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Synopsys (SNPS) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed Feb 25, 2026
Synopsys (SNPS) reported revenue of $2.4B for the first quarter fiscal 2026 (Q1 FY26), +66% from a year earlier and +7% from the quarter before. Operating margin was 8.4%, net earnings $65.0M (2.7% of revenue).
Synopsys, Q1 FY26: revenue $2.4B (+66% year over year), operating margin 8.4%, net earnings $65.0M, operating cash flow $857M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $2.4B | +7% | +66% |
| Gross profit | $1.8B | +11% | +49% |
| Operating profit | $203M | +67% | -19% |
| Net earnings | $65.0M | -86% | -78% |
| Operating cash flow | $857M | +34% | — |
| Free cash flow | $822M | +36% | — |
What changed
Revenue was $2.4B in Q1 FY26, up 66% year over year and up 7% from the previous quarter. Time-based products was the largest line at 40% of revenue. Maintenance and service added $0.46B year over year (up 176%), 48% of the total change.
Gross margin was 73.5%, down 7.9 points from a year earlier. Operating profit was $0.20B, a 8.4% margin (down 8.9 points year over year). Operating profit fell $0.05B even though revenue rose $1.0B versus a year earlier, so costs grew faster than sales. Operating expenses grew 68% against revenue growth of 66%. The fastest-growing cost line was Other operating costs (+6757%). Net earnings were $0.06B, down 78% year over year. The effective tax rate was 18.1%.
Operating cash flow was $0.86B, 1324% of net earnings. Non-cash charges added back $0.45B of depreciation and amortization and $0.26B of share-based compensation. Working capital and other items added $0.08B. Capital expenditures of $0.04B left free cash flow of $0.82B.
Questions
What was Synopsys' revenue in the first quarter fiscal 2026?
Synopsys (SNPS) reported revenue of $2.4B for the first quarter fiscal 2026 (Q1 FY26), +66% from a year earlier and +7% from the quarter before.
Was Synopsys profitable in the first quarter fiscal 2026?
Operating profit was $203M (8.4% of revenue) and net earnings $65.0M.
Source: Synopsys 10-Q on SEC EDGAR.