Synopsys (NASDAQ:SNPS) Issues FY 2027 Earnings Guidance

Synopsys (NASDAQ:SNPS) issued an update on its FY 2027 earnings guidance on Wednesday. The company provided earnings per share guidance of 19.040-19.120 for the period, compared to the consensus estimate of 16.780. The company issued revenue guidance of $11.1 billion-$11.2 billion, compared to the consensus revenue estimate of $10.8 billion.

Analysts Set New Price Targets

SNPS has been the subject of a number of research reports. Barclays began coverage on Synopsys in a research note on Friday, September 25th. They issued an “overweight” rating for the company. Needham & Company LLC reiterated a “buy” rating and issued a $580.00 price objective on shares of Synopsys in a research report on Thursday, August 27th. Zacks Research cut shares of Synopsys from a “strong-buy” rating to a “hold” rating in a research report on Friday, August 21st. Piper Sandler raised Synopsys from a “neutral” rating to an “overweight” rating and lifted their price target for the company from $450.00 to $550.00 in a report on Tuesday, June 23rd. Finally, BNP Paribas Exane upgraded Synopsys from an “underperform” rating to a “neutral” rating and set a $420.00 price objective for the company in a research report on Thursday, September 24th. Fifteen research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Synopsys currently has a consensus rating of “Moderate Buy” and a consensus price target of $574.61.

Synopsys Stock Performance

Shares of NASDAQ SNPS opened at $434.94 on Thursday. The stock has a fifty day moving average price of $403.35 and a two-hundred day moving average price of $435.48. The firm has a market cap of $83.35 billion, a P/E ratio of 76.84, a PEG ratio of 2.27 and a beta of 1.23. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.24 and a current ratio of 1.34. Synopsys has a 1 year low of $362.55 and a 1 year high of $539.48.

Synopsys (NASDAQ:SNPS) last released its earnings results 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 business had revenue of $2.48 billion for the quarter, compared to the consensus estimate of $2.44 billion. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The business’s revenue for the quarter was up 42.4% on a year-over-year basis. During the same period in the previous year, the firm earned $3.39 EPS. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. Research analysts forecast that Synopsys will post 10.97 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Aart de Geus sold 24,641 shares of Synopsys stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $419.44, for a total value of $10,335,421.04. Following the transaction, the insider directly owned 120,443 shares in the company, valued at $50,518,611.92. The trade was a 16.98% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,604 shares of the business’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $374.88, for a total value of $5,474,747.52. Following the sale, the chief executive officer directly owned 76,865 shares in the company, valued at $28,815,151.20. This trade represents a 15.97% decrease in their ownership of the stock. 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. Insiders have sold a total of 89,245 shares of company stock valued at $37,992,919 in the last quarter. Insiders own 0.56% of the company’s stock.

Key Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Raised long-term outlook: Synopsys forecast fiscal 2027 earnings of $19.04–$19.12 per share and revenue of $11.1–$11.2 billion, above consensus estimates of $16.78 and $10.8 billion, respectively. Management also outlined a roughly 15% growth target and expanding non-GAAP operating margins, reflecting confidence in demand for semiconductor design and engineering software. Synopsys Investor Day growth strategy
• Positive Sentiment: Large Amazon agreement: Amazon Web Services signed a multiyear custom-silicon intellectual-property agreement worth more than $1 billion. The deal is expected to support Synopsys’ silicon IP business through a license-plus-royalty model, while addressing demand for custom chips used in cloud and AI infrastructure. Synopsys AWS licensing agreement
• Positive Sentiment: OpenAI partnership adds an AI growth avenue: Synopsys and OpenAI will jointly develop and commercialize “GPT-Synopsys,” a specialized model for semiconductor design. OpenAI will license Synopsys’ EDA tools, and the companies will share revenue, potentially accelerating adoption of AI-powered chip-design workflows. Synopsys and OpenAI partnership
• Positive Sentiment: Capital return: Investor Day coverage indicated a new $1 billion share-repurchase authorization, which could support per-share earnings and signal management’s confidence in future cash generation. Synopsys growth target, buyback and OpenAI deal
• Neutral Sentiment: Synopsys’ valuation remains demanding, with the stock trading at a high earnings multiple. The improved outlook and AI-related opportunities strengthen the growth case, but execution, customer adoption and the ability to convert agreements into recurring revenue remain important risks.

About Synopsys

Synopsys, Inc is a technology company that develops electronic design automation (EDA) software, semiconductor intellectual property (IP), and software tools used to design, verify, and manufacture advanced electronic systems. Its solutions support the development of semiconductors, systems-on-chip, and electronic products across the design cycle, from initial specification and architecture through testing and production.

The company’s offerings include digital and custom integrated-circuit design tools, simulation and verification software, physical design and signoff products, and semiconductor IP such as processor cores, interface technologies, and foundational components.