Filing Flows › Synopsys (SNPS) › Q2 FY26 › vs Q1 FY26
Synopsys (SNPS) Q2 FY26 vs Q1 FY26 (quarter over quarter)
Synopsys's revenue fell $133M (-6%) from $2.4B in Q1 FY26 to $2.3B in Q2 FY26. The biggest changes: Products −$201M (-12%); Maintenance and service +$68.4M (+10%). Gross margin 72.3% against 73.5% (-1.2 pts).
Synopsys, Q2 FY26: revenue $2.3B (+42% year over year), operating margin 5.3%, net earnings $16.9M, operating cash flow $629M. The chart draws each line against Q1 FY26, the increases inside each band.
Margins
| Q2 FY26 | Q1 FY26 | Change | |
|---|---|---|---|
| Gross margin | 72.3% | 73.5% | -1.2 pts |
| Operating margin | 5.3% | 8.4% | -3.1 pts |
| Net margin | 0.7% | 2.7% | -1.9 pts |
| Free cash flow margin | 25.3% | 34.1% | -8.9 pts |
Every line
| Line | Q2 FY26 | Q1 FY26 | Change | % |
|---|---|---|---|---|
| Time-based products | $946M | $952M | −$5.9M | -0.6% |
| Upfront products | $546M | $742M | −$195M | -26% |
| Products | $1.5B | $1.7B | −$201M | -12% |
| Maintenance and service | $784M | $716M | $68.4M | +10% |
| Revenue | $2.3B | $2.4B | −$133M | -6% |
| Gross profit | $1.6B | $1.8B | −$125M | -7% |
| Cost of revenue | $630M | $637M | −$7.5M | -1% |
| Operating profit | $120M | $203M | −$82.6M | -41% |
| Operating expenses | $1.5B | $1.6B | −$42.7M | -3% |
| Pre-tax earnings | $19.3M | $79.1M | −$59.8M | -76% |
| Other expense, net | $101M | $124M | −$22.8M | -18% |
| Research & development | $700M | $715M | −$14.9M | -2% |
| Sales & marketing | $382M | $396M | −$14.4M | -4% |
| General & admin | $172M | $183M | −$10.3M | -6% |
| Other operating costs | $271M | $274M | −$3.1M | -1% |
| Net earnings | $16.9M | $64.7M | −$47.8M | -74% |
| Income tax | $2.4M | $14.3M | −$11.9M | -83% |
| Operating cash sources | $696M | $774M | −$78.5M | -10% |
| Depreciation & amortization | $456M | $451M | $5.8M | +1% |
| Share-based compensation | $222M | $259M | −$36.4M | -14% |
| Working capital & other | $66.7M | −$82.7M | $149M | — |
| Operating cash flow | $629M | $857M | −$228M | -27% |
| Free cash flow (OCF − capex) | $575M | $822M | −$247M | -30% |
| Capital expenditures | $54.2M | $35.3M | $18.9M | +53% |
Questions
How much did Synopsys's revenue grow quarter over quarter in Q2 FY26?
Synopsys's revenue fell $133M (-6%) from $2.4B in Q1 FY26 to $2.3B in Q2 FY26.
What drove Synopsys's revenue change in Q2 FY26?
Products −$201M (-12%); Maintenance and service +$68.4M (+10%).