Synopsys (NASDAQ:SNPS) Announces Quarterly Earnings Results

Synopsys (NASDAQ:SNPS) posted its earnings results on Wednesday. The semiconductor company reported $3.35 EPS for the quarter, topping the consensus estimate of $3.17 by $0.18, FiscalAI reports. Synopsys had a net margin of 13.76% and a return on equity of 6.83%. The firm had revenue of $2.28 billion during the quarter, compared to analysts’ expectations of $2.25 billion. Synopsys updated its FY 2026 guidance to 14.720-14.800 EPS and its Q3 2026 guidance to 3.630-3.690 EPS.

Synopsys Price Performance

Shares of Synopsys stock traded down $8.64 on Wednesday, hitting $525.92. The company had a trading volume of 2,382,788 shares, compared to its average volume of 1,990,614. The business has a 50-day simple moving average of $455.56 and a 200-day simple moving average of $452.78. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.36 and a quick ratio of 1.26. The company has a market cap of $100.75 billion, a PE ratio of 81.66, a PEG ratio of 4.30 and a beta of 1.25. Synopsys has a 52 week low of $376.18 and a 52 week high of $651.73.

Analysts Set New Price Targets

Several research analysts have commented on SNPS shares. HSBC cut shares of Synopsys from a “buy” rating to a “hold” rating and set a $455.00 target price for the company. in a research report on Friday, February 20th. Wells Fargo & Company upped 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. Berenberg Bank set a $633.00 target price on shares of Synopsys in a research report on Wednesday. The Goldman Sachs Group set a $600.00 price objective on shares of Synopsys and gave the company a “buy” rating in a report on Wednesday, February 25th. Finally, Rosenblatt Securities increased their price objective on shares of Synopsys from $530.00 to $575.00 and gave the company a “buy” rating in a report on Tuesday. Eight investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Synopsys has a consensus rating of “Hold” and a consensus target price of $544.88.

Key Headlines Impacting Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys raised FY 2026 EPS guidance to 14.72-14.80, topping the consensus estimate of 13.61, while revenue guidance of $9.6 billion-$9.7 billion was in line to slightly ahead of expectations.
• Positive Sentiment: The company also lifted third-quarter 2026 EPS guidance to 3.63-3.69 versus the 3.42 consensus estimate, with revenue guidance of $2.4 billion-$2.5 billion also matching or modestly exceeding forecasts.
• Positive Sentiment: Rosenblatt Securities raised its price target on Synopsys to $575 from $530 and reiterated a buy rating, signaling additional upside confidence ahead of the earnings report. Benzinga
• Neutral Sentiment: Investors are also watching the company’s earnings release and its Ansys merger integration, both of which could influence sentiment and future guidance. Blockonomi
• Neutral Sentiment: Some pre-earnings commentary suggested Synopsys could report softer quarterly results and highlighted valuation concerns, but these reports were outweighed by the company’s stronger-than-expected outlook. Benzinga
• Negative Sentiment: Bearish articles described Synopsys as a “growth trap,” raising concerns about the stock’s longer-term growth profile and valuation in the EDA industry. 247wallst

Institutional Trading of Synopsys

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. State Street Corp lifted its stake in Synopsys by 20.6% during the third quarter. State Street Corp now owns 8,760,358 shares of the semiconductor company’s stock valued at $4,322,273,000 after purchasing an additional 1,493,912 shares during the last quarter. Morgan Stanley lifted its stake in Synopsys by 2.5% during the fourth quarter. Morgan Stanley now owns 4,573,980 shares of the semiconductor company’s stock valued at $2,148,491,000 after purchasing an additional 109,917 shares during the last quarter. Northern Trust Corp lifted its stake in Synopsys by 22.5% during the third quarter. Northern Trust Corp now owns 1,986,970 shares of the semiconductor company’s stock valued at $980,351,000 after purchasing an additional 364,541 shares during the last quarter. Aristotle Capital Management LLC lifted its stake in Synopsys by 1.8% during the fourth quarter. Aristotle Capital Management LLC now owns 1,893,563 shares of the semiconductor company’s stock valued at $889,483,000 after purchasing an additional 33,825 shares during the last quarter. Finally, Invesco Ltd. lifted its stake in Synopsys by 17.2% during the third quarter. Invesco Ltd. now owns 1,885,761 shares of the semiconductor company’s stock valued at $930,416,000 after purchasing an additional 276,983 shares during the last quarter. 85.47% of the stock is owned by institutional investors and hedge funds.

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.