Synopsys (NASDAQ:SNPS) Issues Q4 2026 Earnings Guidance

Key Points

• Synopsys guided for Q4 fiscal 2026 adjusted EPS of $4.10–$4.16, above the consensus estimate of $3.78. Revenue guidance of $2.5–$2.6 billion was broadly in line with the $2.6 billion consensus.
• The company’s latest quarter exceeded expectations, with revenue of $2.48 billion versus estimates of $2.44 billion and adjusted EPS of $3.91 versus $3.67 expected.
• Analyst sentiment remains favorable but mixed: Synopsys has a “Moderate Buy” consensus rating and an average price target of $563.59, while CEO and CFO stock sales under pre-arranged plans represent a potential sentiment headwind.

Synopsys (NASDAQ:SNPS - Get Free Report) updated its fourth quarter 2026 earnings guidance on Wednesday. The company provided EPS guidance of 4.100-4.160 for the period, compared to the consensus estimate of 3.780. The company issued revenue guidance of $2.5 billion-$2.6 billion, compared to the consensus revenue estimate of $2.6 billion.

Synopsys Price Performance

SNPS stock traded up $1.21 during trading on Wednesday, hitting $410.00. The stock had a trading volume of 2,333,926 shares, compared to its average volume of 1,984,665. Synopsys has a 1-year low of $366.00 and a 1-year high of $615.79. The stock has a market cap of $78.51 billion, a price-to-earnings ratio of 94.91, a price-to-earnings-growth ratio of 2.32 and a beta of 1.23. 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 company's 50 day moving average price is $417.74 and its two-hundred day moving average price is $439.85.

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 (EPS) for the quarter, beating analysts' consensus estimates of $3.67 by $0.24. Synopsys had a net margin of 8.91% and a return on equity of 5.83%. The company had revenue of $2.48 billion for the quarter, compared to analyst estimates of $2.44 billion. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS. On average, sell-side analysts forecast that Synopsys will post 10.64 EPS for the current fiscal year.

Analysts Set New Price Targets

Several research analysts have commented on the stock. Robert W. Baird set a $558.00 target price on shares of Synopsys in a report on Thursday, May 28th. Morgan Stanley cut their price target on shares of Synopsys from $525.00 to $500.00 and set an "equal weight" rating for the company in a report on Wednesday, August 19th. Zacks Research lowered Synopsys from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 21st. BNP Paribas Exane upped their price target on Synopsys from $425.00 to $450.00 and gave the stock an "underperform" rating in a research report on Thursday, May 28th. Finally, Weiss Ratings reiterated a "hold (c-)" rating on shares of Synopsys in a research note on Monday, June 8th. Eleven equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $563.59.

Insider Buying and Selling at Synopsys

In related news, CFO Shelagh Glaser sold 3,394 shares of the business's 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 transaction, the chief financial officer owned 14,358 shares in the company, valued at $6,461,387.16. The trade was a 19.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available 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 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 sale, the chief executive officer directly owned 75,020 shares in the company, valued at $34,431,179.20. This trade represents a 16.29% decrease in their ownership of the stock. 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. Corporate insiders own 0.56% of the company's stock.

Key Headlines Impacting Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Quarterly results exceeded expectations. Fiscal Q3 revenue rose to $2.477 billion from $1.740 billion a year earlier, while GAAP EPS was $2.84 and non-GAAP EPS was $3.91. Revenue and adjusted earnings surpassed analyst expectations, led by broad-based strength in Design Automation, which generated $2.003 billion. Synopsys Posts Financial Results for Third Quarter Fiscal Year 2026
• Positive Sentiment: Synopsys raised its outlook. Management lifted its full-year revenue guidance midpoint to $9.715 billion and non-GAAP EPS guidance midpoint to $15.07. Fourth-quarter revenue is expected to reach $2.530 billion to $2.580 billion, signaling confidence in sustained customer demand. Synopsys Q3 Revenue Reaches $2.477 Billion as GAAP EPS Hits $2.84
• Positive Sentiment: AI is strengthening the growth narrative. Synopsys says customers are achieving productivity gains of up to six times, while its partnership with Nvidia—including Nvidia’s reported $2 billion investment—supports the longer-term opportunity for AI-powered engineering and simulation. Nvidia's $2 Billion Synopsys Bet Signals AI's Next Frontier
• Positive Sentiment: Analyst support remains favorable. Rosenblatt Securities reaffirmed its Buy rating and assigned a $575 price target, implying substantial upside from recent trading levels. Rosenblatt Reiterates Buy Rating
• Neutral Sentiment: Institutional positioning was mixed: 772 investors added SNPS shares in their latest reported quarter, while 759 reduced holdings.
• Negative Sentiment: Recent insider activity showed sales rather than purchases, including transactions by CEO Sassine Ghazi and CFO Shelagh Glaser. This may temper sentiment, although the sales appear limited relative to the company’s market value.

Institutional Trading of Synopsys

Several institutional investors and hedge funds have recently modified their holdings of the stock. Centaurus Financial Inc. increased its holdings in Synopsys by 2.2% during the 3rd quarter. Centaurus Financial Inc. now owns 1,364 shares of the semiconductor company's stock valued at $673,000 after purchasing an additional 30 shares during the period. Resources Management Corp CT ADV raised its holdings in Synopsys by 1.2% in the 2nd quarter. Resources Management Corp CT ADV now owns 2,639 shares of the semiconductor company's stock worth $1,353,000 after purchasing an additional 31 shares during the period. Synergy Financial Group LTD lifted its position in shares of Synopsys by 6.2% in the fourth quarter. Synergy Financial Group LTD now owns 599 shares of the semiconductor company's stock valued at $281,000 after acquiring an additional 35 shares in the last quarter. Vise Technologies Inc. increased its holdings in Synopsys by 1.5% in the 3rd quarter. Vise Technologies Inc. now owns 2,707 shares of the semiconductor company's stock valued at $1,336,000 after acquiring an additional 40 shares during the last quarter. Finally, WealthCollab LLC grew its holdings in shares of Synopsys by 110.8% in the third quarter. WealthCollab LLC now owns 78 shares of the semiconductor company's stock valued at $38,000 after purchasing an additional 41 shares in the last quarter. Institutional investors own 85.47% of the company's stock.

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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