Core Insights - Synopsys reported a significant increase in first-quarter fiscal 2026 revenues, reaching $2.41 billion, which is a 65.5% year-over-year growth, surpassing the Zacks Consensus Estimate by 0.8% [2][10] - The company's EDA revenues were $1.1 billion, making up 45.6% of total revenues, while the Ansys product group contributed 36.8% of revenues, indicating strong demand for multiphysics simulation and digital engineering solutions [1][10] Financial Performance - Adjusted earnings for Synopsys in the reported quarter were $3.77 per share, exceeding the Zacks Consensus Estimate by 5.6% [1] - For fiscal 2026, Synopsys anticipates revenues between $9.56 billion and $9.66 billion, including $2.9 billion from Ansys, with a year-over-year growth projection of 36.5% [6] - Non-GAAP EPS is expected to be between $14.38 and $14.46, reflecting an increase from the previous range, while non-GAAP expenses are projected to be between $5.69 billion and $5.75 billion [7] Growth Drivers - The results were primarily driven by AI-led semiconductor demand and the integration of Ansys, which has enhanced Synopsys' capabilities in semiconductor R&D and design [3][10] - Synopsys is embedding AI throughout its EDA stack, leading to significant productivity gains for customers, with reported improvements such as 50% faster knowledge assistance and 5x quicker formal testbench generation [4][10] Market Positioning - The combined Synopsys-Ansys portfolio is strategically positioned to leverage the industry shift from physical prototyping to digital twins, facilitating faster and more cost-effective product development across various sectors, including aerospace and automotive [5][10] - For the second quarter of fiscal 2026, Synopsys expects revenues between $2.225 billion and $2.275 billion, with a year-over-year growth estimate of 40.3% [8]