Synopsys, Inc. (NASDAQ:SNPS) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Synopsys has a “Moderate Buy” consensus rating from 18 analysts, with 12 buys, five holds and one sell. The average 12-month price target is approximately $561.28.
• The company reported strong third-quarter results, including adjusted EPS of $3.91 and revenue of $2.48 billion, up 42.4% year over year. Management also raised fiscal 2026 guidance, citing EDA demand, AI opportunities and benefits from the Ansys acquisition.
• Despite analyst support and institutional ownership of 85.47%, investors remain focused on valuation and integration risks, as Synopsys trades at a high earnings multiple and must deliver expected Ansys synergies.

Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the eighteen research firms that are currently covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and twelve have given a buy rating to the company. The average 1-year price target among analysts that have covered the stock in the last year is $561.2778.

SNPS has been the topic of several research reports. Piper Sandler raised shares of Synopsys from a "neutral" rating to an "overweight" rating and raised their price objective for the stock from $450.00 to $550.00 in a research report on Tuesday, June 23rd. Benchmark reiterated a "buy" rating and set a $570.00 target price on shares of Synopsys in a research note on Thursday. Rosenblatt Securities reissued a "buy" rating and set a $575.00 price target on shares of Synopsys in a report on Tuesday, August 25th. UBS Group set a $570.00 price target on Synopsys in a research report on Thursday. Finally, Bank of America upped their price objective on Synopsys from $515.00 to $600.00 and gave the company a "buy" rating in a research note on Thursday, May 28th.

Key Stories Impacting Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Strong Q3 performance: Synopsys reported adjusted earnings of $3.91 per share versus expectations of $3.67, while revenue reached $2.48 billion, up 42.4% year over year and ahead of estimates. Strength in electronic design automation (EDA) and the Ansys acquisition supported the results. SNPS Q3 Earnings Beat Estimates on EDA and Ansys Strength
• Positive Sentiment: Higher outlook and AI momentum: Management raised fiscal 2026 guidance, citing accelerating EDA demand, recovering Design IP activity, interest in agentic AI and additional opportunities from integrating Ansys. Fiscal 2026 EPS guidance is $15.04–$15.10, with revenue guidance reportedly raised to approximately $9.72 billion. SNPS Q3 Earnings Call Highlights EDA Acceleration, Outlook Raised
• Positive Sentiment: Analyst and strategic support: Goldman Sachs, Benchmark and Needham reaffirmed Buy ratings, with price targets ranging from $570 to $600. Elliott Investment Management also reportedly built a multibillion-dollar position, betting Synopsys can narrow its discount to peers. Elliott Bets Multibillion-Dollar Position on Closing Synopsys’ Peer Discount
• Neutral Sentiment: Commentators view Synopsys as a key supplier to major technology companies, including Nvidia, and believe Ansys has strengthened its competitive moat; however, the acquisition’s full contribution depends on successful integration and future synergies. SNPS in Right Place, Right Time?
• Negative Sentiment: Valuation and peer concerns: Following the earnings rally, investors are refocusing on valuation, with Synopsys trading at a high earnings multiple. A comparison with PDF Solutions also highlighted stronger growth and margin improvement at the smaller rival, potentially limiting near-term enthusiasm for SNPS. SNPS vs. PDFS: Which Semiconductor Software Stock Has an Edge?

Synopsys Stock Performance

SNPS opened at $442.61 on Monday. The firm has a market cap of $84.82 billion, a price-to-earnings ratio of 78.20, a price-to-earnings-growth ratio of 2.42 and a beta of 1.23. Synopsys has a 52 week low of $366.00 and a 52 week high of $615.79. The business's 50 day moving average is $416.64 and its two-hundred day moving average is $440.14. The company has a quick ratio of 1.24, a current ratio of 1.34 and a debt-to-equity ratio of 0.29.

Synopsys (NASDAQ:SNPS - Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, beating the consensus estimate of $3.67 by $0.24. Synopsys had a return on equity of 6.24% and a net margin of 11.43%.The business had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.44 billion. During the same period in the prior year, the company earned $3.39 earnings per share. The company's revenue was up 42.4% compared to the same quarter last year. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. On average, research analysts predict that Synopsys will post 11.03 EPS for the current year.

Insider Buying and Selling

In other news, CFO Shelagh Glaser sold 3,394 shares of the business's stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $450.02, for a total value of $1,527,367.88. Following the transaction, the chief financial officer 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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 that occurred on Monday, June 15th. The stock was sold at an average price of $458.96, for a total value of $6,702,192.88. Following the sale, the chief executive officer owned 75,020 shares of the company's stock, valued at $34,431,179.20. This trade represents a 16.29% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders own 0.56% of the company's stock.

Hedge Funds Weigh In On Synopsys

A number of large investors have recently bought and sold shares of SNPS. Ameritas Advisory Services LLC increased its stake in shares of Synopsys by 399.3% during the second quarter. Ameritas Advisory Services LLC now owns 3,011 shares of the semiconductor company's stock worth $1,343,000 after acquiring an additional 2,408 shares during the period. Wedmont Private Capital lifted its position in Synopsys by 6.1% in the second quarter. Wedmont Private Capital now owns 3,194 shares of the semiconductor company's stock valued at $1,423,000 after purchasing an additional 185 shares during the period. HB Wealth Management LLC boosted its holdings in Synopsys by 14.9% in the 2nd quarter. HB Wealth Management LLC now owns 8,351 shares of the semiconductor company's stock valued at $3,725,000 after purchasing an additional 1,081 shares in the last quarter. Saudi Central Bank boosted its holdings in Synopsys by 80.4% in the 2nd quarter. Saudi Central Bank now owns 12,739 shares of the semiconductor company's stock valued at $5,682,000 after purchasing an additional 5,677 shares in the last quarter. Finally, Angeles Wealth Management LLC increased its position in Synopsys by 11.9% during the 2nd quarter. Angeles Wealth Management LLC now owns 830 shares of the semiconductor company's stock worth $370,000 after purchasing an additional 88 shares during the period. Hedge funds and other institutional investors own 85.47% of the company's stock.

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.

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