Chip-design software giant Synopsys saw its shares surge 10% following its Investor Day, where management unveiled above-consensus financial forecasts alongside landmark partnerships with OpenAI and Amazon Web Services (AWS).
📌 Key Financial Targets & Deals:
- FY27 Revenue Forecast: Projected at $11.10B–$11.20B, easily beating Wall Street consensus estimates of $10.81B (LSEG).
- FY27 EPS Guidance: Expected between $19.04 and $19.12, ahead of analyst expectations of $17.81.
- Long-Term Targets: Aiming for 15% compound annual revenue growth (CAGR) from FY26 to FY30, with an adjusted operating margin target of ~50% by FY30.
- Capital Return: Plans to execute a $1 billion share buyback over the coming months.
- OpenAI & AWS Partnerships: Signed a revenue-sharing deal with OpenAI to develop specialized AI models for chip design, while AWS locked in a multi-year chip IP licensing agreement valued at over $1 billion.
With 22 out of 24 covering analysts holding “Buy” or higher ratings, Synopsys is positioned as a primary beneficiary of the massive AI infrastructure expansion driving increasingly complex semiconductor architectures.