SYNOPSYS INC

Synopsys reported a significant increase in Q2 revenue, up 41.9% to $2.28 billion, largely driven by the acquisition of Ansys in July 2025. However, net income attributed to Synopsys plummeted 95.1% to $17.1 million, and diluted EPS fell to $0.09, primarily due to substantial amortization of acquired intangible assets, increased interest expense, and restructuring charges related to the Ansys integration. The company also announced the planned divestiture of its Processor IP Solutions business to GlobalFoundries Inc. as part of a strategic reallocation of resources.

Synopsys, Inc. has entered into a Cooperation Agreement with Elliott Investment Management L.P., which includes the appointment of Jesse Cohn, a Managing Partner at Elliott, as an independent director to Synopsys' Board, effective June 1, 2026. The Board will expand to 11 members, and Mr. Cohn will also join the Corporate Governance and Nominating Committee. The agreement outlines customary standstill provisions for Elliott, limiting its beneficial ownership and economic exposure, and ensures Mr. Cohn's inclusion in Synopsys' slate of nominees for the 2027 annual meeting.

Synopsys reported strong financial results for its second fiscal quarter ended April 30, 2026, with revenue of $2.276 billion and non-GAAP diluted EPS of $3.35, both exceeding prior guidance. The company is raising its full-year fiscal 2026 total revenue guidance to $9.665 billion at the midpoint and non-GAAP EPS guidance to $14.76 at the midpoint, driven by strong business performance and cost discipline. Synopsys also announced plans to host an Investor Day on September 30, 2026.

Synopsys, Inc. stockholders approved the Amended and Restated Equity Incentive Plan at the Annual Meeting held on April 16, 2026. This approval expands eligibility to include non-employee directors, alongside the existing participation of executive officers. The Board of Directors and its Compensation and Organizational Development Committee had previously endorsed the plan, pending stockholder consent.