Can AI Push in EDA & Ansys Integration Help SNPS Stock Grow Further?

Synopsys’ SNPS first-quarter fiscal 2026 EDA revenues reached $1.1 billion, accounting for 45.6% of total revenues, while the Ansys product group contributed 36.8% of revenues, reflecting strong demand for multiphysics simulation and digital engineering solutions.

In the reported quarter, Synopsys’ adjusted earnings of $3.77 per share beat the Zacks Consensus Estimate by 5.6%.

Synopsys’ fiscal first-quarter revenues jumped 65.5% year over year to $2.41 billion, beating the Zacks Consensus Estimate by 0.8%.

Click here to check the details of Synopsys’ second-quarter fiscal 2026 results.

AI and Ansys Integration Power Strong Momentum in Synopsys

Synopsys’ results were mainly driven by AI-led semiconductor demand and the expanding impact of its Ansys acquisition. The ongoing AI infrastructure buildout accelerated semiconductor R&D and design-start activity where Synopsys holds deep domain expertise, proprietary codebases and foundry co-optimization capabilities.

Synopsys is embedding AI throughout its EDA stack, delivering significant productivity gains for customers and is gaining from expanding adoption of Synopsys.ai, growing multi-die complexity and sustained advanced-node activity.

Customers using the platform have reported up to 50% faster knowledge assistance, 70% faster workflow assistance and 5x faster formal testbench generation, underscoring the value of AI-driven design flows.

The combined Synopsys-Ansys portfolio is well-positioned to capitalize on the industry shift from physical prototyping toward digital twins, enabling faster and more cost-efficient product development across sectors, such as aerospace, automotive and hyperscale computing.

SNPS Initiates Positive Guidance

For fiscal 2026, Synopsys expects revenues in the range of $9.56-$9.66 billion, including $2.9 billion of expected Ansys revenues. The Zacks Consensus Estimate for SNPS’ fiscal 2026 revenues is pegged at $9.63 billion, indicating year-over-year growth of 36.5%.

Non-GAAP EPS is expected between $14.38 and $14.46, up from the prior range of $14.32-$14.40. Non-GAAP expenses are projected to be in the range of $5.69-$5.75 billion. The Zacks Consensus Estimate for SNPS’ fiscal 2026 earnings is pegged at $14.39, indicating year-over-year growth of 11.5%.

For the second quarter of fiscal 2026, Synopsys expects revenues between $2.225 billion and $2.275 billion. The Zacks Consensus Estimate for SNPS’ second-quarter fiscal 2026 revenues is pegged at $2.25 billion, indicating year-over-year growth of 40.3%.

Management expects non-GAAP EPS between $3.11 and $3.17. The Zacks Consensus Estimate for SNPS’ second-quarter fiscal 2026 earnings is pegged at $3.13, indicating a year-over-year decline of 14.7%.

Zacks Rank & Other Key Picks

Currently, SNPS carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Zacks Computer and Technology sector are Micron Technology MU, Credo Technology CRDO and MongoDB MDB, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Micron Technology shares have gained 308% in the past 12-month period. This company is scheduled to release second-quarter 2026 results on March 19.

Credo Technology Group shares have gained 79.4% in the past 12-month period. CRDO is set to report its third-quarter fiscal 2026 results on March 2.

MongoDB shares have returned 25.2% in the past 12-month period. MDB is scheduled to release its fourth-quarter 2026 results on March 2.

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This article originally published on Zacks Investment Research (zacks.com).

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