Design Automation (EDA software)
Revenue rose 53% in Q3 fiscal 2026, and management expects double-digit EDA growth for the year.
The numbers
What it is
Synopsys' core EDA tools cover the chip design flow from synthesis and place-and-route to verification and sign-off. Customers include the largest semiconductor and systems companies. Demand is rising as AI chips become more complex and design teams need faster verification.↗ source
Why it matters to the stock. This is the larger and faster-growing part of the business and the main reason the full-year outlook was raised in August 2026.
News
Synopsys sets FY2030 targets of mid-teens growth and about 50% operating margin, with $1B buyback
Synopsys set multi-year targets through fiscal 2030 of mid-teens revenue growth and an operating margin of about 50%.
Synopsys raises FY2026 revenue and EPS guidance and sets Q4 outlook
Synopsys raised its fiscal 2026 outlook to revenue of $9.690 billion to $9.740 billion and non-GAAP EPS of $15.04 to $15.10, up from the May range of $9.625 billion to $9.705 billion and $14.72 to $14.80.
Synopsys certifies AI-powered EDA flows for Intel 14A process
Synopsys said it certified its AI-powered digital and analog EDA flows for Intel's 14A process, extending existing 18A and 18A-P work.
Synopsys makes first Multiphysics Fusion solutions available to customers
Synopsys made the first wave of its Multiphysics Fusion solutions available for customer deployment.
Synopsys brings AI-driven flows for Samsung 2nm and multi-die designs
At SAFE Forum 2026, Synopsys said its AI-powered digital and analog flows are production-ready for Samsung Foundry's third-generation 2nm-class process.
Synopsys Q2 FY2026: revenue $2.28 billion and raised guidance, shares fall
Synopsys reported second-quarter fiscal 2026 revenue of $2.276 billion, up 42% from $1.604 billion, and non-GAAP EPS of $3.35.
Synopsys and TSMC announce silicon-proven IP milestones and A14 design flow work
Synopsys announced TSMC-related milestones across its IP and EDA portfolio, including the first silicon bring-up of M-PHY v6.0 IP on TSMC N2P and a 64G UCIe IP tape-out.
Synopsys supplies full-stack chip design tools for Arm's AGI CPU
Synopsys said it worked with Arm on the AGI CPU, a data-center processor built on Arm Neoverse CSS V3, to tune its power, performance and efficiency.
Synopsys board approves up to $2.0 billion stock buyback replenishment
With its first-quarter fiscal 2026 results, Synopsys said its board replenished the stock repurchase program with authority to buy up to $2.0 billion of common stock.