Synopsys Beats Estimates for Four Consecutive Quarters, Signaling Successful Ansys Acquisition Integration
Synopsys has exceeded earnings estimates in four consecutive quarters following the completion of its $35 billion acquisition of Ansys. The integration appears to be working well as Synopsys reported Q3 FY2026 revenue of $2.477 billion, a 42% year-over-year increase. Free cash flow (FCF) guidance for FY2026 was raised to approximately $2.6 billion, with actual FCF in the quarter coming in 207% above analyst projections. The company's non-GAAP operating margin remained stable at 41.5%, indicating strong operational efficiency despite rapid revenue growth. CEO Sassine Ghazi highlighted broad-based strength led by its EDA (electronic design automation) business, which is expected to deliver double-digit organic growth in Q4 and for the full fiscal year. Synopsys raised full-year revenue guidance to $9.69–$9.74 billion with non-GAAP EPS of $15.04–$15.10. The stock rose 13.39% on earnings day, marking a significant turnaround from the 35.84% drop in Q3 FY2025 when it missed estimates.
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Topics: acquisition integration eda software fcf performance semiconductor