Financial Data and Key Metrics Changes - The company reported total revenue of $2.41 billion for Q1 2026, at the high end of guidance, primarily due to timing of Ansys deals [15] - Non-GAAP operating margin was 42.1%, and non-GAAP EPS was $3.77, exceeding expectations [13][16] - Backlog ended at $11.3 billion, indicating a strong and resilient business model [13] Business Line Data and Key Metrics Changes - Design Automation segment revenue was approximately $2 billion, with strong growth in hardware-assisted verification [16] - Design IP segment revenue was $407 million, down approximately 6% year-over-year, indicating a transitional year for the business [16] - Ansys revenue was approximately $886 million, reflecting strong demand for system-level digital engineering and multiphysics simulation [15][16] Market Data and Key Metrics Changes - China revenue grew approximately 21% year-over-year due to the inclusion of Ansys, although excluding Ansys, revenue declined slightly [15] - The company noted a robust design start activity for AI compute, while design starts in consumer, automotive, and industrial markets remained subdued [4][5] Company Strategy and Development Direction - The company is focused on delivering technology promises from the integration of Synopsys and Ansys, with a strong emphasis on AI-driven design capabilities [4][12] - The strategy includes advancing technology leadership and focusing on sustainable growth and margin expansion [11][12] - The planned sale of the processor IP solutions business to GlobalFoundries is aimed at sharpening focus on interconnect and foundation IP [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the IP business driven by robust design starts, particularly in the AI segment [24] - The company anticipates continued demand for silicon-to-system solutions, particularly in industries like semiconductors, aerospace, and automotive [6][10] - Management acknowledged challenges in the Chinese market due to geopolitical factors but remains optimistic about the overall demand for their products [68] Other Important Information - The company has replenished its stock repurchase program with authorization to purchase up to $2 billion of common stock [18] - Free cash flow was approximately $822 million in Q1, with total debt at $10 billion [17] Q&A Session Summary Question: Insights on the IP segment and expected growth - Management highlighted confidence in the IP business due to robust design starts and evolving standards, with expectations for a pickup in the second half of the year [24][25] Question: Seasonal trends in bookings and renewal activity - Management noted that backlog is strong at $11.3 billion, and renewal timing can cause fluctuations, but overall confidence remains high [34] Question: AI's impact on the business - Management stated that AI is amplifying their strategic advantage rather than disrupting it, with ongoing developments in AI-driven design capabilities [5][42] Question: Ansys business forecastability - Management expressed confidence in Ansys's ability to service multiple market segments, indicating broad growth opportunities despite accounting variability [44][46] Question: Updates on the NVIDIA partnership - The partnership is focused on GPU acceleration and creating digital twins for physical AI opportunities, with expectations for product delivery in 2026 [90][92]

Corporate Overview for Investors February 2026 Forward-Looking Statements This presentation contains forward-looking statements, including, but not limited to, statements regarding Synopsys, Inc.'s (Synopsys, we or our) short-term and long-term financial targets, expectations and objectives; our businesses, business segments, strategies, partnerships, initiatives and opportunities, including, among other things, the reallocation of resources in our Design IP segment to higher growth opportunities and planne ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JANUARY 31, 2026 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 000-19807 SYNOPSYS, INC. (Exact name of registrant as specified in its charter) Delaware 56-1546236 (State or other jurisdiction ...

Exhibit 99.1 EDITORIAL CONTACT: Cara Walker Synopsys, Inc. 650-584-5000 corp-pr@synopsys.com Synopsys Posts Financial Results for First Quarter Fiscal Year 2026 Results Summary SUNNYVALE, Calif. – Feb. 25, 2026 – Synopsys, Inc. (Nasdaq: SNPS) today reported results for its first quarter of fiscal year 2026. Revenue for the first quarter of fiscal year 2026 was $2.409 billion, compared to $1.455 billion for the first quarter of fiscal year 2025. "Synopsys enters 2026 with an expanded portfolio, leadership po ...

Synopsys (NASDAQ: SNPS) reports Q1 FY2026 results tonight. ...

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NVIDIA Corporation (NASDAQ:NVDA) is one of Goldman Sachs’s top growth stock picks. On February 18, Morgan Stanley analyst Erik Woodring identified NVIDIA Corporation (NASDAQ:NVDA) as the most under-owned large-cap technology stock in the market. Palantir (PLTR) Balances Growth Deals with Investor Doubts   Woodring stated that the gap between Nvidia’s weight in the S&P 500 and the share of the stock actively held by institutional investors stood at negative 2.57%. This is the largest negative gap among a ...

Core Viewpoint - HSBC downgraded Synopsys from Buy to Hold, setting a price target of $455 due to anticipated challenges in fiscal 2026 driven by geopolitical uncertainty and Intel's foundry operations affecting the Electronic Design Automation (EDA) business [1] Group 1: Financial Performance and Projections - Fiscal 2026 is expected to be a transitional year for Synopsys, influenced by external factors that may impact revenue [1] - The EDA segment represented over 60% of total revenue in fiscal 2025, highlighting its significance to the company's financial health [1] Group 2: Growth Outlook - Growth in the Design IP segment is expected to be muted compared to the company's long-term mid-teens growth outlook as management shifts focus towards artificial intelligence opportunities [2] - The lack of clear near-term catalysts contributed to the decision to lower the rating to Hold [2]

Core Insights - Synopsys (SNPS) is expected to report quarterly earnings of $3.57 per share, marking a 17.8% increase year-over-year, with revenues projected at $2.39 billion, reflecting a 64.3% year-over-year growth [1] Earnings Estimates - There have been no revisions in the consensus EPS estimate for the quarter over the last 30 days, indicating stability in analysts' forecasts [1][2] - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock [2] Revenue Projections - Revenue from Maintenance and Service is estimated to reach $660.32 million, a significant increase of 155% from the previous year [4] - Total Products Revenue is projected at $1.73 billion, indicating a 44.9% increase year-over-year [4] - Revenue by segment for Design IP is expected to be $420.17 million, showing a slight decline of 3.4% from the prior year [4] - Revenue from Design Automation is anticipated to be $1.76 billion, reflecting a 72.3% increase year-over-year [5] - Upfront Products revenue is estimated at $601.00 million, representing a 63.3% increase from the previous year [5] - Time-based Products revenue is projected at $1.10 billion, indicating a 33.2% increase year-over-year [5] Stock Performance - Shares of Synopsys have decreased by 13.2% over the past month, contrasting with a 0.8% decline in the Zacks S&P 500 composite [6] - Synopsys holds a Zacks Rank of 4 (Sell), suggesting it is expected to underperform the overall market in the near future [6]

Core Insights - Nvidia has sold its stake in ARM Holdings, liquidating 1.1 million shares valued at approximately $140 million, marking a significant shift in its investment strategy [1] - The previous attempt by Nvidia to acquire ARM for $40 billion in 2020 failed due to regulatory concerns, leading to Nvidia's exit from its equity position in ARM [1] - ARM reported record revenue of $1.24 billion in Q3, a 26% year-over-year increase, although net income fell by 12% [1] Nvidia's Investment Strategy - Nvidia is focusing on larger investments, having recently invested $2 billion in Synopsys, $5 billion in Intel, and $2 billion in CoreWeave, indicating a strategic shift away from smaller stakes like ARM [1] - The sale of ARM shares is seen as a move to streamline Nvidia's investment portfolio towards more significant partnerships and opportunities [1] ARM's Market Position - ARM's royalty revenue reached $737 million, and the company aims to capture nearly 50% of CPUs deployed by top hyperscalers by 2026 [1] - Despite the growth in revenue, ARM's valuation is considered stretched, with analysts setting a price target of $147.83 against a current price of $126.93, reflecting concerns about future earnings growth [1] - ARM's licensing model allows it to benefit from the AI chip boom, but it needs to demonstrate margin expansion despite recent disappointing net income results [1]