Synopsys (NASDAQ:SNPS) Releases Q3 2025 Earnings Guidance

Synopsys (NASDAQ:SNPS) issued an update on its third quarter 2025 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 3.820-3.87 for the period, compared to the consensus estimate of 3.970. The company issued revenue guidance of $1.8 billion-$1.8 billion, compared to the consensus revenue estimate of $1.8 billion. Synopsys also updated its FY 2025 guidance to 15.110-15.190 EPS.

Synopsys Stock Performance

Shares of SNPS traded down $49.36 during trading hours on Wednesday, reaching $462.43. 4,777,545 shares of the company traded hands, compared to its average volume of 1,120,544. The stock’s fifty day moving average is $453.18 and its 200 day moving average is $487.60. The stock has a market cap of $71.50 billion, a P/E ratio of 31.85, a price-to-earnings-growth ratio of 3.23 and a beta of 1.16. Synopsys has a 1-year low of $365.74 and a 1-year high of $624.80.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on SNPS shares. KeyCorp set a $575.00 target price on shares of Synopsys and gave the company an “overweight” rating in a research note on Tuesday, May 20th. Wells Fargo & Company lowered their target price on shares of Synopsys from $540.00 to $520.00 and set an “equal weight” rating on the stock in a research note on Thursday, February 27th. Bank of America lowered their target price on shares of Synopsys from $630.00 to $560.00 and set a “buy” rating on the stock in a research note on Wednesday, April 16th. Piper Sandler lowered their target price on shares of Synopsys from $655.00 to $653.00 and set an “overweight” rating on the stock in a research note on Thursday, February 27th. Finally, Needham & Company LLC reissued a “buy” rating and issued a $650.00 target price on shares of Synopsys in a research note on Thursday, February 27th. One investment analyst has rated the stock with a hold rating and twelve have given a buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $614.86.

Insiders Place Their Bets

In other news, insider Geus Aart De sold 15,705 shares of the company’s stock in a transaction that occurred on Thursday, March 6th. The shares were sold at an average price of $444.42, for a total transaction of $6,979,616.10. Following the transaction, the insider now directly owns 116,671 shares in the company, valued at approximately $51,850,925.82. This represents a 11.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Sassine Ghazi sold 11,366 shares of the company’s stock in a transaction that occurred on Monday, March 3rd. The stock was sold at an average price of $463.75, for a total transaction of $5,270,982.50. Following the transaction, the chief executive officer now owns 70,922 shares in the company, valued at $32,890,077.50. The trade was a 13.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.62% of the company’s stock.

Hedge Funds Weigh In On Synopsys

A number of large investors have recently modified their holdings of SNPS. Brighton Jones LLC lifted its position in shares of Synopsys by 5.7% during the fourth quarter. Brighton Jones LLC now owns 921 shares of the semiconductor company’s stock worth $447,000 after purchasing an additional 50 shares in the last quarter. Integrated Wealth Concepts LLC lifted its position in shares of Synopsys by 11.6% during the first quarter. Integrated Wealth Concepts LLC now owns 760 shares of the semiconductor company’s stock worth $326,000 after purchasing an additional 79 shares in the last quarter. Finally, NewEdge Advisors LLC lifted its position in shares of Synopsys by 15.1% during the first quarter. NewEdge Advisors LLC now owns 3,010 shares of the semiconductor company’s stock worth $1,291,000 after purchasing an additional 395 shares in the last quarter. 85.47% of the stock is currently owned by institutional investors and hedge funds.

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.