Synopsys (SNPS)

Synopsys (SNPS) is the leading maker of electronic design automation software and semiconductor design IP, the tools chip teams use to design and verify custom AI silicon such as Google’s TPU. In ETFpedia it represents the design-tools layer of the Google value chain, the step that comes before the foundry, and it recently absorbed simulation leader Ansys.

TickerSNPS
ExchangeNasdaq
SectorSoftware · Electronic Design Automation (EDA)
CountryUnited States
Held by ETFTIGER Google Value Chain ETF (0190Y0)
WikidataQ2303478
Last updated2026-06-04
Financial snapshotas of2026-06-04

Next event:Next earnings · fiscal Q3 2026 (quarter ending Jul 31, 2026)estimated · Date not yet confirmed as of 2026-06-04; Synopsys typically reports fiscal Q3 in late August. Last report: fiscal Q2 2026 on 2026-05-27. Confirm on Synopsys IR. (source)

Latest reported quarter:Fiscal Q2 2026 (ended Apr 30, 2026) (reported2026-05-27)

Synopsys reported fiscal Q2 2026 revenue of $2.276 billion, up 41.9% year over year and lifted by the newly consolidated Ansys business, but GAAP net income fell to $17.1 million as deal-related charges weighed on results; non-GAAP diluted EPS was $3.35.

Revenue$2.276B+41.9%YoY · Includes consolidated Ansys
GAAP net income (attrib. to Synopsys)$17.1M · Down from $431M a year earlier on acquisition charges
GAAP diluted EPS$0.09 · vs $2.24 a year earlier
Non-GAAP diluted EPS$3.35
Backlog$11.0B

Primary source

Revenue by segment

Design Automation$1,822M · 80.0%of revenue
Design IP$454.2M · 20.0%of revenue-6% YoY

Guidance:Full-year fiscal 2026

Revenue$9.625B–$9.705B
Non-GAAP diluted EPS$14.72–$14.80

Raised with Q2 results; includes a full year of Ansys, expected to contribute about $2.96B of revenue.

Guidance source

Recent & upcoming events

  • · Fiscal Q2 2026 results, raised outlook.Revenue $2.276B (+41.9%), non-GAAP EPS $3.35, GAAP EPS $0.09; raised full-year FY2026 revenue guidance to $9.625B–$9.705B on AI-driven design demand and the Ansys contribution. (source)
  • · Closed $34.9B Ansys acquisition.Synopsys completed its acquisition of simulation and analysis leader Ansys for cash and stock, broadening from chip design into systems simulation for AI hardware and physical-AI products. (source)

Segment splits and the Design IP -6% YoY are from the fiscal Q2 2026 release; Synopsys reports two segments, Design Automation and Design IP. GAAP net income reflects Ansys deal amortization and integration costs.

Figures are as of 2026-06-04 and reflect the most recent public filings/IR releases; they are updated after each earnings report.

What does Synopsys do?

Synopsys sells electronic design automation (EDA) software and design IP. EDA tools are the software that engineers use to lay out, simulate, and verify a chip before it goes to a foundry, and design IP is the library of pre-built circuit blocks (interfaces, controllers, processor cores) that teams drop into a design rather than build from scratch. The company reports in two segments, Design Automation and Design IP. Its EDA suite, marketed as Synopsys.ai, applies machine learning to compress the design cycle. In July 2025 Synopsys closed a $34.9 billion acquisition of Ansys, a leader in physics-based simulation, extending it from the chip out to the system the chip runs in (Synopsys, Jul 17, 2025).

“AI is scaling semiconductor demand, architectural diversity and complexity of chips and the systems they power, driving demand across our portfolio.”

— Sassine Ghazi, President and CEO, Synopsys fiscal Q2 2026 release

Why is Synopsys part of the Google value chain?

Every custom AI accelerator has to be designed before it can be fabricated, and that design work runs on EDA tools and design IP. Google co-designs its TPU with Broadcom, but the underlying flow, from logic synthesis to physical verification, sits on tools from a handful of vendors led by Synopsys and Cadence. That places Synopsys at the front of the Google value chain, one step ahead of the foundry: as hyperscalers commission more custom silicon, the design-software and IP layer gets paid earliest in the cycle. Alphabet guided 2026 capital expenditure to $175 to $185 billion, and that spending pulls more chip programs into the pipeline (CNBC).

What did Synopsys report most recently?

In fiscal Q2 2026 (the quarter ended April 30, 2026), Synopsys posted revenue of $2.276 billion, up 41.9% year over year, helped by the newly consolidated Ansys business (Synopsys, May 27, 2026). Profitability tells a different story: GAAP net income attributable to Synopsys fell to $17.1 million, with GAAP diluted EPS of $0.09 versus $2.24 a year earlier, as Ansys deal amortization and integration charges hit the bottom line. Non-GAAP diluted EPS was $3.35. By segment, Design Automation contributed $1.822 billion (80.0% of revenue) and Design IP $454.2 million (20.0%), with Design IP down about 6% year over year. Backlog stood at $11.0 billion.

What is Synopsys’s guidance?

Alongside the quarter, Synopsys raised its full-year fiscal 2026 outlook to revenue of $9.625 billion to $9.705 billion and non-GAAP diluted EPS of $14.72 to $14.80 (Synopsys, May 27, 2026). The figure now includes a full year of Ansys, which the company expects to add roughly $2.96 billion of revenue. Management framed the raise around AI-driven demand for more complex chip designs.

What are the risks for Synopsys?

  • Acquisition digestion. The Ansys deal more than offset GAAP earnings this quarter through amortization and integration costs; the synergy case has to play out before GAAP profitability normalizes.
  • Customer concentration in semis. Demand tracks the chip design cycle, so a slowdown in new tape-outs at large fabless and hyperscaler customers would slow tool and IP bookings.
  • Competition. Cadence is a direct EDA rival, and design IP faces both internal customer teams and other IP vendors.
  • Export and geopolitics. EDA is subject to export controls, and changes in rules around advanced-chip design tools can restrict addressable markets.

Related securities, concepts & terms

Related indices & ETFs

  • TIGER Google Value Chain ETF (0190Y0) · Mirae Asset Global Investments
    Korea-listed ETF tracking the Akros Google Value Chain Index; Synopsys is a constituent as the chip-design (EDA) layer of the chain.
  • Akros Google Value Chain Index (AGOOGVC) · Akros
    The benchmark the TIGER ETF tracks: up to 20 Google value-chain names, including Synopsys.

Frequently asked questions about Synopsys

What does Synopsys do?

Synopsys makes electronic design automation (EDA) software and semiconductor design IP, the tools and pre-built circuit blocks that engineers use to design, simulate, and verify advanced chips before a foundry manufactures them. Its two reportable segments are Design Automation and Design IP. In July 2025 it added simulation leader Ansys, extending its reach from chips into the systems those chips power.

Why is Synopsys part of the Google value chain theme?

Custom AI accelerators like Google's TPU have to be designed and verified before TSMC can fabricate them, and that design work runs on EDA tools and design IP from a small group of vendors led by Synopsys. It sits at the front of the value chain, one step before the foundry, so rising demand for custom AI silicon flows into design-tool and IP demand (Synopsys fiscal Q2 2026 release).

What was Synopsys's latest quarterly revenue?

Synopsys reported fiscal Q2 2026 (quarter ended April 30, 2026) revenue of $2.276 billion, up 41.9% year over year, with the increase driven partly by the newly consolidated Ansys business (Synopsys, May 27, 2026). GAAP net income fell to $17.1 million (GAAP diluted EPS $0.09) on acquisition-related charges, while non-GAAP diluted EPS was $3.35.

When does Synopsys report next earnings?

Synopsys is expected to report fiscal Q3 2026 (the quarter ending July 31, 2026) in late August 2026. That date is an estimate from prior-year timing and is not yet confirmed, so check Synopsys investor relations. The company last reported fiscal Q2 2026 on May 27, 2026.

How did the Ansys acquisition affect Synopsys?

Synopsys closed its $34.9 billion acquisition of Ansys on July 17, 2025, paying cash plus stock for the simulation and analysis company. Ansys lifts revenue (Synopsys expects roughly $2.96 billion of Ansys revenue in full-year fiscal 2026) but the deal also brought amortization and integration charges that cut GAAP net income to $17.1 million in fiscal Q2 2026 (Synopsys fiscal Q2 2026 release).

Sources & references

  1. Synopsys reports fiscal second quarter 2026 financial results (Form 8-K, Exhibit 99.1) · Synopsys, Inc. / SEC EDGAR, 2026-05-27
  2. Synopsys, Inc. · fiscal Q2 2026 quarterly report (Form 10-Q) · Synopsys, Inc. / SEC EDGAR, 2026-05-27
  3. Synopsys completes acquisition of Ansys · Synopsys, Inc., 2025-07-17
  4. Synopsys (SNPS) Q2 2026 earnings call transcript · The Motley Fool, 2026-05-27
  5. Synopsys Q2 FY 2026: AI-driven chip design demand lifts outlook · Futurum Group, 2026-05-28
  6. Synopsys investor relations · Synopsys, Inc., 2026-06-04
  7. Synopsys, Inc. Common Stock (SNPS) · Nasdaq listing · Nasdaq, 2026-06-02