Synopsys (SNPS) Stock Soars After Earnings Beat and Bullish 2026 Outlook

Synopsys shares are surging after the chip design software giant posted quarterly results that smashed expectations and laid out a confident vision for 2026.

The Numbers Don't Lie

The company's earnings beat wasn't a fluke—it was a decisive statement. Revenue and profit figures came in well above what Wall Street had penciled in, sending a clear signal that demand for its electronic design automation (EDA) tools remains red-hot. The market's immediate, bullish reaction speaks volumes.

2026: The Roadmap is Clear

Management didn't just deliver a strong quarter; they painted a compelling picture for the next two years. The 2026 outlook, articulated with notable confidence, suggests Synopsys sees sustained tailwinds from the global semiconductor arms race. Every new chip design, from AI accelerators to automotive silicon, flows through their software—a position that's looking increasingly unassailable.

Why This Rally Has Legs

This isn't just a relief bounce. The combination of an earnings beat and a raised long-term guide is the one-two punch that gets fundamental analysts excited and forces short-term skeptics to reconsider. It transforms the narrative from "can they hit this quarter's numbers?" to "how high can this go?"

The Bottom Line

Synopsys just demonstrated that being the indispensable pickaxe seller in a gold rush is a fantastic business model—arguably better than being a prospector. While flashy chip stocks grab headlines, it's the foundational tools like SNPS that quietly print money, quarter after quarter. The 2026 outlook isn't a hope; it's a plan built on a backlog of innovation that the entire tech world depends on. For now, the market is buying it, literally and figuratively.

TLDR

• Synopsys reported Q4 adjusted earnings of $2.90 per share, beating analyst estimates of $2.78 per share
• Quarterly revenue jumped 37.8% year-over-year to $2.26 billion, matching Wall Street expectations
• The company projects fiscal 2026 revenue of $9.6 billion, including $2.9 billion from its Ansys acquisition
• Synopsys closed fiscal 2025 with record revenue of $7.1 billion, up 15% from the prior year
• Nvidia recently took a $2 billion stake in Synopsys as part of a partnership to develop design tools

Synopsys shares climbed in after-hours trading Wednesday following a solid quarterly earnings report that topped Wall Street expectations. The electronic design automation software provider delivered results that suggest the business remains on track despite market uncertainty.

Synopsys, Inc., SNPS

The company posted adjusted earnings of $2.90 per share for its fiscal fourth quarter. That beat the consensus estimate of $2.78 per share. Revenue came in at $2.26 billion for the quarter, up 37.8% from the same period last year. The figure matched analyst expectations of $2.25 billion.

$SNPS (Synopsys) #earnings are out: pic.twitter.com/ElYbAd5PGE

— The Earnings Correspondent (@earnings_guy) December 10, 2025

Shares initially jumped as much as 6% after the results were released. They later settled to a gain of 2.5% in extended trading. The stock closed regular trading up 2.1% at $475.83.

President and CEO Sassine Ghazi called it “a solid finish to a year that redefined our company as the leader in engineering solutions from silicon to systems.” The company logged record revenue of $7.1 billion for the full fiscal year 2025. That represents a 15% increase from the $6.1 billion reported in fiscal 2024.

The fourth quarter saw adjusted earnings decline from $3.40 per diluted share in the year-ago period. However, the year-over-year comparison was complicated by the company’s acquisition activity and business mix changes.

Looking Ahead to Fiscal 2026

CFO Shelagh Glaser highlighted the company’s backlog of $11.4 billion. She said the company expects to set another revenue record in fiscal 2026 while integrating its recent Ansys acquisition.

For the first quarter of fiscal 2026, Synopsys expects earnings of $3.41 per share on revenue of $2.4 billion. The full-year fiscal 2026 outlook calls for earnings of $14 per share on revenue of $9.6 billion at the midpoint.

The guidance includes $2.9 billion in expected revenue from Ansys. The engineering simulation software Maker contributed $667.7 million in revenue during the fourth quarter. For the full fiscal year, Ansys added $756.6 million to the top line.

The company’s projections also factor in the impact of divesting its Optical Solutions Group and PowerArtist RTL businesses. Those divestitures represent $110 million in revenue.

Partnership With Nvidia Takes Shape

Synopsys announced earlier this month that Nvidia took a $2 billion stake in the company. The investment is part of a broader arrangement where the two companies will jointly develop design tools.

Nvidia CEO Jensen Huang told CNBC the partnership WOULD “expand the market of computing into the world of design and engineering for the very first time.” The deal reflects growing interest in tools that can accelerate chip development and product design.

Mizuho analysts described the quarterly results as “better than feared.” The firm pointed to the strong backlog as a positive sign for future performance. The brokerage noted that when adjusting for divestitures, the fiscal 2026 guidance effectively met or exceeded market expectations.

Synopsys stock has declined about 2% year-to-date through Wednesday’s close. Over the past 12 months, shares are down 7.1%. The company closed the quarter with revenue of $2.26 billion and a backlog of $11.4 billion.