Earnings Call
May 27, 2026
Q2 FY2026
EPS Estimate
3.15
EPS Actual
3.35
Post-Earnings Close
$480.64
Earnings Reaction
-8.6%
Synopsys posted a clean beat across all guided metrics in Q2 FY2026, with revenue of $2.276 billion, non-GAAP operating margin of 39.5%, and non-GAAP EPS of $3.35, all ahead of guidance and consensus. Management responded by raising full-year revenue, operating margin, EPS, and free cash flow guidance simultaneously, a signal of genuine confidence rather than a narrow upside revision. The full-year non-GAAP EPS midpoint moves to $14.76, up $0.34 from prior guidance, while non-GAAP operating margin guidance rises 50 basis points to 41% at the midpoint, itself more than 300 basis points above where the company finished FY2025. Backlog stands at $11 billion, and free cash flow guidance for the year increases to approximately $2 billion.
Report generated on May 28, 2026
AI-generated earnings analysis. Not investment advice.
Chief Executive Officer
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
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