Synopsys (NASDAQ:SNPS) Updates FY 2026 Earnings Guidance

Key Points

• Synopsys raised its FY 2026 earnings outlook, forecasting EPS of $15.04–$15.10 versus the $13.96 analyst consensus. Revenue guidance of approximately $9.7 billion was in line with expectations, while Q4 EPS guidance was set at $4.10–$4.16.
• The company recently reported strong quarterly results, with revenue up 41.9% year over year and EPS beating estimates. Management cited broad-based Design Automation strength and growing AI-related opportunities, including its partnership with Nvidia.
• Analyst sentiment remains favorable, with a “Moderate Buy” consensus and an average price target of $563.59, although CEO and CFO stock sales under pre-arranged plans represent a potential sentiment consideration.

Synopsys (NASDAQ:SNPS - Get Free Report) updated its FY 2026 earnings guidance on Wednesday morning. The company provided EPS guidance of 15.040-15.100 for the period, compared to the consensus earnings per share estimate of 13.960. The company issued revenue guidance of $9.7 billion-$9.7 billion, compared to the consensus revenue estimate of $9.7 billion. Synopsys also updated its Q4 2026 guidance to 4.100-4.160 EPS.

Synopsys Trading Up 0.3%

SNPS stock traded up $1.21 during midday trading on Wednesday, reaching $410.00. The stock had a trading volume of 2,463,265 shares, compared to its average volume of 1,985,393. The firm has a market cap of $78.51 billion, a price-to-earnings ratio of 94.91, a PEG ratio of 2.32 and a beta of 1.23. Synopsys has a twelve month low of $366.00 and a twelve month high of $615.79. The company has a quick ratio of 1.32, a current ratio of 1.43 and a debt-to-equity ratio of 0.33. The business has a fifty day simple moving average of $417.74 and a two-hundred day simple moving average of $439.85.

Synopsys (NASDAQ:SNPS - Get Free Report) last issued its quarterly earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 EPS for the quarter, topping the consensus estimate of $3.15 by $0.20. The company had revenue of $2.28 billion during the quarter, compared to analysts' expectations of $2.25 billion. Synopsys had a net margin of 8.91% and a return on equity of 5.83%. Synopsys's revenue was up 41.9% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.67 EPS. As a group, research analysts expect that Synopsys will post 10.64 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of equities analysts have issued reports on the stock. Needham & Company LLC reaffirmed a "buy" rating and issued a $580.00 price objective on shares of Synopsys in a research note on Thursday, May 28th. Morgan Stanley cut their price target on Synopsys from $525.00 to $500.00 and set an "equal weight" rating on the stock in a research note on Wednesday, August 19th. Piper Sandler upgraded Synopsys from a "neutral" rating to an "overweight" rating and raised their price target for the stock from $450.00 to $550.00 in a research report on Tuesday, June 23rd. KeyCorp reaffirmed an "overweight" rating on shares of Synopsys in a research note on Wednesday, August 19th. Finally, Berenberg Bank set a $633.00 price objective on Synopsys in a report on Wednesday, May 27th. Eleven investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $563.59.

Insider Transactions at Synopsys

In other Synopsys news, CFO Shelagh Glaser sold 3,394 shares of the firm's stock in a transaction that occurred on 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 sale, the chief financial officer directly owned 14,358 shares in the company, valued at approximately $6,461,387.16. This trade represents a 19.12% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. 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 shares were sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the completion of the transaction, 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. 0.56% of the stock is currently owned by insiders.

Key Synopsys News

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 Investors Weigh In On Synopsys

Several institutional investors have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Synopsys in the fourth quarter valued at approximately $28,000. Atlas Capital Advisors Inc. acquired a new stake in shares of Synopsys in the fourth quarter valued at about $32,000. Kemnay Advisory Services Inc. acquired a new stake in shares of Synopsys in the fourth quarter valued at about $35,000. Greenline Wealth Management LLC bought a new stake in Synopsys during the fourth quarter worth about $37,000. Finally, WealthCollab LLC raised its holdings in Synopsys by 110.8% during the third quarter. WealthCollab LLC now owns 78 shares of the semiconductor company's stock worth $38,000 after acquiring 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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