Filing Flows › Synopsys (SNPS) › Q2 FY26
Synopsys (SNPS) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed May 27, 2026
Synopsys (SNPS) reported revenue of $2.3B for the second quarter fiscal 2026 (Q2 FY26), +42% from a year earlier and -6% from the quarter before. Operating margin was 5.3%, net earnings $16.9M (0.7% of revenue).
Synopsys, Q2 FY26: revenue $2.3B (+42% year over year), operating margin 5.3%, net earnings $16.9M, operating cash flow $629M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $2.3B | -6% | +42% |
| Gross profit | $1.6B | -7% | +28% |
| Operating profit | $120M | -41% | -68% |
| Net earnings | $16.9M | -74% | -95% |
| Operating cash flow | $629M | -27% | +128% |
| Free cash flow | $575M | -30% | +162% |
What changed
Revenue was $2.3B in Q2 FY26, up 42% year over year and down 6% from the previous quarter. Time-based products was the largest line at 42% of revenue. Maintenance and service added $0.52B year over year (up 196%), 77% of the total change.
Gross margin was 72.3%, down 7.8 points from Q2 FY25. Operating profit was $0.12B, a 5.3% margin (down 18.2 points year over year). Operating profit fell $0.26B even though revenue rose $0.67B versus Q2 FY25, so costs grew faster than sales. Operating expenses grew 68% against revenue growth of 42%. The fastest-growing cost line was Other operating costs (+6686%). Net earnings were $0.02B, down 95% year over year. The effective tax rate was 12.5%.
Operating cash flow was $0.63B (up 128% year over year), 3729% of net earnings. Non-cash charges added back $0.46B of depreciation and amortization and $0.22B of share-based compensation. Working capital and other items used $0.07B. Capital expenditures of $0.05B left free cash flow of $0.57B.
Questions
What was Synopsys' revenue in the second quarter fiscal 2026?
Synopsys (SNPS) reported revenue of $2.3B for the second quarter fiscal 2026 (Q2 FY26), +42% from a year earlier and -6% from the quarter before.
Was Synopsys profitable in the second quarter fiscal 2026?
Operating profit was $120M (5.3% of revenue) and net earnings $16.9M.
Source: Synopsys 10-Q on SEC EDGAR.