Key facts
- Synopsys shares jumped 10% on Thursday.
- The company forecasts fiscal 2027 revenue between $11.10 billion and $11.20 billion.
- Fiscal 2027 earnings per share are forecast to be between $19.04 and $19.12.
- Synopsys plans to buy back about $1 billion of shares.
- A multi-year deal with Amazon Web Services is worth more than $1 billion.
- Synopsys signed a revenue-sharing deal with OpenAI.
Synopsys shares surged 10% on Thursday following an upbeat long-term growth outlook presented at its investor day, which included projections for revenue and profit above analyst estimates, as well as significant deals with OpenAI and Amazon Web Services.
The chip-design software company forecast fiscal year 2027 revenue to be between $11.10 billion and $11.20 billion, surpassing the $10.81 billion average estimate compiled by LSEG. Its earnings per share forecast for fiscal 2027, set at $19.04 to $19.12, also exceeded the analyst estimate of $17.81.
Synopsys also announced plans for a share buyback program of approximately $1 billion in the coming months. The company aims for a compound annual revenue growth rate of about 15% from fiscal 2026 through fiscal 2030 and targets an adjusted operating margin of around 50% by fiscal 2030.
In strategic partnerships, Synopsys signed a deal with OpenAI to share revenue for the development of an AI model tailored for the chip business. Additionally, Amazon.com's AWS entered into a multi-year agreement valued at over $1 billion to license Synopsys' chip-design intellectual property.