Synopsys Shares Rally on Strong Earnings and Ambitious 2026 Outlook
Synopsys surged in extended trading after delivering a fourth-quarter earnings beat and projecting $9.6 billion revenue by 2026. The chip design software firm posted $2.90 adjusted EPS versus $2.78 estimates, with revenue jumping 38% to $2.26 billion.
The company's bullish forecast incorporates expected contributions from its Ansys acquisition and a strategic $2 billion partnership with Nvidia. Shares initially spiked 6% before settling at a 2.5% gain, building on this year's 15% revenue growth.
Market response reflects confidence in Synopsys' positioning at the intersection of semiconductor design and AI infrastructure development. The earnings beat comes amid heightened investor scrutiny of tech firms with exposure to chip manufacturing ecosystems.
