Needham & Company LLC Reaffirms Buy Rating for Synopsys (NASDAQ:SNPS)

Synopsys (NASDAQ:SNPS)‘s stock had its “buy” rating reiterated by research analysts at Needham & Company LLC in a research note issued on Thursday,Benzinga reports. They currently have a $580.00 price target on the semiconductor company’s stock. Needham & Company LLC’s target price would suggest a potential upside of 41.46% from the company’s current price.

Several other equities research analysts also recently weighed in on SNPS. Zacks Research downgraded shares of Synopsys from a “strong-buy” rating to a “hold” rating in a research note on Friday, August 21st. Robert W. Baird set a $560.00 target price on Synopsys in a research report on Thursday. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Synopsys in a research note on Monday, June 8th. Rosenblatt Securities reissued a “buy” rating and issued a $575.00 price objective on shares of Synopsys in a research note on Tuesday. Finally, BNP Paribas Exane upped their target price on Synopsys from $425.00 to $450.00 and gave the stock an “underperform” rating in a research report on Thursday, May 28th. Eleven investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Synopsys has an average rating of “Moderate Buy” and a consensus target price of $563.71.

Synopsys Stock Performance

NASDAQ SNPS opened at $410.00 on Thursday. The company has a market capitalization of $78.51 billion, a price-to-earnings ratio of 94.91, a PEG ratio of 2.40 and a beta of 1.23. Synopsys has a twelve month low of $366.00 and a twelve month high of $615.79. The stock has a fifty day simple moving average of $416.71 and a 200 day simple moving average of $439.84. The company has a quick ratio of 1.32, a current ratio of 1.43 and a debt-to-equity ratio of 0.33.

Synopsys (NASDAQ:SNPS) last posted its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 EPS for the quarter, topping analysts’ consensus estimates of $3.67 by $0.24. The company had revenue of $2.48 billion for the quarter, compared to analyst estimates of $2.44 billion. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The firm’s quarterly revenue was up 42.4% on a year-over-year basis. During the same period in the previous year, the firm earned $3.39 earnings per share. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. Sell-side analysts expect that Synopsys will post 10.64 EPS for the current year.

Insider Activity at Synopsys

In related news, CFO Shelagh Glaser sold 3,394 shares of Synopsys stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $450.02, for a total value of $1,527,367.88. Following the sale, the chief financial officer owned 14,358 shares of the company’s stock, valued at approximately $6,461,387.16. The trade was a 19.12% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $458.96, for a total value of $6,702,192.88. Following the completion of the transaction, the chief executive officer owned 75,020 shares in the company, valued at approximately $34,431,179.20. The trade was a 16.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 0.56% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Sankala Group LLC purchased a new stake in Synopsys during the fourth quarter valued at about $25,000. Elevation Wealth Partners LLC increased its stake in shares of Synopsys by 96.4% in the second quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock worth $25,000 after purchasing an additional 27 shares in the last quarter. Osbon Capital Management LLC purchased a new position in shares of Synopsys in the second quarter worth about $25,000. Caitong International Asset Management Co. Ltd bought a new stake in shares of Synopsys in the fourth quarter valued at approximately $28,000. Finally, IMG Wealth Management Inc. bought a new stake in shares of Synopsys in the second quarter valued at approximately $28,000. Hedge funds and other institutional investors own 85.47% of the company’s stock.

Key Headlines Impacting Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys reported fiscal Q3 revenue of $2.477 billion, up 42.4% year over year, while non-GAAP EPS of $3.91 exceeded the $3.67 consensus estimate. GAAP EPS was $2.84, compared with $1.51 a year earlier. Synopsys Posts Financial Results for Third Quarter Fiscal Year 2026
• Positive Sentiment: Management raised fiscal 2026 guidance to approximately $9.715 billion in revenue and $15.07 in non-GAAP EPS at the midpoint. Fourth-quarter EPS guidance of $4.10-$4.16 also sits above the $3.78 consensus estimate, supporting confidence in continued demand. Synopsys raises annual forecasts on AI-driven chip design software demand
• Positive Sentiment: Synopsys cited broad-based strength in Design Automation and sustained AI-related investment in semiconductor and infrastructure development. Its partnership with Nvidia, including Nvidia’s reported $2 billion investment, reinforces the long-term AI engineering opportunity. Nvidia’s $2 Billion Synopsys Bet Signals AI’s Next Frontier
• Positive Sentiment: Rosenblatt Securities reaffirmed its Buy rating and maintained a $575 price target, implying substantial upside from the reference price. Rosenblatt Reiterates Buy Rating on Synopsys
• Neutral Sentiment: The earnings call emphasized Synopsys’s shift toward autonomous engineering systems and significant customer productivity gains from AI, strengthening the long-term narrative but also raising investor expectations. Synopsys Q3 2026 Earnings Call Transcript
• Negative Sentiment: Despite the earnings beat and raised outlook, SNPS traded lower after the release. Fourth-quarter revenue guidance of $2.53-$2.58 billion is slightly below the roughly $2.6 billion consensus, while the stock’s elevated valuation—near 95 times earnings—leaves limited room for execution concerns or merely incremental guidance improvements.

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.