Synopsys, Inc. (SNPS) had a nice evening Wednesday, climbing in after-hours trading after the company delivered a solid fourth-quarter earnings beat and issued guidance that made analysts' estimates look almost comically conservative.

The Numbers

Synopsys reported quarterly earnings of $2.90 per share, easily beating Wall Street's consensus of $2.78. Revenue came in at $2.26 billion, edging past the $2.25 billion analyst estimate.

Nothing earth-shattering on the quarterly beat itself, but here's where it gets interesting.

The Real Story: 2026 Guidance

Synopsys sees fiscal 2026 adjusted earnings between $14.32 and $14.40 per share. Analysts were expecting $12.85. That's not a beat, that's a statement. Revenue guidance of $9.56 billion to $9.66 billion similarly towers over the $7.04 billion estimate.

"The Synopsys team delivered a solid finish to a year that redefined our company as the leader in engineering solutions from silicon to systems," said CEO Sassine Ghazi.

Ghazi added that the company enters fiscal 2026 "with an intense focus on driving sustainable growth and margin expansion through continued innovation and disciplined execution."

Market Reaction

According to market data, Synopsys stock climbed 5.68% to $502.88 in Wednesday's extended trading session. When your guidance comes in nearly 12% above expectations, that's the kind of response you'd expect.