Synopsys (NASDAQ:SNPS) Releases Q4 2025 Earnings Guidance

Key Points

• Synopsys has adjusted its Q4 2025 earnings per share (EPS) guidance to $2.760-$2.800, significantly lower than the consensus estimate of $3.900, and also issued revenue guidance of $2.2 billion-$2.3 billion.
• Wall Street analysts remain positive on Synopsys, with twelve giving it a Buy rating and a consensus price target of $638.21, reflecting optimism despite recent earnings adjustments.
• Insider transactions indicate declining ownership by executives, with the CFO selling shares and significantly reducing their stake, raising potential concerns about insider confidence.

Synopsys (NASDAQ:SNPS - Get Free Report) updated its fourth quarter 2025 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 2.760-2.80 for the period, compared to the consensus estimate of 3.900. The company issued revenue guidance of $2.2 billion-$2.3 billion, compared to the consensus revenue estimate of $2.3 billion. Synopsys also updated its FY 2025 guidance to 12.760-12.800 EPS.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. Rosenblatt Securities increased their price objective on Synopsys from $625.00 to $650.00 and gave the company a "buy" rating in a report on Friday, July 25th. Piper Sandler increased their price objective on Synopsys from $615.00 to $660.00 and gave the company an "overweight" rating in a report on Monday, July 21st. Wells Fargo & Company restated a "positive" rating on shares of Synopsys in a research note on Wednesday, August 27th. The Goldman Sachs Group initiated coverage on Synopsys in a research note on Thursday, July 10th. They issued a "buy" rating and a $620.00 target price on the stock. Finally, Bank of America upped their target price on Synopsys from $575.00 to $625.00 and gave the stock a "buy" rating in a research note on Wednesday, July 16th. Twelve analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, Synopsys has an average rating of "Moderate Buy" and a consensus price target of $638.21.

Synopsys Price Performance

SNPS stock traded down $4.71 during mid-day trading on Tuesday, reaching $604.37. 2,095,111 shares of the company's stock were exchanged, compared to its average volume of 1,408,363. The company has a market cap of $93.77 billion, a price-to-earnings ratio of 43.64, a price-to-earnings-growth ratio of 3.93 and a beta of 1.14. The stock's 50 day moving average is $596.04 and its 200 day moving average is $507.14. The company has a debt-to-equity ratio of 1.01, a current ratio of 7.02 and a quick ratio of 6.85. Synopsys has a 12-month low of $365.74 and a 12-month high of $651.73.

Insiders Place Their Bets

In other Synopsys news, CFO Shelagh Glaser sold 3,655 shares of the stock in a transaction that occurred on Friday, September 5th. The stock was sold at an average price of $609.77, for a total transaction of $2,228,709.35. Following the transaction, the chief financial officer owned 15,317 shares in the company, valued at approximately $9,339,847.09. This represents a 19.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CRO Richard S. Mahoney sold 9,010 shares of the stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $471.21, for a total value of $4,245,602.10. Following the transaction, the executive owned 1,485 shares in the company, valued at $699,746.85. This represents a 85.85% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 24,031 shares of company stock worth $13,168,999. 0.62% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Synopsys

Several hedge funds and other institutional investors have recently made changes to their positions in the company. B. Riley Wealth Advisors Inc. purchased a new position in shares of Synopsys in the second quarter valued at approximately $255,000. Advisory Services Network LLC purchased a new position in shares of Synopsys in the second quarter valued at approximately $927,000. State of Wyoming purchased a new position in shares of Synopsys in the second quarter valued at approximately $63,000. FORA Capital LLC lifted its position in shares of Synopsys by 41.9% in the second quarter. FORA Capital LLC now owns 2,749 shares of the semiconductor company's stock valued at $1,409,000 after acquiring an additional 812 shares in the last quarter. Finally, Evergreen Capital Management LLC lifted its position in shares of Synopsys by 10.9% in the second quarter. Evergreen Capital Management LLC now owns 1,575 shares of the semiconductor company's stock valued at $807,000 after acquiring an additional 155 shares in the last quarter. Hedge funds and other institutional investors own 85.47% of the company's stock.

Synopsys Company Profile

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.

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