Synopsys, Inc.

(NASDAQ Global Select)
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Somewhat Bullish +35

Synopsys sets 2027 targets: Synopsys stock falls 1.70 percent

Acquisition Financial outlook AI-generated analysis

πŸ“ˆ Synopsys set fiscal 2027 revenue guidance at USD 11.10 billion to USD 11.20 billion, implying roughly 15% growth.

🎯 The company targets a non-GAAP operating margin of 44% for fiscal 2027 and 50% by fiscal 2030.

πŸ’° Synopsys plans approximately USD 1.00 billion in share repurchases subject to market conditions.

πŸ“Š Fiscal third-quarter revenue reached USD 2.477 billion, up 42.40% year over year including Ansys.

⚠️ Management cites export restrictions and dependence on large customers as material uncertainties.

πŸ”„ The 42.40% Q3 growth includes a full quarter of Ansys versus a partial contribution a year prior.

πŸ“‰ Stock fell 1.70% to EUR 405.00 despite the positive guidance and recent earnings beat.

πŸ—“οΈ The next earnings release is expected on December 9, 2026, covering fiscal fourth-quarter results.

🀝 Synopsys recently added an Amazon IP agreement and an OpenAI partnership to its growth plan.

πŸ’Ό Market capitalization stands at USD 87.1 billion with a 52-week range of USD 362.55 to USD 539.48.

Bullish Signals
  • Synopsys set fiscal 2027 revenue guidance at USD 11.10 billion to USD 11.20 billion, implying approximately 15% growth.
  • The company targets a non-GAAP operating margin of 44% for fiscal 2027 and 50% by fiscal 2030.
  • Fiscal third-quarter revenue reached USD 2.477 billion, representing a 42.40% year-over-year increase.
  • Synopsys plans to execute approximately USD 1.00 billion in share repurchases subject to market conditions.
  • The company recently added an Amazon IP agreement and an OpenAI partnership to its growth plan.
Risk Factors
  • Management identified export restrictions as a material uncertainty impacting future operations.
  • Dependence on a relatively small number of large customers is flagged as a material risk.
  • Execution risks from the Ansys acquisition are explicitly listed as a material uncertainty.
  • The 42.40% Q3 revenue growth includes a full quarter of Ansys against a partial contribution a year earlier, making the comparison less clean.
  • Synopsys stock fell 1.70% to EUR 405.00 on October 20, 2026, despite the positive guidance.
Full Analysis
Synopsys Inc. provided updated fiscal 2027 revenue guidance ranging from USD 11.10 billion to USD 11.20 billion, with a midpoint of USD 11.15 billion representing approximately 15% growth. This outlook was presented during the company's Investor Day on September 30, 2026, establishing a clear benchmark for future performance expectations. The company also outlined aggressive margin targets, aiming for a non-GAAP operating margin of 44% in fiscal 2027 and expanding that to 50% by fiscal 2030. Additionally, Synopsys plans to execute approximately USD 1.00 billion in share repurchases, subject to prevailing market conditions, signaling confidence in its capital allocation strategy. Recent financial performance showed strong momentum with fiscal third-quarter revenue reaching USD 2.477 billion, a 42.40% year-over-year increase driven by the full quarter contribution from the Ansys acquisition. However, management noted that this growth rate is less comparable to prior periods due to the partial contribution of Ansys in the same quarter last year. Despite the positive guidance and recent earnings beat, Synopsys stock fell 1.70% to EUR 405.00 on October 20, 2026. The company explicitly identified material uncertainties including export restrictions, concentration risk among a small number of large customers, and execution risks associated with integrating the Ansys acquisition.