Synopsys (NASDAQ:SNPS) Updates FY 2026 Earnings Guidance

Synopsys (NASDAQ:SNPS) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided EPS guidance of 15.040-15.100 for the period, compared to the consensus 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.

Analyst Upgrades and Downgrades

SNPS has been the subject of a number of recent research reports. KeyCorp reissued an “overweight” rating on shares of Synopsys in a research report on Wednesday, August 19th. Berenberg Bank set a $633.00 price target on shares of Synopsys in a report on Wednesday, May 27th. Needham & Company LLC restated a “buy” rating and set a $580.00 price target on shares of Synopsys in a research report on Thursday. Weiss Ratings reiterated a “hold (c-)” rating on shares of Synopsys in a research report on Monday, June 8th. Finally, Benchmark reissued a “buy” rating and set a $570.00 price objective on shares of Synopsys in a research note on Thursday. Twelve investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $561.28.

Synopsys Stock Up 13.4%

Shares of NASDAQ SNPS opened at $464.89 on Friday. The stock has a market capitalization of $89.02 billion, a P/E ratio of 82.14, a PEG ratio of 2.41 and a beta of 1.23. The firm’s 50 day simple moving average is $416.90 and its two-hundred day simple moving average is $440.11. Synopsys has a one year low of $366.00 and a one year high of $615.79. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.43 and a quick ratio of 1.32.

Synopsys (NASDAQ:SNPS) last announced its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, beating the consensus estimate of $3.67 by $0.24. Synopsys had a net margin of 11.43% and a return on equity of 6.31%. The business had revenue of $2.48 billion during the quarter, compared to analysts’ expectations of $2.44 billion. During the same quarter in the prior year, the company posted $3.39 EPS. The firm’s revenue for the quarter was up 42.4% compared to the same quarter last year. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. As a group, analysts expect that Synopsys will post 10.64 EPS for the current fiscal year.

Insider Transactions at Synopsys

In related news, CFO Shelagh Glaser sold 3,394 shares of the firm’s 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 in the company, valued at approximately $6,461,387.16. This trade represents a 19.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of Synopsys stock in a transaction that occurred 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 completion of the sale, the chief executive officer directly owned 75,020 shares of the company’s stock, valued at approximately $34,431,179.20. This trade represents 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. 0.56% of the stock is currently owned by insiders.

Trending Headlines about Synopsys

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 Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Centaurus Financial Inc. grew 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 valued at $673,000 after purchasing an additional 30 shares during the period. Resources Management Corp CT ADV grew its position in Synopsys by 1.2% during the second 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 during the period. Synergy Financial Group LTD raised its position in Synopsys by 6.2% in the fourth quarter. Synergy Financial Group LTD now owns 599 shares of the semiconductor company’s stock worth $281,000 after acquiring an additional 35 shares during the period. Vise Technologies Inc. grew its position in shares of Synopsys by 1.5% during the 3rd quarter. Vise Technologies Inc. now owns 2,707 shares of the semiconductor company’s stock valued at $1,336,000 after acquiring an additional 40 shares during the period. Finally, WealthCollab LLC lifted its position in Synopsys by 110.8% during the third quarter. WealthCollab LLC now owns 78 shares of the semiconductor company’s stock valued at $38,000 after purchasing an additional 41 shares in the last quarter. Institutional investors 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.