Synopsys Reports 42% Revenue Growth to $2.276 Billion in Q2 Fiscal 2026

Synopsys, Inc. reported significant financial results for the second quarter of fiscal 2026, with total revenue reaching $2.276 billion, a 42% increase from $1.604 billion in the same period last year. This growth was largely driven by the acquisition of Ansys, which contributed $652.4 million to the revenue. The company’s net income from continuing operations was $17.1 million, or $0.09 per diluted share, compared to $349.2 million, or $2.24 per diluted share, in the prior year. The increase in revenue was offset by a substantial rise in costs, including a 3,126% increase in amortization of acquired intangible assets, primarily due to the Ansys acquisition.

In comparison to the previous fiscal period, Synopsys experienced a 53% increase in revenue for the six months ended April 30, 2026, totaling $4.685 billion, up from $3.060 billion. The total cost of revenue and operating expenses surged by 79% to $4.4 billion, reflecting the integration costs associated with Ansys and increased employee-related expenses. The company reported an operating income of $120.4 million for the quarter, down from $376.4 million a year earlier, indicating the impact of higher operational costs.

Strategically, Synopsys completed the acquisition of Ansys on July 17, 2025, for approximately $34.9 billion, which has significantly influenced its financial performance. The merger aims to enhance Synopsys' capabilities in engineering simulation and analysis, addressing the growing demand for integrated design tools across various industries. Additionally, the company is in the process of divesting its Processor IP Solutions business, expected to be completed by June 2026, as part of a strategic reallocation of resources.

Operationally, Synopsys reported a backlog of approximately $11 billion as of April 30, 2026, with 49% expected to be recognized as revenue over the next 12 months. The company’s workforce has expanded due to the Ansys merger, contributing to increased employee-related costs. As of the latest report, Synopsys had approximately 191,444 shares outstanding, with a stock repurchase program allowing for up to $2 billion in buybacks, of which $1.7 billion remains available.

Looking ahead, Synopsys anticipates continued growth across most geographies in fiscal 2026, despite challenges posed by the current macroeconomic environment, including inflationary pressures and geopolitical instability. The company remains focused on leveraging its technology leadership and strong customer relationships to drive sustainable growth, while also managing the integration of Ansys and addressing the impacts of global trade policies on its operations.