Synopsys buys $1 billion of its own stock after insiders sold $38 million
Days after signing a revenue-share deal that ties its design tools to OpenAI's frontier models, Synopsys opened a $1 billion accelerated buyback on October 5, 2026. The insider filings of the previous three months run the other way: $38 million sold, with the founder and the CEO each cutting about a sixth of their holdings.
Vincent Jiang · 3 min read
Two filings crossed in the queue on October 5
Synopsys handed JPMorgan $1 billion on October 5, 2026, under an accelerated share repurchase, taking about 1.735 million shares up front and settling the balance by January 5, 2027 1. The same day, the SEC's queue carried a Form 144 from officer Sudhindra Kankanwadi: 3,000 shares worth $1.45 million, proposed for sale the same day he exercised the options for them 2. The board was buying about 1.1% of the 191.6 million shares outstanding 23; an officer filed to sell into the trade.
The buyback follows a deal with an undisclosed split
The repurchase executes an intent announced on September 30 at Investor Day 5, the same day Synopsys signed GPT-Synopsys with OpenAI: a multi-year agreement in which OpenAI licenses Synopsys' EDA tools, the specialized model runs on OpenAI's infrastructure, and the partners split what it earns under terms neither company disclosed 45. Synopsys, Cadence and Siemens EDA together hold about three quarters of the design-tools market 6, a share already tested in July when Moonshot's Kimi K3 taped out a working chip in 48 hours on open-source tools alone 8. Guided for fiscal 2027: $11.15 billion of revenue at the midpoint, about 44% non-GAAP operating margin, about 50% by fiscal 2030 7. A 50% margin promise with a second claimant on the revenue line is the tension flagged here on October 1 8.
Three months of selling, one morning of buying
Insiders sold 89,245 shares for $37,992,919 in the three months to October 5 3. Founder and executive chairman Aart de Geus sold 24,641 shares at $419.44 on September 1, $10.34 million and 16.98% of his holding 3. CEO Sassine Ghazi sold 14,604 shares at $374.88 on September 15, $5.47 million and 15.97% of his 3. Both priced well below the $488.47 the stock carried the day the buyback began 3.
Insiders sold $38 million of Synopsys in three months while the board spent $1 billion
- Estimate
Data
| Value | |
|---|---|
| Other insiders (derived) (estimate) | $22.18M |
| Aart de Geus | $10.34M |
| Sassine Ghazi | $5.47M |
| Sudhindra Kankanwadi (proposed) (estimate) | $1.45M |
The bull case files its own exhibits
Fiscal third-quarter revenue was $2.48 billion, up 42.4% year over year, on EPS of $3.91 against a $3.67 consensus 39. Seventeen analysts rate the stock Buy with a $584.11 consensus target, at an 86.3 trailing earnings multiple and a $93.6 billion market cap 3.
Quarterly revenue is up 70% in two years, with growth running above 40%
Data
| Revenue | |
|---|---|
| Q1 '24 | $1.46B |
| Q2 '24 | $1.53B |
| Q3 '24 | $1.64B |
| Q4 '24 | $1.46B |
| Q1 '25 | $1.6B |
| Q2 '25 | $1.74B |
| Q3 '25 | $2.26B |
| Q4 '25 | $2.41B |
| Q1 '26 | $2.28B |
| Q2 '26 | $2.48B |
Plans, not portents
The $1 billion sits inside a stated policy of returning up to half of free cash flow through buybacks, against a fiscal 2027 free-cash-flow target of about $3.1 billion 7. Both named September sales ran under pre-arranged 10b5-1 plans 3; the filings state no motive, and the record carries none.
What decides it
Watch three readings: GPT-Synopsys pricing when early customer engagements surface, whether a shared revenue line dents the march toward 50% operating margin, and the fiscal fourth-quarter report against full-year EPS guidance of $15.04 to $15.10 3. The board is spending $1 billion on the moat; the founder sold a sixth of his.
Deepdive
AI-generated from this story and its cited sources. Not investment advice.
