Synopsys, Inc. (NASDAQ:SNPS) Stock Has Consensus Price Target of $561.00

Key Points

• Analysts maintain a Moderate Buy consensus on Synopsys, with 13 buys and five holds among 18 brokerages. The average 12-month price target is $561, although recent targets range from $550 to $560.
• Synopsys exceeded quarterly expectations, reporting $3.91 in adjusted EPS versus a $3.67 consensus and $2.48 billion in revenue, up 42.4% year over year. The company also issued fiscal 2026 EPS guidance of $15.04–$15.10.
• Expanded collaboration with TSMC on AI and advanced semiconductor design offers a potential growth catalyst, but high valuation, insider selling, and intensifying competition from Cadence remain important risks.

Shares of Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) have received a consensus rating of "Moderate Buy" from the eighteen brokerages that are covering the firm, MarketBeat reports. Five investment analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $561.00.

A number of analysts have issued reports on the stock. Mizuho cut their price objective on shares of Synopsys from $600.00 to $550.00 and set an "outperform" rating for the company in a report on Thursday, August 27th. Robert W. Baird upgraded shares of Synopsys from a "neutral" rating to an "outperform" rating and lifted their price target for the company from $558.00 to $560.00 in a research report on Thursday, August 27th. Piper Sandler upgraded Synopsys from a "neutral" rating to an "overweight" rating and boosted their price target for the company from $450.00 to $550.00 in a research note on Tuesday, June 23rd. Weiss Ratings downgraded Synopsys from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, September 11th. Finally, Zacks Research lowered Synopsys from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 21st.

Synopsys Stock Performance

NASDAQ:SNPS opened at $424.91 on Friday. Synopsys has a 1-year low of $362.55 and a 1-year high of $539.48. The company has a current ratio of 1.34, a quick ratio of 1.24 and a debt-to-equity ratio of 0.29. The stock has a market cap of $81.43 billion, a P/E ratio of 75.07, a PEG ratio of 2.24 and a beta of 1.23. The stock has a 50 day simple moving average of $400.07 and a 200 day simple moving average of $435.68.

Synopsys (NASDAQ:SNPS - Get Free Report) last released its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 EPS for the quarter, beating the consensus estimate of $3.67 by $0.24. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The business had revenue of $2.48 billion for the quarter, compared to the consensus estimate of $2.44 billion. During the same period in the prior year, the company posted $3.39 earnings per share. Synopsys'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. Research analysts anticipate that Synopsys will post 10.97 earnings per share for the current year.

Key Headlines Impacting Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: BNP Paribas upgraded Synopsys from “underperform” to “neutral,” citing a more balanced risk-reward profile. The firm assigned a $420 price target, helping support the stock after the downgrade-oriented view was removed. BNP Paribas Upgrades Synopsys to Neutral From Underperform
• Positive Sentiment: The analyst also identified Synopsys’ upcoming investor day as a potential positive catalyst, where management could provide additional detail on growth opportunities, execution, and its outlook. Synopsys in Focus as BNP Paribas Upgrades
• Positive Sentiment: Synopsys and TSMC announced expanded collaboration on AI and high-performance computing systems. The work covers TSMC’s A14 process, agentic AI-assisted engineering, CoWoS multi-die packaging, co-packaged optics, multiphysics signoff, and expanded 2-nanometer intellectual-property support. The partnership could strengthen Synopsys’ position in advanced semiconductor design as AI infrastructure demand grows. Synopsys and TSMC Partner to Accelerate AI Systems Innovation
• Neutral Sentiment: One report described a substantial increase in short interest but listed total short interest at zero shares and a zero-day days-to-cover ratio. Because the figures are internally inconsistent, they provide no reliable trading signal.
• Neutral Sentiment: Synopsys remains valued at a relatively high earnings multiple, while BNP Paribas’ $420 target is slightly below the referenced trading level. This suggests the upgrade is supportive of sentiment but does not represent an outright bullish valuation call.
• Negative Sentiment: Competitive developments remain a consideration: Cadence announced an AI-powered RTL Generation Agent that reportedly reduced chip area and power in early evaluations, highlighting ongoing competition in AI-driven electronic-design automation. Cadence’s New RTL Generation Agent

Insider Buying and Selling at Synopsys

In other news, CEO Sassine Ghazi sold 14,604 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $374.88, for a total transaction of $5,474,747.52. Following the sale, the chief executive officer directly owned 76,865 shares of the company's stock, valued at approximately $28,815,151.20. This represents a 15.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Aart de Geus sold 24,641 shares of the firm's stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $419.44, for a total value of $10,335,421.04. Following the completion of the transaction, the insider owned 120,443 shares in the company, valued at $50,518,611.92. The trade was a 16.98% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 89,245 shares of company stock worth $37,992,919. 0.56% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Synopsys

Several hedge funds have recently bought and sold shares of the company. BlackRock Inc. bought a new stake in Synopsys during the second quarter worth $7,228,099,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Synopsys in the 2nd quarter valued at $747,400,000. Norges Bank bought a new position in shares of Synopsys in the 4th quarter valued at $730,197,000. Bank of New York Mellon Corp acquired a new position in shares of Synopsys during the 2nd quarter worth $692,074,000. Finally, Bank of America Corp DE acquired a new position in shares of Synopsys during the 2nd quarter worth $539,986,000. 85.47% of the stock is owned by institutional investors.

About Synopsys

Synopsys, Inc is a technology company that develops electronic design automation (EDA) software, semiconductor intellectual property (IP), and related services. Its products help semiconductor and electronics companies design, verify, test and manufacture integrated circuits and complex electronic systems.

The company's EDA portfolio includes tools for digital and analog design, simulation, verification, physical implementation, signoff and manufacturing preparation. Synopsys also provides reusable semiconductor IP, including processor cores, interface technologies, embedded memories and security-related components, which customers can incorporate into system-on-chip designs.

Synopsys additionally offers software integrity and application security solutions that help organizations identify and manage vulnerabilities and risks in the software development lifecycle.

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