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Synopsys 8-K Report, Financial Results (Aug 26, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed August 26, 2026
Period End
August 26, 2026
Security
SNPS
In the record · 2016–202610-K1010-Q338-K142

SNPS filed 10 annual reports (10-K), 33 quarterly reports (10-Q) and 142 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Nov ’16Nov ’16
  2. Leadership change8-K · Apr ’20Apr ’20
  3. Leadership change8-K · May ’22May ’22
  4. Restructuring8-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 8-K filed August 26, 2026. Cited figures are marked; the original filing is the authoritative source.

Synopsys (SNPS) reported third fiscal quarter 2026 results (quarter ended July 31, 2026) with revenue of $2.477 billiona, up roughly 42% from $1.740 billion a year earlier, driven by the Ansys acquisition and strength in Design Automation.

GAAP diluted EPS was $2.84b versus $1.50 a year ago, while non-GAAP diluted EPS was $3.91 versus $3.39. Management attributed the beat to broad-based strength led by EDA, a strong Ansys contribution, and a return to year-over-year growth in Design IP. Design Automation revenue rose to $2.003 billion (about 81% of total) with a 45.2% adjusted operating margin, while Design IP grew to $473.8 million, though its adjusted margin expanded to 26.5% from 20.1%.

Management raised full-year fiscal 2026 guidance: revenue of $9.69c–9.74 billion, non-GAAP EPS of $15.04–15.10, operating cash flow of about $2.8 billion, and free cash flow of about $2.6 billion. Fourth-quarter guidance calls for revenue of $2.53–2.58 billion and non-GAAP EPS of $4.10–4.16. Guidance assumes no further changes to export controls or the Entity List restrictions.

Investors should note that GAAP results are heavily affected by large non-cash amortization of acquired intangibles ($402 milliond in the quarter) and that the company has changed its non-GAAP tax methodology to a normalized 18% rate. Balance sheet activity was significant: long-term debt fell to $9.02 billion from $13.46 billion at fiscal year-end 2025, short-term debt rose to $1.02 billion, and cash and short-term investments reached $3.61 billion.

The company also cited a $2.0 billion common stock issuance for a private placement and $300 million of treasury stock repurchases during the nine months. Final third-quarter financials will be filed in the Form 10-Q on or before September 9, 2026.

02—Key points

Key Highlights

  1. Q3 FY2026 revenue of $2.477B, up about 42% year over year from $1.740B, reflecting the Ansys acquisition and Design Automation strength
  2. GAAP diluted EPS of $2.84 (vs. $1.50) and non-GAAP diluted EPS of $3.91 (vs. $3.39), above the high end of prior guidance
  3. Full-year FY2026 guidance raised: revenue $9.69–9.74B, non-GAAP EPS $15.04–15.10, free cash flow about $2.6B
  4. Design Automation revenue of $2.003B with a 45.2% adjusted operating margin; Design IP returned to year-over-year growth at $473.8M
  5. Q4 FY2026 guidance of $2.53–2.58B revenue and $4.10–4.16 non-GAAP EPS, assuming no further export control or Entity List changes
  6. Long-term debt reduced to $9.02B from $13.46B at fiscal year-end 2025, with cash and short-term investments of $3.61B
  7. Non-GAAP tax rate moved to a three-year normalized 18% rate, and amortization of acquired intangibles ($402M in Q3) remains a major GAAP drag

03—Questions

Frequently Asked Questions

  1. Why is GAAP EPS so much lower than non-GAAP EPS?

    The gap is mainly due to non-cash items management excludes from non-GAAP results. In Q3 FY2026, amortization of acquired intangible assets was $402 million (about $2.09 per share) and stock-based compensation was $232 million (about $1.20 per share). Acquisition and divestiture items partly offset this, with a $402.6 million benefit in the quarter.

  2. What drove the year-over-year revenue increase?

    The increase was driven primarily by the Ansys acquisition, which closed in the third quarter of fiscal 2025, and by Design Automation growth. Design Automation revenue rose from $1.31B to $2.00B, while Design IP grew from $427.6M to $473.8M. Maintenance and service revenue more than doubled to $809M, reflecting the acquisition.

  3. How has the company's debt position changed?

    Long-term debt declined to $9.02B at July 31, 2026, from $13.46B at October 31, 2025, after $3.46B of debt repayments in the nine months. Short-term debt increased to $1.02B. The company also raised $2.0B through a common stock private placement during the period.

  4. What risks could affect the guidance?

    Guidance assumes no further changes to U.S. export control restrictions or the Entity List. Other risks cited include macroeconomic and geopolitical conditions, customer concentration, tariffs, and the success of Ansys integration and expected synergies. Q4 restructuring charges are expected to be $145–175 million, which could affect results if they run higher.

04—Continue

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