The chip design automation firm is initiating a $1 billion share buyback program after raising its financial outlook at its 2026 Investor Day. Synopsys projects fiscal 2027 revenue between $11.10 billion and $11.20 billion, surpassing the IBES consensus of $10.81 billion. Non-GAAP earnings per share for the period are forecast at $19.04 to $19.12, above the market expectation of $17.81.

The company targets 15% annual revenue growth from FY2026 through FY2030 and a 50% non-GAAP operating margin by the end of that period. To drive these gains, Synopsys entered a multi-year partnership with OpenAI to build GPT-Synopsys, an AI model designed to automate chip design and verification. Synopsys also plans to return up to 50% of its free cash flow to shareholders via buybacks.