reflecting higher product contributions during the quarter.

Maintenance and service revenues surged 144.4% year over year to $808.8 million. Ansys contributed approximately $711 million to total quarterly revenues.

Synopsys Segments Gain on EDA and IP GrowthDesign Automation revenues were $2 billion, which increased 52.7% year over year, accounting for 80.9% of total revenues. Within the segment, EDA revenues increased 8.5%, supported by robust software performance and record hardware-assisted verification revenues.

Design IP revenues rose 10.8% to $473.8 million and represented 19.1% of revenues. Management cited broad AI infrastructure demand, including strength in interface, memory and die-to-die IP. The company said its die-to-die business is on pace to double year over year and has surpassed 100 cumulative design wins.

SNPS Margin Expansion Reflects Cost DisciplineThe non-GAAP operating margin was 41.6% in the quarter. Design Automation’s adjusted operating margin expanded to 45.2% from 44.5% a year ago, while the Design IP adjusted margin improved to 26.5% from 20.1%.

Total non-GAAP costs and expenses were $1.45 billion, landing at the lower end of management’s guided range. Synopsys credited operational efficiency and Ansys cost synergies that are running ahead of schedule.

Synopsys Cash Flow and Balance Sheet StrengthenFree cash flow was $746 million in the third quarter. For the first nine months of fiscal 2026, net cash provided by operating activities totaled $2.30 billion.

Synopsys ended the third quarter with $3.61 billion in cash, cash equivalents and short-term investments. Total debt was about $10 billion after the company repaid term loans earlier than planned.

Synopsys AI and Multiphysics Drive New OpportunitiesManagement highlighted AI-driven design complexity as a key demand driver across the portfolio. More than 30 customer engagements are underway for Synopsys’ agentic AI platform, which is designed to automate engineering workflows while increasing use of the company’s underlying EDA tools.

Synopsys also launched Multiphysics Fusion, its first joint Synopsys-Ansys solution. Early customer validations showed up to 10 times faster design closure and three times faster runtime. Management expects these add-on capabilities to begin contributing to EDA growth in fiscal 2027.

SNPS Raises Fiscal 2026 OutlookSynopsys raised its fiscal 2026 revenue guidance to $9.69-$9.74 billion, with the midpoint up $50 million. The company expects Ansys to contribute about $2.98 billion, up $20 million from its previous outlook, and continues to expect Design IP revenues to grow sequentially in the fourth quarter.

The company lifted its fiscal 2026 non-GAAP earnings guidance to $15.04-$15.10 per share, a 31-cent increase at the midpoint from the prior forecast. Non-GAAP operating margin is now projected at about 41.5% at the midpoint, up 50 basis points from the previous guidance.

For the fourth quarter, SNPS projects revenues of $2.53-$2.58 billion and non-GAAP earnings of $4.10-$4.16 per share. Management expects EDA revenue growth to accelerate to double digits in the fourth quarter and for fiscal 2026.

SNPS’ Zacks Rank and Stocks to ConsiderCurrently, SNPS carries a Zacks Rank #3 (Hold).

Some better-ranked stocks worth considering in the broader Zacks Computer and Technology sector are Applied Materials (AMAT - Free Report) , Lam Research (LRCX - Free Report) and Palo Alto Networks (PANW - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.73 per share, up by 4.9% over the past 30 days, indicating a year-over-year surge of 35.1%. Applied Materials shares have surged 87.5% year to date (YTD).

The Zacks Consensus Estimate for Lam Research’s fiscal 2027 earnings has moved northward by 17.8% to $9.32 per share over the past 30 days and calls for a year-over-year jump of 60.4%. Lam Research shares have soared 83.8% YTD.

The Zacks Consensus Estimate for Palo Alto Networks’ fiscal 2026 earnings has remained unchanged at $3.78 per share, over the past 30 days, implying a year-over-year increase of 13.2%. Palo Alto Networks shares have risen 94.1% YTD.

Synopsys (SNPS) "is such an important company" at "such an important time," says Cory Johnson. He explains how the company plays a critical role for Big Tech firms like Nvidia (NVDA) and ways its acquisition of Ansys expanded the company's moat.

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Synopsys (SNPS - Free Report) , which belongs to the Zacks Computer - Software industry, could be a great candidate to consider.

When looking at the last two reports, this maker of software used to test and develop chips has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 5.64%, on average, in the last two quarters.

For the most recent quarter, Synopsys was expected to post earnings of $3.17 per share, but it reported $3.35 per share instead, representing a surprise of 5.68%. For the previous quarter, the consensus estimate was $3.57 per share, while it actually produced $3.77 per share, a surprise of 5.60%.

Price and EPS Surprise

For Synopsys, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Synopsys has an Earnings ESP of +0.35% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 26, 2026.

With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

24.8.2026 10:55

Přestože je hlavní výsledková sezóna za námi, tak tento týden nabídne řadu zajímavých reportů. Tuzemští investoři se zaměří na pololetní čísla pojišťovny VIG, zatímco celý svět bude sledovat středeční výsledky NVIDIE (po trhu). V indexu S&P 500 zveřejní tento týden výsledky celkem 18 společností. O poptávce po polovodičích napoví také čísla společnosti Marvell Technology, která minulý týden zaujala oznámením o rozšířené spolupráci s Googlem. Pod drobnohledem budou i čísla řady softwarových firem, u nichž panují obavy z dopadu AI na jejich byznys. Patří mezi ně například Salesforce, Intuit, Veeva Systems, Autodesk či Workday.

Přehled vybraných společností reportujících své výsledky v tomto týdnu (zdroj: síť X - Earnings Whispers)

Úterý (25. srpna) USA (před trhem): Dick's Sporting Goods

USA (po trhu): Intuit, Zoom Video Communications

Středa (26. srpna) ČR (před trhem): VIG

USA (před trhem): Williams-Sonoma, J. M. Smucker

USA (po trhu): NVIDIA, CrowdStrike Holdings, Salesforce, Synopsys, Agilent Technologies, Veeva Systems, Hewlett-Packard (HP), Everpure, Okta

Čtvrtek (27. srpna) USA (před trhem): Dollar General, Dollar Tree, Best Buy, Hormel Foods

USA (po trhu): Marvell Technology, Autodesk, Workday, Ulta Beauty, IREN

Jako každé čtvrtletí jsme pro vás připravili podrobný kalendář pro ČR, USA a eurozónu.

Zdroj: Bloomberg, Earnings Whispers

Michal Bárta
Fio banka, a.s.
Prohlášení

EP Wealth Advisors LLC acquired a new stake in shares of Synopsys, Inc. (NASDAQ:SNPS – Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 7,122 shares of the semiconductor company’s stock, valued at approximately $3,177,000.

Other institutional investors have also modified their holdings of the company. Sankala Group LLC purchased a new position in shares of Synopsys in the 4th quarter worth approximately $25,000. Elevation Wealth Partners LLC raised its holdings in Synopsys by 96.4% during the 2nd quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock valued at $25,000 after buying an additional 27 shares during the period. Caitong International Asset Management Co. Ltd purchased a new stake in Synopsys during the 4th quarter valued at $28,000. IMG Wealth Management Inc. bought a new stake in Synopsys in the second quarter worth $28,000. Finally, Atlas Capital Advisors Inc. bought a new stake in Synopsys in the fourth quarter worth $32,000. 85.47% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth Several research analysts have commented on the stock. Weiss Ratings reiterated a “hold (c-)” rating on shares of Synopsys in a research report on Monday, June 8th. Morgan Stanley reduced their target price on shares of Synopsys from $525.00 to $500.00 and set an “equal weight” rating on the stock in a research note on Wednesday. Bank of America raised their target price on shares of Synopsys from $515.00 to $600.00 and gave the stock a “buy” rating in a report on Thursday, May 28th. Citigroup lifted their price target on shares of Synopsys from $600.00 to $610.00 and gave the stock a “buy” rating in a research note on Thursday, May 28th. Finally, KeyCorp reiterated an “overweight” rating on shares of Synopsys in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $563.59.

Check Out Our Latest Analysis on Synopsys Insiders Place Their Bets In related news, CFO Shelagh Glaser sold 3,394 shares of the firm’s stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $450.02, for a total value of $1,527,367.88. Following the transaction, the chief financial officer owned 14,358 shares of the company’s stock, valued at $6,461,387.16. This trade represents a 19.12% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of Synopsys stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the sale, the chief executive officer owned 75,020 shares of the company’s stock, valued at $34,431,179.20. The trade was a 16.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 0.56% of the stock is currently owned by insiders.

Synopsys Price Performance SNPS opened at $397.87 on Friday. The business has a fifty day moving average of $419.73 and a 200 day moving average of $440.22. Synopsys, Inc. has a 52-week low of $366.00 and a 52-week high of $615.79. The company has a quick ratio of 1.32, a current ratio of 1.43 and a debt-to-equity ratio of 0.33. The stock has a market cap of $76.18 billion, a P/E ratio of 92.10, a PEG ratio of 2.34 and a beta of 1.23.

Synopsys (NASDAQ:SNPS – Get Free Report) last announced its quarterly earnings data on Wednesday, May 27th. The semiconductor company reported $3.35 EPS for the quarter, beating the consensus estimate of $3.15 by $0.20. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The company had revenue of $2.28 billion for the quarter, compared to the consensus estimate of $2.25 billion. During the same quarter in the prior year, the company posted $3.67 EPS. Synopsys’s quarterly revenue was up 41.9% on a year-over-year basis. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. As a group, sell-side analysts anticipate that Synopsys, Inc. will post 10.64 EPS for the current year.

About Synopsys (Free Report)

Synopsys, Inc is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) used to design, verify and manufacture integrated circuits and complex systems-on-chip (SoCs). Its product portfolio spans tools and technologies for front‑end design and synthesis, simulation and verification, physical implementation and signoff, and design-for-manufacturability, enabling chip designers to move from architecture through tape‑out.

In addition to core EDA offerings, Synopsys supplies a broad set of semiconductor IP building blocks — such as interface, memory and analog/mixed-signal cores — that customers integrate into SoCs to accelerate development.

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Advisors Capital Management LLC bought a new position in Synopsys, Inc. (NASDAQ:SNPS – Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The firm bought 9,124 shares of the semiconductor company’s stock, valued at approximately $4,070,000.

Other large investors have also recently made changes to their positions in the company. Sankala Group LLC purchased a new position in Synopsys during the 4th quarter worth $25,000. Elevation Wealth Partners LLC lifted its position in shares of Synopsys by 96.4% in the 2nd quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock worth $25,000 after purchasing an additional 27 shares during the period. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Synopsys in the 4th quarter worth approximately $28,000. IMG Wealth Management Inc. bought a new position in Synopsys in the second quarter worth approximately $28,000. Finally, Atlas Capital Advisors Inc. bought a new position in Synopsys in the fourth quarter worth approximately $32,000. 85.47% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets In other Synopsys news, CFO Shelagh Glaser sold 3,394 shares of the firm’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $450.02, for a total value of $1,527,367.88. Following the transaction, the chief financial officer owned 14,358 shares in the company, valued at approximately $6,461,387.16. This trade represents a 19.12% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of Synopsys stock in a transaction on Monday, June 15th. The stock was sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the sale, the chief executive officer directly owned 75,020 shares in the company, valued at approximately $34,431,179.20. This trade represents a 16.29% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 0.56% of the company’s stock.

Wall Street Analysts Forecast Growth Several research analysts have recently commented on SNPS shares. Zacks Research raised Synopsys from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, June 30th. BNP Paribas Exane raised their price objective on Synopsys from $425.00 to $450.00 and gave the company an “underperform” rating in a research report on Thursday, May 28th. Robert W. Baird set a $558.00 target price on Synopsys in a research note on Thursday, May 28th. Benchmark reaffirmed a “buy” rating on shares of Synopsys in a research report on Wednesday. Finally, KeyCorp reiterated an “overweight” rating on shares of Synopsys in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $563.59. Read Our Latest Report on SNPS

Synopsys Stock Down 0.0% SNPS stock opened at $397.87 on Friday. Synopsys, Inc. has a 52 week low of $366.00 and a 52 week high of $615.79. The company has a quick ratio of 1.32, a current ratio of 1.43 and a debt-to-equity ratio of 0.33. The firm has a 50-day simple moving average of $419.73 and a 200-day simple moving average of $440.22. The stock has a market capitalization of $76.18 billion, a P/E ratio of 92.10, a P/E/G ratio of 2.34 and a beta of 1.23.

Synopsys (NASDAQ:SNPS – Get Free Report) last posted its quarterly earnings data on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.15 by $0.20. The company had revenue of $2.28 billion for the quarter, compared to analysts’ expectations of $2.25 billion. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.Synopsys’s revenue was up 41.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.67 EPS. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. Equities analysts forecast that Synopsys, Inc. will post 10.65 earnings per share for the current fiscal year.

Synopsys Profile (Free Report)

Synopsys, Inc is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) used to design, verify and manufacture integrated circuits and complex systems-on-chip (SoCs). Its product portfolio spans tools and technologies for front‑end design and synthesis, simulation and verification, physical implementation and signoff, and design-for-manufacturability, enabling chip designers to move from architecture through tape‑out.

In addition to core EDA offerings, Synopsys supplies a broad set of semiconductor IP building blocks — such as interface, memory and analog/mixed-signal cores — that customers integrate into SoCs to accelerate development.

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Analysts on Wall Street project that Synopsys (SNPS - Free Report) will announce quarterly earnings of $3.67 per share in its forthcoming report, representing an increase of 8.3% year over year. Revenues are projected to reach $2.44 billion, increasing 40.3% from the same quarter last year.

The consensus EPS estimate for the quarter has undergone an upward revision of 0.6% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

With that in mind, let's delve into the average projections of some Synopsys metrics that are commonly tracked and projected by analysts on Wall Street.

The average prediction of analysts places 'Revenue- Maintenance and service' at $564.01 million. The estimate indicates a change of +70.4% from the prior-year quarter.

The collective assessment of analysts points to an estimated 'Revenue- Total products revenue' of $1.88 billion. The estimate suggests a change of +33.6% year over year.

Analysts expect 'Revenue by segment- Design IP' to come in at $487.38 million. The estimate points to a change of +14% from the year-ago quarter.

Analysts predict that the 'Revenue by segment- Design Automation' will reach $1.97 billion. The estimate points to a change of +50% from the year-ago quarter.

Based on the collective assessment of analysts, 'Revenue- Upfront products' should arrive at $598.23 million. The estimate points to a change of +15.9% from the year-ago quarter.

The consensus estimate for 'Revenue- Time-based products' stands at $1.34 billion. The estimate points to a change of +50.5% from the year-ago quarter.

View all Key Company Metrics for Synopsys here>>>

Shares of Synopsys have experienced a change of +6.5% in the past month compared to the +2.8% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), SNPS is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Allworth Financial LP bought a new position in Synopsys, Inc. (NASDAQ:SNPS – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 9,608 shares of the semiconductor company’s stock, valued at approximately $4,286,000.

Other institutional investors have also recently made changes to their positions in the company. Sankala Group LLC bought a new stake in shares of Synopsys in the fourth quarter worth $25,000. Elevation Wealth Partners LLC boosted its position in Synopsys by 96.4% in the second quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock worth $25,000 after purchasing an additional 27 shares during the last quarter. IMG Wealth Management Inc. purchased a new position in Synopsys in the second quarter worth about $28,000. Caitong International Asset Management Co. Ltd bought a new stake in shares of Synopsys during the 4th quarter valued at about $28,000. Finally, Atlas Capital Advisors Inc. bought a new stake in shares of Synopsys during the 4th quarter valued at about $32,000. Hedge funds and other institutional investors own 85.47% of the company’s stock.

Synopsys Stock Performance SNPS opened at $397.92 on Friday. The stock has a market capitalization of $76.19 billion, a price-to-earnings ratio of 92.11, a PEG ratio of 2.36 and a beta of 1.23. The company has a fifty day moving average of $420.85 and a 200 day moving average of $440.51. Synopsys, Inc. has a fifty-two week low of $366.00 and a fifty-two week high of $615.79. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.32 and a current ratio of 1.43.

Synopsys (NASDAQ:SNPS – Get Free Report) last announced its quarterly earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 EPS for the quarter, beating analysts’ consensus estimates of $3.15 by $0.20. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The company had revenue of $2.28 billion during the quarter, compared to analyst estimates of $2.25 billion. During the same period in the prior year, the company earned $3.67 earnings per share. The firm’s revenue was up 41.9% on a year-over-year basis. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. As a group, sell-side analysts forecast that Synopsys, Inc. will post 10.65 earnings per share for the current fiscal year. Insiders Place Their Bets In related news, CFO Shelagh Glaser sold 3,394 shares of the company’s stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $450.02, for a total transaction of $1,527,367.88. Following the transaction, the chief financial officer directly owned 14,358 shares in the company, valued at approximately $6,461,387.16. This represents a 19.12% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $458.96, for a total value of $6,702,192.88. Following the completion of the sale, the chief executive officer owned 75,020 shares in the company, valued at approximately $34,431,179.20. The trade was a 16.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 0.56% of the company’s stock.

Analyst Ratings Changes A number of brokerages have commented on SNPS. Benchmark reaffirmed a “buy” rating on shares of Synopsys in a report on Wednesday. Morgan Stanley dropped their price target on shares of Synopsys from $525.00 to $500.00 and set an “equal weight” rating on the stock in a research note on Wednesday. Berenberg Bank set a $633.00 price objective on shares of Synopsys in a research report on Wednesday, May 27th. BNP Paribas Exane upped their price objective on Synopsys from $425.00 to $450.00 and gave the stock an “underperform” rating in a research note on Thursday, May 28th. Finally, Citigroup raised their target price on Synopsys from $600.00 to $610.00 and gave the stock a “buy” rating in a report on Thursday, May 28th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $563.59.

Check Out Our Latest Stock Report on Synopsys

Synopsys Company Profile (Free Report)

Synopsys, Inc is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) used to design, verify and manufacture integrated circuits and complex systems-on-chip (SoCs). Its product portfolio spans tools and technologies for front‑end design and synthesis, simulation and verification, physical implementation and signoff, and design-for-manufacturability, enabling chip designers to move from architecture through tape‑out.

In addition to core EDA offerings, Synopsys supplies a broad set of semiconductor IP building blocks — such as interface, memory and analog/mixed-signal cores — that customers integrate into SoCs to accelerate development.

See Also Five stocks we like better than Synopsys 3 Energy Stocks Raising Dividends as the Sector Surges 5 Reasons the S&P 500 Could Keep Rallying Through Year-End Walmart’s Post-Earnings Drop Could Be a Buying Opportunity The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future Want to see what other hedge funds are holding SNPS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Synopsys, Inc. (NASDAQ:SNPS – Free Report).

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Buckland Partners Management Co LLC bought a new stake in shares of Synopsys, Inc. (NASDAQ: SNPS) during the undefined quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 33,000 shares of the semiconductor company's stock, valued at approximately $14,720,000. Synopsys makes up about

In the latest close session, Synopsys (SNPS - Free Report) was up +2.37% at $421.50. The stock exceeded the S&P 500, which registered a loss of 0.17% for the day. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.28%.

Coming into today, shares of the maker of software used to test and develop chips had lost 1.27% in the past month. In that same time, the Computer and Technology sector gained 4.05%, while the S&P 500 gained 3.84%.

Analysts and investors alike will be keeping a close eye on the performance of Synopsys in its upcoming earnings disclosure. The company's earnings report is set to go public on August 26, 2026. The company is forecasted to report an EPS of $3.68, showcasing a 8.55% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.44 billion, up 40.31% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $14.75 per share and a revenue of $9.69 billion, demonstrating changes of +14.25% and +37.37%, respectively, from the preceding year.

Any recent changes to analyst estimates for Synopsys should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Synopsys is holding a Zacks Rank of #2 (Buy) right now.

From a valuation perspective, Synopsys is currently exchanging hands at a Forward P/E ratio of 27.91. Its industry sports an average Forward P/E of 18.89, so one might conclude that Synopsys is trading at a premium comparatively.

Also, we should mention that SNPS has a PEG ratio of 1.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Computer - Software stocks are, on average, holding a PEG ratio of 1.6 based on yesterday's closing prices.

The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 82, this industry ranks in the top 34% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow SNPS in the coming trading sessions, be sure to utilize Zacks.com.

Key Takeaways Synopsys is embedding AI across its portfolio to automate engineering and accelerate design cycles.DSO.ai has optimized over 700 tape-outs, while VSO.ai reaches up to 90% of some SoC blocks.Synopsys cites up to 50% faster knowledge assistance and five times faster formal testbench generation. Synopsys (SNPS - Free Report) is benefiting from the large AI infrastructure expansion, which is fueling semiconductor R&D, system-level design activity and demand for advanced AI computing capabilities. The company is integrating AI throughout its product portfolio to automate engineering processes, accelerate design cycles and enhance customer productivity. This is driving solid design wins, driven by a robust product portfolio.

Synopsys is pursuing a multi-layered AI strategy. At the product level, the company has introduced XSO.ai to embed AI capabilities directly into its solutions. The second layer focuses on customer-specific AI, allowing customers to train AI models on their own workflows and develop knowledge-assistant tools tailored to their requirements. Synopsys is also advancing the use of agentic generative AI to enable more autonomous engineering workflows.

The company also offers DSO.ai and VSO.ai. DSO.ai serves as an optimization engine for chip tape-outs, while VSO.ai is being deployed more extensively across SoC blocks and verification processes. Customers have used DSO.ai to optimize more than 700 cumulative tape-outs, while VSO.ai has been deployed across as much as 90% of SoC blocks in certain chips.

Synopsys benefits from its decades of engineering expertise, proprietary software codebases and solvers, silicon-proven design technologies and strong foundry co-optimization capabilities. These advantages have enabled the company to deliver significant productivity gains, including up to 50% faster knowledge assistance, 70% faster workflow assistance and five times faster formal testbench generation for customers.

Synopsys is leveraging AI on two key fronts like accelerating and improving chip design at present while positioning itself for a broader transition toward more autonomous AI-driven workflows spanning design, verification and simulation. These capabilities should strengthen SNPS’ position as an important player in the AI semiconductor value chain over the long term.

How Competitors Fare Against SNPSSynopsys operates in a highly competitive EDA market, with major rivals, including Cadence Design Systems Inc. (CDNS - Free Report) and Keysight Technologies (KEYS - Free Report) . These companies serve different stages of the electronic and IC design lifecycle, offering specialized tools and solutions that help customers improve product development, design efficiency and testing.

Keysight Technologies competes primarily across electronic design, measurement and testing, with software and solutions covering areas such as electromagnetic analysis, circuit simulation and hardware verification. Meanwhile, Cadence Design Systems is benefiting from increasing design complexity and growing customer investments in AI-powered automation.

Cadence is also strengthening its position through its expanding Cadence.ai portfolio. New offerings, including AgentStack, ChipStack, ViraStack and InnoStack AI Super Agents, are broadening the company’s AI capabilities across the design workflow and could help Cadence maintain its momentum as AI adoption accelerates.

SNPS’ Price Performance, Valuation and EstimatesShares of SNPS have lost 12.5% year to date against the Computer - Software industry’s decline of 3.3%.

SNPS YTD Performance Chart
Image Source: Zacks Investment Research

From a valuation standpoint, SNPS trades at a forward price-to-sales ratio of 7.52X, higher than the industry’s average of 6.31X.

SNPS Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for SNPS’ fiscal 2026 earnings is pegged at $14.49, indicating 12% year-over-year growth. The estimates have remained unchanged in the past 60 days.

Image Source: Zacks Investment Research

SNPS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Synopsys (SNPS - Free Report) closed at $405.98 in the latest trading session, marking a +1.29% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.18%. At the same time, the Dow lost 0.85%, and the tech-heavy Nasdaq lost 0.06%.

Shares of the maker of software used to test and develop chips witnessed a loss of 7.75% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.48%, and the S&P 500's gain of 3.33%.

The investment community will be closely monitoring the performance of Synopsys in its forthcoming earnings report. The company is scheduled to release its earnings on August 26, 2026. The company is expected to report EPS of $3.68, up 8.55% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $2.44 billion, indicating a 40.31% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.75 per share and a revenue of $9.69 billion, representing changes of +14.25% and +37.37%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Synopsys. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Synopsys boasts a Zacks Rank of #2 (Buy).

With respect to valuation, Synopsys is currently being traded at a Forward P/E ratio of 27.17. This expresses a premium compared to the average Forward P/E of 17.12 of its industry.

One should further note that SNPS currently holds a PEG ratio of 1.7. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 1.57 at yesterday's closing price.

The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 84, this industry ranks in the top 35% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Of late, some air has come out of the semiconductor bubble, but that’s been to the benefit of the Direxion Daily Semiconductor Bear 3X Shares (SOXS). Entering July 27, the leveraged bearish ETF boasted a one-month gain of nearly 58%.

Adding to that, semiconductor weakness earlier that week pushed many of the marquee chip names lower, handing SOXS another impressive intraday performance. While recent price action suggests that SOXS is the path of least resistance for aggressive traders looking to capitalize on semiconductor headlines, the Direxion Daily Semiconductor Bull 3x Shares (SOXL) should be on traders’ watchlists as well

SOXL, one of the leading names among bullish geared chip ETFs, attempts to deliver 300% of the daily returns of the NYSE Semiconductor Index. Obviously, given the recently scintillating performance notched by the bearish SOXS, SOXL has been a rough trade. Yet, near-term gyrations aside, the semiconductor space is still backed by solid fundamentals that could support occasional use of SOXL.

SOXL Can Rebound No geared ETF should be treated as anything other than a short-term trade, particularly potent vehicles like SOXL and SOXS. However, SOXL could still offer a compelling rebound potential for tactical traders. The Semiconductor Industry Association’s (SIA) recent State of the U.S. Semiconductor Industry report highlights several key reasons why.

Among the report’s findings is that while global chip competition is intensifying, the U.S. is still leading the industry. This is pertinent to SOXL because the ETF’s index is comprised of domestic chip stocks.

“The United States continues to expand its domestic semiconductor ecosystem. Since 2020, semiconductor companies have announced more than $770 billion in private-sector investments across 160 projects in 30 states, strengthening domestic manufacturing, equipment production, materials, packaging, and research capabilities,” noted the SIA. “These investments are helping build a more resilient semiconductor supply chain, supporting high-paying American jobs, and reinforcing the nation’s economic and national security while complementing the industry’s globally interconnected supply chains.”

Semiconductors Still Essential to AI Infrastructure Experienced traders know that ETFs such as SOXL and SOXS are frequently moved by artificial intelligence (AI) headlines. That trend is likely to continue for the foreseeable future. Although recent headlines have been a drag on chip stocks of late, once the AI trade reenters the spotlight in bullish form, SOXL could regain its leadership position. The SIA suggests strong reasons to believe this shift is on the horizon.

“Every layer of AI infrastructure depends on semiconductor technologies, from logic processors and memory to analog and foundational chips,” said the SIA. “A single AI server rack contains more than 4,500 packaged semiconductors, with chips representing more than 95% of an AI server rack’s value and more than half of total AI data center capital expenditures. According to SIA and Deloitte research, government and industry are expected to invest more than $4 trillion in AI data center infrastructure globally through 2028, with up to $2.8 trillion of that investment dedicated to semiconductors.”

For more news, information, and strategy, visit the Leveraged & Inverse Content Hub.

In the latest close session, Synopsys (SNPS - Free Report) was down 2.65% at $373.65. The stock's change was less than the S&P 500's daily loss of 1.52%. Elsewhere, the Dow lost 2.19%, while the tech-heavy Nasdaq lost 1.74%.

Shares of the maker of software used to test and develop chips have depreciated by 13.96% over the course of the past month, underperforming the Computer and Technology sector's loss of 3.5%, and the S&P 500's gain of 1.92%.

The upcoming earnings release of Synopsys will be of great interest to investors. The company's earnings report is expected on August 26, 2026. The company is forecasted to report an EPS of $3.68, showcasing a 8.55% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.44 billion, up 40.31% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.75 per share and a revenue of $9.69 billion, signifying shifts of +14.25% and +37.37%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Synopsys. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Synopsys boasts a Zacks Rank of #2 (Buy).

In terms of valuation, Synopsys is currently trading at a Forward P/E ratio of 26.02. Its industry sports an average Forward P/E of 15.92, so one might conclude that Synopsys is trading at a premium comparatively.

It's also important to note that SNPS currently trades at a PEG ratio of 1.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 1.31.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SNPS over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SNPS over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.