Synopsys Inc (NASDAQ:SNPS) reported first-quarter results that exceeded Wall Street expectations, with adjusted earnings per share of $3.77 beating the analyst consensus of $3.56 by $0.21. Revenue reached $2.41 billion, surpassing the $2.39 billion estimate and representing a 65.6% increase from $1.455 billion in the same quarter last year.

For the second quarter, Synopsys provided guidance with adjusted EPS of $3.11 to $3.17, with a midpoint of $3.14 that exceeds the analyst consensus of $3.08. Revenue guidance of $2.225 billion to $2.275 billion has a midpoint of $2.25 billion, slightly above the $2.243 billion consensus. For fiscal year 2026, Synopsys expects adjusted EPS of $14.38 to $14.46, with the midpoint of $14.42 higher than the analyst estimate of $14.38.

CEO Sassine Ghazi attributed the strong performance to AI-driven demand in system-level and semiconductor R&D, stating that increasing AI capabilities throughout the portfolio strengthen Synopsys's strategic advantage. CFO Shelagh Glaser noted that first-quarter results reflect strong execution and financial discipline across the business. The company's board approved a replenishment of the existing stock repurchase program with authorization to purchase up to $2.0 billion of Synopsys common stock, while expecting fiscal 2026 operating cash flow of approximately $2.2 billion.