Synopsys (NASDAQ:SNPS) Updates Q3 2025 Earnings Guidance

Synopsys (NASDAQ:SNPS - Get Free Report) issued an update on its third quarter 2025 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 3.820-3.87 for the period, compared to the consensus estimate of 3.970. The company issued revenue guidance of $1.8 billion-$1.8 billion, compared to the consensus revenue estimate of $1.8 billion. Synopsys also updated its FY 2025 guidance to 15.110-15.190 EPS.

Synopsys Stock Performance

Shares of SNPS stock traded up $5.09 on Friday, hitting $460.08. 3,356,054 shares of the stock traded hands, compared to its average volume of 1,143,644. The firm's 50-day moving average price is $453.46 and its two-hundred day moving average price is $486.08. The stock has a market capitalization of $71.14 billion, a PE ratio of 31.69, a PEG ratio of 3.23 and a beta of 1.16. Synopsys has a twelve month low of $365.74 and a twelve month high of $624.80.

Synopsys (NASDAQ:SNPS - Get Free Report) last posted its earnings results on Wednesday, May 28th. The semiconductor company reported $3.67 EPS for the quarter, beating analysts' consensus estimates 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 quarter in the prior year, the company posted $3.00 earnings per share. Synopsys's revenue for the quarter was up 10.3% compared to the same quarter last year. On average, equities research analysts anticipate that Synopsys will post 10.64 EPS for the current fiscal year.

Wall Street Analyst Weigh In

SNPS has been the topic of several research reports. Mizuho reduced their price target on shares of Synopsys from $650.00 to $600.00 and set an "outperform" rating on the stock in a research report on Tuesday, April 15th. Bank of America reduced their price target on shares of Synopsys from $630.00 to $560.00 and set a "buy" rating on the stock in a research report on Wednesday, April 16th. Stifel Nicolaus set a $550.00 price target on shares of Synopsys in a research report on Monday, April 28th. Needham & Company LLC reissued a "buy" rating and set a $650.00 price target on shares of Synopsys in a research report on Thursday. Finally, Wells Fargo & Company reduced their price target on shares of Synopsys from $540.00 to $520.00 and set an "equal weight" rating on the stock in a research report on Thursday, February 27th. One investment analyst has rated the stock with a hold rating and twelve have given a buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $609.64.

Insider Buying and Selling at Synopsys

In other Synopsys news, CEO Sassine Ghazi sold 11,366 shares of the stock in a transaction that occurred on Monday, March 3rd. The shares were sold at an average price of $463.75, for a total value of $5,270,982.50. Following the transaction, the chief executive officer now directly owns 70,922 shares in the company, valued at $32,890,077.50. This represents a 13.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Geus Aart De sold 15,705 shares of the 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 completion of the transaction, the insider now owns 116,671 shares in the company, valued at $51,850,925.82. This 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 currently owned by insiders.

Hedge Funds Weigh In On Synopsys

A number of hedge funds have recently modified their holdings of SNPS. Brighton Jones LLC grew its position in shares of Synopsys by 5.7% during the fourth quarter. Brighton Jones LLC now owns 921 shares of the semiconductor company's stock worth $447,000 after acquiring an additional 50 shares during the last quarter. Integrated Wealth Concepts LLC grew its position in shares of Synopsys by 11.6% during the first quarter. Integrated Wealth Concepts LLC now owns 760 shares of the semiconductor company's stock worth $326,000 after acquiring an additional 79 shares during the last quarter. Finally, NewEdge Advisors LLC grew its position in shares of Synopsys by 15.1% during the first 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 during the last quarter. 85.47% of the stock is currently 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.