Synopsys Surpasses Guidance on Revenue and Operating Margin as AI-Driven Demand Continues to Scale
San Jose, CA - May 27th, 2026 - Synopsys, a leading engineering solutions provider, announced today that the company exceeded guidance on revenue, non-GAAP operating margin, and non-GAAP earnings per share (EPS) for the second quarter fiscal year 2026. The strong performance was driven by solid execution and continued AI-driven demand strength.
In his prepared remarks, Synopsys' President and CEO, Sassine Ghazi, emphasized that this is an exceptional moment to be the leading engineering solutions provider, citing EDA (Electronic Design Automation), IP (Intellectual Property), and multiphysics simulation as essential capabilities in the AI supply chain. Ghazi noted that AI is scaling semiconductor demand, architectural diversity, and complexity of both chips and the systems they power, driving increased demand across Synopsys' portfolio.
According to Ghazi, Synopsys is uniquely positioned to capture this opportunity, with its recent Synopsys Converge event showcasing the depth of the company's expanded portfolio and the strength of its roadmap. He also highlighted the global team's continued strong execution on the Synopsys-Ansys integration, disciplined focus on higher-value IP opportunities, and engineering excellence to advance the differentiated innovation pipeline with agentic AI and Multiphysics Fusion technology.
In terms of segment highlights, Design automation delivered a strong quarter, reflecting robust AI-driven design activity and sustained demand for advanced node and 3D IC solutions where Synopsys EDA leads. Hardware-assisted verification remained a key growth driver, with particular demand from hyperscaler and leading semiconductor customers who are scaling emulation and prototyping for increasingly complex AI designs.
EDesign automation delivered a strong quarter, reflecting robust AI-driven design activity and sustained demand for advanced node and 3D IC solutions where Synopsys EDA leads. Hardware-assisted verification remained a key growth driver, with particular demand from hyperscaler and leading semiconductor customers who are scaling emulation and prototyping for increasingly complex AI designs.
The company's leadership in 3D IC is translating into production scale adoption, with a leading HPC provider successfully taped out an incredibly complex next-generation AI accelerator using Synopsys' unified multiphysics aware Design to Sign-Off solution. This demonstrates the production-proven capability of their 3DIC Compiler platform.
As a result of this momentum, leadership roadmap, and market signals, Synopsys is raising its full year 2026 revenue, operating margin, EPS, and free cash flow guidance. The company's investor day on September 30th, 2026, will provide further details on the strategy to increase value capture and expand margins.
