Synopsys (NASDAQ:SNPS) Releases FY 2025 Earnings Guidance

Synopsys (NASDAQ:SNPS) issued an update on its FY 2025 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 12.760-12.800 for the period, compared to the consensus earnings per share estimate of 13.100. The company issued revenue guidance of $7.0 billion-$7.1 billion, compared to the consensus revenue estimate of $7.2 billion. Synopsys also updated its Q4 2025 guidance to 2.760-2.80 EPS.

Synopsys Stock Performance

SNPS opened at $604.37 on Wednesday. Synopsys has a 12-month low of $365.74 and a 12-month high of $651.73. The stock has a market cap of $93.77 billion, a price-to-earnings ratio of 43.64, a PEG ratio of 4.00 and a beta of 1.14. The business has a 50 day moving average of $597.69 and a 200-day moving average of $507.82. The company has a quick ratio of 6.85, a current ratio of 7.02 and a debt-to-equity ratio of 1.01.

Wall Street Analyst Weigh In

SNPS has been the topic of several research analyst reports. Rosenblatt Securities increased their price target on shares of Synopsys from $625.00 to $650.00 and gave the company a “buy” rating in a report on Friday, July 25th. Wells Fargo & Company reissued a “positive” rating on shares of Synopsys in a report on Wednesday, August 27th. KeyCorp upped their price objective on Synopsys from $610.00 to $660.00 and gave the company an “overweight” rating in a report on Wednesday, September 3rd. Needham & Company LLC reissued a “buy” rating and set a $660.00 target price (up previously from $650.00) on shares of Synopsys in a report on Tuesday, July 15th. Finally, Bank of America upped their price target on shares of Synopsys from $575.00 to $625.00 and gave the company a “buy” rating in a research note on Wednesday, July 16th. Twelve investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $638.21.

Insider Activity at Synopsys

In related news, CRO Richard S. Mahoney sold 9,010 shares of the firm’s stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $471.21, for a total transaction of $4,245,602.10. Following the sale, the executive owned 1,485 shares of the company’s stock, valued at $699,746.85. This trade represents a 85.85% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Sassine Ghazi sold 11,366 shares of Synopsys stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $589.01, for a total value of $6,694,687.66. Following the sale, the chief executive officer directly owned 71,615 shares in the company, valued at $42,181,951.15. The trade was a 13.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 24,031 shares of company stock valued at $13,168,999. 0.62% of the stock is owned by insiders.

Hedge Funds Weigh In On Synopsys

Hedge funds have recently made changes to their positions in the stock. Resources Management Corp CT ADV boosted its position in shares of Synopsys by 1.2% during the 2nd quarter. Resources Management Corp CT ADV now owns 2,639 shares of the semiconductor company’s stock worth $1,353,000 after purchasing an additional 31 shares in the last quarter. Brighton Jones LLC increased its position in Synopsys by 5.7% in the 4th quarter. Brighton Jones LLC now owns 921 shares of the semiconductor company’s stock valued at $447,000 after buying an additional 50 shares in the last quarter. WINTON GROUP Ltd raised its stake in Synopsys by 9.2% during the 2nd quarter. WINTON GROUP Ltd now owns 758 shares of the semiconductor company’s stock worth $389,000 after buying an additional 64 shares during the period. Integrated Wealth Concepts LLC raised its stake in Synopsys by 11.6% during the 1st quarter. Integrated Wealth Concepts LLC now owns 760 shares of the semiconductor company’s stock worth $326,000 after buying an additional 79 shares during the period. Finally, EP Wealth Advisors LLC boosted its holdings in Synopsys by 2.8% in the second quarter. EP Wealth Advisors LLC now owns 2,992 shares of the semiconductor company’s stock worth $1,534,000 after acquiring an additional 81 shares in the last quarter. 85.47% of the stock is currently owned by institutional investors.

Synopsys Company Profile

Synopsys, Inc provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions.