Ansys full-quarter contribution
Ansys contributed $622.2 million to revenue in Q3 FY2026 and $2.2 billion for the nine months, versus only a partial quarter in the prior-year periods.
Source: 10-Q Item 2 MD&A
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
Synopsys' third quarter of fiscal 2026 was the first full quarter of contribution from Ansys, acquired in July 2025. Management attributed the revenue increase to broad-based strength across the business, led by EDA, a return to year-over-year growth in Design IP, and a strong quarter from Ansys, which contributed $622.2 million of revenue. The tension in the quarter is that gross margin fell even as operating margin improved, reflecting higher amortization of acquired intangibles and Ansys-related employee costs. Contracted but unsatisfied performance obligations remained substantial at $10.9 billion, including $1.9 billion in non-cancellable FSA commitments.
Revenue
$2.48B
+42.37% YoY
EPS (Diluted)
$2.84
+89.33% YoY
Gross Margin
72.6%
-5.6 pts YoY
Operating Income
$357.49M
+116.31% YoY
Source: SEC XBRL
Synopsys (SNPS) reported Q3 FY2026 revenue of $2.48B, up 42.4% year over year. Operating margin was 14.4%, up 4.9 points from 9.5% a year earlier. SNPS's fiscal Q3 FY2026 corresponds to calendar Q3 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 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% |
| Sep 2025 | 3.39 | 3.80 | Miss -10.9% |
2 reported segments · SEC XBRL
Segment revenue totals $2.48B, which is the $2.48B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure SNPS itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Ansys contributed $622.2 million to revenue in Q3 FY2026 and $2.2 billion for the nine months, versus only a partial quarter in the prior-year periods.
Source: 10-Q Item 2 MD&A
Backlog was $10.9 billion as of July 31, 2026, including $1.9 billion in non-cancellable FSA commitments; about 49% of backlog excluding FSA is expected to be recognized as revenue in the next 12 months.
Source: 10-Q Item 2 MD&A
Total cost of revenue and operating expenses rose 35% year over year, including a $330.0 million increase in amortization of acquired intangibles and a $174.3 million increase in employee-related costs, primarily from the Ansys full-quarter inclusion.
Source: 10-Q Item 2 MD&A
Time-based products revenue grew 12% and upfront products revenue grew 29% year over year, while maintenance revenue increased 197%, reflecting Ansys and IP/hardware timing.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 4 high, 1 medium, 0 low
Evolving U.S. Export Regulations, including Chinese entity-list additions and ECAD controls, have negatively impacted the China business and Design IP segment. Synopsys has received BIS subpoenas and anticipates further changes, creating uncertainty around sales and compliance.
Source: 10-Q Item 1A Risk Factors
Customers have postponed decisions, delayed drawdowns, decreased spending, or delayed payments amid tariffs, inflation, elevated interest rates and slow growth in industrial, automotive and consumer electronics. This could reduce demand for design solutions and pressure revenue.
Source: 10-Q Item 1A Risk Factors
Synopsys may fail to realize expected synergies or financial benefits from the Ansys Merger, could incur integration costs and liabilities, and may face difficulties retaining employees and creating joint solutions.
Source: 10-Q Item 1A Risk Factors
The company depends on a relatively small number of large customers; a major foundry customer negatively impacted fiscal 2025. Further consolidation could reduce demand or increase customer bargaining power.
Source: 10-Q Item 1A Risk Factors
Synopsys faces intense competition from EDA and IP vendors, new entrants, and in-house tools, while China promotes domestic EDA capabilities. The company is reallocating Design IP resources to higher-growth opportunities, which may not succeed.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 2.48 $B | 1.74 $B | +42.37% |
Cost of Revenue $M | 679.39 $M | 380.56 $M | +78.52% |
Gross Profit $B | 1.80 $B | 1.36 $B | +32.24% |
Operating Income $M | 357.49 $M | 165.27 $M | +116.31% |
Net Income $M | 545.80 $M | 242.51 $M | +125.06% |
EPS (Basic) $ | 2.85 $ | 1.51 $ | +88.74% |
EPS (Diluted) $ | 2.84 $ | 1.50 $ | +89.33% |
R&D Expense $M | 719.74 $M | 625.30 $M | +15.10% |
Answers draw on this SEC filing and the data on this page
SNPS reported strong revenue growth in Q2 FY2026, but faced significant declines in net income and margins due to increased costs and expenses.
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.
Other companies in Application Software