{"success":true,"data":{"pressRelease":{"id":"157251","rtpr_id":"nPn3HvNVxa-20260930","ticker":"SNPS","exchange":"NASDAQ","all_tickers":["SNPS"],"title":"Synopsys Details Growth Strategy and Long-term Financial Model at 2026 Investor Day","author":"PR Newswire","published_at":"2026-09-30T20:05:00.656Z","article_body":"Synopsys Details Growth Strategy and Long-term Financial Model at 2026 Investor Day\nPR Newswire\n\nSUNNYVALE, Calif., Sept. 30, 2026\n\nNews Highlights\n\n * Leading portfolio of engineering solutions positions Synopsys to capitalize on\nthe continued expansion of digital and physical AI and the AI-driven\ntransformation of engineering.\n * Updates long-term growth targets to reflect accelerating revenue and expanding\nnon-GAAP operating margins. Company expects fiscal year 2027 revenue growth of\napproximately 15% year over year to $11.15 billion at the midpoint of guidance\nrange.\n * After investing in the business, Synopsys expects to return up to 50% of free\ncash flow to shareholders via share repurchases; with intent to repurchase\napproximately $1 billion in shares over the coming months, subject to market\nconditions.\nSUNNYVALE, Calif., Sept. 30, 2026 /PRNewswire/ -- Synopsys\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786195-1&h=1756987550&u=https%3A%2F%2Fwww.synopsys.com%2F&a=Synopsys)\n, Inc. (NASDAQ: SNPS) today detailed its long-term growth strategy and\nsustainable long-term financial model at its 2026 Investor Day in New York.\nManagement outlined how AI is driving demand, transforming engineering,\nunlocking new business models and accelerating growth across the portfolio. A\nreplay of the presentation will be available on Synopsys' investor relations\nwebsite\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786195-1&h=3726342481&u=https%3A%2F%2Finvestor.synopsys.com%2Foverview%2Fdefault.aspx&a=investor+relations+website)\n.\n\nSynopsys President and CEO, Sassine Ghazi, said: \"AI is creating multiple,\nreinforcing growth engines for Synopsys. The acceleration of frontier\nintelligence is fueling an unprecedented demand for compute power while\nincreasing system complexity. Simultaneously, purpose-built silicon is\nreshaping the IP market, while Physical AI and agentic workflows are driving\ndeeper integration of our trusted tools. Together, these forces are expanding\nour addressable market, increasing consumption of our technology, and creating\nnew, recurring revenue streams.\"\n\nHighlights from executive presentations include:\n\nSilicon IP Business Expands to Serve Growing Demand for Special-purpose\nSilicon\n\nSynopsys is expanding beyond traditional standards-based IP into\napplication-optimized IP (AOIP), helping customers develop differentiated\nsilicon tailored to specific workloads and system architectures. As AI drives\ndemand for custom silicon across hyperscalers and system companies, Synopsys\nis leveraging its interface IP leadership, system expertise, and engineering\nscale to deliver optimized IP subsystems and platforms that accelerate\ntime-to-market while improving performance and efficiency.\n\nThis 'Factory 2' IP model expands Synopsys' value capture per design win and\nincreases its participation in the long-term growth of custom silicon and AI\ninfrastructure. Demonstrating early momentum for the new IP business model,\nthe company has secured multiple AOIP customers spanning compute, ASIC, and AI\nconnectivity architectures. This includes an IP agreement with Amazon\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786195-1&h=3345898978&u=https%3A%2F%2Fnews.synopsys.com%2F2026-09-30-Synopsys-and-Amazon-Announce-Strategic%2C-Multi-year-IP-Agreement-for-Custom-Silicon-Collaboration-Also-Extends-to-Cloud-and-AI-Powered-Engineering&a=IP+agreement+with+Amazon)\n, which was announced today.\n\nPowering the Next Frontier of AI-Driven Design\n\nGhazi today also explained the company's strategy to create and capture value\nin the delivery of AI-powered engineering solutions and announced a\ngroundbreaking partnership with OpenAI\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786195-1&h=36703792&u=https%3A%2F%2Fnews.synopsys.com%2F2026-09-30-OpenAI-and-Synopsys-Announce-GPT-Synopsys-Frontier-Intelligence-to-Revolutionize-Chip-Design&a=partnership+with+OpenAI)\n to collaborate as preferred partners to develop and deliver GPT-Synopsys, a\nspecialized model for chip design that brings together OpenAI's frontier AI\nwith Synopsys' trusted EDA tools and chip design expertise.\n\nSynopsys is advancing the next frontier of AI-driven design and simulation\nwith a strategy that enables customers to adopt its agentic AI portfolio in\nthe way that best fits their engineering environment. Customers can deploy the\nfull Synopsys Autopilot platform, integrate Synopsys agents into their own AI\nplatforms, or leverage frontier AI models optimized for specialized\nengineering workflows. Across all approaches, Synopsys provides the trusted\nengineering context, domain-specific agents, and ground-truth execution\nengines that power the development of the world's most advanced products. This\nflexible model expands Synopsys' opportunity to participate across the\nemerging AI engineering ecosystem while creating multiple avenues to monetize\nAI-driven engineering through a combination of subscription and\nconsumption-based models across tools, agents and platform.\n\nSynopsys Fiscal 2027 and Long-term Financial Outlook\n\nSynopsys provided financial guidance for fiscal year 2027 and a comprehensive\nmulti-year financial framework through fiscal year 2030. The company also\nannounced its intent to repurchase approximately $1 billion of Synopsys shares\nover the coming months, subject to market conditions, underscoring confidence\nin its long-term cash generation.\n\nShelagh Glaser, Synopsys CFO, said, \"Our updated financial framework reflects\nconfidence in both our growth trajectory and our ability to scale efficiently\nwhile helping customers re-engineer their engineering to accelerate AI-powered\nproducts. We remain focused on disciplined execution, converting growth into\nexpanding margins and strong free cash flow, while continuing to invest in\ninnovation and deliver sustainable long-term value for our shareholders.\"\n\nThe company's updated long-term targets and fiscal year 2027 outlook are\nprovided below:\n Our long-term, FY26E - FY30E objectives ((1))\n\n Revenue                               Operating Margin                      Free Cash Flow ((2))\n Company( (2))                         Long-term non-GAAP                    Free Cash Flow Growth\n Mid-Teens growth ~15%                 FY30E operating margin ~50%           in the Mid 20%'s\n\n Design Automation ((2))               Earnings( (2))                        Capital Return((3))\n EDA: Mid-Teens: 13%+                  Non-GAAP EPS growth                   Up to 50%\n S&A: Double-Digit: 10%+               in the Mid 20%s                       of Free Cash Flow\n Design IP( (2))                                                             via share repurchases\n High-Teens: 17%+\n\n (1) These multi-year objectives are provided as of September 30, 2026. See\n below for additional information regarding these forward-looking non-GAAP\n measures, including reconciliations to the most comparable GAAP measures to\n the extent available without unreasonable efforts\n (2) FY26E - FY30E Growth CAGR\n (3) Capital allocation objectives are based on current business outlook and\n may vary based on market conditions, strategic opportunities, and balance\n sheet priorities\n\n \n Full Fiscal Year 2027 Financial Targets\n (in millions, except per share amounts)\n\n                                                      Range for Fiscal Year Ending\n                                                      October 31, 2027\n                                                      Low              High\n Revenue                                              $11,100          $11,200\n GAAP Expenses                                        $8,765           $8,905\n Non-GAAP Expenses                                    $6,215           $6,275\n Non-GAAP Interest and Other Income (Expense), net    ($465)           ($455)\n Non-GAAP Tax Rate                                    18 %             18 %\n Outstanding Shares (fully diluted)                   190              192\n GAAP Operating Margin                                Midpt: ~20.7%\n Non-GAAP Operating Margin                            Midpt: ~44.0%\n GAAP EPS                                             $8.16            $8.61\n Non-GAAP EPS                                         $19.04           $19.12\n Operating Cash Flow                                  ~$3,600\n Free Cash Flow ((1))                                 ~$3,100\n Capital Expenditures                                 ~$500\n\n (1) Free cash flow is calculated as cash provided from operating activities\n less capital expenditures\n\n \n GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2027 Targets\n (in thousands, except per share data)\n                                                                           Range for Fiscal Year\n                                                                           Ending October 31, 2027\n                                                                           Low                                         High\n Target GAAP expenses                                                      $     8,765,000                             $     8,905,000\n Adjustments:\n       Amortization of acquired intangible assets                          (1,540,000)                                 (1,550,000)\n       Stock-based compensation                                            (960,000)                                   (980,000)\n       Restructuring charges                                               (50,000)                                    (100,000)\n Target non-GAAP expenses                                                  $     6,215,000                             $     6,275,000\n\n                                                                           Range for Fiscal Year\n                                                                           Ending October 31, 2027\n                                                                           Low                                         High\n Target GAAP earnings per diluted share attributed to Synopsys             $              8.16                         $              8.61\n Adjustments:\n      Amortization of acquired intangible assets                           $              8.12                         $              8.06\n      Stock-based compensation                                             $              5.13                         $              5.03\n      Restructuring charges                                                $              0.52                         $              0.26\n      Tax adjustments and settlement                                       $            (2.89)                         $            (2.84)\n Target non-GAAP earnings per diluted share attributed to Synopsys         $            19.04                          $            19.12\n\n Shares used in non-GAAP calculation (midpoint of target range)            191,000                                     191,000\n\n \n GAAP to Non-GAAP Reconciliation of Operating Margin at Midpoint of Full Fiscal\n Year 2027 Targets\n\n                                                        Twelve Months Ending\n                                                        October 31, 2027\n At midpoint of revenue and expense guidance ranges\n GAAP operating margin                                  20.7 %\n       Amortization of acquired intangible assets       13.9 %\n       Stock-based compensation                         8.7 %\n       Restructuring charges                            0.7 %\n Target non-GAAP operating margin                       44.0 %\n\nPresentations and the webcast replay from today's Synopsys 2026 Investor Day\nare available at: https://investor.synopsys.com/\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786195-1&h=220326496&u=https%3A%2F%2Finvestor.synopsys.com%2Foverview%2Fdefault.aspx&a=https%3A%2F%2Finvestor.synopsys.com%2F)\n.\n\nForward Looking Statements\n\nCertain statements contained herein and in our investor conference call\ncontain forward-looking statements within the meaning of the federal\nsecurities laws, including, but not limited to, statements concerning our\nanticipated financial performance, guidance, long-term financial objectives\nand projections; anticipated synergies and other benefits; capital allocation\nplans, including planned share repurchases; revenue growth objectives and the\nexpected timing and pace of realization; operating margin expansion\nobjectives; customer demand, market opportunities and industry trends,\nincluding the anticipated impact of artificial intelligence; products,\nservices, technologies, business offerings and models, strategies, and\nanticipated product performance and customer benefits; partnerships and\ncustomer agreements; and our operating structure and growth strategy. These\nforward-looking statements generally are identified by the words \"believe,\"\n\"project,\" \"expect,\" \"anticipate,\" \"estimate,\" \"intend,\" \"strategy,\" \"future,\"\n\"opportunity,\" \"plan,\" \"may,\" \"should,\" \"will,\" \"would,\" \"will be,\" \"will\ncontinue,\" \"will likely result,\" and similar expressions or the negatives of\nthese words or other comparable terminology to convey uncertainty of future\nevents or outcomes. Forward-looking statements are predictions, projections\nand other statements about future events that are based on current\nexpectations and assumptions and, as a result, are subject to risks and\nuncertainties.\n\nMany risks, uncertainties and other factors that could cause Synopsys' actual\nfuture events to differ materially from any future results, time frames,\nperformance or achievements expressed or implied by the forward-looking\nstatements, including, but not limited to: (i) macroeconomic conditions and\ngeopolitical uncertainty in the global economy; (ii) uncertainty in the growth\nof the semiconductor and electronics industries; (iii) the highly competitive\nindustry in which we operate; (iv) actions by the U.S. or foreign governments,\nsuch as the imposition of additional export restrictions or tariffs; (v)\nconsolidation among our customers and our dependence on a relatively small\nnumber of large customers; (vi) risks and compliance obligations relating to\nthe global nature of our operations; (vii) failure to realize the benefits\nexpected from the transactions we complete, including the acquisition of\nANSYS, Inc. (\"Ansys\"), or unexpected difficulties or expenditures arising\ntherefrom; (viii) risks related to inaccuracies in, or failures to achieve,\nour operational and business metrics or forecasts of growth; and (ix) other\nrisks and uncertainties described in our filings with the SEC. Unlisted\nfactors may present significant additional obstacles to the realization of\nforward-looking statements.\n\nAdditional information on potential risks, uncertainties and other factors\nthat could affect Synopsys' results is included in filings we make with the\nSEC from time to time, including in the sections entitled \"Risk Factors\" in\nour latest Annual Report on Form 10-K and in our latest Quarterly Report on\nForm 10-Q. The financial information contained in this press release should be\nread in conjunction with the consolidated financial statements and notes\nthereto included in Synopsys' most recent reports on Forms 10-K and 10-Q, each\nas may be amended from time to time. All forward-looking statements by their\nnature address matters that involve risks and uncertainties, many of which are\nbeyond Synopsys' control, and are not guarantees of future results. Readers\nare cautioned not to put undue reliance on forward-looking statements, and\nSynopsys gives no assurances that it will achieve its expectations.\n\nGAAP to Non-GAAP Reconciliations\n\nThis press release contains certain forward-looking financial measures that\nare not in accordance with the U.S. generally accepted accounting principles\n(\"GAAP\"). It also includes future estimates for non-GAAP operating margin,\nnon-GAAP tax rate, non-GAAP interest and other income (expense), net, non-GAAP\nexpenses, non-GAAP earnings per diluted share (\"EPS\"), non-GAAP EPS compound\nannual growth rate (\"CAGR\"), free cash flow (\"FCF\") and FCF CAGR.\n\n * FCF is calculated as cash provided from operating activities less capital\nexpenditures\n * FCF CAGR is calculated as the average annual growth rate of FCF over a period\nof time\n * Non-GAAP EPS is calculated as GAAP net income excluding amortization of\nacquired intangible assets, stock-based compensation, restructuring charges,\nacquisition/divestiture-related items, loss on sale of strategic investments,\nand legal matters, adjusted for the difference between GAAP and non-GAAP tax\nrates, divided by fully diluted outstanding shares\n * Non-GAAP EPS CAGR is calculated as the average annual growth rate of non-GAAP\nEPS over a period of time\n * Non-GAAP expenses are calculated as GAAP expenses, excluding amortization of\nacquired intangible assets, stock-based compensation, restructuring charges,\nand acquisition/divestiture-related items\n * Non-GAAP operating margin is non-GAAP operating income for a period divided by\nrevenue for the same period\n * Non-GAAP tax rate is set at a three-year normalized tax rate of 18.0%. In\nprojecting this rate, we evaluated our historical and projected mix of U.S.\nand international profit before tax, excluding the impact of stock-based\ncompensation, the amortization of purchased intangibles and other GAAP only\nadjustments.\n * Non-GAAP interest and other income (expense), net is calculated as GAAP\ninterest and other income (expense), net adjusted for the change in fair value\nof our non-qualified deferred compensation plan\nSynopsys continues to provide all information required in accordance with GAAP\nbut acknowledges evaluating its ongoing operating results may not be as useful\nif an investor is limited to reviewing only GAAP financial measures.\nAccordingly, Synopsys presents non-GAAP financial measures in reporting its\nfinancial results to provide investors with an additional tool to evaluate\nSynopsys' operating results in a manner that focuses on what Synopsys believes\nto be its core business operations and what Synopsys uses to evaluate its\nbusiness operations and for internal budgeting and resource allocation\npurposes. These non-GAAP financial measures may be different from non-GAAP\nfinancial measures used by other companies. In addition, these non-GAAP\nmeasures are not based on any comprehensive set of accounting rules or\nprinciples, and management exercises judgment in determining which items\nshould be excluded in the calculation of non-GAAP measures. The presentation\nof non-GAAP financial information is not meant to be considered in isolation\nfrom, as superior to or as a substitute for the directly comparable financial\nmeasures prepared in accordance with GAAP. These non-GAAP financial measures\nare meant to supplement, and be viewed in conjunction with, the corresponding\nGAAP financial measures.\n\nCertain non-GAAP financial measures used by management, as well as the\nreconciliation of non-GAAP financial measures to their most closely applicable\nGAAP financial measures, is contained in this press release and in our\ninvestor conference call presentation available in the investor relations\nportion of Synopsys' corporate website at www.synopsys.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786195-1&h=2794043645&u=https%3A%2F%2Finvestor.synopsys.com%2Foverview%2Fdefault.aspx&a=www.synopsys.com)\n. Synopsys is unable to provide a full reconciliation of non-GAAP tax rate for\nFY 2027E; non-GAAP interest and other income (expense), net for FY 2027E;\nnon-GAAP operating margin for FY 2028E-FY 2030E; non-GAAP EPS for FY 2028E-FY\n2030E; non-GAAP EPS CAGR for FY 2026E-FY 2030E; FCF for FY 2028E-FY 2030E; and\nFCF CAGR for FY 2026E-FY 2030E projections, targets and guidance measures to\nthe corresponding GAAP financial measures on a forward-looking basis because\nSynopsys believes that it would not be possible for it to have the information\nnecessary to quantitatively reconcile such measures with sufficient precision\nwithout unreasonable efforts due to, among other things, the potential\nvariability and limited predictability of the excluded adjustment items\nnecessary for a full reconciliation such as certain acquisition/divestiture\nrelated items, tax deduction variability, changes in the fair value of\nnon-qualified deferred compensation plan, and gains (losses) on the sale of\nstrategic investments. For the same reasons, Synopsys is unable to address the\nprobable significance of the unavailable information. Synopsys is presenting\nforward looking non-GAAP financial measures for illustrative purposes and may\nnot report on this basis going forward.\n\nEffectiveness of Information\n\nThe information provided herein is as of September 30, 2026. Although this\npress release is expected to remain available on Synopsys' website through\nthe time Synopsys announces its results for the fourth quarter and fiscal year\n2026, its continued availability through such time does not mean that Synopsys\nis reaffirming or confirming its continued validity. Synopsys undertakes no\nduty, and does not intend, to update any forward-looking statement, whether as\na result of new information, future events or otherwise, unless required by\nlaw.\n\nAbout Synopsys\n\nSynopsys, Inc. (Nasdaq: SNPS) is the leader in engineering solutions from\nsilicon to systems, enabling customers to rapidly innovate AI-powered\nproducts. We deliver industry-leading silicon design, IP, simulation and\nanalysis solutions, and design services. We partner closely with our customers\nacross a wide range of industries to maximize their R&D capability and\nproductivity, powering innovation today that ignites the ingenuity of\ntomorrow. Learn more at www.synopsys.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786195-1&h=1780520877&u=https%3A%2F%2Fwww.synopsys.com%2F&a=www.synopsys.com)\n.\n\n© 2026 Synopsys, Inc. All rights reserved. Synopsys, Ansys, the Synopsys and\nAnsys logos, and other Synopsys trademarks are available at\nhttps://www.synopsys.com/company/legal/trademarks-brands.html\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786195-1&h=4156711460&u=https%3A%2F%2Fwww.synopsys.com%2Fcompany%2Flegal%2Ftrademarks-brands.html&a=https%3A%2F%2Fwww.synopsys.com%2Fcompany%2Flegal%2Ftrademarks-brands.html)\n. Other company or product names may be trademarks of their respective owners.\n\nContacts\n\nInvestors\nTushar Jain\nsynopsys-ir@synopsys.com (mailto:synopsys-ir@synopsys.com)\n\nMedia\nCara Walker\ncara@synopsys.com (mailto:cara@synopsys.com)\ncorp-pr@synopsys.com (mailto:corp-pr@synopsys.com)\n\n \n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/synopsys-details-growth-strategy-and-long-term-financial-model-at-2026-investor-day-302894684.html\n(https://www.prnewswire.com/news-releases/synopsys-details-growth-strategy-and-long-term-financial-model-at-2026-investor-day-302894684.html)\n\nSOURCE Synopsys, Inc.\n\n\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS643179/Synopsys-CA-Headquarters-v1.jpg?id=OA2978639\nhttps://mmx.prnewswire.com/media/MS643184/Synopsys-Logo-Purple.jpg?id=OA2978545\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPn3HvNVxa-20260930","title":"Synopsys Details Growth Strategy and Long-term Financial Model at 2026 Investor Day","author":"PR Newswire","ticker":"SNPS","created":"2026-09-30T20:05:00.656Z","tickers":["SNPS"],"exchange":"NASDAQ","article_body":"Synopsys Details Growth Strategy and Long-term Financial Model at 2026 Investor Day\nPR Newswire\n\nSUNNYVALE, Calif., Sept. 30, 2026\n\nNews Highlights\n\n * Leading portfolio of engineering solutions positions Synopsys to capitalize on\nthe continued expansion of digital and physical AI and the AI-driven\ntransformation of engineering.\n * Updates long-term growth targets to reflect accelerating revenue and expanding\nnon-GAAP operating margins. Company expects fiscal year 2027 revenue growth of\napproximately 15% year over year to $11.15 billion at the midpoint of guidance\nrange.\n * After investing in the business, Synopsys expects to return up to 50% of free\ncash flow to shareholders via share repurchases; with intent to repurchase\napproximately $1 billion in shares over the coming months, subject to market\nconditions.\nSUNNYVALE, Calif., Sept. 30, 2026 /PRNewswire/ -- Synopsys\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786195-1&h=1756987550&u=https%3A%2F%2Fwww.synopsys.com%2F&a=Synopsys)\n, Inc. (NASDAQ: SNPS) today detailed its long-term growth strategy and\nsustainable long-term financial model at its 2026 Investor Day in New York.\nManagement outlined how AI is driving demand, transforming engineering,\nunlocking new business models and accelerating growth across the portfolio. A\nreplay of the presentation will be available on Synopsys' investor relations\nwebsite\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786195-1&h=3726342481&u=https%3A%2F%2Finvestor.synopsys.com%2Foverview%2Fdefault.aspx&a=investor+relations+website)\n.\n\nSynopsys President and CEO, Sassine Ghazi, said: \"AI is creating multiple,\nreinforcing growth engines for Synopsys. The acceleration of frontier\nintelligence is fueling an unprecedented demand for compute power while\nincreasing system complexity. Simultaneously, purpose-built silicon is\nreshaping the IP market, while Physical AI and agentic workflows are driving\ndeeper integration of our trusted tools. Together, these forces are expanding\nour addressable market, increasing consumption of our technology, and creating\nnew, recurring revenue streams.\"\n\nHighlights from executive presentations include:\n\nSilicon IP Business Expands to Serve Growing Demand for Special-purpose\nSilicon\n\nSynopsys is expanding beyond traditional standards-based IP into\napplication-optimized IP (AOIP), helping customers develop differentiated\nsilicon tailored to specific workloads and system architectures. As AI drives\ndemand for custom silicon across hyperscalers and system companies, Synopsys\nis leveraging its interface IP leadership, system expertise, and engineering\nscale to deliver optimized IP subsystems and platforms that accelerate\ntime-to-market while improving performance and efficiency.\n\nThis 'Factory 2' IP model expands Synopsys' value capture per design win and\nincreases its participation in the long-term growth of custom silicon and AI\ninfrastructure. Demonstrating early momentum for the new IP business model,\nthe company has secured multiple AOIP customers spanning compute, ASIC, and AI\nconnectivity architectures. This includes an IP agreement with Amazon\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786195-1&h=3345898978&u=https%3A%2F%2Fnews.synopsys.com%2F2026-09-30-Synopsys-and-Amazon-Announce-Strategic%2C-Multi-year-IP-Agreement-for-Custom-Silicon-Collaboration-Also-Extends-to-Cloud-and-AI-Powered-Engineering&a=IP+agreement+with+Amazon)\n, which was announced today.\n\nPowering the Next Frontier of AI-Driven Design\n\nGhazi today also explained the company's strategy to create and capture value\nin the delivery of AI-powered engineering solutions and announced a\ngroundbreaking partnership with OpenAI\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786195-1&h=36703792&u=https%3A%2F%2Fnews.synopsys.com%2F2026-09-30-OpenAI-and-Synopsys-Announce-GPT-Synopsys-Frontier-Intelligence-to-Revolutionize-Chip-Design&a=partnership+with+OpenAI)\n to collaborate as preferred partners to develop and deliver GPT-Synopsys, a\nspecialized model for chip design that brings together OpenAI's frontier AI\nwith Synopsys' trusted EDA tools and chip design expertise.\n\nSynopsys is advancing the next frontier of AI-driven design and simulation\nwith a strategy that enables customers to adopt its agentic AI portfolio in\nthe way that best fits their engineering environment. Customers can deploy the\nfull Synopsys Autopilot platform, integrate Synopsys agents into their own AI\nplatforms, or leverage frontier AI models optimized for specialized\nengineering workflows. Across all approaches, Synopsys provides the trusted\nengineering context, domain-specific agents, and ground-truth execution\nengines that power the development of the world's most advanced products. This\nflexible model expands Synopsys' opportunity to participate across the\nemerging AI engineering ecosystem while creating multiple avenues to monetize\nAI-driven engineering through a combination of subscription and\nconsumption-based models across tools, agents and platform.\n\nSynopsys Fiscal 2027 and Long-term Financial Outlook\n\nSynopsys provided financial guidance for fiscal year 2027 and a comprehensive\nmulti-year financial framework through fiscal year 2030. The company also\nannounced its intent to repurchase approximately $1 billion of Synopsys shares\nover the coming months, subject to market conditions, underscoring confidence\nin its long-term cash generation.\n\nShelagh Glaser, Synopsys CFO, said, \"Our updated financial framework reflects\nconfidence in both our growth trajectory and our ability to scale efficiently\nwhile helping customers re-engineer their engineering to accelerate AI-powered\nproducts. We remain focused on disciplined execution, converting growth into\nexpanding margins and strong free cash flow, while continuing to invest in\ninnovation and deliver sustainable long-term value for our shareholders.\"\n\nThe company's updated long-term targets and fiscal year 2027 outlook are\nprovided below:\n Our long-term, FY26E - FY30E objectives ((1))\n\n Revenue                               Operating Margin                      Free Cash Flow ((2))\n Company( (2))                         Long-term non-GAAP                    Free Cash Flow Growth\n Mid-Teens growth ~15%                 FY30E operating margin ~50%           in the Mid 20%'s\n\n Design Automation ((2))               Earnings( (2))                        Capital Return((3))\n EDA: Mid-Teens: 13%+                  Non-GAAP EPS growth                   Up to 50%\n S&A: Double-Digit: 10%+               in the Mid 20%s                       of Free Cash Flow\n Design IP( (2))                                                             via share repurchases\n High-Teens: 17%+\n\n (1) These multi-year objectives are provided as of September 30, 2026. See\n below for additional information regarding these forward-looking non-GAAP\n measures, including reconciliations to the most comparable GAAP measures to\n the extent available without unreasonable efforts\n (2) FY26E - FY30E Growth CAGR\n (3) Capital allocation objectives are based on current business outlook and\n may vary based on market conditions, strategic opportunities, and balance\n sheet priorities\n\n \n Full Fiscal Year 2027 Financial Targets\n (in millions, except per share amounts)\n\n                                                      Range for Fiscal Year Ending\n                                                      October 31, 2027\n                                                      Low              High\n Revenue                                              $11,100          $11,200\n GAAP Expenses                                        $8,765           $8,905\n Non-GAAP Expenses                                    $6,215           $6,275\n Non-GAAP Interest and Other Income (Expense), net    ($465)           ($455)\n Non-GAAP Tax Rate                                    18 %             18 %\n Outstanding Shares (fully diluted)                   190              192\n GAAP Operating Margin                                Midpt: ~20.7%\n Non-GAAP Operating Margin                            Midpt: ~44.0%\n GAAP EPS                                             $8.16            $8.61\n Non-GAAP EPS                                         $19.04           $19.12\n Operating Cash Flow                                  ~$3,600\n Free Cash Flow ((1))                                 ~$3,100\n Capital Expenditures                                 ~$500\n\n (1) Free cash flow is calculated as cash provided from operating activities\n less capital expenditures\n\n \n GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2027 Targets\n (in thousands, except per share data)\n                                                                           Range for Fiscal Year\n                                                                           Ending October 31, 2027\n                                                                           Low                                         High\n Target GAAP expenses                                                      $     8,765,000                             $     8,905,000\n Adjustments:\n       Amortization of acquired intangible assets                          (1,540,000)                                 (1,550,000)\n       Stock-based compensation                                            (960,000)                                   (980,000)\n       Restructuring charges                                               (50,000)                                    (100,000)\n Target non-GAAP expenses                                                  $     6,215,000                             $     6,275,000\n\n                                                                           Range for Fiscal Year\n                                                                           Ending October 31, 2027\n                                                                           Low                                         High\n Target GAAP earnings per diluted share attributed to Synopsys             $              8.16                         $              8.61\n Adjustments:\n      Amortization of acquired intangible assets                           $              8.12                         $              8.06\n      Stock-based compensation                                             $              5.13                         $              5.03\n      Restructuring charges                                                $              0.52                         $              0.26\n      Tax adjustments and settlement                                       $            (2.89)                         $            (2.84)\n Target non-GAAP earnings per diluted share attributed to Synopsys         $            19.04                          $            19.12\n\n Shares used in non-GAAP calculation (midpoint of target range)            191,000                                     191,000\n\n \n GAAP to Non-GAAP Reconciliation of Operating Margin at Midpoint of Full Fiscal\n Year 2027 Targets\n\n                                                        Twelve Months Ending\n                                                        October 31, 2027\n At midpoint of revenue and expense guidance ranges\n GAAP operating margin                                  20.7 %\n       Amortization of acquired intangible assets       13.9 %\n       Stock-based compensation                         8.7 %\n       Restructuring charges                            0.7 %\n Target non-GAAP operating margin                       44.0 %\n\nPresentations and the webcast replay from today's Synopsys 2026 Investor Day\nare available at: https://investor.synopsys.com/\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786195-1&h=220326496&u=https%3A%2F%2Finvestor.synopsys.com%2Foverview%2Fdefault.aspx&a=https%3A%2F%2Finvestor.synopsys.com%2F)\n.\n\nForward Looking Statements\n\nCertain statements contained herein and in our investor conference call\ncontain forward-looking statements within the meaning of the federal\nsecurities laws, including, but not limited to, statements concerning our\nanticipated financial performance, guidance, long-term financial objectives\nand projections; anticipated synergies and other benefits; capital allocation\nplans, including planned share repurchases; revenue growth objectives and the\nexpected timing and pace of realization; operating margin expansion\nobjectives; customer demand, market opportunities and industry trends,\nincluding the anticipated impact of artificial intelligence; products,\nservices, technologies, business offerings and models, strategies, and\nanticipated product performance and customer benefits; partnerships and\ncustomer agreements; and our operating structure and growth strategy. These\nforward-looking statements generally are identified by the words \"believe,\"\n\"project,\" \"expect,\" \"anticipate,\" \"estimate,\" \"intend,\" \"strategy,\" \"future,\"\n\"opportunity,\" \"plan,\" \"may,\" \"should,\" \"will,\" \"would,\" \"will be,\" \"will\ncontinue,\" \"will likely result,\" and similar expressions or the negatives of\nthese words or other comparable terminology to convey uncertainty of future\nevents or outcomes. Forward-looking statements are predictions, projections\nand other statements about future events that are based on current\nexpectations and assumptions and, as a result, are subject to risks and\nuncertainties.\n\nMany risks, uncertainties and other factors that could cause Synopsys' actual\nfuture events to differ materially from any future results, time frames,\nperformance or achievements expressed or implied by the forward-looking\nstatements, including, but not limited to: (i) macroeconomic conditions and\ngeopolitical uncertainty in the global economy; (ii) uncertainty in the growth\nof the semiconductor and electronics industries; (iii) the highly competitive\nindustry in which we operate; (iv) actions by the U.S. or foreign governments,\nsuch as the imposition of additional export restrictions or tariffs; (v)\nconsolidation among our customers and our dependence on a relatively small\nnumber of large customers; (vi) risks and compliance obligations relating to\nthe global nature of our operations; (vii) failure to realize the benefits\nexpected from the transactions we complete, including the acquisition of\nANSYS, Inc. (\"Ansys\"), or unexpected difficulties or expenditures arising\ntherefrom; (viii) risks related to inaccuracies in, or failures to achieve,\nour operational and business metrics or forecasts of growth; and (ix) other\nrisks and uncertainties described in our filings with the SEC. Unlisted\nfactors may present significant additional obstacles to the realization of\nforward-looking statements.\n\nAdditional information on potential risks, uncertainties and other factors\nthat could affect Synopsys' results is included in filings we make with the\nSEC from time to time, including in the sections entitled \"Risk Factors\" in\nour latest Annual Report on Form 10-K and in our latest Quarterly Report on\nForm 10-Q. The financial information contained in this press release should be\nread in conjunction with the consolidated financial statements and notes\nthereto included in Synopsys' most recent reports on Forms 10-K and 10-Q, each\nas may be amended from time to time. All forward-looking statements by their\nnature address matters that involve risks and uncertainties, many of which are\nbeyond Synopsys' control, and are not guarantees of future results. Readers\nare cautioned not to put undue reliance on forward-looking statements, and\nSynopsys gives no assurances that it will achieve its expectations.\n\nGAAP to Non-GAAP Reconciliations\n\nThis press release contains certain forward-looking financial measures that\nare not in accordance with the U.S. generally accepted accounting principles\n(\"GAAP\"). It also includes future estimates for non-GAAP operating margin,\nnon-GAAP tax rate, non-GAAP interest and other income (expense), net, non-GAAP\nexpenses, non-GAAP earnings per diluted share (\"EPS\"), non-GAAP EPS compound\nannual growth rate (\"CAGR\"), free cash flow (\"FCF\") and FCF CAGR.\n\n * FCF is calculated as cash provided from operating activities less capital\nexpenditures\n * FCF CAGR is calculated as the average annual growth rate of FCF over a period\nof time\n * Non-GAAP EPS is calculated as GAAP net income excluding amortization of\nacquired intangible assets, stock-based compensation, restructuring charges,\nacquisition/divestiture-related items, loss on sale of strategic investments,\nand legal matters, adjusted for the difference between GAAP and non-GAAP tax\nrates, divided by fully diluted outstanding shares\n * Non-GAAP EPS CAGR is calculated as the average annual growth rate of non-GAAP\nEPS over a period of time\n * Non-GAAP expenses are calculated as GAAP expenses, excluding amortization of\nacquired intangible assets, stock-based compensation, restructuring charges,\nand acquisition/divestiture-related items\n * Non-GAAP operating margin is non-GAAP operating income for a period divided by\nrevenue for the same period\n * Non-GAAP tax rate is set at a three-year normalized tax rate of 18.0%. In\nprojecting this rate, we evaluated our historical and projected mix of U.S.\nand international profit before tax, excluding the impact of stock-based\ncompensation, the amortization of purchased intangibles and other GAAP only\nadjustments.\n * Non-GAAP interest and other income (expense), net is calculated as GAAP\ninterest and other income (expense), net adjusted for the change in fair value\nof our non-qualified deferred compensation plan\nSynopsys continues to provide all information required in accordance with GAAP\nbut acknowledges evaluating its ongoing operating results may not be as useful\nif an investor is limited to reviewing only GAAP financial measures.\nAccordingly, Synopsys presents non-GAAP financial measures in reporting its\nfinancial results to provide investors with an additional tool to evaluate\nSynopsys' operating results in a manner that focuses on what Synopsys believes\nto be its core business operations and what Synopsys uses to evaluate its\nbusiness operations and for internal budgeting and resource allocation\npurposes. These non-GAAP financial measures may be different from non-GAAP\nfinancial measures used by other companies. In addition, these non-GAAP\nmeasures are not based on any comprehensive set of accounting rules or\nprinciples, and management exercises judgment in determining which items\nshould be excluded in the calculation of non-GAAP measures. The presentation\nof non-GAAP financial information is not meant to be considered in isolation\nfrom, as superior to or as a substitute for the directly comparable financial\nmeasures prepared in accordance with GAAP. These non-GAAP financial measures\nare meant to supplement, and be viewed in conjunction with, the corresponding\nGAAP financial measures.\n\nCertain non-GAAP financial measures used by management, as well as the\nreconciliation of non-GAAP financial measures to their most closely applicable\nGAAP financial measures, is contained in this press release and in our\ninvestor conference call presentation available in the investor relations\nportion of Synopsys' corporate website at www.synopsys.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786195-1&h=2794043645&u=https%3A%2F%2Finvestor.synopsys.com%2Foverview%2Fdefault.aspx&a=www.synopsys.com)\n. Synopsys is unable to provide a full reconciliation of non-GAAP tax rate for\nFY 2027E; non-GAAP interest and other income (expense), net for FY 2027E;\nnon-GAAP operating margin for FY 2028E-FY 2030E; non-GAAP EPS for FY 2028E-FY\n2030E; non-GAAP EPS CAGR for FY 2026E-FY 2030E; FCF for FY 2028E-FY 2030E; and\nFCF CAGR for FY 2026E-FY 2030E projections, targets and guidance measures to\nthe corresponding GAAP financial measures on a forward-looking basis because\nSynopsys believes that it would not be possible for it to have the information\nnecessary to quantitatively reconcile such measures with sufficient precision\nwithout unreasonable efforts due to, among other things, the potential\nvariability and limited predictability of the excluded adjustment items\nnecessary for a full reconciliation such as certain acquisition/divestiture\nrelated items, tax deduction variability, changes in the fair value of\nnon-qualified deferred compensation plan, and gains (losses) on the sale of\nstrategic investments. For the same reasons, Synopsys is unable to address the\nprobable significance of the unavailable information. Synopsys is presenting\nforward looking non-GAAP financial measures for illustrative purposes and may\nnot report on this basis going forward.\n\nEffectiveness of Information\n\nThe information provided herein is as of September 30, 2026. Although this\npress release is expected to remain available on Synopsys' website through\nthe time Synopsys announces its results for the fourth quarter and fiscal year\n2026, its continued availability through such time does not mean that Synopsys\nis reaffirming or confirming its continued validity. Synopsys undertakes no\nduty, and does not intend, to update any forward-looking statement, whether as\na result of new information, future events or otherwise, unless required by\nlaw.\n\nAbout Synopsys\n\nSynopsys, Inc. (Nasdaq: SNPS) is the leader in engineering solutions from\nsilicon to systems, enabling customers to rapidly innovate AI-powered\nproducts. We deliver industry-leading silicon design, IP, simulation and\nanalysis solutions, and design services. We partner closely with our customers\nacross a wide range of industries to maximize their R&D capability and\nproductivity, powering innovation today that ignites the ingenuity of\ntomorrow. Learn more at www.synopsys.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786195-1&h=1780520877&u=https%3A%2F%2Fwww.synopsys.com%2F&a=www.synopsys.com)\n.\n\n© 2026 Synopsys, Inc. All rights reserved. Synopsys, Ansys, the Synopsys and\nAnsys logos, and other Synopsys trademarks are available at\nhttps://www.synopsys.com/company/legal/trademarks-brands.html\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786195-1&h=4156711460&u=https%3A%2F%2Fwww.synopsys.com%2Fcompany%2Flegal%2Ftrademarks-brands.html&a=https%3A%2F%2Fwww.synopsys.com%2Fcompany%2Flegal%2Ftrademarks-brands.html)\n. Other company or product names may be trademarks of their respective owners.\n\nContacts\n\nInvestors\nTushar Jain\nsynopsys-ir@synopsys.com (mailto:synopsys-ir@synopsys.com)\n\nMedia\nCara Walker\ncara@synopsys.com (mailto:cara@synopsys.com)\ncorp-pr@synopsys.com (mailto:corp-pr@synopsys.com)\n\n \n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/synopsys-details-growth-strategy-and-long-term-financial-model-at-2026-investor-day-302894684.html\n(https://www.prnewswire.com/news-releases/synopsys-details-growth-strategy-and-long-term-financial-model-at-2026-investor-day-302894684.html)\n\nSOURCE Synopsys, Inc.\n\n\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS643179/Synopsys-CA-Headquarters-v1.jpg?id=OA2978639\nhttps://mmx.prnewswire.com/media/MS643184/Synopsys-Logo-Purple.jpg?id=OA2978545\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-09-30T20:05:00.798602604Z","server_sent_at_ms":1790798700798},"received_at":"2026-09-30T20:05:00.851Z","source_url":"https://www.prnewswire.com/news-releases/synopsys-details-growth-strategy-and-long-term-financial-model-at-2026-investor-day-302894684.html"},"analysis":{"id":"145927","press_release_id":"157251","analysis_json":{"industry":{"label":"Software","sector":"Information Technology"},"redFlags":[],"eventType":"guidance_update","narrative":"Synopsys laid out its long-term strategy at its 2026 Investor Day, guiding fiscal 2027 revenue to $11.1B-$11.2B, roughly 15% growth at the midpoint, with non-GAAP EPS of $19.04-$19.12.\n\nThe multi-year framework targets ~50% non-GAAP operating margin by FY2030, mid-20s% FCF growth, and returning up to 50% of free cash flow to shareholders via buybacks.\n\nManagement announced intent to repurchase approximately $1 billion of shares in the coming months, and highlighted new partnerships with Amazon (multi-year IP agreement) and OpenAI (GPT-Synopsys chip design model) to capture AI-driven demand for custom silicon and agentic AI engineering tools.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Synopsys pairs a confident ~15% growth FY27 guide and FY30 ~50% margin target with a fresh $1B buyback intent -- AI-driven EDA demand thesis made explicit."},"keyFigures":{"revenue":"$11.15 billion","guidance":"FY2027 revenue $11,100M-$11,200M; GAAP EPS $8.16-$8.61; non-GAAP EPS $19.04-$19.12; non-GAAP operating margin ~44.0%; FY30E operating margin ~50%","revenueYoy":"approximately 15%","customDimensions":{"fcf_target":"~$3,100 million","buyback_intent":"$1 billion over coming months","capital_return_target":"up to 50% of free cash flow via share repurchases","operating_cash_flow_target":"~$3,600 million"}},"quotedText":"AI is creating multiple, reinforcing growth engines for Synopsys. The acceleration of frontier intelligence is fueling an unprecedented demand for compute power while increasing system complexity.","namedEntities":{"people":[{"name":"Sassine Ghazi","role":"President and CEO"},{"name":"Shelagh Glaser","role":"CFO"},{"name":"Tushar Jain","role":"investor relations contact"},{"name":"Cara Walker","role":"media contact"}],"products":["GPT-Synopsys","Synopsys Autopilot","application-optimized IP (AOIP)","Factory 2 IP model"],"companies":[{"name":"Synopsys, Inc.","ticker":"SNPS","relationship":"filer"},{"name":"Amazon","relationship":"IP agreement customer/partner"},{"name":"OpenAI","relationship":"partner (GPT-Synopsys chip design model)"},{"name":"Ansys","relationship":"recently acquired subsidiary"}],"dollarAmounts":[{"amount":"$11.15 billion","context":"FY2027 revenue guidance midpoint"},{"amount":"$1 billion","context":"intended share repurchases over coming months"},{"amount":"$11,100","context":"FY2027 revenue target low (millions)"},{"amount":"$11,200","context":"FY2027 revenue target high (millions)"},{"amount":"~$3,100","context":"FY2027 free cash flow target (millions)"},{"amount":"~$3,600","context":"FY2027 operating cash flow target (millions)"}]},"materialImpact":{"score":4,"reasoning":"Synopsys issued FY2027 revenue guidance of $11.1B-$11.2B (~15% YoY growth at midpoint), a multi-year framework through FY2030 (~50% non-GAAP operating margin by FY30E), and announced intent to repurchase ~$1 billion of shares. Material strategic guidance plus near-term capital return."},"tickerRelevance":{"others":[],"primary":"SNPS"},"globalImportance":60,"audienceRelevance":65,"eventTypeSecondary":["buyback"],"importanceComponents":{"tickerTier":"mega-cap-large-cap EDA leader","eventGravity":"investor-day guidance raise plus buyback intent","sectorWeight":"semiconductor/software AI exposure","partnershipBoost":"Amazon and OpenAI partnerships add strategic credibility"}},"event_type":"guidance_update","event_type_secondary":["buyback"],"sentiment":"bullish","material_impact_score":4,"narrative":"Synopsys laid out its long-term strategy at its 2026 Investor Day, guiding fiscal 2027 revenue to $11.1B-$11.2B, roughly 15% growth at the midpoint, with non-GAAP EPS of $19.04-$19.12.\n\nThe multi-year framework targets ~50% non-GAAP operating margin by FY2030, mid-20s% FCF growth, and returning up to 50% of free cash flow to shareholders via buybacks.\n\nManagement announced intent to repurchase approximately $1 billion of shares in the coming months, and highlighted new partnerships with Amazon (multi-year IP agreement) and OpenAI (GPT-Synopsys chip design model) to capture AI-driven demand for custom silicon and agentic AI engineering tools.","key_figures":{"revenue":"$11.15 billion","guidance":"FY2027 revenue $11,100M-$11,200M; GAAP EPS $8.16-$8.61; non-GAAP EPS $19.04-$19.12; non-GAAP operating margin ~44.0%; FY30E operating margin ~50%","revenueYoy":"approximately 15%","customDimensions":{"fcf_target":"~$3,100 million","buyback_intent":"$1 billion over coming months","capital_return_target":"up to 50% of free cash flow via share repurchases","operating_cash_flow_target":"~$3,600 million"}},"named_entities":{"people":[{"name":"Sassine Ghazi","role":"President and CEO"},{"name":"Shelagh Glaser","role":"CFO"},{"name":"Tushar Jain","role":"investor relations contact"},{"name":"Cara Walker","role":"media contact"}],"products":["GPT-Synopsys","Synopsys Autopilot","application-optimized IP (AOIP)","Factory 2 IP model"],"companies":[{"name":"Synopsys, Inc.","ticker":"SNPS","relationship":"filer"},{"name":"Amazon","relationship":"IP agreement customer/partner"},{"name":"OpenAI","relationship":"partner (GPT-Synopsys chip design model)"},{"name":"Ansys","relationship":"recently acquired subsidiary"}],"dollarAmounts":[{"amount":"$11.15 billion","context":"FY2027 revenue guidance midpoint"},{"amount":"$1 billion","context":"intended share repurchases over coming months"},{"amount":"$11,100","context":"FY2027 revenue target low (millions)"},{"amount":"$11,200","context":"FY2027 revenue target high (millions)"},{"amount":"~$3,100","context":"FY2027 free cash flow target (millions)"},{"amount":"~$3,600","context":"FY2027 operating cash flow target (millions)"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-09-30T20:05:13.109Z","global_importance":60,"audience_relevance":65,"importance_components":{"tickerTier":"mega-cap-large-cap EDA leader","eventGravity":"investor-day guidance raise plus buyback intent","sectorWeight":"semiconductor/software AI exposure","partnershipBoost":"Amazon and OpenAI partnerships add strategic credibility"}},"durationMs":6523,"modelName":"glm-5.3-flashx"}}