Synopsys shares higher as earnings beat and strong 2026 outlook impress
Investing.com -- Synopsys Inc (NASDAQ: SNPS) shares jumped 7.6% in after-hours trading Wednesday after the engineering solutions provider topped Wall Street expectations for its fourth quarter and issued an upbeat earnings outlook for fiscal 2026.
The company reported fourth-quarter adjusted earnings per share of $2.90, exceeding analyst estimates of $2.78, while revenue reached $2.26 billion, slightly above the consensus forecast of $2.25 billion. Fourth-quarter revenue increased 37.8% YoY from $1.64 billion in the same period last year, with recently acquired Ansys contributing $667.7 million to the total.
For the full fiscal year 2025, Synopsys posted record revenue of $7.05 billion, representing approximately 15% growth from $6.13 billion in fiscal 2024. The company’s backlog reached a robust $11.4 billion, which management highlighted as evidence of business resilience.
"The Synopsys team delivered a solid finish to a year that redefined our company as the leader in engineering solutions from silicon to systems," said Sassine Ghazi, president and CEO of Synopsys.
Looking ahead, Synopsys provided an optimistic outlook for fiscal 2026, projecting earnings per share of $14.32 to $14.40, above the analyst consensus of $14.05. The company expects revenue between $9.56 billion and $9.66 billion, with the midpoint of $9.61 billion including approximately $2.9 billion from Ansys and reflecting the impact of roughly $110 million from divested businesses.
For the first quarter of fiscal 2026, Synopsys forecasts adjusted EPS of $3.52 to $3.58, surpassing the consensus of $3.42, on revenue between $2.37 billion and $2.42 billion.
"We expect to set another revenue record in 2026 while fully integrating Ansys, driving further operational efficiency, and capitalizing on our expanded opportunity," said CFO Shelagh Glaser.
