Artem Voloskovets
The company also targets a non-GAAP operating margin of approximately 50% by FY2030.
FY26E–FY30E targets
| Metric | Target |
| Revenue CAGR | ~15% |
| Design Automation — EDA | 13%+ |
| Simulation & Analysis | 10%+ |
| Design IP | 17%+ |
| Non-GAAP EPS CAGRMid | -20% |
| Free cash flow CAGRMid | -20% |
| FY2030 non-GAAP operating margin | ~50% |
| Capital return | Up to 50% of FCF |
Synopsys also plans approximately $1 billion in share repurchases over the coming months, subject to market conditions.
Synopsys expects earnings and free cash flow to grow materially faster than revenue through FY2030.
FY2027 guidance
Synopsys expects FY2027 revenue of $11.1–$11.2 billion, representing approximately 15% growth at the midpoint.
Key guidance:
- Non-GAAP operating margin: ~44%
- Non-GAAP EPS: $19.04–$19.12
- Operating cash flow: ~$3.6 billion
- Free cash flow: ~$3.1 billion
- Capital expenditures: ~$500 million
GAAP operating margin is expected to be approximately 20.7%, versus roughly 44% on a non-GAAP basis.
New targets vs. previous model
The largest changes are in profitability. Synopsys previously targeted high-teens EPS growth and a non-GAAP operating margin in the mid-40% range. The new model raises those targets to mid-20% EPS growth and approximately 50% operating margin.
What drives the higher targets
The model is based on three main businesses:
- Design Automation. EDA revenue is expected to grow at more than 13% annually.
- Design IP. Synopsys expects this segment to grow at more than 17% annually, making it the fastest-growing major business in the new model.
- Simulation & Analysis. Following the Ansys acquisition, Synopsys expects more than 10% annual growth from simulation and analysis software.
The Ansys acquisition also significantly increases Synopsys' scale. Synopsys reported $7.05 billion in FY2025 revenue, while FY2027 revenue is projected at approximately $11.15 billion at the midpoint.
Why EPS growth is higher than revenue growth
Synopsys expects:
- Revenue: ~15% CAGR
- Non-GAAP EPS: mid-20% CAGR
- Free cash flow: mid-20% CAGR
The difference is primarily driven by operating-margin expansion toward 50% by FY2030, combined with operating leverage and share repurchases.
The FY26–FY30 model therefore sets three core targets for Synopsys: ~15% annual revenue growth, ~50% non-GAAP operating margin and mid-20% EPS growth by FY2030.
Artem Voloskovets
