Synopsys (NASDAQ:SNPS) Issues FY 2026 Earnings Guidance

Synopsys (NASDAQ:SNPS) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 15.040-15.100 for the period, compared to the consensus earnings per share estimate of 13.960. The company issued revenue guidance of $9.7 billion-$9.7 billion, compared to the consensus revenue estimate of $9.7 billion. Synopsys also updated its Q4 2026 guidance to 4.100-4.160 EPS.

Synopsys Stock Up 0.3%

SNPS traded up $1.21 during trading on Wednesday, reaching $410.00. 2,463,265 shares of the stock were exchanged, compared to its average volume of 1,985,393. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.32 and a current ratio of 1.43. The stock’s 50 day moving average price is $417.74 and its two-hundred day moving average price is $439.85. Synopsys has a twelve month low of $366.00 and a twelve month high of $615.79. The stock has a market cap of $78.51 billion, a P/E ratio of 94.91, a price-to-earnings-growth ratio of 2.32 and a beta of 1.23.

Synopsys (NASDAQ:SNPS) last announced its quarterly earnings data on Wednesday, May 27th. The semiconductor company reported $3.35 EPS for the quarter, beating analysts’ consensus estimates of $3.15 by $0.20. The company had revenue of $2.28 billion during the quarter, compared to the consensus estimate of $2.25 billion. Synopsys had a net margin of 8.91% and a return on equity of 5.83%. The company’s quarterly revenue was up 41.9% on a year-over-year basis. During the same quarter last year, the firm posted $3.67 EPS. Equities analysts expect that Synopsys will post 10.64 EPS for the current year.

Analyst Ratings Changes

A number of equities analysts recently commented on the company. Needham & Company LLC reiterated a “buy” rating and set a $580.00 price target on shares of Synopsys in a report on Thursday, May 28th. Robert W. Baird set a $558.00 price objective on Synopsys in a research note on Thursday, May 28th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Synopsys in a research report on Monday, June 8th. Benchmark reiterated a “buy” rating on shares of Synopsys in a research note on Wednesday, August 19th. Finally, Stifel Nicolaus boosted their target price on Synopsys from $550.00 to $600.00 and gave the stock a “buy” rating in a report on Thursday, May 28th. Eleven research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $563.59.

Insiders Place Their Bets

In other news, CEO Sassine Ghazi sold 14,603 shares of Synopsys stock in a transaction on Monday, June 15th. The stock was sold at an average price of $458.96, for a total value of $6,702,192.88. Following the transaction, the chief executive officer owned 75,020 shares in the company, valued at approximately $34,431,179.20. This trade represents a 16.29% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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. Also, CFO Shelagh Glaser sold 3,394 shares of the company’s stock in a transaction on Friday, June 12th. The stock was 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. This represents a 19.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.56% of the stock is currently owned by company insiders.

Trending Headlines about Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Quarterly results exceeded expectations. Fiscal Q3 revenue rose to $2.477 billion from $1.740 billion a year earlier, while GAAP EPS was $2.84 and non-GAAP EPS was $3.91. Revenue and adjusted earnings surpassed analyst expectations, led by broad-based strength in Design Automation, which generated $2.003 billion. Synopsys Posts Financial Results for Third Quarter Fiscal Year 2026
• Positive Sentiment: Synopsys raised its outlook. Management lifted its full-year revenue guidance midpoint to $9.715 billion and non-GAAP EPS guidance midpoint to $15.07. Fourth-quarter revenue is expected to reach $2.530 billion to $2.580 billion, signaling confidence in sustained customer demand. Synopsys Q3 Revenue Reaches $2.477 Billion as GAAP EPS Hits $2.84
• Positive Sentiment: AI is strengthening the growth narrative. Synopsys says customers are achieving productivity gains of up to six times, while its partnership with Nvidia—including Nvidia’s reported $2 billion investment—supports the longer-term opportunity for AI-powered engineering and simulation. Nvidia’s $2 Billion Synopsys Bet Signals AI’s Next Frontier
• Positive Sentiment: Analyst support remains favorable. Rosenblatt Securities reaffirmed its Buy rating and assigned a $575 price target, implying substantial upside from recent trading levels. Rosenblatt Reiterates Buy Rating
• Neutral Sentiment: Institutional positioning was mixed: 772 investors added SNPS shares in their latest reported quarter, while 759 reduced holdings.
• Negative Sentiment: Recent insider activity showed sales rather than purchases, including transactions by CEO Sassine Ghazi and CFO Shelagh Glaser. This may temper sentiment, although the sales appear limited relative to the company’s market value.

Hedge Funds Weigh In On Synopsys

Institutional investors have recently added to or reduced their stakes in the stock. Caitong International Asset Management Co. Ltd bought a new position in Synopsys in the 4th quarter valued at approximately $28,000. Atlas Capital Advisors Inc. bought a new stake in shares of Synopsys during the fourth quarter worth $32,000. Kemnay Advisory Services Inc. acquired a new position in shares of Synopsys during the fourth quarter worth $35,000. Greenline Wealth Management LLC bought a new position in shares of Synopsys in the 4th quarter valued at $37,000. Finally, WealthCollab LLC boosted its holdings in shares of Synopsys by 110.8% during the 3rd quarter. WealthCollab LLC now owns 78 shares of the semiconductor company’s stock valued at $38,000 after acquiring an additional 41 shares in the last quarter. 85.47% of the stock is currently owned by institutional investors and hedge funds.

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.