Silicon-to-Systems Strategy Unfolding; Clear Path to AI/Agentic and Custom IP Monetization and $35 of Earnings Power in FY30; Reit OW

We attended Synopsys' Investor Day and came away with the view that the team's strategy of architecting a silicon-to-systems design/verification/simulation integrated platform has created a differentiated solution moving in lock-step with customers' chip and systems roadmaps. The addition of AI and agentic capabilities across the portfolio (RTL, digital/analog design, multi-die packaging, full system simulation) further increases value, and combined with multi-physics based platforms and an IP strategy shifting toward custom high-performance circuits (SerDes I/O, high-speed chip-to-chip connectivity), drives higher value/monetization potential. Management now targets a blended ~15% FY26-FY30E total revenue CAGR and ~50% OPM by FY30E vs. the current ~41.5% guided for FY26E, supporting ~$35 of earnings power (mid-20s% EPS CAGR) by FY30E. Synopsys also targets returning up to 50% of FCF to shareholders, with $1.0B of repurchase authorization. EDA revenue CAGR target is now mid-teens;