Synopsys sets fiscal 2027 revenue target of $11.15B at investor day

Synopsys, Inc. (NASDAQ: SNPS) outlined its long-term financial targets and growth strategy at its 2026 Investor Day in New York on Sept. 30, projecting fiscal year 2027 revenue of between $11.1 billion and $11.2 billion, representing approximately 15% year-over-year growth at the midpoint.

The company set a non-GAAP operating margin target of approximately 44% for fiscal 2027, with a longer-term goal of reaching approximately 50% non-GAAP operating margin by fiscal year 2030. Synopsys also targets mid-teens compound annual revenue growth from fiscal 2026 through fiscal 2030.

For fiscal 2027, Synopsys guided GAAP earnings per diluted share of $8.16 to $8.61 and non-GAAP EPS of $19.04 to $19.12. The company projected operating cash flow of approximately $3.6 billion and free cash flow of approximately $3.1 billion for the year, with capital expenditures of roughly $500 million.

Synopsys also announced plans to repurchase approximately $1 billion of its shares over the coming months, subject to market conditions. The company said it intends to return up to 50% of free cash flow to shareholders via share repurchases over the long term.

At the event, Synopsys announced a partnership with OpenAI to develop GPT-Synopsys, described as a specialized model for chip design combining OpenAI's AI technology with Synopsys's electronic design automation tools. The company also disclosed a multi-year IP agreement with Amazon for custom silicon collaboration.

Synopsys said it is expanding its silicon IP business into what it calls application-optimized IP, targeting demand for custom silicon from hyperscalers and other system companies. The company said it has secured multiple customers for this new offering across compute, ASIC, and AI connectivity segments.

CFO Shelagh Glaser said the updated financial framework "reflects confidence in both our growth trajectory and our ability to scale efficiently." The information is based on a press release issued by Synopsys.

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