Synopsys (NASDAQ:SNPS) Issues Earnings Results

Key Points

• Synopsys beat earnings and revenue expectations, reporting $3.35 EPS versus the $3.17 consensus and revenue of $2.28 billion versus $2.25 billion expected.
• The company raised its outlook, lifting FY 2026 EPS guidance to 14.72-14.80 and Q3 2026 EPS guidance to 3.63-3.69, both above analyst estimates.
• Despite the strong report, SNPS shares fell on the day to $525.92, while analysts maintained a mixed but generally cautious stance with a consensus rating of Hold and an average price target of $544.88.

Synopsys (NASDAQ:SNPS - Get Free Report) issued its quarterly earnings data on Wednesday. The semiconductor company reported $3.35 EPS for the quarter, topping analysts' consensus estimates of $3.17 by $0.18, FiscalAI reports. Synopsys had a net margin of 13.76% and a return on equity of 6.83%. The firm had revenue of $2.28 billion for the quarter, compared to analyst estimates of $2.25 billion. Synopsys updated its FY 2026 guidance to 14.720-14.800 EPS and its Q3 2026 guidance to 3.630-3.690 EPS.

Synopsys Stock Performance

Shares of NASDAQ:SNPS traded down $8.64 during trading on Wednesday, reaching $525.92. 2,382,788 shares of the company's stock traded hands, compared to its average volume of 1,990,614. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.36 and a quick ratio of 1.26. Synopsys has a 12 month low of $376.18 and a 12 month high of $651.73. The company has a 50 day moving average of $455.56 and a 200-day moving average of $452.78. The stock has a market capitalization of $100.75 billion, a P/E ratio of 81.66, a price-to-earnings-growth ratio of 4.30 and a beta of 1.25.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. Rosenblatt Securities boosted their price objective on shares of Synopsys from $530.00 to $575.00 and gave the stock a "buy" rating in a report on Tuesday. Wells Fargo & Company boosted their price objective on shares of Synopsys from $450.00 to $505.00 and gave the stock an "equal weight" rating in a report on Thursday, May 14th. HSBC lowered shares of Synopsys from a "buy" rating to a "hold" rating and set a $455.00 price objective on the stock. in a report on Friday, February 20th. Needham & Company LLC restated a "buy" rating on shares of Synopsys in a research note on Thursday, February 26th. Finally, The Goldman Sachs Group set a $600.00 target price on shares of Synopsys and gave the company a "buy" rating in a research note on Wednesday, February 25th. Eight equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $544.88.

Institutional Investors Weigh In On Synopsys

A number of institutional investors have recently modified their holdings of SNPS. State Street Corp grew its position in shares of Synopsys by 20.6% during the 3rd quarter. State Street Corp now owns 8,760,358 shares of the semiconductor company's stock valued at $4,322,273,000 after buying an additional 1,493,912 shares during the last quarter. Farallon Capital Management LLC bought a new stake in shares of Synopsys during the 4th quarter valued at about $469,344,000. Primecap Management Co. CA grew its position in Synopsys by 743.6% in the 4th quarter. Primecap Management Co. CA now owns 734,800 shares of the semiconductor company's stock worth $345,150,000 after purchasing an additional 647,700 shares during the last quarter. Amundi grew its position in Synopsys by 53.9% in the 4th quarter. Amundi now owns 1,700,906 shares of the semiconductor company's stock worth $798,950,000 after purchasing an additional 596,018 shares during the last quarter. Finally, Marshall Wace LLP grew its position in Synopsys by 184.2% in the 4th quarter. Marshall Wace LLP now owns 755,948 shares of the semiconductor company's stock worth $355,084,000 after purchasing an additional 489,952 shares during the last quarter. Institutional investors own 85.47% of the company's stock.

More Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys raised FY 2026 EPS guidance to 14.72-14.80, topping the consensus estimate of 13.61, while revenue guidance of $9.6 billion-$9.7 billion was in line to slightly ahead of expectations.
• Positive Sentiment: The company also lifted third-quarter 2026 EPS guidance to 3.63-3.69 versus the 3.42 consensus estimate, with revenue guidance of $2.4 billion-$2.5 billion also matching or modestly exceeding forecasts.
• Positive Sentiment: Rosenblatt Securities raised its price target on Synopsys to $575 from $530 and reiterated a buy rating, signaling additional upside confidence ahead of the earnings report. Benzinga
• Neutral Sentiment: Investors are also watching the company’s earnings release and its Ansys merger integration, both of which could influence sentiment and future guidance. Blockonomi
• Neutral Sentiment: Some pre-earnings commentary suggested Synopsys could report softer quarterly results and highlighted valuation concerns, but these reports were outweighed by the company’s stronger-than-expected outlook. Benzinga
• Negative Sentiment: Bearish articles described Synopsys as a “growth trap,” raising concerns about the stock’s longer-term growth profile and valuation in the EDA industry. 247wallst

About Synopsys

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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