Synopsys reported fiscal Q2 2026 revenue of $2.276 billion, up from $1.604 billion a year earlier, as AI infrastructure demand continued to expand semiconductor design complexity, verification requirements, and system-level engineering workloads. The company said revenue exceeded prior guidance, while non-GAAP EPS reached $3.35.
The results show how AI infrastructure growth now extends beyond GPUs and accelerators into the electronic design automation, verification, IP, and multi-physics simulation layers required to build advanced chips and systems. Synopsys said AI is increasing demand for architectural diversity and more complex silicon-to-systems design flows. Its Design Automation segment generated $1.822 billion, or 80% of quarterly revenue, while Design IP contributed $454.2 million.
Synopsys raised its fiscal 2026 revenue outlook to a midpoint of $9.665 billion and lifted non-GAAP EPS guidance to a midpoint of $14.76. The updated outlook includes $2.96 billion of expected Ansys revenue, a $60 million Ansys channel-related accounting impact, and reductions tied to divestitures, including the planned sale of the Processor IP Solutions business. The company also plans to hold an Investor Day on September 30, 2026.
- Q2 FY2026 revenue: $2.276 billion, up 41.9% year over year
- GAAP EPS: $0.09, compared with $2.24 a year earlier
- Non-GAAP EPS: $3.35, compared with $3.67 a year earlier
- Design Automation revenue: $1.822 billion, 80% of total revenue
- Design IP revenue: $454.2 million, 20% of total revenue
- FY2026 revenue guidance midpoint: $9.665 billion
- FY2026 non-GAAP EPS guidance midpoint: $14.76
- FY2026 expected free cash flow: approximately $2.0 billion
“AI is scaling semiconductor demand, architectural diversity and complexity of chips and the systems they power – driving demand across our portfolio. 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,” said Sassine Ghazi, Synopsys president and CEO.
🌐 Analysis: Synopsys’ results underline a broader AI infrastructure trend: value is shifting toward the design stack required to support larger chips, chiplets, advanced packaging, high-speed interconnects, and system-level optimization. The Ansys integration also positions Synopsys to address workloads that increasingly span silicon, power, thermals, signal integrity, and full-system simulation as AI platforms move from individual accelerators to rack-scale infrastructure.
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