Synopsys Inc (NASDAQ:SNPS, XETRA:SYP) reported fiscal second quarter results above Wall Street expectations, with adjusted earnings and revenue both exceeding forecasts and the company lifting its full-year guidance.
Adjusted earnings per share came in at $3.35, topping consensus estimates of $3.15, while revenue rose 41.9% year-over-year to $2.28 billion, above the expected $2.25 billion.
For the full fiscal 2026 year, Synopsys raised its revenue outlook to a range of $9.63 billion to $9.71 billion and increased its non-GAAP earnings per share guidance to $14.72 to $14.80.
Management attributed the broader performance to strength across the business and ongoing integration benefits from Ansys.
"Synopsys delivered a strong second quarter with solid execution and strength across the business," Synopsys CEO Sassine Ghazi said in a statement.
"Our momentum, leadership roadmap, and deep customer engagements are a strong foundation for sustained growth and margin expansion as we solve our customers' toughest engineering challenges."
Despite the beat-and-raise results, investors focused on weakness in the company’s high-margin Design IP segment, which fell 6% year-over-year to $454 million, sending shares of Synopsys down more than 7% to about $486.