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Synopsys posts strong Q2 results but shares slip after hours
Synopsys said Q2 non-GAAP EPS was $3.35, and revenue rose 42% year over year to $2.276 billion, while after-hours trading fell 1.95% amid margin worries.
Synopsys reported Q2 fiscal 2026 revenue of $2.276 billion, up 42% year over year from $1.604 billion, topping analyst expectations of about $2.25 billion, according to Yahoo Finance. The company also delivered non-GAAP earnings per share of $3.35, ahead of the $3.15 estimate.
GAAP EPS came in at $0.09, with the article attributing the gap to amortization charges, stock-based compensation, and restructuring costs tied to integrating the 2025 $35 billion Ansys acquisition.
Despite the earnings beat, the stock fell 1.95% in after-hours trading, reflecting investor concerns around near-term margin dynamics. Non-GAAP operating margin reached 39.5%, and Design Automation generated $1.82 billion of quarterly revenue, the article said.
The piece added that the company is facing a challenging design start environment and ongoing market pressure from China trade restriction concerns, and it noted a securities fraud lawsuit filed after the shares fell 36% at one point earlier. It also said SNPS shares were down 39% over the trailing twelve months at the time of writing, trading around $380 near the low end of its 52-week range.