Synopsys (NASDAQ:SNPS) delivered stronger-than-expected fourth-quarter results and issued an upbeat earnings forecast for fiscal 2026, benefiting from heightened demand for semiconductor design software supporting AI architectures.

The company, whose tools are widely used to validate and test advanced processors, has partnered with major chipmakers including Nvidia, Intel and Qualcomm. Synopsys also closed its acquisition of simulation software firm Ansys in July.

Fourth-quarter adjusted earnings came in at $2.90 per share, above expectations of $2.78, while revenue reached $2.26 billion, slightly ahead of the $2.25 billion forecast. Revenue rose 37.8% year-over-year, with Ansys contributing $667.7 million.

For fiscal 2025, Synopsys generated a record $7.05 billion in revenue, up roughly 15%, and ended the year with a backlog of $11.4 billion.

Looking ahead, Synopsys guided for fiscal 2026 earnings of $14.32 to $14.40 per share, exceeding the $14.05 consensus. The company expects revenue of $9.56 billion to $9.66 billion, including roughly $2.9 billion from Ansys.

For the fiscal first quarter, Synopsys projected adjusted earnings of $3.52 to $3.58 per share and revenue of $2.36 billion to $2.42 billion, both above analyst expectations.