Synopsys Announces $1 Billion Buyback and AI Partnerships

Synopsys Inc. announced a plan to repurchase approximately $1 billion in shares and established long-term financial targets during an investor day in New York. The company projects fiscal year 2027 revenue of $11.15 billion, a 15% year-over-year increase, with non-GAAP earnings per share estimated between $19.04 and $19.12. By fiscal 2030, the company targets mid-teens revenue growth and a non-GAAP operating margin of roughly 50%.

The share repurchase program may return up to 50% of the projected $3.1 billion free cash flow for fiscal 2027 to shareholders.

To drive technical growth, the company entered an agreement with Amazon for application-optimized intellectual property. It also formed a partnership with OpenAI to develop GPT-Synopsys, a specialized artificial intelligence model designed specifically for chip design.