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Synopsys (SNPS) Q3 FY26 earnings results (third quarter fiscal 2026)
10-Q filed Aug 26, 2026
Synopsys (SNPS) reported revenue of $2.5B for the third quarter fiscal 2026 (Q3 FY26), +42% from a year earlier and +9% from the quarter before. Operating margin was 14.4%, net earnings $546M (22.0% of revenue).
Synopsys, Q3 FY26: revenue $2.5B (+42% year over year), operating margin 14.4%, net earnings $546M, operating cash flow $813M. The chart follows the revenue to costs, profit and cash.
| Q3 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $2.5B | +9% | +42% |
| Gross profit | $1.8B | +9% | +32% |
| Operating profit | $357M | +197% | +116% |
| Net earnings | $546M | 32× | +125% |
| Operating cash flow | $813M | +29% | +21% |
| Free cash flow | $746M | +30% | +18% |
What changed
Revenue was $2.5B in Q3 FY26, up 42% year over year and up 9% from the previous quarter. Time-based products was the largest line at 40% of revenue. Maintenance and service added $0.48B year over year (up 144%), 65% of the total change.
Gross margin was 72.6%, down 5.6 points from Q3 FY25. Operating profit was $0.36B, a 14.4% margin (up 4.9 points year over year). Of the extra revenue versus Q3 FY25, 26% reached operating profit, above the 9% margin then. Operating expenses grew 21% against revenue growth of 42%. The fastest-growing cost line was Other operating costs (+451%). Net earnings were $0.55B, up 125% year over year. The effective tax rate was 20.2%. Non-operating items added $0.33B, 48% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $0.81B (up 21% year over year), 149% of net earnings. Non-cash charges added back $0.45B of depreciation and amortization and $0.23B of share-based compensation. Working capital and other items used $0.42B. Capital expenditures of $0.07B left free cash flow of $0.75B.
Questions
What was Synopsys' revenue in the third quarter fiscal 2026?
Synopsys (SNPS) reported revenue of $2.5B for the third quarter fiscal 2026 (Q3 FY26), +42% from a year earlier and +9% from the quarter before.
Was Synopsys profitable in the third quarter fiscal 2026?
Operating profit was $357M (14.4% of revenue) and net earnings $546M.
Source: Synopsys 10-Q on SEC EDGAR.