Aug 26 : Synopsys on Wednesday raised its annual revenue and profit forecasts, as the AI boom drives investments in chips and infrastructure, boosting demand for the firm's chip design software. AI-related design demand has risen sharply as chipmakers invest in more advanced semiconductor systems, while tech giants, including Amazon and Alphabet, ramp up in-house chip efforts as well.Here are more details on the results: • Synopsys expects fiscal 2026 revenue in the range of $9.69 billion to $9.74 billion, compared with its prior forecast of between $9.63 billion and $9.71 billion.
• The forecast is higher than analysts' estimate for annual revenue of $9.68 billion, per data compiled by LSEG.• The company's design IP business, which licenses pre-designed chip interfaces that customers can directly embed into their systems, returned to year-over-year revenue growth in the third fiscal quarter ended July 31.• "The growth is really underpinned by the strong design environment we're seeing, and the main thing driving it is AI," CFO Shelagh Glaser said in an interview.• "Customers are building more and more complex chips and in shorter time frames. And we offer the tools for them to simplify that complexity," Glaser said.• Synopsys expects a further sequential increase in the design IP business in the current quarter.• The company projected annual adjusted earnings of $15.04 to $15.10 per share, up from its prior expectation of $14.72 to $14.80 per share. Analysts were expecting a full-year profit of $14.76 per share.• Synopsys reported revenue of $2.48 billion for the third quarter, compared with estimates of $2.44 billion. Adjusted per-share earnings of $3.91 topped estimates of $3.67.• Shares of the company were down about 2 per cent in extended trading.
