Synopsys shares surged 13% to $491 following the chip-design software maker's Investor Day, where management announced fiscal 2027 revenue guidance of $11.10 billion to $11.20 billion and earnings per share of $19.04 to $19.12, significantly exceeding analyst estimates of $10.81 billion and $17.81 respectively. The company revealed a multi-year deal with Amazon Web Services worth more than $1 billion to licence chip-design intellectual property for custom silicon. CEO Sassine Ghazi noted that royalties will begin once designs reach production in approximately 14 months. Synopsys also announced a partnership with OpenAI to develop GPT-Synopsys, a chip-design model under a revenue-sharing agreement. The company raised its fiscal 2030 operating margin target to approximately 50% from the mid-40s and announced a $1 billion share buyback programme.

Synopsys shares jumped 9% to $475.70 after its Investor Day on 30 September, prompting BofA to raise its price target to $600 and KeyBanc to $605. Both firms maintained buy-equivalent ratings. The company unveiled a 23% pro-forma earnings per share compound annual growth target through fiscal 2030, exceeding Wall Street expectations. BofA raised its FY27 and FY28 EPS estimates by 7% and 16% respectively. Synopsys announced partnerships with OpenAI and AWS whilst targeting higher long-term growth in electronic design automation and silicon intellectual property. The company recently completed a $35 billion Ansys acquisition. Third-quarter fiscal 2026 revenue reached $2.48 billion, up 42.4% year-over-year, beating consensus estimates. Management raised full-year guidance to between $9.69 billion and $9.74 billion revenue. Execution risks remain around export controls, Ansys integration, and restructuring charges before joint products contribute to growth in 2027.

Synopsys has gained 4.6% over the past month, outperforming the S&P 500's 0.4% decline and the Computer-Software industry's 3% loss. The chipmaker software company holds a Zacks Rank #2 (Buy) rating. Analysts expect current quarter earnings of $4.10 per share, up 41.4% year-over-year, though the consensus estimate declined 1.9% over the past 30 days. Full-year earnings are projected at $15.13, representing 17.2% growth. Revenue estimates stand at $2.56 billion for the current quarter, $9.72 billion for the current fiscal year, and $10.74 billion for next year, indicating growth of 13.5%, 37.8%, and 10.5% respectively. The company has beaten both earnings and revenue consensus estimates in each of the past four quarters. However, Synopsys receives a D grade on the Zacks Value Style Score, suggesting it trades at a premium to peers.