Quarterly guidance

Total revenue
Between $2.53 billion and $2.58 billion.
GAAP costs and expenses
Between $2.225 billion and $2.3 billion.
Non-GAAP costs and expenses
Between $1.45 billion and $1.48 billion.
GAAP earnings per share
$0.60 to $0.85 per share.
Non-GAAP earnings per share
$4.10 to $4.16 per share.

Annual guidance

Total revenue
$9.69 billion to $9.74 billion, with ANSYS contributing approximately $2.98 billion.
GAAP costs and expenses
$8.667 billion to $8.742 billion.
Non-GAAP costs and expenses
$5.67 billion to $5.70 billion.
Non-GAAP operating margin
41.5% at the midpoint.
GAAP earnings per share
$3.84 to $4.08 per share.
Non-GAAP earnings per share
$15.04 to $15.10 per share.
Cash flow from operations
Approximately $2.8 billion.
Capital expenditures
Approximately $225 million.
Free cash flow
Approximately $2.6 billion.

Outlook

EDA growth
Expect EDA growth to accelerate to double digits in Q4 and for the full year.
IP business trajectory
Expect the IP business to continue growing sequentially in the fourth quarter.
ANSYS synergies
Ahead of schedule on cost synergy commitments made at close and on track for the $400 million synergy target in year 4.
Non-AI demand
Observed stabilization in non-AI design starts over the last two quarters after a prior slowdown.
Multiphysics Fusion
Add-on capabilities from multiphysics fusion are expected to begin contributing to EDA growth in 2027.