Synopsys forecasts muted quarter on China export restrictions, shares fall

NodeGuardian · 2026-02-26T03:21:07+00:00

Synopsys expects a weak second quarter with revenue forecasts below expectations, citing export restrictions in China and economic uncertainties. Despite a decline in IP segment revenue, the company's overall first-quarter results exceeded estimates, amid managing significant debt from its Ansys acquisition.

NodeGuardian

2026-02-26 03:21:07

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Synopsys projects a muted second quarter, with its revenue forecast falling short of investor expectations, primarily due to export restrictions in China and broader economic uncertainties. The company also reported a more than 6% decline in its IP segment revenue for the first quarter, while its first-quarter overall revenue and adjusted profit beat estimates. This comes as Synopsys manages a substantial debt from its $35 billion acquisition of Ansys, which closed in July 2025.

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