Synopsys (NASDAQ:SNPS) Releases FY 2027 Earnings Guidance

Key Points

• Synopsys issued FY 2027 guidance above Wall Street expectations: EPS is forecast at $19.04–$19.12 versus the $16.78 consensus, while revenue guidance of $11.1–$11.2 billion exceeds the $10.8 billion estimate.
• Analyst sentiment remains broadly positive but mixed: Fifteen analysts rate the stock a Buy, four a Hold and two a Sell, resulting in a “Moderate Buy” consensus and an average price target of $574.61.
• New strategic partnerships could support future growth: A more-than-$1 billion, multiyear Amazon Web Services agreement expands Synopsys’ semiconductor IP business, while a separate OpenAI collaboration aims to apply AI to chip design.

Synopsys (NASDAQ:SNPS - Get Free Report) updated its FY 2027 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 19.040-19.120 for the period, compared to the consensus EPS estimate of 16.780. The company issued revenue guidance of $11.1 billion-$11.2 billion, compared to the consensus revenue estimate of $10.8 billion.

Wall Street Analyst Weigh In

SNPS has been the topic of a number of recent research reports. BNP Paribas Exane upgraded Synopsys from an "underperform" rating to a "neutral" rating and set a $420.00 target price on the stock in a research note on Thursday, September 24th. Piper Sandler raised shares of Synopsys from a "neutral" rating to an "overweight" rating and boosted their target price for the company from $450.00 to $550.00 in a research note on Tuesday, June 23rd. Robert W. Baird upgraded shares of Synopsys from a "neutral" rating to an "outperform" rating and upped their target price for the stock from $558.00 to $560.00 in a research report on Thursday, August 27th. Zacks Research lowered shares of Synopsys from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 21st. Finally, HSBC downgraded Synopsys from a "buy" rating to a "reduce" rating in a research report on Friday, September 25th. Fifteen equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $574.61.

Synopsys Price Performance

Shares of NASDAQ:SNPS traded up $19.85 during trading on Wednesday, reaching $434.94. The company had a trading volume of 4,454,043 shares, compared to its average volume of 1,993,588. The firm's fifty day moving average is $402.20 and its 200 day moving average is $435.37. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.24 and a current ratio of 1.34. The firm has a market capitalization of $83.35 billion, a PE ratio of 76.84, a price-to-earnings-growth ratio of 2.29 and a beta of 1.23. Synopsys has a twelve month low of $362.55 and a twelve month high of $539.48.

Synopsys (NASDAQ:SNPS - Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 EPS for the quarter, beating analysts' consensus estimates of $3.67 by $0.24. The business had revenue of $2.48 billion for the quarter, compared to analyst estimates of $2.44 billion. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The business's revenue for the quarter was up 42.4% on a year-over-year basis. During the same quarter last year, the business earned $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. On average, equities analysts forecast that Synopsys will post 10.97 EPS for the current year.

Insider Buying and Selling at Synopsys

In other Synopsys news, CEO Sassine Ghazi sold 14,604 shares of the business's stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $374.88, for a total value of $5,474,747.52. Following the sale, the chief executive officer directly owned 76,865 shares in the company, valued at approximately $28,815,151.20. The trade was a 15.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, 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 dated Tuesday, September 1st. The shares were sold at an average price of $419.44, for a total transaction of $10,335,421.04. Following the transaction, the insider owned 120,443 shares of the company's stock, valued at approximately $50,518,611.92. This trade represents 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. In the last 90 days, insiders sold 89,245 shares of company stock valued at $37,992,919. 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: Amazon deal exceeds $1 billion: Amazon Web Services agreed to a multi-year agreement worth more than $1 billion to license Synopsys’ semiconductor intellectual property for custom chips and AWS infrastructure. The arrangement expands Synopsys’ silicon IP business and uses a license-plus-royalty model, potentially creating recurring revenue tied to Amazon’s production volumes. Reuters article
• Positive Sentiment: Broader AWS collaboration: Synopsys will help accelerate development of Amazon’s custom silicon while optimizing its software on AWS Trainium and Graviton processors. Synopsys also plans to use Amazon EC2 and Amazon Bedrock for product development, deepening the commercial relationship and supporting cloud-based engineering growth. Synopsys and Amazon agreement
• Positive Sentiment: OpenAI partnership adds an AI catalyst: Synopsys and OpenAI agreed to develop “GPT-Synopsys,” a specialized AI model combining OpenAI technology with Synopsys’ EDA tools and chip-design expertise. OpenAI will license Synopsys’ tools, while the companies will collaborate on research, go-to-market efforts and a shared revenue framework. The partnership could accelerate semiconductor design and create new software revenue opportunities. Synopsys and OpenAI partnership
• Neutral Sentiment: Synopsys also recently introduced AgentEngineer solutions and its Autopilot platform, indicating continued investment in agentic AI tools for engineering. The products support the company’s AI strategy, although their near-term financial contribution was not disclosed. AgentEngineer and Autopilot article

Synopsys Company Profile

Synopsys, Inc is a technology company that develops electronic design automation (EDA) software, semiconductor intellectual property (IP), and software tools used to design, verify, and manufacture advanced electronic systems. Its solutions support the development of semiconductors, systems-on-chip, and electronic products across the design cycle, from initial specification and architecture through testing and production.

The company's offerings include digital and custom integrated-circuit design tools, simulation and verification software, physical design and signoff products, and semiconductor IP such as processor cores, interface technologies, and foundational components.

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