Synopsys shares jump 10% after strong 2027 guidance and deals with OpenAI and AWS

Shares of chip-design software company Synopsys (SNPS.O) rose 10% on Thursday, as Reuters reports, after the company forecast fiscal 2027 revenue and profit significantly above analysts’ estimates. The company also revealed strategic agreements with OpenAI and Amazon Web Services.

At the “Investor Day” event held in New York on Wednesday, Synopsys executives outlined a long-term growth outlook, emphasizing rising demand for their tools — as heavy investment in artificial intelligence is making chip designs ever more complex. According to LSEG data, the company expects revenue of $11.10–11.20 billion for the fiscal year ending October 31, 2027, against the average analyst expectation of $10.81 billion.

Earnings per share (EPS) for fiscal 2027 are forecast at $19.04–19.12, also above the consensus estimate of $17.81. The company also announced a plan to buy back about $1 billion of its own shares in the coming months.

As part of its long-term strategy, Synopsys targets annual revenue growth of around 15% from fiscal 2026 to fiscal 2030, with an adjusted operating margin of around 50% by 2030. According to Berenberg, “Investor Day 2026 delivered significantly more than the market expected.” Of the 24 analysts covering the stock, according to LSEG data, 22 rate it “buy” or higher.

A day earlier, on Wednesday, Synopsys revealed a revenue-sharing agreement with OpenAI to develop an artificial intelligence model for the chip business (“GPT-Synopsys”), while Amazon Web Services signed a multi-year agreement worth over $1 billion to license chip-design intellectual property — developments that have also boosted investor optimism.