Synopsys published a record quarter at twenty past four, and at five o'clock filed the amendment that puts another $150m on the cost of cutting a tenth of its staff
Synopsys filed twice on Wednesday afternoon. The first went in at 16:21 Eastern and reported the best quarter in the company's history. The second went in at 17:00 and raised the bill for the redundancies announced last November by as much as $150m.
The second one is the news.
The amendment
Form 8-K/A, Amendment No. 1, amends the Form 8-K that Synopsys filed on 12 November 2025. Its stated sole purpose is to update the Item 2.05 disclosure in that filing to report updates to the estimated pre-tax charges under the restructuring plan the board approved on 9 November 2025. No other changes are made.
On 21 August the board approved the updated estimates. Synopsys now estimates pre-tax charges to its GAAP results ranging from $425m to $500m, consisting primarily of severance and other one-time termination benefits, and other costs such as certain site closures as part of what it calls its global site strategy.
The original filing put that range at $300m to $350m. The increase is $125m at the bottom of the range and $150m at the top, which is our arithmetic and not the company's.
What the amendment leaves alone
The November filing described a plan expected to result in the termination of approximately 10 percent of the workforce as of the fiscal 2025 year end, undertaken, in the company's words, to invest in key growth opportunities and drive business efficiencies following completion of its acquisition of ANSYS. It expected a majority of the reductions in fiscal 2026 and expected to substantially complete the plan by the end of fiscal 2027, subject to local law and consultation requirements.
None of that is amended. The cost estimate rose and the headcount description did not, and the amendment gives no reason for the increase beyond the phrase additional restructuring costs.
The charges booked, and the one still coming
The results release filed thirty-nine minutes earlier shows where the money has gone so far. Restructuring charges were $2.2m in the three months to 31 July, and $236.3m across the nine months. There were no such charges in the equivalent periods of fiscal 2025.
The guidance in the same release shows where the rest goes. For the three months to 31 October, Synopsys targets restructuring charges of $145m to $175m. For the full fiscal year it targets $380m to $410m, which is 4.1 percent of revenue at the midpoint of its own operating margin reconciliation.
Set that against the plan total. If the plan runs to between $425m and $500m and $236.3m has been recognised, between $188.7m and $263.7m is still to come.
The quarter itself
Revenue for the third quarter of fiscal 2026 was $2.477bn, against $1.740bn a year earlier. GAAP net income was $545.8m, or $2.84 a diluted share, against $242.5m and $1.50. Non-GAAP net income was $752.5m, or $3.91 a share, against $548.9m and $3.39.
Synopsys raised its full-year revenue expectation to $9.715bn at the midpoint and its full-year non-GAAP earnings guidance to $15.07 a share at the midpoint.
The distance between the two measures is unusually wide, and the reconciliation says why. GAAP operating margin for the quarter was 14.4 percent. Non-GAAP operating margin was 41.6 percent. Amortisation of acquired intangible assets accounts for 16.2 points of the difference and stock-based compensation for 9.4, with restructuring charges contributing 0.1 in a quarter when almost nothing was booked.
