Synopsys (NASDAQ:SNPS) Trading 6.3% Higher - Here's What Happened

Key Points

• Shares of Synopsys jumped 6.3%, trading as high as $495 and last at $485.55, on about 394,878 shares — roughly an 81% decline from its average daily volume.
• Synopsys beat the quarter with EPS of $3.77 (vs. $3.56 consensus) and revenue of $2.41B (vs. $2.39B), reported revenue up 65.6% year-over-year, and issued FY2026 EPS guidance of 14.38–14.46 (Q2 guidance 3.11–3.17).
• Analyst views are mixed: the consensus rating is "Hold" (8 Buy, 8 Hold, 1 Sell) with a consensus target of $531, while several firms have recently cut individual price targets (ranging roughly $430–$600).

Shares of Synopsys, Inc. (NASDAQ:SNPS - Get Free Report) were up 6.3% during trading on Friday . The stock traded as high as $495.00 and last traded at $485.5510. Approximately 394,878 shares traded hands during mid-day trading, a decline of 81% from the average daily volume of 2,075,959 shares. The stock had previously closed at $456.85.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on SNPS shares. Morgan Stanley reaffirmed an "equal weight" rating and issued a $480.00 price objective (down from $550.00) on shares of Synopsys in a research note on Wednesday, February 25th. Wells Fargo & Company decreased their target price on Synopsys from $500.00 to $450.00 and set an "equal weight" rating on the stock in a research note on Thursday, February 26th. Rosenblatt Securities dropped their target price on Synopsys from $560.00 to $530.00 and set a "buy" rating for the company in a research report on Thursday, February 26th. The Goldman Sachs Group set a $600.00 price target on shares of Synopsys and gave the stock a "buy" rating in a research note on Wednesday, February 25th. Finally, Piper Sandler reduced their target price on shares of Synopsys from $520.00 to $430.00 and set a "neutral" rating on the stock in a report on Thursday, February 26th. Eight equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $531.00.

Synopsys Price Performance

The company has a fifty day moving average price of $424.75 and a two-hundred day moving average price of $445.17. The firm has a market capitalization of $95.48 billion, a price-to-earnings ratio of 77.30, a P/E/G ratio of 3.90 and a beta of 1.15. The company has a quick ratio of 1.26, a current ratio of 1.36 and a debt-to-equity ratio of 0.33.

Synopsys (NASDAQ:SNPS - Get Free Report) last issued its quarterly earnings data on Wednesday, February 25th. The semiconductor company reported $3.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.56 by $0.21. The company had revenue of $2.41 billion for the quarter, compared to the consensus estimate of $2.39 billion. Synopsys had a net margin of 13.76% and a return on equity of 6.83%. Synopsys's revenue for the quarter was up 65.6% on a year-over-year basis. During the same period last year, the firm posted $3.03 EPS. Synopsys has set its FY 2026 guidance at 14.380-14.460 EPS and its Q2 2026 guidance at 3.110-3.170 EPS. On average, equities research analysts expect that Synopsys, Inc. will post 10.3 EPS for the current fiscal year.

Institutional Investors Weigh In On Synopsys

A number of hedge funds have recently added to or reduced their stakes in SNPS. Sowell Financial Services LLC lifted its holdings in shares of Synopsys by 2.0% in the 4th quarter. Sowell Financial Services LLC now owns 1,056 shares of the semiconductor company's stock valued at $496,000 after buying an additional 21 shares during the period. Natural Investments LLC boosted its position in shares of Synopsys by 4.6% during the 4th quarter. Natural Investments LLC now owns 482 shares of the semiconductor company's stock worth $226,000 after purchasing an additional 21 shares in the last quarter. Financial Management Professionals Inc. increased its holdings in shares of Synopsys by 7.0% in the 4th quarter. Financial Management Professionals Inc. now owns 335 shares of the semiconductor company's stock valued at $157,000 after purchasing an additional 22 shares in the last quarter. Foronjy Financial LLC increased its holdings in shares of Synopsys by 5.2% in the 4th quarter. Foronjy Financial LLC now owns 446 shares of the semiconductor company's stock valued at $210,000 after purchasing an additional 22 shares in the last quarter. Finally, Barden Capital Management Inc. lifted its stake in shares of Synopsys by 1.2% in the fourth quarter. Barden Capital Management Inc. now owns 1,868 shares of the semiconductor company's stock valued at $877,000 after purchasing an additional 23 shares during the period. Institutional investors and hedge funds own 85.47% of the company's stock.

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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