What was Synopsys' revenue in Q2 2026?

Synopsys reported revenue of $1.5 billion in Q2 2026, up 15% year-over-year.

Why did Synopsys stock fall despite strong earnings?

The stock fell due to investor concerns about the Ansys acquisition and its potential impact on valuation and debt.

What is Synopsys' guidance for fiscal 2026?

Synopsys raised its revenue guidance to $6.2-$6.3 billion and EPS guidance to $9.80-$10.00.

How did AI impact Synopsys' results?

AI drove higher demand for chip design tools, boosting revenue growth.

Synopsys Beats Q2 Estimates, Raises Guidance Despite Stock Slump

Synopsys (SNPS) reported Q2 2026 results that beat analyst estimates for both earnings and revenue. The company also raised its full-year guidance. However, the stock was the worst performer in the S&P 500 on Thursday amid merger-related concerns.

Synopsys (SNPS) reported fiscal second-quarter 2026 results that exceeded analyst expectations for revenue and earnings. Revenue came in at $1.5 billion, up 15% year-over-year, while earnings per share (EPS) reached $2.45, beating the consensus of $2.30. Despite the strong numbers, the stock fell 3% on Thursday, making it the worst performer in the S&P 500, as investors focused on the pending acquisition of Ansys.

Key Financial Results

Metric	Q2 2026	Consensus	YoY Change
Revenue	$1.5B	$1.45B	+15%
EPS	$2.45	$2.30	+20%
Net Income	$380M	$350M	+18%

Highlights from the Report

Strong demand for AI-driven chip design tools boosted revenue.
Progress on the Ansys acquisition, expected to close later this year.
Improved operating margins due to cost efficiencies.

Forward Guidance

Synopsys raised its full-year fiscal 2026 guidance:

Revenue: $6.2 - $6.3 billion (up from $6.1 billion).
EPS: $9.80 - $10.00 (up from $9.50).

Impact on Stock

Despite the beat, SNPS shares declined 3% on Thursday, reflecting investor concerns about the terms of the Ansys deal and potential dilution. The stock was the worst performer in the S&P 500 that day.

What This Means for Investors

The strong quarterly results underscore Synopsys' solid fundamentals, particularly in AI. However, the market's reaction highlights uncertainty around the Ansys acquisition. Investors should monitor regulatory updates and the deal's impact on debt and cash flow.