News Highlights

- Leading portfolio of engineering solutions positions Synopsys to capitalize on the continued expansion of digital and physical AI and the AI-driven transformation of engineering.

- Updates long-term growth targets to reflect accelerating revenue and expanding non-GAAP operating margins. Company expects fiscal year 2027 revenue growth of approximately 15% year over year to $11.15 billion at the midpoint of guidance range.

- After investing in the business, Synopsys expects to return up to 50% of free cash flow to shareholders via share repurchases; with intent to repurchase approximately $1 billion in shares over the coming months, subject to market conditions.

SUNNYVALE, Calif., Sept. 30, 2026 /PRNewswire/ -- Synopsys, Inc. (NASDAQ: SNPS) today detailed its long-term growth strategy and sustainable long-term financial model at its 2026 Investor Day in New York. Management outlined how AI is driving demand, transforming engineering, unlocking new business models and accelerating growth across the portfolio. A replay of the presentation will be available on Synopsys' investor relations website.

Synopsys President and CEO, Sassine Ghazi, said: "AI is creating multiple, reinforcing growth engines for Synopsys. The acceleration of frontier intelligence is fueling an unprecedented demand for compute power while increasing system complexity. Simultaneously, purpose-built silicon is reshaping the IP market, while Physical AI and agentic workflows are driving deeper integration of our trusted tools. Together, these forces are expanding our addressable market, increasing consumption of our technology, and creating new, recurring revenue streams."

Highlights from executive presentations include:

Silicon IP Business Expands to Serve Growing Demand for Special-purpose Silicon

Synopsys is expanding beyond traditional standards-based IP into application-optimized IP (AOIP), helping customers develop differentiated silicon tailored to specific workloads and system architectures. As AI drives demand for custom silicon across hyperscalers and system companies, Synopsys is leveraging its interface IP leadership, system expertise, and engineering scale to deliver optimized IP subsystems and platforms that accelerate time-to-market while improving performance and efficiency.

This 'Factory 2' IP model expands Synopsys' value capture per design win and increases its participation in the long-term growth of custom silicon and AI infrastructure. Demonstrating early momentum for the new IP business model, the company has secured multiple AOIP customers spanning compute, ASIC, and AI connectivity architectures. This includes an IP agreement with Amazon, which was announced today.

Powering the Next Frontier of AI-Driven Design

Ghazi today also explained the company's strategy to create and capture value in the delivery of AI-powered engineering solutions and announced a groundbreaking partnership with OpenAI to collaborate as preferred partners to develop and deliver GPT-Synopsys, a specialized model for chip design that brings together OpenAI's frontier AI with Synopsys' trusted EDA tools and chip design expertise.

Synopsys is advancing the next frontier of AI-driven design and simulation with a strategy that enables customers to adopt its agentic AI portfolio in the way that best fits their engineering environment. Customers can deploy the full Synopsys Autopilot platform, integrate Synopsys agents into their own AI platforms, or leverage frontier AI models optimized for specialized engineering workflows. Across all approaches, Synopsys provides the trusted engineering context, domain-specific agents, and ground-truth execution engines that power the development of the world's most advanced products. This flexible model expands Synopsys' opportunity to participate across the emerging AI engineering ecosystem while creating multiple avenues to monetize AI-driven engineering through a combination of subscription and consumption-based models across tools, agents and platform.

Synopsys Fiscal 2027 and Long-term Financial Outlook

Synopsys provided financial guidance for fiscal year 2027 and a comprehensive multi-year financial framework through fiscal year 2030. The company also announced its intent to repurchase approximately $1 billion of Synopsys shares over the coming months, subject to market conditions, underscoring confidence in its long-term cash generation.

Shelagh Glaser, Synopsys CFO, said, "Our updated financial framework reflects confidence in both our growth trajectory and our ability to scale efficiently while helping customers re-engineer their engineering to accelerate AI-powered products. We remain focused on disciplined execution, converting growth into expanding margins and strong free cash flow, while continuing to invest in innovation and deliver sustainable long-term value for our shareholders."

The company's updated long-term targets and fiscal year 2027 outlook are provided below:

Presentations and the webcast replay from today's Synopsys 2026 Investor Day are available at: https://investor.synopsys.com/.

Forward Looking Statements

Certain statements contained herein and in our investor conference call contain forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements concerning our anticipated financial performance, guidance, long-term financial objectives and projections; anticipated synergies and other benefits; capital allocation plans, including planned share repurchases; revenue growth objectives and the expected timing and pace of realization; operating margin expansion objectives; customer demand, market opportunities and industry trends, including the anticipated impact of artificial intelligence; products, services, technologies, business offerings and models, strategies, and anticipated product performance and customer benefits; partnerships and customer agreements; and our operating structure and growth strategy. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions or the negatives of these words or other comparable terminology to convey uncertainty of future events or outcomes. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties.

Many risks, uncertainties and other factors that could cause Synopsys' actual future events to differ materially from any future results, time frames, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: (i) macroeconomic conditions and geopolitical uncertainty in the global economy; (ii) uncertainty in the growth of the semiconductor and electronics industries; (iii) the highly competitive industry in which we operate; (iv) actions by the U.S. or foreign governments, such as the imposition of additional export restrictions or tariffs; (v) consolidation among our customers and our dependence on a relatively small number of large customers; (vi) risks and compliance obligations relating to the global nature of our operations; (vii) failure to realize the benefits expected from the transactions we complete, including the acquisition of ANSYS, Inc. ("Ansys"), or unexpected difficulties or expenditures arising therefrom; (viii) risks related to inaccuracies in, or failures to achieve, our operational and business metrics or forecasts of growth; and (ix) other risks and uncertainties described in our filings with the SEC. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.

Additional information on potential risks, uncertainties and other factors that could affect Synopsys' results is included in filings we make with the SEC from time to time, including in the sections entitled "Risk Factors" in our latest Annual Report on Form 10-K and in our latest Quarterly Report on Form 10-Q. The financial information contained in this press release should be read in conjunction with the consolidated financial statements and notes thereto included in Synopsys' most recent reports on Forms 10-K and 10-Q, each as may be amended from time to time. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond Synopsys' control, and are not guarantees of future results. Readers are cautioned not to put undue reliance on forward-looking statements, and Synopsys gives no assurances that it will achieve its expectations.

GAAP to Non-GAAP Reconciliations

This press release contains certain forward-looking financial measures that are not in accordance with the U.S. generally accepted accounting principles ("GAAP"). It also includes future estimates for non-GAAP operating margin, non-GAAP tax rate, non-GAAP interest and other income (expense), net, non-GAAP expenses, non-GAAP earnings per diluted share ("EPS"), non-GAAP EPS compound annual growth rate ("CAGR"), free cash flow ("FCF") and FCF CAGR.