On October 1, Synopsys rose over 10% in regular trading. The rally was driven by a confluence of positive catalysts announced the same day.

Synopsys disclosed a multi-year strategic partnership with OpenAI to jointly develop GPT-Synopsys, a specialized AI model optimized to operate Synopsys electronic design automation tools and execute semiconductor design workflows. The model will run on OpenAI-hosted infrastructure and integrate with Synopsys.ai and the Autopilot agentic AI platform. Early technology engagements are already underway with leading semiconductor customers, and customer data will not be used to train the model.

Simultaneously, the company issued robust FY2027 guidance, projecting revenue of approximately $11.15 billion, representing roughly 15% year-over-year growth, with non-GAAP EPS of $19.04 to $19.12 and free cash flow of about $3.1 billion. Through FY2030, Synopsys targets mid-teens revenue growth and mid-20% adjusted earnings growth. The company also announced plans to return up to 50% of free cash flow via share repurchases through FY2030, with approximately $1 billion in near-term buybacks. KeyBanc raised its price target to $605 from $600, maintaining an overweight rating. The announcements follow a $1 billion-plus multi-year IP licensing agreement with Amazon AWS disclosed the prior session.

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