Synopsys (NASDAQ:SNPS) Issues FY 2026 Earnings Guidance

Synopsys (NASDAQ:SNPS) updated its FY 2026 earnings guidance on Wednesday. The company provided EPS guidance of 14.720-14.800 for the period, compared to the consensus EPS estimate of 13.610. The company issued revenue guidance of $9.6 billion-$9.7 billion, compared to the consensus revenue estimate of $9.6 billion. Synopsys also updated its Q3 2026 guidance to 3.630-3.690 EPS.

Wall Street Analysts Forecast Growth

Several research firms have commented on SNPS. Rosenblatt Securities lifted their target price on shares of Synopsys from $530.00 to $575.00 and gave the stock a “buy” rating in a research report on Tuesday. Wells Fargo & Company lifted their target price on shares of Synopsys from $450.00 to $505.00 and gave the stock an “equal weight” rating in a research report on Thursday, May 14th. Needham & Company LLC reissued a “buy” rating on shares of Synopsys in a research report on Thursday, February 26th. Piper Sandler dropped their target price on shares of Synopsys from $520.00 to $430.00 and set a “neutral” rating on the stock in a research report on Thursday, February 26th. Finally, The Goldman Sachs Group set a $600.00 target price on shares of Synopsys and gave the stock a “buy” rating in a research report on Wednesday, February 25th. Eight analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $544.88.

Synopsys Trading Down 1.6%

Shares of SNPS stock opened at $525.92 on Thursday. The company has a 50 day moving average of $457.56 and a 200-day moving average of $453.69. 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 has a 12-month low of $376.18 and a 12-month high of $651.73. The firm has a market cap of $100.75 billion, a P/E ratio of 81.66, a PEG ratio of 4.38 and a beta of 1.25.

Synopsys (NASDAQ:SNPS) last issued its quarterly earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.15 by $0.20. Synopsys had a net margin of 13.76% and a return on equity of 6.83%. The company had revenue of $2.28 billion during the quarter, compared to analyst estimates of $2.25 billion. During the same quarter last year, the business posted $3.67 EPS. Synopsys’s quarterly revenue was up 41.9% compared to the same quarter last year. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. Sell-side analysts anticipate that Synopsys will post 10.28 earnings per share for the current year.

More Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys beat Q2 estimates with revenue of $2.276 billion and non-GAAP EPS of $3.35, while also raising its full-year revenue and EPS outlook on strong demand for AI-driven chip design software. Reuters article
• Positive Sentiment: The company said backlog remains large and highlighted momentum from AI infrastructure spending and successful progress on Ansys integration, which supports confidence in future growth. Yahoo Finance article
• Positive Sentiment: Synopsys also reached a governance agreement with activist investor Elliott, adding Jesse Cohn to the board, a move that may increase pressure for margin improvement and capital discipline. WSJ article
• Neutral Sentiment: Despite the beat-and-raise report, several market reports noted the stock slipped anyway, suggesting investors may be taking profits or waiting for more clarity on valuation and merger integration before rewarding the results. Barron’s article
• Negative Sentiment: The market’s muted reaction implies concern that much of the AI growth and guidance strength may already be priced into SNPS after a sharp run-up, limiting upside despite the solid quarter. Yahoo Finance article

Institutional Investors Weigh In On Synopsys

Several large investors have recently modified their holdings of the stock. Centaurus Financial Inc. increased its stake in shares of Synopsys by 2.2% during the 3rd quarter. Centaurus Financial Inc. now owns 1,364 shares of the semiconductor company’s stock worth $673,000 after purchasing an additional 30 shares during the last quarter. Resources Management Corp CT ADV grew its stake in Synopsys by 1.2% in the 2nd quarter. Resources Management Corp CT ADV now owns 2,639 shares of the semiconductor company’s stock valued at $1,353,000 after buying an additional 31 shares in the last quarter. Synergy Financial Group LTD grew its stake in Synopsys by 6.2% in the 4th quarter. Synergy Financial Group LTD now owns 599 shares of the semiconductor company’s stock valued at $281,000 after buying an additional 35 shares in the last quarter. Vise Technologies Inc. grew its stake in Synopsys by 1.5% in the 3rd quarter. Vise Technologies Inc. now owns 2,707 shares of the semiconductor company’s stock valued at $1,336,000 after buying an additional 40 shares in the last quarter. Finally, WealthCollab LLC grew its stake in Synopsys by 110.8% in the 3rd quarter. WealthCollab LLC now owns 78 shares of the semiconductor company’s stock valued at $38,000 after buying an additional 41 shares in the last quarter. Hedge funds and other institutional investors 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.