Revenue Growth Driven by Increased Demand
SNPS experienced a 41.9% increase in revenue year-over-year, primarily driven by heightened demand for its products and services.
Source: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
SNPS reported strong revenue growth in Q2 FY2026, but faced significant declines in net income and margins due to increased costs and expenses.
Revenue
$2.28B
+41.87% YoY
EPS (Diluted)
$0.09
-95.93% YoY
Gross Margin
72.3%
-7.8 pts YoY
Operating Income
$120.43M
-68.01% YoY
Source: SEC XBRL
Synopsys (SNPS) reported Q2 FY2026 revenue of $2.28B, up 41.9% year over year. Operating margin was 5.3%, down 18.2 points from 23.5% a year earlier. SNPS's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026 | 3.91 | 3.74 | Beat +4.6% |
| Jun 2026This filing | 3.35 | 3.22 | Beat +4.1% |
| Mar 2026 | 3.77 | 3.63 | Beat +3.9% |
| Dec 2025 | 2.90 | 2.83 | Beat +2.4% |
Adjusted (non-GAAP) EPS of $3.35 versus the $3.22 analyst consensus — a +4.1% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.09.
Compiled by AI from this SEC filing
SNPS experienced a 41.9% increase in revenue year-over-year, primarily driven by heightened demand for its products and services.
Source: 10-Q Income Statement
The cost of revenue nearly doubled, increasing by 97.9%, which significantly impacted the gross margin, reducing it by 7.8 percentage points.
Source: 10-Q Income Statement
R&D expenses rose by 26.4% as the company continues to invest in innovation and product development.
Source: 10-Q Income Statement
Compiled by AI from this SEC filing · 2 high, 1 medium, 0 low
The cost of revenue increased by 97.9%, which could continue to pressure margins if not managed effectively.
Source: 10-Q Income Statement
Cash and equivalents decreased by 82.9%, which may affect the company's liquidity and ability to fund operations without additional financing.
Source: 10-Q Balance Sheet
Net income fell by 95.0%, indicating potential challenges in profitability that need addressing to maintain investor confidence.
Source: 10-Q Income Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 2.28 $B | 1.60 $B | +41.87% |
Cost of Revenue $M | 629.85 $M | 318.35 $M | +97.85% |
Gross Profit $B | 1.65 $B | 1.29 $B | +28.01% |
Operating Income $M | 120.43 $M | 376.43 $M | -68.01% |
Net Income $M | 17.11 $M | 345.33 $M | -95.05% |
EPS (Basic) $ | 0.09 $ | 2.23 $ | -95.96% |
EPS (Diluted) $ | 0.09 $ | 2.21 $ | -95.93% |
R&D Expense $M | 700.12 $M | 553.98 $M | +26.38% |
Answers draw on this SEC filing and the data on this page
Synopsys reported 42% revenue growth in Q3 FY2026, driven by the first full quarter of Ansys and broad-based demand, while acquisition-related amortization compressed gross margin.
Synopsys reported a dramatic revenue surge of 65.5% YoY to $2.41B in Q1 FY2026, largely driven by its acquisition of Ansys, but net income collapsed 78% to $65M due to surging costs, higher D&A, and integration expenses.
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