US chip design software firm Synopsys raised its fiscal 2026 revenue and adjusted profit forecasts on August 26 after AI-related demand for chip design tools lifted its third-quarter results.

It now expects revenue of US$9.69 billion to US$9.74 billion and adjusted earnings of US$15.04 to US$15.10 per share, up from prior forecasts of US$9.63 billion to US$9.71 billion and US$14.72 to US$14.80 per share.

Third-quarter revenue was US$2.48 billion, above estimates of US$2.44 billion, while adjusted earnings were US$3.91 per share, above the expected US$3.67.

Synopsys shares fell about 2% in extended trading.

The higher outlook came weeks after Synopsys said it had received all necessary approvals for its proposed acquisition of Ansys.

It also followed US export curbs tied to China that earlier halted Synopsys’ sales in China, before the company cited the lifting of recent restrictions.

Peer Cadence also raised forecasts in July on demand for AI chip design tools.

🔗 Source: Reuters

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