Synopsys (SNPS) Q1 FY2026 earnings: revenue $2.4 billion, up 65.5% on the year

Synopsys Inc. (SNPS) reported revenue of $2.4 billion for Q1 FY2026, the quarter ended 31 January 2026, up 65.5% on the same quarter a year earlier. Net income was $65 million, down 78.0% on the year, and diluted earnings per share $0.34. The figures are the company's own, from the 10-Q it filed with the SEC on 25 February 2026.

Revenue

$2.4 billion

+65.5% on the year · +6.8% on the quarter

Q2 FY2024Q1 FY2026

Operating margin

8.4%

17.3% a year earlier

Q2 FY2024Q1 FY2026

Net income

$65 million

-78.0% on the year · -85.5% on the quarter

Q2 FY2024Q1 FY2026

Diluted EPS

$0.34

-82.0% on the year · -85.8% on the quarter

Q2 FY2024Q1 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 2 raised, 2 lowered, 10 new, 8 kept.

Revenue rose to $2.409 billion: Total revenue was $2,408.8 million, compared with $1,455.3 million in the first quarter of fiscal 2025.
Non-GAAP EPS was $3.77: Non-GAAP net income was $718.5 million, or $3.77 per diluted share, against $473.2 million, or $3.03 per diluted share, a year earlier.
GAAP net income was $65.0 million: GAAP net income was $65.0 million, or $0.34 per diluted share, against $295.7 million, or $1.89 per diluted share, in the prior-year quarter.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Revenue	2,409	2,255	1,455	+6.8%	+65.5%
Cost of revenue	637	655	270	-2.6%	+136.1%
Gross profit	1,771	1,600	1,185	+10.7%	+49.4%
Gross margin	73.5%	71.0%	81.4%
Research and development	715	747	553	-4.3%	+29.2%
Operating income	203	121	252	+67.3%	-19.4%
Operating margin	8.4%	5.4%	17.3%
Interest expense	163	195	11.1	-16.5%	+1,360.8%
Pre-tax income	79.1	517	291	-84.7%	-72.8%
Income tax	14.3	68.1	-6.3	-78.9%
Effective tax rate	18.1%	13.2%	-2.2%
Net income	65.0	449	296	-85.5%	-78.0%
Net margin	2.7%	19.9%	20.3%
Diluted EPS	$0.34	$2.39	$1.89	-85.8%	-82.0%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed.

Cash flow

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Operating cash flow	857	640	-67.5	+33.9%
Capital expenditure	35.3	n/a	40.7		-13.3%
Free cash flow	822	n/a	-108
Free cash flow margin	34.1%	n/a	-7.4%
Cash from investing	-36.5	564	-22.0
Cash from financing	-1,583	-836	-142
Depreciation and amortisation	451	449	47.9	+0.3%	+840.2%
Share-based compensation	259	237	186	+9.0%	+38.8%
Diluted shares, weighted	191m	166m	156m	+15.2%	+22.1%
Shares outstanding at period end	191m	186m	155m	+2.9%	+23.8%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Shareholders' equity	30,549	28,328	9,305	+7.8%	+228.3%
Non-controlling interest	-0.8	-0.6	0.1
Redeemable equity	n/a	0.0	0.0
Debt	10,044	13,485	14.2	-25.5%	+70,534.4%
Operating lease liabilities	691	681	552	+1.6%	+25.3%
Other liabilities	5,954	5,732	3,170	+3.9%	+87.8%
Total liabilities and equity	47,238	48,224	13,041	-2.0%	+262.2%
Fixed assets	677	697	546	-2.9%	+23.8%
Goodwill	26,881	26,899	3,433	-0.1%	+682.9%
Intangible assets	12,290	12,680	181	-3.1%	+6,691.7%
Investments	73.9	72.9	155	+1.3%	-52.5%
Cash and equivalents	2,130	2,888	3,654	-26.3%	-41.7%
Receivables	1,641	1,505	893	+9.0%	+83.8%
Inventory	393	365	415	+7.7%	-5.3%
Other assets	3,153	3,117	3,763	+1.2%	-16.2%
Total assets	47,238	48,224	13,041	-2.0%	+262.2%

Questions

What was Synopsys' revenue in Q1 FY2026?

Synopsys (SNPS) reported revenue of $2.4 billion for Q1 FY2026, the quarter ended 31 January 2026, up 65.5% on the same quarter a year earlier.

How much did Synopsys earn in Q1 FY2026?

Net income for Q1 FY2026 was $65 million, down 78.0% on the year, and diluted earnings per share $0.34.

When did Synopsys report Q1 FY2026 results?

Synopsys filed its 10-Q for the quarter ended 31 January 2026 with the SEC on 25 February 2026.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023 †	Q3 FY2023 †	Q4 FY2023 *	Q1 FY2024 †	Q2 FY2024 †	Q3 FY2024	Q4 FY2024 * †	Q1 FY2025 †	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	1,152	1,270	1,279	1,248	1,284	1,361	1,263	1,354	1,599	1,511	1,455	1,526	1,636	1,455	1,604	1,740	2,255	2,409	2,276	2,477
Cost of revenue	235	257	253	271	283	284	248	260	332	279	300	291	375	270	318	381	655	637	630	679
Gross profit	918	1,013	1,026	977	1,002	1,077	1,015	1,094	1,267	1,232	1,154	1,235	1,261	1,185	1,286	1,359	1,600	1,771	1,646	1,797
Gross margin	80%	80%	80%	78%	78%	79%	80%	81%	79%	82%	79%	81%	77%	81%	80%	78%	71%	74%	72%	73%
R&D	414	384	390	445	462	465	460	484	488	526	493	509	555	553	554	625	747	715	700	720
Operating income	190	347	364	234	217	256	292	300	431	353	332	360	311	252	376	165	121	203	120	357
Operating margin	17%	27%	28%	19%	17%	19%	23%	22%	27%	23%	23%	24%	19%	17%	23%	9%	5%	8%	5%	14%
Interest expense	1.1	0.5	0.4	0.4	0.4	0.3	0.3	0.3	0.3	1.3	7.1	11.8	15.8	11.1	94.3	147	195	163	133	133
Pre-tax income	199	327	340	236	212	279	297	326	410	457	342	392	323	291	396	189	517	79.1	19.3	684
Tax rate	-1%	4%	14%	7%	29%	4%	8%	-2%	15%	5%	13%	-8%	19%	-2%	12%	-28%	13%	18%	12%	20%
Net income	201	314	295	223	154	272	273	336	349	449	292	408	1,114	296	345	243	449	65.0	17.1	546
Net margin	17%	25%	23%	18%	12%	20%	22%	25%	22%	30%	20%	27%	68%	20%	22%	14%	20%	3%	1%	22%
Diluted EPS	$1.27	$1.99	$1.89	$1.43	$0.99	$1.75	$1.76	$2.17	$2.26	$2.89	$1.88	$2.61	$7.14	$1.89	$2.21	$1.50	$2.39	$0.34	$0.09	$2.84
Operating cash flow	371	156	750	440	394	115	703	560	326	-87.8	477	455	563	-67.5	275	671	640	857	629	813
Capital expenditure	26.8	41.8	25.6	35.6	33.7	43.5	47.9	45.2	53.1	40.4	38.4	40.0	4.4	40.7	55.6	38.6	n/a	35.3	54.2	66.6
Free cash flow	344	114	724	404	360	71.3	655	514	273	-128	438	415	558	-108	220	632	n/a	822	575	746
Buybacks	215	210	290	217	383	261	300	300	300	0.0	0.0	0.0	0.0	n/a	n/a	0.0	n/a	n/a	n/a	37.5
Shares outstanding	153m	153m	153m	153m	152m	152m	152m	152m	152m	153m	153m	154m	154m	155m	155m	185m	186m	191m	191m	192m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 31 January 2026, filed 25 February 2026: the filing.