Synopsys (SNPS), the chip-design software company, will buy back $1 billion of its shares through JPMorgan Chase Bank. The deal, signed on 5 October 2026, is an accelerated share repurchase: Synopsys pays up front and gets most of the shares now. What it means: about 1% fewer shares, so each remaining share carries a slightly larger slice of profit.
The shares rose 21.7% over the five trading days from 30 September to 6 October 2026. Most of that rise came in the two sessions after the 30 September Investor Day, before the buyback was signed.
What did Synopsys announce? Synopsys will pay JPMorgan Chase Bank $1 billion up front to buy back its own shares in one block, called an accelerated share repurchase. It gets about 1,735,000 shares now, with the exact total fixed by 5 January 2027.
The $1 billion equals 1.03% of the company's $96.8 billion market value at the 6 October 2026 close.
It is about 32% of the free cash flow Synopsys targets for fiscal 2027, the year to 31 October 2027.
The shares rose 21.7% in the five trading days from 30 September to 6 October 2026. The biggest gain came on 1 October, the day after the Investor Day.
What Synopsys announced
Synopsys's Form 8-K and press release of 5 October 2026 confirm a $1 billion accelerated share repurchase (ASR) with JPMorgan Chase Bank. The first delivery is approximately 1,735,000 shares. Any remainder is settled on or before 5 January 2027.
The bank borrows shares to hand most over at once, then buys in the market to cover them. The final count uses the average of each day's volume-weighted average price (the average price paid across that day's trades), less a discount.
Synopsys flagged the buyback five days earlier, at its 2026 Investor Day on 30 September 2026. It said then it intended to buy back about $1 billion of shares.
Neither the 8-K nor the Investor Day release says how the $1 billion is paid for. On 31 July 2026 Synopsys held $3.6 billion in cash and cash equivalents, per its 10-Q.
The 10-Q also shows $1.7 billion of board-approved buyback money still unused. The ASR uses about 59% of that, if nothing was bought since.
How SNPS stock reacted
The shares fell 0.29% on 5 October 2026, the filing day. Most of the 21.7% rise came in the two sessions after the Investor Day. The shares rose 4.78% on 30 September, then 12.78% on 1 October.
At the Investor Day, Synopsys set a fiscal 2027 revenue outlook of $11.10 billion to $11.20 billion. Its fiscal year ends on 31 October, so fiscal 2027 runs from November 2026 to October 2027.
Synopsys also announced a partnership with OpenAI to build GPT-Synopsys, an AI model for chip design. They will share the revenue. It also signed a multi-year agreement with Amazon to license chip building blocks. Reuters reported on 1 October 2026 that the Amazon deal is worth more than $1 billion.
Source: YX Insights
A moving average is the mean closing price over the last 50 or 200 sessions. The close of $505.17 sits 22.5% above the 50-day average of $412.23. It is 13.4% above the 200-day average of $445.29. The 50-day line sits below the 200-day line, so the last 50 sessions averaged less than the last 200.
The Relative Strength Index (RSI) reads 76.3. RSI compares recent up days with recent down days over 14 sessions, on a scale of 0 to 100. A reading above 70 means gains have far outweighed losses over that span. It does not say what comes next.
The volume profile, the grey bars at right, shows how many shares traded at each price over the year. The busiest band was $429 to $436, below the price.
Source: YX Insights
Each candle is one day: the thick body runs from the open to the close, while the thin line spans the high and low. Green means a close above the open, red a close below, as in the tall green candle of 1 October 2026, from $467.85 to $490.54.
On 5 October the price swung between $482.16 and $508.38 but closed at $488.47, below the previous close of $489.90.
What it means for the valuation
The $1 billion is 1.03% of the $96.8 billion market value at the 6 October 2026 close. All else equal, retiring about 1% of the shares lifts earnings per share (EPS) by about 1%.
The cost is about 32% of the $3.1 billion of free cash flow (cash from operations after capital spending) Synopsys targets for fiscal 2027.
The first delivery covers about 85% of the money. At $489.90, the 2 October 2026 close and the last close before the deal was signed, 1,735,000 shares are worth about $850 million.
Non-GAAP figures leave out costs counted under US Generally Accepted Accounting Principles (GAAP), such as acquisition amortisation and stock-based pay. The close is 26.5 times the midpoint of the fiscal 2027 non-GAAP EPS outlook of $19.04 to $19.12.
The outlook implies revenue growth of 14.8% in fiscal 2027. Its midpoint of $11.15 billion compares with $9.715 billion, the midpoint of the fiscal 2026 range of $9.69 billion to $9.74 billion given in August.
What to watch next
5 January 2027: the latest date for the ASR's final settlement and final share count.
Fourth-quarter results: fiscal 2026 ends on 31 October 2026. No results date is set yet. Last year Synopsys reported on 10 December 2025.
What it means, in one line: Synopsys is spending about 32% of its fiscal 2027 free cash flow target to cut its share count by about 1%. Most of the 21.7% rise in the five trading days to 6 October came in the two sessions after the 30 September Investor Day.
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Common questions about Synopsys stock
Why did Synopsys stock jump in early October 2026?
Synopsys shares jumped after its 30 September 2026 Investor Day, where it gave a new outlook and announced deals with OpenAI and Amazon. The shares rose 21.7% in the five trading days to 6 October. The largest gain, 12.78%, came on 1 October. The outlook put revenue for the year to October 2027 at $11.10 billion to $11.20 billion.
An accelerated share repurchase is a buyback done in one block through a bank. The company pays up front. The bank delivers most of the shares at once, then buys in the market to cover them. The final count depends on the average price over the period, less a discount. Synopsys's ASR settles by 5 January 2027.
When does Synopsys report earnings next?
Synopsys has not yet announced the date of its fourth-quarter results. Its fiscal year ends on 31 October 2026. Last year it reported fourth-quarter results on 10 December 2025, after the market close. Its 26 August 2026 guidance put fiscal 2026 revenue at $9.69 billion to $9.74 billion, with adjusted earnings per share of $15.04 to $15.10.
DISCLAIMER: This article is strictly educational. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.