Synopsys, Inc.: EDA acceleration tied to advanced packaging, AI complexity, and hardware-assisted verification

Synopsys, Inc. 2026 Q3: Financial Performance summary

• Design Automation segment revenue was approximately $2.0 billion, with non-GAAP Design Automation adjusted operating margin of 45.2%.
• Design IP segment revenue was $474 million, up approximately 11% year-over-year, with adjusted operating margin of 26.5%.
• Free cash flow was $746 million in Q3; cash and short-term investments were $3.6 billion and total debt was approximately $10 billion.
• GAAP costs and expenses were $2.119 billion; GAAP EPS was $2.84, including a gain tied to the sale of the processor IP solutions business closed in Q3.
• Non-GAAP costs and expenses were $1.446 billion (lower end of guided range), reflecting improved operational efficiency and ahead-of-schedule Ansys cost synergies.
• Non-GAAP operating margin was 41.6% and non-GAAP EPS was $3.91, both exceeding the high end of guidance.
• Q3 revenue was $2.477 billion, up approximately 42% year-over-year, with Ansys revenue of approximately $711 million.