Synopsys (NASDAQ:SNPS) Updates Q4 2026 Earnings Guidance

Synopsys (NASDAQ:SNPS) updated its fourth quarter 2026 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 4.100-4.160 for the period, compared to the consensus earnings per share estimate of 3.780. The company issued revenue guidance of $2.5 billion-$2.6 billion, compared to the consensus revenue estimate of $2.6 billion. Synopsys also updated its FY 2026 guidance to 15.040-15.100 EPS.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on SNPS shares. Stifel Nicolaus increased their price objective on Synopsys from $550.00 to $600.00 and gave the company a “buy” rating in a report on Thursday, May 28th. Berenberg Bank set a $633.00 target price on shares of Synopsys in a research report on Wednesday, May 27th. Mizuho lowered their target price on Synopsys from $600.00 to $550.00 and set an “outperform” rating on the stock in a report on Thursday. Morgan Stanley lowered their price target on shares of Synopsys from $525.00 to $500.00 and set an “equal weight” rating on the stock in a research report on Wednesday, August 19th. Finally, Wells Fargo & Company dropped their price objective on Synopsys from $535.00 to $450.00 and set an “equal weight” rating for the company in a research report on Tuesday, August 11th. Twelve analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Synopsys has a consensus rating of “Moderate Buy” and an average price target of $561.28.

Synopsys Trading Up 13.4%

NASDAQ:SNPS opened at $464.89 on Friday. 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 has a 52 week low of $366.00 and a 52 week high of $615.79. The business’s 50 day moving average is $416.90 and its two-hundred day moving average is $440.11. The company has a market cap of $89.02 billion, a PE ratio of 82.14, a P/E/G ratio of 2.41 and a beta of 1.23.

Synopsys (NASDAQ:SNPS) last posted its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (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 the consensus estimate of $2.44 billion. Synopsys had a net margin of 11.43% and a return on equity of 6.31%. The company’s revenue for the quarter was up 42.4% on a year-over-year basis. During the same period last year, the firm posted $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. On average, analysts predict that Synopsys will post 10.64 EPS for the current year.

Insider Activity at Synopsys

In other news, CEO Sassine Ghazi sold 14,603 shares of the business’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the sale, the chief executive officer directly owned 75,020 shares of the company’s stock, valued at $34,431,179.20. The trade was a 16.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 shares were sold at an average price of $450.02, for a total value of $1,527,367.88. Following the transaction, the chief financial officer directly owned 14,358 shares in the company, valued at $6,461,387.16. The trade was a 19.12% 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. 0.56% of the stock is owned by insiders.

Synopsys News Summary

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Quarterly results exceeded expectations. Synopsys reported revenue of $2.477 billion, up 42.4% year over year, while non-GAAP EPS of $3.91 surpassed the $3.67 consensus estimate. Design Automation was the main growth driver, with additional support from Design IP and Ansys. Synopsys Posts Financial Results for Third Quarter Fiscal Year 2026
• Positive Sentiment: Management raised its outlook. The company increased fiscal 2026 revenue guidance to a midpoint of approximately $9.715 billion and non-GAAP EPS guidance to $15.07. Fourth-quarter EPS guidance of $4.10–$4.16 was also above the consensus estimate of $3.78. Synopsys raises annual forecasts on AI-driven chip design software demand
• Positive Sentiment: AI is strengthening the long-term growth narrative. Synopsys said rising chip complexity, AI infrastructure investment and customer interest in autonomous engineering workflows are accelerating EDA demand. The Ansys acquisition is also creating cross-selling and simulation opportunities, particularly for fiscal 2027. SNPS Q3 Earnings Call Highlights EDA Acceleration, Outlook Raised
• Positive Sentiment: Analyst and investor support added momentum. Goldman Sachs, Needham, Benchmark and Rosenblatt reaffirmed Buy ratings, with price targets ranging from $570 to $600. Elliott Investment Management reportedly built a multibillion-dollar position, betting Synopsys can narrow its valuation discount to peers. Synopsys Earns Buy Rating as Strong Execution and Higher 2026 Guidance Support $600 Price Target
• Neutral Sentiment: Analyst reactions were not unanimous. While several firms remain bullish, some analysts offered mixed responses to the results and outlook, suggesting expectations and valuation remain important factors for future performance. Analysts show mixed reactions after Synopsys’ Q3 results and outlook
• Negative Sentiment: Valuation and integration execution remain risks. Synopsys trades at a high earnings multiple, and investors will continue watching whether Ansys synergies, stronger cash generation and AI-related demand translate into sustainable profitability. Recent insider transactions cited in one report were sales rather than purchases.

Institutional Investors Weigh In On Synopsys

Institutional investors and hedge funds have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd bought a new position in Synopsys in the fourth quarter valued at about $28,000. Atlas Capital Advisors Inc. bought a new position in shares of Synopsys in the 4th quarter valued at about $32,000. Kemnay Advisory Services Inc. acquired a new stake in shares of Synopsys during the 4th quarter worth approximately $35,000. WealthCollab LLC grew its position in shares of Synopsys by 110.8% during the 3rd quarter. WealthCollab LLC now owns 78 shares of the semiconductor company’s stock worth $38,000 after buying an additional 41 shares during the period. Finally, Greenline Wealth Management LLC bought a new position in Synopsys in the fourth quarter valued at approximately $37,000. Institutional investors and hedge funds own 85.47% of the company’s stock.

Synopsys Company Profile

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.