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Corporate Overview for Investors February 2026
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© 2026 Synopsys, Inc. 2 Forward-Looking Statements This presentation contains forward-looking statements, including, but not limited to, statements regarding Synopsys, Inc.’s (Synopsys, we or our) short-term and long-term financial targets, expectations and objectives; our businesses, business segments, strategies, partnerships, initiatives and opportunities, including, among other things, the reallocation of resources in our Design IP segment to higher growth opportunities and planned restructuring activities; industry growth and technological trends, such as artificial intelligence; business and market outlook; the macroeconomic environment and global economic conditions; the impact of current and future U.S. and foreign trade regulations, government actions and regulatory changes, such as export control restrictions and tariffs, including the anticipated impact of China export control restrictions; the Ansys integration and its expected impact, including expected synergies and the timing thereof and our ability to create joint solutions as a combined company; planned dispositions and their expected impact; our key customers, customer concentration, customer demand and market expansion; strategies related to our products, technology and services, including product development and our planned product releases and capabilities; the expected realization of our contracted but unsatisfied or partially unsatisfied performance obligations (backlog); planned stock repurchases; our expected tax rate; and the impact and result of pending legal, regulatory, administrative and tax proceedings. These statements involve risks, uncertainties and other factors that could cause our actual results, time frames or achievements to differ materially from those expressed or implied in such forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: macroeconomic conditions and geopolitical uncertainty in the global economy; uncertainty in the growth of the semiconductor and electronics industries; the highly competitive industry we operate in; actions by the U.S. or foreign governments, such as the imposition of additional export restrictions or tariffs; consolidation among our customers and our dependence on a relatively small number of large customers; risks and compliance obligations relating to the global nature of our operations; failure to realize the benefits expected from our recent acquisition of ANSYS, Inc. (Ansys Merger) or unexpected difficulties or expenditures arising therefrom; risks related to inaccuracies in, or failures to achieve, our operational and business metrics or forecasts of growth; and more. Additional information on potential risks, uncertainties and other factors that could affect Synopsys’ results is included in filings we make with the SEC from time to time, including in the sections entitled “Risk Factors" in our latest Annual Report on Form 10-K, and in our latest Quarterly Report on Form 10-Q. The financial information contained in this presentation should be read in conjunction with the consolidated financial statements and notes thereto included in Synopsys’ most recent reports on Forms 10-K and 10-Q, each as may be amended from time to time. Synopsys’ financial results for its first quarter of fiscal year 202 are not necessarily indicative of Synopsys’ operating results for any future periods. The information provided herein is as of February 25, 2026. Synopsys undertakes no duty to, and does not intend to, update any forward-looking statement, whether as a result of new information, future events or otherwise, unless required by law. Regulation G In addition to financial results prepared in accordance with Generally Accepted Accounting Principles (GAAP), this presentation also contains certain non-GAAP financial measures. When possible, Synopsys provides a reconciliation of non-GAAP financial measures to their most closely applicable GAAP financial measures. Reconciliations of certain of the non- GAAP financial measures (either contained in this presentation or given verbally) to their most comparable GAAP measures are included in the table at the end of this presentation, along with the first quarter of fiscal year 2026 earnings release and financial supplement, dated February 25, 2026, and available on Synopsys’ website at https://investor.synopsys.com/overview/default.aspx. Synopsys is unable to provide a reconciliation of its long-term, multi-year target for annual non-GAAP EPS growth and certain first quarter of fiscal year 2026 non-GAAP financial targets to the corresponding GAAP financial measures on a forward-looking basis because Synopsys believes that it would not be possible for it to have the required information necessary to quantitatively reconcile such measures with sufficient precision without unreasonable efforts due to, among other things, the potential variability and limited predictability of the excluded adjustment items necessary for a full reconciliation such as certain acquisition/divestiture related items, tax deduction variability, changes in the fair value of non-qualified deferred compensation plan, and gains (losses) on the sale of strategic investments. For the same reasons, Synopsys is unable to address the probable significance of the unavailable information. Investors are encouraged to review Item 2.02 of Synopsys’ Current Report on Form 8-K filed on February 25, 2026, for additional information about the measures Synopsys uses to evaluate its core business operations.
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© 2026 Synopsys, Inc. 3 Empowering Our Customers’ INNOVATION MISSION Empower innovators to drive human advancement VALUE PROPOSITION Maximize customers’ R&D capabilities and multiply their productivity PURPOSE To power innovation today that ignites the ingenuity of tomorrow © 2025 Synopsys, Inc. 3
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© 2026 Synopsys, Inc. 4 ACCELERATES creation of intelligent products by bringing silicon expertise across systems verticals EXTENDS AI leadership in EDA and simulation to accelerate customers' innovation PROVIDES comprehensive solutions for the entire silicon design process including multi -die simulation & analysis Leader in Silicon Design Leader in Simulation & Analysis + CREATING THE LEADER in Engineering Solutions from Silicon to Systems © 2025 Synopsys, Inc. 4
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© 2026 Synopsys, Inc. 5 BROAD PRODUCT PORTFOLIO Electronic Design Automation (EDA) Semiconductor Intellectual Property (IP) Simulation & Analysis (S&A) Synopsys: Industry and Technology Leader FY25 FY26 Targets1, 2 Revenue: $7.054B $9.56B – $9.66B Non-GAAP Operating Margin: 37.3% ~40.5%* *Midpoint of range Non-GAAP Diluted EPS: $12.91 $14.38 – $14.46 1 Target are provided as of February 25, 2026, and reflect the acquisition of ANSYS, Inc. (Ansys). See GAAP to non -GAAP reconciliations below for more information. 2 Synopsys’ second quarter of fiscal year 2026 will end on April 30, 2026, and its fiscal year 2026 will end on October 31, 202 6.
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© 2026 Synopsys, Inc. 6 Long-term Financial Objectives1 OUR COMBINED COMPANY LONG -TERM, MULTI -YEAR OBJECTIVES ARE: 1 These multi-year objectives are provided as of February 25, 2026 and reflect the acquisition of Ansys. See GAAP to non -GAAP reconciliations below for more information. REVENUE Industry-leading double-digit growth Design Automation: double digits Design IP: mid-teens MARGIN Long-term non-GAAP operating margins in mid 40s Long-term unlevered free cash flow margins in mid 30s EARNINGS Non-GAAP EPS growth in the high-teens range
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© 2026 Synopsys, Inc. 7 EDA & IP —AT THE HEART OF ACCELERATING ELECTRONICS INNOVATION Global Value Chain—2025E EDA & IP $23.1B Embedded Software $19.0B Foundry $174B Semiconductors $793B Electronic Systems $1.72T Sources: Synopsys Estimates, Meta-Tech Insights, Gartner, TechInsights
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© 2026 Synopsys, Inc. 8 AI-powered Hyperconverged Systems Architecture Design Capture Verification Implementation Multiphysics Signoff Test & SLM Silicon Manufacturing #1 IN EDA, Leader in digital design and verification OVER 1400 tape-outs at 16nm and below* LEADER IN simulation and IR -drop analysis GOLD STANDARD in Signoff and TCAD PIONEER in AI-powered EDA INDUSTRY-LEADING Full-Stack EDA Solution SUPERIOR CUSTOMER OUTCOMES through PPA, capacity leadership and silicon accuracy *Synopsys internal data, Q2 FY2025 LEADER IN GPU-accelerated analog verification
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© 2026 Synopsys, Inc. 9 EDA AI LEADERSHIP - RL to Generative to Agentic Assistive and Creative Capabilities Optimization of Results 2023 2023 Next Autonomous Tasks AGENTIC AIREINFORCEMENT LEARNING GENERATIVE AI / LLMS 20232017-2020 PLANNING ACTING DECISION MAKING ORCHESTRATING Run Assistance Workflow Assistance Knowledge Assistance ASSISTIVE CREATIVE RTL Creation Testbench Creation Assertion Creation VSO.ai TSO.ai Design.da Fab.da ASO.ai Silicon.da DATA ANALYTICS DSO.AI SYNOPSYS.AI AgentEngineer Technology
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© 2026 Synopsys, Inc. 10 26 YEARS of investment & commitment #2 IP PROVIDER worldwide #1 IN Interface IP #1 IN Foundation IP GROWING Processor and Security IP portfolios Broadest & Most Advanced IP PORTFOLIO Security IP Processor IP Foundation IP Other IP Interface IP Custom Logic INCREASE PRODUCTIVITY AND REDUCE DESIGN RISK with high -quality Synopsys IP
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© 2026 Synopsys, Inc. 11 ADVANCED TECHNOLOGY to Accelerate Silicon Productivity Interface IP Processor IP Foundation IP Security IP Silicon Bring-up Advanced Package IP Subsystem Hardening IP Subsystems Broad IP Portfolio Reduced TTM Reduced risk Improved design efficiency Maximized signal & power integrity Shortened time to production SYNOPSYS PARTNERSHIP from IP Core to Silicon Bring -Up
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© 2026 Synopsys, Inc. 12 INDUSTRY-LEADING Simulation & Analysis Portfolio #1 in S&A, the leader in multiphysics analysis GOLD STANDARD in multiphysics & safety PIONEER IN digital twins & AI physics informed neural networks LEADER IN orbital dynamics & mission operations Mission Engineering System Simulation & Analysis Materials & Optimization Multiphysics AI-powered SUPERIOR CUSTOMER OUTCOMES through accurate digital twins and broadest multiphysics portfolio
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© 2026 Synopsys, Inc. 13 ADVANCED TECHNOLOGY to Accelerate Systems Productivity Multiphysics Simulation & Analysis Numerics that provide accurate, reliable and consistent answers Systems Simulation & Analysis Transforming the engineering lifecycle, enabling faster and more efficient product development High-Performance Computing Scalable deployment with support for both managed and self-service cloud offerings Artificial Intelligence Leveraging AI optimized design configurations while improving efficiency and reducing errors Cloud & Experience Ensuring traceability, security, consistency, and reusability of simulation data
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© 2026 Synopsys, Inc. 14 GAAP to Non-GAAP Reconciliation EARNINGS PER SHARE —Full Fiscal Year 2026 Targets Low High Target GAAP earnings per diluted share attributed to Synopsys $ 2.21 $ 2.62 Adjustments: Amortization of acquired intangible assets 8.39 8.34 Stock-based compensation 5.00 4.90 Restructuring charges 1.30 1.04 Acquisition/divestiture related items (1) 0.08 0.08 Tax adjustments (2.60) (2.52) Target non-GAAP earnings per diluted share attributed to Synopsys $ 14.38 $ 14.46 Shares used in non-GAAP calculation (midpoint of target range) 193,000 193,000 Range for Fiscal Year Ending October 31, 2026 1 Adjustments reflect actual expenses incurred by Synopsys as of January 31, 2026, and do not fully reflect all potential adjus tments for future periods. For additional information about the measures Synopsys uses to evaluate its core business operations, please review the earni ngs press release and Item 2.02 of the Current Report on Form 8 -K filed on February 25, 2026.
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© 2026 Synopsys, Inc. 15 GAAP to Non-GAAP Reconciliation1 OPERATING MARGIN —Midpoint of Fiscal Year 2026 Targets Fiscal Year Ending October 31, 2026 At midpoint of revenue and expense guidance ranges GAAP operating margin 11.2 % Amortization of acquired intangible assets 16.8 % Stock-based compensation 9.9 % Restructuring charges 2.4 % Acquisition/divestiture related items (2) 0.2 % Target non-GAAP operating margin 40.5 % 1 These numbers represent the midpoint of targets in the prepared remarks provided on February 25, 2026, and do not represent o fficial guidance for fiscal year 2026. 2 Adjustments reflect actual expenses incurred by Synopsys as of January 31, 2026 and do not fully reflect all potential adjust ments for future periods. For additional information about the measures Synopsys uses to evaluate its core business operations, please review the earni ngs press release and Item 2.02 of the Current Report on Form 8 -K filed on February 25, 2026.
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© 2026 Synopsys, Inc. 16 GAAP to Non-GAAP Reconciliation EARNINGS PER SHARE —Fiscal Year 2025 Actual Results Twelve Months Ended GAAP net income from continuing operations per diluted share attributed to Synopsys $ 8.07 Adjustments: Amortization of acquired intangible assets 3.04 Stock-based compensation 5.39 Acquisition/divestiture related items (1.50) (Gain) loss on sale of strategic investments 0.02 Tax adjustments (2.11) Non-GAAP net income from continuing operations per diluted share attributed to Synopsys $ 12.91 Shares used in computing net income per diluted share amounts: 165,656 October 31, 2025
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© 2026 Synopsys, Inc. 17 GAAP to Non-GAAP Reconciliation 1 The adjustment includes non-GAAP expenses attributable to non-controlling interest and redeemable non-controlling interest. 2 The adjustment excludes the amortization of bridge financing costs entered into in connection with the Ansys Merger that was recorded in interest expense, and certain divestiture related items that were recorded in other income (expense), net. OPERATING MARGIN —Fiscal Year 2025 Actual Results Twelve Months Ended October 31, 2025 GAAP operating margin 13.0 % Amortization of acquired intangible assets 7.2 % Stock-based compensation(1) 12.7 % Acquisition/divestiture related items (2) 3.6 % Non-qualified deferred compensation plan 0.8 % Non-GAAP operating margin 37.3 %