Synopsys Q1 2026 Earnings Highlights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy SNPS?
Source: seekingalpha
- Strong Financial Performance: Synopsys reported Q1 2026 revenue of $2.41 billion, exceeding expectations, with non-GAAP EPS at $3.77, demonstrating robust execution in technology integration and market demand.
- Optimistic Outlook: Management provided full-year 2026 revenue guidance between $9.56 billion and $9.66 billion, with Ansys contributing an expected $2.9 billion, and raised non-GAAP EPS guidance by $0.06, reflecting confidence in future growth.
- Competitive Edge in Design Automation: Synopsys achieved significant wins in hardware design automation, particularly with a leading AI HPC customer, showcasing its leadership in multi-die solutions and critical tape-outs at 2-nanometer and below.
- Ongoing Market Challenges: Despite persistent pressures in the Chinese market, management remains optimistic about business resilience, highlighting a backlog of $11.3 billion and strategic investments for future growth.
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Analyst Views on SNPS
Wall Street analysts forecast SNPS stock price to rise
12 Analyst Rating
10 Buy
2 Hold
0 Sell
Strong Buy
Current: 440.720
Low
500.00
Averages
565.64
High
602.00
Current: 440.720
Low
500.00
Averages
565.64
High
602.00
About SNPS
Synopsys, Inc. is engaged in providing engineering solutions from silicon to systems, enabling customers to innovate artificial intelligence (AI)-powered products. It delivers silicon design, intellectual property (IP), simulation and analysis solutions, and design services. It supplies mission-critical electronic design automation (EDA) software that engineers use to design and test integrated circuits (ICs). Its Design Automation segment includes its advanced silicon design, verification products and services and system integration products. This segment also includes digital, custom and field programmable gate arrays, integrated circuit design software, verification software and hardware products, system integration products and services, and manufacturing software products. Its Design IP segment includes its interface, foundation, security, and embedded processor IP, IP subsystems, and IP implementation services that serve companies in the semiconductor and electronics industries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Synopsys Q1 2026 Earnings Highlights
- Strong Financial Performance: Synopsys reported Q1 2026 revenue of $2.41 billion, exceeding expectations, with non-GAAP EPS at $3.77, demonstrating robust execution in technology integration and market demand.
- Optimistic Outlook: Management provided full-year 2026 revenue guidance between $9.56 billion and $9.66 billion, with Ansys contributing an expected $2.9 billion, and raised non-GAAP EPS guidance by $0.06, reflecting confidence in future growth.
- Competitive Edge in Design Automation: Synopsys achieved significant wins in hardware design automation, particularly with a leading AI HPC customer, showcasing its leadership in multi-die solutions and critical tape-outs at 2-nanometer and below.
- Ongoing Market Challenges: Despite persistent pressures in the Chinese market, management remains optimistic about business resilience, highlighting a backlog of $11.3 billion and strategic investments for future growth.
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- Asset Management Shift: This transaction resulted in a 5.66% decrease in Benchstone's reportable assets under management as per its 13F filing, highlighting the historical significance of this position, which previously accounted for 7.2% of the fund's AUM.
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Synopsys Q1 2026 Earnings Highlights
- Strong Financial Performance: Synopsys reported Q1 2026 revenue of $2.41 billion, exceeding expectations, with non-GAAP EPS at $3.77, demonstrating robust execution in technology integration and market demand.
- Optimistic Outlook: Management provided full-year 2026 revenue guidance between $9.56 billion and $9.66 billion, with Ansys contributing an expected $2.9 billion, and raised non-GAAP EPS guidance by $0.06, reflecting confidence in future growth.
- Competitive Edge in Design Automation: Synopsys achieved significant wins in hardware design automation, particularly with a leading AI HPC customer, showcasing its leadership in multi-die solutions and critical tape-outs at 2-nanometer and below.
- Ongoing Market Challenges: Despite persistent pressures in the Chinese market, management remains optimistic about business resilience, highlighting a backlog of $11.3 billion and strategic investments for future growth.
See More
Benchstone Capital Fully Liquidates Norwegian Cruise Line Holdings Stake
- Full Liquidation: Benchstone Capital Management disclosed in a February 17, 2026 SEC filing that it fully liquidated its 2,133,322 shares in Norwegian Cruise Line Holdings (NCLH), reducing its stake from 7.2% to zero, indicating a significant loss of confidence in the stock.
- Poor Stock Performance: As of February 16, 2026, Norwegian Cruise Line's shares were priced at $21.49, down 18.4% over the past year, significantly underperforming the S&P 500 by 30.17 percentage points, reflecting market concerns about its future growth prospects.
- Financial Metrics Overview: Norwegian Cruise Line Holdings reported a TTM revenue of $9.48 billion and a net income of $910.26 million, and despite its overall poor performance, its multi-brand strategy continues to attract diverse consumer segments, supporting revenue growth.
- Investor Watchpoints: In a high-rate environment, Norwegian must focus on maintaining steady occupancy rates, firm ticket pricing, and onboard revenue per passenger to ensure the resilience of its premium portfolio, especially amid current market challenges.
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Benchstone Fully Exits Norwegian Cruise Line Holdings Position
- Complete Position Exit: Benchstone Capital Management LP has fully liquidated its position in Norwegian Cruise Line Holdings, reducing its stake by 2,133,322 shares with an estimated trade value of $52.54 million, reflecting the impact of market price movements and the liquidation process.
- Asset Management Shift: This transaction resulted in a 5.66% decrease in Benchstone's reportable assets under management as per its 13F filing, highlighting the historical significance of this position, which previously accounted for 7.2% of the fund's AUM.
- Poor Market Performance: As of February 16, 2026, shares of Norwegian Cruise Line Holdings were priced at $21.49, down 18.4% over the past year, underperforming the S&P 500 by 30.17 percentage points, indicating competitive pressures within the travel services sector.
- Investor Focus: In a high-rate environment, Norwegian must maintain pricing and onboard spending while managing its balance sheet, with key indicators including steady occupancy and firm ticket pricing; if these metrics hold, the company's premium portfolio may demonstrate greater resilience than recent stock performance suggests.
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- Nvidia Earnings Beat: Nvidia reported adjusted earnings of $1.62 per share for the fourth quarter, exceeding analysts' expectations of $1.53, leading to a more than 1% increase in after-hours trading.
- Snowflake Revenue Guidance: Snowflake projected first-quarter product revenue between $1.262 billion and $1.267 billion, slightly above the FactSet consensus of $1.26 billion, but shares fell over 2%.
- Trade Desk Misses Expectations: Trade Desk forecasted first-quarter adjusted EBITDA of approximately $195 million, significantly below the $223 million expected by analysts, resulting in a 16% drop in shares.
- Nutanix and AMD Partnership: Nutanix announced a multi-year partnership with AMD to develop an AI infrastructure platform, with AMD investing $150 million in Nutanix, leading to a 17% surge in its stock price.
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- High Call Option Activity: Among NN's options, the $18 strike call option expiring on March 6, 2026, has seen particularly high activity with 4,520 contracts traded, representing about 452,000 shares, suggesting investor expectations for future price increases.
- BlackSky Options Volume: Concurrently, BlackSky Technology Inc (BKSY) options are showing a volume of 11,190 contracts today, equating to approximately 1.1 million underlying shares, which is 81% of BKSY's average daily trading volume of 1.4 million shares over the past month, reflecting strong investor interest.
- High Put Option Activity: For BKSY, the $17.50 strike put option expiring on March 20, 2026, has recorded a trading volume of 5,103 contracts, representing around 510,300 shares, indicating market concerns regarding potential downside risks for BKSY.
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- Salesforce Recovery: Salesforce shares rose 3% on Wednesday after a 4% increase on Tuesday, breaking a prior three-day losing streak, with the market eagerly awaiting its upcoming earnings report for further insights into the software sector.
- Amazon AWS Expansion Plan: Bank of America analysts reiterated their buy rating on Amazon, forecasting that AWS capacity will increase from 15 gigawatts to over 31 gigawatts by 2027, with projected revenues of $164 billion this year and $209 billion in 2027, both exceeding market expectations.
- Boeing Faces Challenges: While banks and credit card stocks rebounded after Trump did not mention a credit card interest rate cap, aerospace and defense stocks like Boeing fell due to missing out on a potential order for 120 jets from China, leaving the market with lingering expectations for future orders.
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