Corporate Overview for Investors February 2026 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 planne ...

Core Viewpoint - HSBC downgraded Synopsys from Buy to Hold, setting a price target of $455 due to anticipated challenges in fiscal 2026 driven by geopolitical uncertainty and Intel's foundry operations affecting the Electronic Design Automation (EDA) business [1] Group 1: Financial Performance and Projections - Fiscal 2026 is expected to be a transitional year for Synopsys, influenced by external factors that may impact revenue [1] - The EDA segment represented over 60% of total revenue in fiscal 2025, highlighting its significance to the company's financial health [1] Group 2: Growth Outlook - Growth in the Design IP segment is expected to be muted compared to the company's long-term mid-teens growth outlook as management shifts focus towards artificial intelligence opportunities [2] - The lack of clear near-term catalysts contributed to the decision to lower the rating to Hold [2]

NVIDIA “13F” filing graphic on a circuit board with rising chart, signaling institutional holdings disclosure. Key Points NVIDIA's public equity portfolio shifted significantly in Q4 2025, with the firm adding three stocks and selling out of four. Intel and Synopsys are now NVIDIA's two largest holdings, but the firms are aligning around more than just equity stakes. Meanwhile, NVIDIA backed away from one of its neocloud investments, maintaining its position in CoreWeave and Nebius. Interested in NVID ...

Company Overview - Cadence Design Systems, Inc. (CDNS) has a market cap of $81.6 billion and is a leading electronic design automation (EDA) software and semiconductor IP company, providing tools and platforms for designing complex integrated circuits and electronic systems [1] - Founded in 1988 and headquartered in San Jose, California, Cadence serves various sectors including semiconductor, hyperscale computing, automotive, aerospace/defense, and consumer electronics globally [1] Stock Performance - Over the past year, CDNS shares have underperformed the broader market, gaining only 1.9% compared to a 12.9% increase in the S&P 500 Index [2] - In 2026, CDNS stock is down 7.8%, while the S&P 500 Index has experienced a marginal dip [2] Market Dynamics - CDNS has outperformed the SPDR S&P Software & Services ETF (XSW), which has declined about 23.5% over the past year and 20.6% in 2026 [3] - The underperformance of CDNS is attributed to multiple compressions in high-growth semiconductor design software, investor rotation into cyclical and mega-cap AI hardware, and rising interest-rate sensitivity affecting long-duration growth stocks [3] - Moderating semiconductor design activity and normalization of bookings expectations after years of high EDA spending have also tempered sentiment despite solid revenue and margin execution [3] Earnings Expectations - For FY2025, analysts expect CDNS' EPS to grow by 25.8% to $5.66 on a diluted basis [4] - The company's earnings surprise history is mixed, with three out of the last four quarters beating or matching consensus estimates [4] Analyst Ratings - Among 23 analysts covering CDNS, the consensus rating is a "Strong Buy," with 17 "Strong Buy" ratings, one "Moderate Buy," and five "Holds" [4] - The configuration of analyst ratings has become more bullish compared to three months ago, with 16 "Strong Buy" suggestions [5] - Needham analyst Charles Shi reiterated a "Buy" rating on Cadence Design Systems with a price target of $390, reflecting confidence in the company's execution and growth outlook [5]

Core Insights - Cadence Design Systems (CDNS) is positioned to benefit from the increasing complexity of chip and system design in the AI era, highlighting the growing demand for advanced electronic design automation (EDA), verification tools, and high-performance intellectual property (IP) [1] Industry Summary - The need for sophisticated EDA tools is expanding as the complexity of electronic systems rises, particularly in the context of artificial intelligence [1]

Core Insights - The Electronic System Design (ESD) industry maintained growth momentum in Q3 2025, achieving a year-on-year revenue increase of 8.8% to $5.6 billion, up from $5.1 billion in the same period of 2024 [1] - The EDA (Electronic Design Automation) sector showed strong growth across all product categories, with notable double-digit increases in semiconductor IP (SIP) and services [2] - The Asia-Pacific region emerged as a significant growth driver, with revenues increasing by 20.5% to $2.22 billion, reflecting robust semiconductor and system design activities in China, South Korea, Taiwan, and Southeast Asia [3] Revenue Growth - The EDA industry reported a revenue increase of 8.8% in Q3 2025, reaching $5.6 billion compared to $5.1 billion in Q3 2024 [1] - The moving average growth rate over the past four quarters was even higher at 10.4%, indicating sustained growth rather than a one-time spike [1] - The semiconductor IP business saw a revenue increase of 13.6% to $1.92 billion, with a four-quarter moving average growth rate of 14.8% [2] Regional Performance - The Americas remained the largest market with Q3 revenues of $2.4 billion, growing by 3.4% [3] - EMEA (Europe, Middle East, and Africa) revenues grew by 4.6% to $675.1 million, with a four-quarter moving average growth of 7.6% [3] - Japan was the only region to experience a decline, with revenues falling by 11.5% to $264 million, although the moving average still showed mild growth [3] Employment Trends - The total global workforce tracked by the EDMD report exceeded 73,000 employees in Q3 2025, marking a 17.3% increase year-on-year [3] - This growth in employment reflects the industry's confidence and the ongoing demand for EDA services despite some regional market weaknesses [3]

Core Viewpoint - Synopsys Inc. is considered a strong investment opportunity by hedge funds, with a recent price target increase indicating significant upside potential [1][2]. Company Overview - Synopsys Inc. is an American electronic design automation (EDA) company specializing in the design and verification of silicon chips, electronic system-level design, and reusable components [4]. Investment Potential - Analyst Gary Mobley has reiterated a Buy rating on Synopsys, raising the price target from $570 to $600, suggesting a 28% upside [1]. - Despite a 2%-3% return over the past year, the stock is expected to benefit from a broad-based market rally anticipated in 2026, driven by growth in automotive and industrial semiconductors [2]. - The recent strategic partnership with Nvidia, which included a $2 billion stock purchase, has improved sentiment towards Synopsys [2]. Market Dynamics - The Electronic Design Automation (EDA) market is entering a new growth phase, particularly with the introduction of AI-enhanced EDA tools, which are expected to lead to higher annual contract values upon license renewal [3]. - Current challenges in the semiconductor industry, including China export controls, have temporarily obscured the long-term growth potential of the EDA sector, although Synopsys's exposure to China is relatively minor [3].

Core Viewpoint - Synopsys Inc is recognized as a leading player in the electronic design automation industry, providing essential software and intellectual property for semiconductor design, which is critical for creating complex integrated circuits [1] Analyst Upgrades - Morgan Stanley upgraded Synopsys to an "Overweight" rating on December 12, 2025, with a stock price of $477.36, reflecting confidence in the company's future performance and raising the price target from $510 to $550 [2][6] - Bank of America upgraded Synopsys from 'Neutral' to 'Buy', increasing its price target to $560, citing stronger-than-expected fiscal 2026 earnings guidance and reduced risks related to China and Intel [3][6] Financial Projections - Synopsys projects fiscal 2026 revenue to reach $9.6 billion, with an earnings per share (EPS) forecast of $14.27 for fiscal 2026 and $17 for fiscal 2027, indicating robust growth despite a higher tax rate [4][6] - Analysts have revised their EPS estimates to $14.27 for fiscal 2026 and $17 for fiscal 2027, highlighting Synopsys' attractive lower-beta AI-levered exposure supported by recurring revenue from chip design [5]

Core Insights - Synopsys, Inc. reported stronger-than-expected fourth-quarter results with adjusted earnings of $2.90 per share and revenue of $2.26 billion, slightly above analyst estimates [2] - For fiscal 2026, Synopsys projects adjusted EPS between $14.32 and $14.40 and revenue between $9.56 billion and $9.66 billion, exceeding consensus expectations [2] Analyst Ratings and Forecasts - BofA Securities upgraded Synopsys from Neutral to Buy, raising the price target from $500 to $560 [3] - Rosenblatt maintained a Buy rating with a price target of $560 [3] - JPMorgan reiterated an Overweight rating and increased the price target from $600 to $650 [3] Analyst Commentary - BofA's analyst sees Synopsys as a lower-beta way to gain AI exposure in 2026, noting reduced risk around China and Intel revenue, and strong momentum from Ansys [4] - Rosenblatt's analyst highlighted that fourth-quarter revenue was slightly above expectations, driven by a full quarter contribution from Ansys, which grew about 10% year-over-year [7] - JPMorgan's analyst noted that fiscal 2026 is a "transition year" with guidance implying high-single-digit growth for core EDA and low- to mid-single-digit growth for Design IP [9] Revenue and EPS Projections - Analysts project first-quarter revenue of $2.39 billion and adjusted EPS of $3.55 [6][8][10] - Fiscal revenue expectations are $9.61 billion with adjusted EPS of $14.37 according to BofA, while Rosenblatt expects $9.64 billion and $14.35, and JPMorgan anticipates $9.65 billion and $14.39 [6][8][10] Market Performance - Synopsys stock traded lower by 0.59% at $473.03 at the time of publication [10]

Core Viewpoint - The presentation introduces Anirudh Devgan, CEO of Cadence Design, and sets the stage for discussing the company's future business outlook and operating results, acknowledging the presence of risks and uncertainties that may affect actual outcomes [2]. Group 1 - The discussion will include forward-looking statements regarding Cadence's business and operating results [2]. - There is an emphasis on the potential for actual results to differ materially from projections due to various risks and uncertainties [2].