Synopsys just turned guidance into a power move

New forecast, same swagger

Synopsys came out swinging Thursday with FY2027 guidance that topped Wall Street’s numbers and a longer-term framework that basically says: “We’re not just growing, we’re scaling like we mean it.” The company now sees revenue of $11.1 billion to $11.2 billion and adjusted EPS of $19.04 to $19.12, both above expectations. Shares got the memo and moved higher.

The buyback isn’t subtle

The company also plans to repurchase about $1 billion of stock over the coming months, assuming market conditions don’t get weird. That’s not exactly a company acting nervous. It’s more like management looking at the balance sheet and saying, “We’ll take some of that back, thanks.”

AI is the new side quest

Synopsys didn’t stop at guidance. It also announced partnerships with OpenAI and Amazon. The OpenAI deal is aimed at building GPT-Synopsys, a specialized model for chip design workflows, while the Amazon agreement is a more than $1 billion multi-year pact to help accelerate Amazon’s custom chips and AWS infrastructure using Synopsys’ silicon IP and AI-powered engineering tools.

That matters because this isn’t just a logo slide. It suggests Synopsys is trying to turn its EDA software into a bigger, stickier platform with licensing, royalties, and more AI-flavored demand baked in.

Big picture

Investors love two things: higher guidance and optionality. Synopsys handed out both. If the company can actually deliver on that 2030 framework, the stock’s recent pop might look less like a blip and more like the market finally catching up.