Geode Capital Management LLC Raises Stake in Synopsys, Inc. $SNPS

Key Points

• Geode Capital Management increased its Synopsys stake by 1.3% in Q4, bringing its holdings to 4.31 million shares worth about $2.0 billion. Institutional investors overall own roughly 85.5% of the company.
• Synopsys posted better-than-expected fiscal Q2 results, with adjusted EPS of $3.35 on revenue of $2.28 billion, and revenue rose 41.9% year over year. The company also raised its full-year FY2026 guidance.
• Analysts remain broadly constructive, with several raising price targets after earnings, though sentiment is mixed overall. Market concerns persist around near-term mix issues and Ansys integration complexity, even as Synopsys continues to benefit from AI-driven chip design demand.

Geode Capital Management LLC boosted its position in Synopsys, Inc. (NASDAQ:SNPS - Free Report) by 1.3% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 4,310,846 shares of the semiconductor company's stock after buying an additional 54,329 shares during the quarter. Geode Capital Management LLC owned approximately 2.25% of Synopsys worth $2,017,256,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors have also bought and sold shares of SNPS. Brighton Jones LLC boosted its stake in Synopsys by 5.7% in the fourth quarter. Brighton Jones LLC now owns 921 shares of the semiconductor company's stock worth $447,000 after buying an additional 50 shares in the last quarter. Integrated Wealth Concepts LLC boosted its stake in Synopsys by 11.6% in the first quarter. Integrated Wealth Concepts LLC now owns 760 shares of the semiconductor company's stock worth $326,000 after buying an additional 79 shares in the last quarter. NewEdge Advisors LLC boosted its stake in Synopsys by 15.1% in the first quarter. NewEdge Advisors LLC now owns 3,010 shares of the semiconductor company's stock worth $1,291,000 after buying an additional 395 shares in the last quarter. WINTON GROUP Ltd boosted its stake in Synopsys by 9.2% in the second quarter. WINTON GROUP Ltd now owns 758 shares of the semiconductor company's stock worth $389,000 after buying an additional 64 shares in the last quarter. Finally, Treasurer of the State of North Carolina boosted its stake in shares of Synopsys by 2.1% during the second quarter. Treasurer of the State of North Carolina now owns 72,095 shares of the semiconductor company's stock valued at $36,962,000 after purchasing an additional 1,505 shares during the period. Hedge funds and other institutional investors own 85.47% of the company's stock.

Key Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys reported fiscal Q2 adjusted EPS of $3.35, beating estimates, on revenue of $2.28 billion, also ahead of expectations, with revenue up 41.9% year over year.
• Positive Sentiment: The company lifted full-year FY2026 guidance, signaling continued demand for AI chip design software and stronger-than-expected momentum across the business.
• Positive Sentiment: Synopsys reached a governance agreement with Elliott Investment Management and added Jesse Cohn to the board, which investors may view as a step toward better capital allocation and execution.
• Positive Sentiment: Several analysts raised price targets after the earnings release, reflecting confidence in the company’s longer-term AI and semiconductor design opportunity.
• Neutral Sentiment: Synopsys also showcased new AI-powered design flows and IP support for Samsung Foundry processes, reinforcing its position in advanced chip design.
• Negative Sentiment: The stock is reacting negatively because investors may be worried that strong results are not enough to offset near-term business mix issues, including softness in chip IP and integration complexity tied to Ansys.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the company. The Goldman Sachs Group set a $600.00 price objective on Synopsys and gave the company a "buy" rating in a research note on Wednesday, February 25th. Needham & Company LLC reissued a "buy" rating and set a $580.00 price objective on shares of Synopsys in a research note on Thursday. Stifel Nicolaus increased their price objective on Synopsys from $550.00 to $600.00 and gave the company a "buy" rating in a research note on Thursday. Piper Sandler increased their price objective on Synopsys from $430.00 to $450.00 and gave the company a "neutral" rating in a research note on Thursday. Finally, Morgan Stanley increased their price objective on Synopsys from $480.00 to $525.00 and gave the company an "equal weight" rating in a research note on Thursday. Nine analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Synopsys currently has an average rating of "Hold" and an average price target of $563.81.

Synopsys Stock Performance

NASDAQ:SNPS opened at $480.64 on Friday. The firm has a market cap of $92.07 billion, a PE ratio of 111.26, a price-to-earnings-growth ratio of 4.31 and a beta of 1.25. Synopsys, Inc. has a fifty-two week low of $376.18 and a fifty-two week high of $651.73. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.26 and a current ratio of 1.36. The business has a 50 day moving average price of $458.59 and a 200-day moving average price of $454.30.

Synopsys (NASDAQ:SNPS - Get Free Report) last announced its quarterly earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 EPS for the quarter, topping analysts' consensus estimates of $3.15 by $0.20. Synopsys had a return on equity of 5.91% and a net margin of 8.91%.The company had revenue of $2.28 billion during the quarter, compared to analyst estimates of $2.25 billion. During the same quarter last year, the firm posted $3.67 earnings per share. The firm's revenue was up 41.9% on a year-over-year basis. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. Equities research analysts predict that Synopsys, Inc. will post 10.28 earnings per share for the current year.

Synopsys Company Profile

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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