Synopsys (NASDAQ:SNPS) Updates FY 2025 Earnings Guidance

Synopsys (NASDAQ:SNPS - Get Free Report) issued an update on its FY 2025 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 15.110-15.190 for the period, compared to the consensus estimate of 14.920. The company issued revenue guidance of $6.7 billion-$6.8 billion, compared to the consensus revenue estimate of $6.8 billion. Synopsys also updated its Q3 2025 guidance to 3.820-3.87 EPS.

Synopsys Stock Up 1.1%

SNPS stock traded up $5.09 during trading on Friday, hitting $460.08. The company had a trading volume of 3,356,054 shares, compared to its average volume of 1,143,644. Synopsys has a 52-week low of $365.74 and a 52-week high of $624.80. The company has a 50 day simple moving average of $453.46 and a 200-day simple moving average of $486.08. The firm has a market capitalization of $71.14 billion, a P/E ratio of 31.69, a PEG ratio of 3.23 and a beta of 1.16.

Synopsys (NASDAQ:SNPS - Get Free Report) last issued its earnings results on Wednesday, May 28th. The semiconductor company reported $3.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.40 by $0.27. Synopsys had a net margin of 36.12% and a return on equity of 20.48%. The company had revenue of $1.60 billion for the quarter, compared to analysts' expectations of $1.60 billion. During the same period in the prior year, the business earned $3.00 EPS. The firm's quarterly revenue was up 10.3% on a year-over-year basis. Sell-side analysts forecast that Synopsys will post 10.64 earnings per share for the current year.

Analyst Ratings Changes

SNPS has been the topic of several recent research reports. Mizuho dropped their target price on shares of Synopsys from $650.00 to $600.00 and set an "outperform" rating on the stock in a report on Tuesday, April 15th. Rosenblatt Securities lowered their price target on shares of Synopsys from $660.00 to $625.00 and set a "buy" rating on the stock in a report on Thursday. Bank of America lowered their price target on shares of Synopsys from $630.00 to $560.00 and set a "buy" rating on the stock in a report on Wednesday, April 16th. KeyCorp set a $575.00 price target on shares of Synopsys and gave the company an "overweight" rating in a report on Tuesday, May 20th. Finally, Stifel Nicolaus set a $550.00 price target on shares of Synopsys in a report on Monday, April 28th. One investment analyst has rated the stock with a hold rating and twelve have given a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $609.64.

Insider Buying and Selling

In other Synopsys news, CEO Sassine Ghazi sold 11,366 shares of Synopsys stock in a transaction that occurred on Monday, March 3rd. The shares were sold at an average price of $463.75, for a total transaction of $5,270,982.50. Following the completion of the sale, the chief executive officer now directly owns 70,922 shares in the company, valued at approximately $32,890,077.50. The trade was a 13.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Geus Aart De sold 15,705 shares of Synopsys stock in a transaction that occurred on Thursday, March 6th. The shares were sold at an average price of $444.42, for a total transaction of $6,979,616.10. Following the transaction, the insider now directly owns 116,671 shares of the company's stock, valued at approximately $51,850,925.82. This trade represents a 11.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.62% of the stock is owned by company insiders.

Hedge Funds Weigh In On Synopsys

Institutional investors have recently made changes to their positions in the company. Integrated Wealth Concepts LLC increased its holdings in Synopsys by 11.6% in the 1st quarter. Integrated Wealth Concepts LLC now owns 760 shares of the semiconductor company's stock worth $326,000 after acquiring an additional 79 shares in the last quarter. Brighton Jones LLC increased its holdings in Synopsys by 5.7% in the 4th quarter. Brighton Jones LLC now owns 921 shares of the semiconductor company's stock worth $447,000 after acquiring an additional 50 shares in the last quarter. Finally, NewEdge Advisors LLC increased its holdings in Synopsys by 15.1% in the 1st quarter. NewEdge Advisors LLC now owns 3,010 shares of the semiconductor company's stock worth $1,291,000 after acquiring an additional 395 shares in the last quarter. 85.47% of the stock is owned by hedge funds and other institutional investors.

About Synopsys

Synopsys, Inc provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions.