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.
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.