Synopsys cuts 128 roles amid Ansys integration

Synopsys plans to eliminate 128 positions at its Sunnyvale campus in California, primarily targeting engineering and research and development staff. The workforce reductions are scheduled to take effect by Wednesday, December 16, 2026. The move follows the company's approximately $35 billion acquisition of Ansys and forms part of a restructuring plan with additional site closures and adjustments expected through 2027.

The operational cuts coincide with accelerating financial growth. On August 26, 2026, Synopsys reported third-quarter fiscal 2026 revenue up 42.4% year over year to $2.48 billion, topping Wall Street expectations of $2.44 billion. Non-GAAP net income climbed 37.1% to $752.5 million, producing non-GAAP earnings per share of $3.91 versus the $3.67 consensus estimate. Following the report, the stock gained 13.4% in the next trading session.

Segment performance was led by Design Automation, which grew 52.7% to about $2 billion, while Design IP rose 10.8% to $473.8 million. The Ansys acquisition contributed roughly $711 million in quarterly revenue. Operating margin reached 41.6% on a non-GAAP basis, free cash flow hit $746 million, and cash and short-term investments totaled $3.6 billion. Management lifted its full-year revenue guidance to between $9.69 billion and $9.74 billion, with expected non-GAAP earnings per share of $15.04 to $15.10 and free cash flow near $2.6 billion.

For the fourth quarter, Synopsys projects revenue of $2.53 billion to $2.58 billion and non-GAAP earnings per share of $4.10 to $4.16. Across Wall Street, Ruben Roy of Stifel Nicolaus and Harlan Sur of J.P. Morgan both reaffirmed Buy ratings with $600 price targets, while Nay Soe Naing of Berenberg Bank set a Street-high target of $633. Among 21 analysts tracking the firm, 16 rate it a Strong Buy, one a Moderate Buy, three a Hold, and one a Strong Sell, yielding an average price target of $551.18.