41.9%
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: Source: 10-Q Income Statement, p.1
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 (Basic)
$0.09
-95.96% YoY
Gross Margin
72.3%
-7.83% YoY
Operating Income
$120.43M
-68.01% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
SNPS experienced a 41.9% increase in revenue year-over-year, primarily driven by heightened demand for its products and services.
Source: Source: 10-Q Income Statement, p.1
The cost of revenue nearly doubled, increasing by 97.9%, which significantly impacted the gross margin, reducing it by 7.8 percentage points.
Source: Source: 10-Q Income Statement, p.1
R&D expenses rose by 26.4% as the company continues to invest in innovation and product development.
Source: Source: 10-Q Income Statement, p.1
The cost of revenue increased by 97.9%, which could continue to pressure margins if not managed effectively.
Source: Source: 10-Q Income Statement, p.1
Unlock 2 more detailed risk analysis
Upgrade to unlockReported EPS of $3.35 versus the $3.22 analyst consensus — a +4.1% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.28B | $1.6B | +41.87% |
Cost of Revenue | $629.85M | $318.35M | +97.85% |
Gross Profit | $1.65B | $1.29B | +28.01% |
Operating Income | $120.43M | $376.43M | -68.01% |
Net Income | $17.11M | $345.33M | -95.05% |
EPS (Basic) | $0.09 | $2.23 | -95.96% |
EPS (Diluted) | $0.09 | $2.21 | -95.93% |
R&D Expense | $700.12M | $553.98M | +26.38% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $46.89B | $23.76B | +97.37% |
Current Assets | $5.44B | $16.88B | -67.79% |
Total Liabilities | $16.41B | $13.84B | +18.58% |
Current Liabilities | $3.79B | $2.41B | +57.54% |
Stockholders' Equity | $30.48B | $9.92B | +207.37% |
Cash & Equivalents | $2.41B | $14.12B | -82.91% |
Long-Term Debt | $10.04B | $10.05B | -0.15% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $1.49B | $207.91M | +614.62% |
Investing Cash FlowYTD | $-89.37M | $54M | -265.50% |
Financing Cash FlowYTD | $-1.86B | $9.95B | -118.73% |
Share BuybacksYTD | $262.5M | $0 | — |
D&AYTD | $907.18M | $96.84M | +836.80% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 72.3% | 80.2% | -7.83% |
Operating Margin | 5.3% | 23.5% | -18.17% |
Net Margin | 0.8% | — | — |
ROE | 0.1% | — | — |
ROA | 0.0% | — | — |
Current Ratio | $1.434 | — | — |
Debt to Equity | $0.538 | — | — |
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The filing does not provide specific estimates, but SNPS reported a significant decline in net income and EPS, which may not have met market expectations.
SNPS saw a 41.9% increase in revenue but faced a 95.0% decline in net income due to rising costs and expenses, impacting margins.
Key risks include high cost of revenue impacting margins, a significant decrease in cash reserves, and a 95.0% drop in net income.
Revenue grew by 41.9% year-over-year to $2.28 billion, driven by increased demand for its products and services.
SNPS has a strong revenue growth but faces challenges with declining net income and cash reserves, indicating potential liquidity concerns.