Synopsys launches $1 billion accelerated share buyback with JPMorgan

Synopsys will receive about 1,735,000 shares upfront, with the rest of the $1 billion deal settling by January 5, 2027

Synopsys has agreed to an accelerated share repurchase with JPMorgan Chase Bank covering $1 billion of its common stock. The company will receive an initial delivery of roughly 1,735,000 shares, with any remaining shares settled on or before January 5, 2027.

The deal follows a smaller accelerated repurchase Synopsys struck with Bank of Nova Scotia in March, worth $250 million, for which it received about 513,000 shares upfront, according to a company filing from that month. As of July 31, Synopsys had $1.7 billion left under a $2 billion buyback program the board replenished in February, according to its quarterly filing.

The move follows Synopsys's October 1 Investor Day, where the company said it intended to repurchase about $1 billion in shares over the coming months, subject to market conditions, as part of a plan to return up to half of free cash flow to shareholders, according to its investor relations release. At the same event Synopsys guided to fiscal 2027 revenue of $11.15 billion at the midpoint, about 15% higher than the prior year, and non-GAAP earnings per share of $19.04 to $19.12, above the $17.69 consensus cited by GuruFocus. Shares rose 2.5% in premarket trading that day, according to Yahoo Finance, after the investor day also detailed deals with AWS and OpenAI.

An accelerated repurchase removes shares from the market immediately, unlike the credit facilities and debt deals JPMorgan has arranged recently for Axon, Hut 8 and Ares Capital, which routed borrowed capital toward acquisitions or refinancing. Synopsys is instead returning cash directly to shareholders, with most of the $1 billion delivered upfront and the balance settling by January 2027. That structure shrinks the share count faster than steady open-market buying would, a timing effect that will factor into earnings-per-share comparisons heading into 2027 reporting regardless of how the underlying business performs.