Synopsys (NASDAQ:SNPS) Releases Q4 2026 Earnings Guidance

Synopsys (NASDAQ:SNPS) updated its fourth quarter 2026 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) 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

Several research firms have weighed in on SNPS. Piper Sandler upgraded shares of Synopsys from a “neutral” rating to an “overweight” rating and increased their target price for the stock from $450.00 to $550.00 in a report on Tuesday, June 23rd. Zacks Research downgraded Synopsys from a “strong-buy” rating to a “hold” rating in a research note on Friday, August 21st. Rosenblatt Securities restated a “buy” rating and issued a $575.00 price target on shares of Synopsys in a report on Tuesday. Wells Fargo & Company cut their price objective on Synopsys from $535.00 to $450.00 and set an “equal weight” rating on the stock in a report on Tuesday, August 11th. Finally, Citigroup increased their price objective on shares of Synopsys from $600.00 to $610.00 and gave the stock a “buy” rating in a research report on Thursday, May 28th. Eleven analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $563.59.

Synopsys Stock Up 0.3%

Synopsys stock traded up $1.21 during mid-day trading on Wednesday, reaching $410.00. The company’s stock had a trading volume of 2,522,076 shares, compared to its average volume of 1,985,393. The company has a market capitalization of $78.51 billion, a price-to-earnings ratio of 94.91, a price-to-earnings-growth ratio of 2.32 and a beta of 1.23. Synopsys has a 12 month low of $366.00 and a 12 month high of $615.79. The business’s 50 day simple moving average is $417.74 and its 200 day simple moving average is $439.85. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.32 and a current ratio of 1.43.

Synopsys (NASDAQ:SNPS) last posted its quarterly earnings data on Wednesday, May 27th. The semiconductor company reported $3.35 EPS for the quarter, topping analysts’ consensus estimates of $3.15 by $0.20. The company had revenue of $2.28 billion during the quarter, compared to the consensus estimate of $2.25 billion. Synopsys had a net margin of 8.91% and a return on equity of 5.83%. The company’s quarterly revenue was up 41.9% on a year-over-year basis. During the same period in the prior year, the business posted $3.67 EPS. As a group, research analysts anticipate that Synopsys will post 10.64 earnings per share for the current year.

Insiders Place Their Bets

In other Synopsys news, CEO Sassine Ghazi sold 14,603 shares of the business’s 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 transaction, the chief executive officer 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 filing with the Securities & Exchange Commission, which is available through this hyperlink. 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 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 completion of the sale, the chief financial officer directly owned 14,358 shares of the company’s stock, valued at approximately $6,461,387.16. The trade was a 19.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.56% of the company’s stock.

Synopsys News Summary

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Quarterly results exceeded expectations. Fiscal Q3 revenue rose to $2.477 billion from $1.740 billion a year earlier, while GAAP EPS was $2.84 and non-GAAP EPS was $3.91. Revenue and adjusted earnings surpassed analyst expectations, led by broad-based strength in Design Automation, which generated $2.003 billion. Synopsys Posts Financial Results for Third Quarter Fiscal Year 2026
• Positive Sentiment: Synopsys raised its outlook. Management lifted its full-year revenue guidance midpoint to $9.715 billion and non-GAAP EPS guidance midpoint to $15.07. Fourth-quarter revenue is expected to reach $2.530 billion to $2.580 billion, signaling confidence in sustained customer demand. Synopsys Q3 Revenue Reaches $2.477 Billion as GAAP EPS Hits $2.84
• Positive Sentiment: AI is strengthening the growth narrative. Synopsys says customers are achieving productivity gains of up to six times, while its partnership with Nvidia—including Nvidia’s reported $2 billion investment—supports the longer-term opportunity for AI-powered engineering and simulation. Nvidia’s $2 Billion Synopsys Bet Signals AI’s Next Frontier
• Positive Sentiment: Analyst support remains favorable. Rosenblatt Securities reaffirmed its Buy rating and assigned a $575 price target, implying substantial upside from recent trading levels. Rosenblatt Reiterates Buy Rating
• Neutral Sentiment: Institutional positioning was mixed: 772 investors added SNPS shares in their latest reported quarter, while 759 reduced holdings.
• Negative Sentiment: Recent insider activity showed sales rather than purchases, including transactions by CEO Sassine Ghazi and CFO Shelagh Glaser. This may temper sentiment, although the sales appear limited relative to the company’s market value.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd bought a new stake in shares of Synopsys during the fourth quarter worth approximately $28,000. Atlas Capital Advisors Inc. bought a new stake in Synopsys in the 4th quarter valued at $32,000. Kemnay Advisory Services Inc. bought a new position in Synopsys during the 4th quarter worth $35,000. Greenline Wealth Management LLC bought a new position in Synopsys during the 4th quarter worth $37,000. Finally, WealthCollab LLC lifted its holdings in shares of Synopsys by 110.8% during the third quarter. WealthCollab LLC now owns 78 shares of the semiconductor company’s stock worth $38,000 after buying an additional 41 shares in the last quarter. 85.47% of the stock is owned by institutional investors.

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.