At its investor day in New York on Wednesday, the company outlined a long-term growth outlook that underscored growing demand for its tools as heavy investments in AI fuel increasingly complex chip designs.
The company forecast revenue to be between $11.10 billion and $11.20 billion for fiscal year ending October 31, 2027, above analysts’ average estimate of $10.81 billion, according to data compiled by LSEG.
Its fiscal 2027 earnings per share forecast of $19.04 to $19.12 was also ahead of the estimate of $17.81.
The company plans to buy back about $1 billion of shares over the coming months.
Synopsys also targets about 15% compound annual revenue growth from fiscal 2026 through fiscal 2030, and an adjusted operating margin of about 50% by fiscal 2030.
“The Synopsys 2026 Investor Day, held overnight, provided significantly more than the market expected,” brokerage Berenberg said in a note to clients.
Of the 24 analysts covering Synopsys, 22 rate it “buy” or higher, while two hold, according to LSEG data.
On Wednesday, Synopsys signed a deal to share revenue with OpenAI to develop an AI model for the chip business.
Amazon.com’s AWS also signed a multi-year deal worth more than $1 billion to license chip-design intellectual property from Synopsys.
