Synopsys' (SNPS) Buy Rating Reiterated at Benchmark

Key Points

• Benchmark reiterated its Buy rating on Synopsys and set a $570 price target, implying 39% upside from the prior close. Analysts overall rate the stock “Moderate Buy,” with an average target of $563.71.
• Synopsys exceeded quarterly expectations, reporting $2.48 billion in revenue and $3.91 adjusted EPS, while revenue increased 42.4% year over year. Management also raised fiscal 2026 guidance, citing strong demand for AI-driven chip-design software.
• The stock opened at $410 and remains below its 50- and 200-day moving averages, despite favorable analyst sentiment. The CFO and CEO recently sold shares under pre-arranged Rule 10b5-1 plans, with the CEO’s sale partly covering tax obligations.

Synopsys (NASDAQ:SNPS - Get Free Report)'s stock had its "buy" rating restated by research analysts at Benchmark in a report issued on Thursday,Benzinga reports. They presently have a $570.00 price target on the semiconductor company's stock. Benchmark's price objective points to a potential upside of 39.02% from the company's previous close.

Other research analysts have also issued reports about the stock. Needham & Company LLC reissued a "buy" rating and issued a $580.00 target price on shares of Synopsys in a report on Thursday. Berenberg Bank set a $633.00 price objective on shares of Synopsys in a research report on Wednesday, May 27th. Bank of America lifted their price objective on shares of Synopsys from $515.00 to $600.00 and gave the stock a "buy" rating in a research note on Thursday, May 28th. Wells Fargo & Company reduced their target price on shares of Synopsys from $535.00 to $450.00 and set an "equal weight" rating on the stock in a report on Tuesday, August 11th. Finally, Stifel Nicolaus upped their target price on shares of Synopsys from $550.00 to $600.00 and gave the company a "buy" rating in a research report on Thursday, May 28th. Twelve analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Synopsys currently has an average rating of "Moderate Buy" and an average price target of $563.71.

Synopsys Stock Performance

SNPS opened at $410.00 on Thursday. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.32 and a current ratio of 1.43. The stock has a market capitalization of $78.51 billion, a price-to-earnings ratio of 94.91, a PEG ratio of 2.40 and a beta of 1.23. The company has a fifty day moving average of $416.71 and a 200 day moving average of $439.84. Synopsys has a fifty-two week low of $366.00 and a fifty-two week high of $615.79.

Synopsys (NASDAQ:SNPS - Get Free Report) last issued its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, beating analysts' consensus estimates of $3.67 by $0.24. The firm had revenue of $2.48 billion during the quarter, compared to analyst estimates of $2.44 billion. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The business's quarterly revenue was up 42.4% compared to the same quarter last year. During the same quarter last year, the business posted $3.39 earnings per share. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. As a group, sell-side analysts forecast that Synopsys will post 10.64 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Shelagh Glaser sold 3,394 shares of Synopsys stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $450.02, for a total transaction of $1,527,367.88. Following the completion of the transaction, the chief financial officer directly owned 14,358 shares of the company's stock, valued at approximately $6,461,387.16. The trade was a 19.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of the company's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the transaction, the chief executive officer owned 75,020 shares in the company, valued at $34,431,179.20. The trade was a 16.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 0.56% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of SNPS. Sankala Group LLC purchased a new position in Synopsys during the 4th quarter worth $25,000. Elevation Wealth Partners LLC lifted its holdings in shares of Synopsys by 96.4% in the 2nd quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company's stock worth $25,000 after buying an additional 27 shares during the period. Osbon Capital Management LLC bought a new position in shares of Synopsys during the 2nd quarter worth $25,000. IMG Wealth Management Inc. purchased a new position in shares of Synopsys during the second quarter valued at $28,000. Finally, Caitong International Asset Management Co. Ltd purchased a new position in shares of Synopsys during the fourth quarter valued at $28,000. Institutional investors own 85.47% of the company's stock.

More Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Quarterly results exceeded expectations. Synopsys reported fiscal Q3 revenue of $2.477 billion, up 42.4% year over year and ahead of the $2.44 billion consensus estimate. Non-GAAP EPS was $3.91 versus expectations of $3.67 and $3.39 a year earlier. Synopsys Posts Financial Results for Third Quarter Fiscal Year 2026
• Positive Sentiment: Management raised its fiscal 2026 outlook. Full-year revenue guidance was lifted to a midpoint of approximately $9.715 billion, while non-GAAP EPS guidance rose to $15.07, well above the roughly $13.96 analyst consensus cited in the reports. Fourth-quarter EPS guidance of $4.10–$4.16 also exceeds the $3.78 consensus. Synopsys raises annual forecasts on AI-driven chip design software demand
• Positive Sentiment: AI-related demand remains the primary growth catalyst. Synopsys said rising chip complexity and investments in AI infrastructure are accelerating demand for its electronic-design-automation tools. Design Automation revenue reached $2.003 billion, supported by broad-based strength. Synopsys Boosts Annual Outlook as AI Complexity Drives Demand
• Positive Sentiment: Analyst sentiment remains favorable. Needham reaffirmed its “Buy” rating and set a $580 price target, while Rosenblatt also assigned a “Buy” rating. These targets imply substantial upside from recent trading levels.
• Neutral Sentiment: The company’s Nvidia relationship and vision for autonomous, AI-powered engineering workflows reinforce the long-term growth narrative, although these developments do not immediately change reported results. Nvidia's $2 Billion Synopsys Bet Signals AI's Next Frontier
• Negative Sentiment: Despite the earnings beat and raised outlook, shares slipped initially after the report. With a price-to-earnings ratio near 95 and the stock below its 50- and 200-day moving averages, investors may be demanding even stronger results or using the announcement to lock in gains.

About Synopsys

Synopsys, Inc is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) used to design, verify and manufacture integrated circuits and complex systems-on-chip (SoCs). Its product portfolio spans tools and technologies for front‑end design and synthesis, simulation and verification, physical implementation and signoff, and design-for-manufacturability, enabling chip designers to move from architecture through tape‑out.

In addition to core EDA offerings, Synopsys supplies a broad set of semiconductor IP building blocks — such as interface, memory and analog/mixed-signal cores — that customers integrate into SoCs to accelerate development.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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