Synopsys (SNPS)

Hold Recap: Q1 FY26

Q1 FY26 Revenue $2.41B at High End (ANSYS $886M Strong Seasonal Quarter); Non-GAAP EPS $3.77 Above Guide; Non-GAAP Op Margin 42.1%; FY26 EPS Guide Raised to $14.38-$14.46; $4.3B Term Loans Fully Repaid; $2B Buyback Reauthorized; ARC Processor IP to GlobalFoundries — Maintaining Hold

Hold Recap: Q4 FY25

FY25 Record Revenue $7.05B (+15%); Q4 In Line with Guide, EPS $2.90 Above; FY26 Guide $9.61B Midpoint with Non-GAAP Op Margin 40.5% (+320bp YoY); ANSYS $2.9B FY26 Contribution; NVIDIA Strategic Partnership + $2B Investment; OSG + PowerArtist Divestitures Closed — Upgrading to Hold

Underperform Recap: Q3 FY25

ANSYS Closed July 17 (Transformational Milestone) But Design IP -8% on Three Headwinds (China BIS, Foundry Customer Challenges, Roadmap Missteps); FY25 EPS Guide Cut ~16% to $12.76-$12.80; 10% Headcount Reduction by FY26; IP Transition Multi-Year — Downgrading to Underperform

Hold Recap: Q2 FY25

Q2 Revenue $1.6B (+10% YoY), Non-GAAP EPS $3.67 Above Guide, Backlog $8.1B (+$400M QoQ), Design IP +21% on AI Interface Demand, FY EPS Guide Raised; ANSYS Awaits China SAMR Clearance, BIS Export Restriction Speculation Acknowledged — Initiating at Hold