Sassine Ghazi on IP business
From Synopsys Inc ($SNPS) Q2 2026 Earnings Call · · Castify Earnings Call
“The area that we are focused on when we talk about high-value IP opportunities is how do we capture the value that we're delivering to the customers and a different monetization and business model. We're making actually very good progress. As I mentioned number of quarters ago, by the end of this fiscal year, we will have few customers with signed agreements with a new business model that provide the opportunity to capture more dollar than the traditional use fee or some level of NRE.”
On , Sassine Ghazi, Chief Executive Officer, President & Director at Synopsys, spoke about IP business during Synopsys Inc ($SNPS) Q2 2026 Earnings Call on Castify Earnings Call.
About Sassine Ghazi
Sassine Ghazi, president and CEO of Synopsys, discussed the company's second quarter fiscal year 2026 results on a May 28, 2026 earnings call. He stated that the company was raising its full-year 2026 guidance for revenue, operating margin, EPS, and free cash flow, citing momentum, leadership roadmap, and market signals. Ghazi described the current period as "an exceptional moment to be the leading engineering solutions provider," asserting that EDA, IP, and multi-physics simulation have become essential in the AI supply chain. He noted that the company delivered the industry's first HBM4 IP test chip and reported design wins in memory IP across hyperscalers, AI startups, and semiconductor companies. Ghazi also announced a cooperation agreement with Elliott Management and the appointment of Jesse Cohn to the Synopsys board as an independent director. On the call, Ghazi addressed the impact of new foundries and technologies on Synopsys' IP business, stating that any new foundry or technology is a tailwind for the company's IP segment. He said that while Synopsys is aware of engagements with customers like Intel Foundry early on, the company does not receive payment until a customer commits to production, and that the company's fiscal 2026 guidance does not account for any upside from such wins. Regarding AI and business model changes, Ghazi said the company is seeing a shift toward autonomous "agent engineers" in customer workflows and is exploring a "subscription plus consumption" model for agents using Synopsys products. He stated that the company expects a change in monetization and business model to occur and that it intends to drive that change, adding that more details would be shared at an investor day on September 30, 2026.