Synopsys Guides FY2027 Revenue and EPS Above Forecasts, Plans $1 Billion Buyback at Investor Day

SNPS used its September 30 Investor Day in New York to guide fiscal 2027 revenue to $11.10 billion to $11.20 billion, above the $10.81 billion IBES consensus, and non-GAAP EPS to $19.04 to $19.12 against a $17.81 view. The $11.15 billion midpoint implies about 15% growth. The company also said it intends to repurchase about $1 billion of shares over the coming months, subject to market conditions, as part of a policy of returning up to 50% of free cash flow through buybacks.

The longer-range model runs from fiscal 2026 to fiscal 2030: revenue growth in the mid-teens, about 15% a year, and non-GAAP EPS growth in the mid-20% range. Per the company's press release, Synopsys targets a non-GAAP operating margin of about 44.0% in fiscal 2027, rising to roughly 50% by fiscal 2030, with fiscal 2027 free cash flow of about $3.1 billion. By segment it is targeting 13%+ annual growth in EDA, 10%+ in SaaS and analytics, and 17%+ in Design IP. Fiscal 2027 ends October 31, 2027.

The event also brought a multiyear IP agreement with Amazon and a partnership with OpenAI to develop GPT-Synopsys, a model specialised for chip design. Shares rose after the presentation and were up about 8.7% in Thursday trading. Wells Fargo and KeyBanc reiterated Overweight ratings and Rosenblatt reiterated Buy on October 1.

What to watch: the pace of buyback execution, whether the margin ramp toward 50% holds as Ansys is integrated, and fourth-quarter fiscal 2026 results, which set the base the new guidance builds on.