Synopsys (SNPS) Q3 FY2026: Revenue +42%, Debt Down $3.5B

One year after closing the $34.9 billion Ansys acquisition, Synopsys is finally producing the cash the deal was supposed to deliver. Operating cash flow for the first nine months of fiscal 2026 reached $2.30 billion, up from $878.9 million a year earlier, and the company retired $3.46 billion of debt in the same period. GAAP earnings tell a much duller story, because $1.21 billion of purchase-accounting amortization sits between the cash and the bottom line. For a company whose balance sheet is now 80% goodwill and intangibles, the gap between those two numbers is the whole investment case.

Synopsys is the largest of the three firms that dominate electronic design automation (EDA) — the software chipmakers use to design and verify semiconductors. On 2024 market-share estimates, Synopsys and Cadence Design Systems sit at roughly 31% and 30% respectively, with Siemens EDA a distant third near 13%. Synopsys's lead over Cadence is a revenue lead, widened by Ansys, rather than a meaningful share lead. Its fiscal year ends October 31, so this quarter covers May through July 2026.

All figures below are drawn from the Synopsys Form 10-Q for the quarter ended July 31, 2026, unless otherwise noted.