Synopsys (NASDAQ:SNPS) Releases Q3 2026 Earnings Guidance

Synopsys (NASDAQ:SNPS) updated its third quarter 2026 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 3.630-3.690 for the period, compared to the consensus estimate of 3.420. The company issued revenue guidance of $2.4 billion-$2.5 billion, compared to the consensus revenue estimate of $2.4 billion. Synopsys also updated its FY 2026 guidance to 14.720-14.800 EPS.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. Wells Fargo & Company increased their price target on shares of Synopsys from $505.00 to $535.00 and gave the stock an “equal weight” rating in a research report on Thursday. Berenberg Bank set a $633.00 target price on shares of Synopsys in a research report on Wednesday. Stifel Nicolaus raised their price target on shares of Synopsys from $550.00 to $600.00 and gave the company a “buy” rating in a research note on Thursday. Morgan Stanley raised their price target on shares of Synopsys from $480.00 to $525.00 and gave the company an “equal weight” rating in a research note on Thursday. Finally, Piper Sandler raised their price target on shares of Synopsys from $430.00 to $450.00 and gave the company a “neutral” rating in a research note on Thursday. Nine equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $563.81.

Synopsys Price Performance

SNPS stock opened at $480.64 on Friday. The company has a fifty day moving average price of $458.59 and a 200-day moving average price of $454.30. The company has a market capitalization of $92.07 billion, a P/E ratio of 111.26, a PEG ratio of 4.31 and a beta of 1.25. Synopsys has a 52-week low of $376.18 and a 52-week high of $651.73. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.26 and a current ratio of 1.36.

Synopsys (NASDAQ:SNPS) last released its quarterly earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.15 by $0.20. The firm 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 5.91%. The company’s revenue for the quarter was up 41.9% on a year-over-year basis. During the same quarter last year, the firm earned $3.67 earnings per share. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. As a group, equities analysts expect that Synopsys will post 10.28 EPS for the current year.

Synopsys News Roundup

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys reported fiscal Q2 results above expectations, with revenue of $2.276 billion and non-GAAP EPS of $3.35, both topping estimates. The company also raised full-year revenue and EPS guidance, signaling continued demand for AI chip-design software and related tools. Synopsys Posts Financial Results for Second Quarter Fiscal Year 2026
• Positive Sentiment: Management said AI-related demand remains strong, and the company highlighted expanding benefits from the Ansys deal and operating-margin improvement, which could support longer-term growth. Synopsys raises annual forecast on demand for AI chip design software
• Positive Sentiment: Synopsys reached a cooperation agreement with Elliott Investment Management and added Elliott partner Jesse Cohn to its board, which may increase pressure for operational improvements and shareholder-friendly changes. Synopsys reaches settlement with Elliott, says Jesse Cohn to join board
• Neutral Sentiment: Several analysts responded positively by lifting price targets, but at least one firm still has an underperform/neutral view, showing that Wall Street is still split on the stock’s upside from current levels. Analyst target updates
• Neutral Sentiment: Commentary around the stock emphasizes valuation concerns after a strong run, suggesting some investors may be pausing to reassess how much of the AI growth story is already priced in. Is It Too Late To Consider Synopsys (SNPS) After Recent Valuation Concerns?
• Negative Sentiment: The shares fell despite the beat-and-raise report, indicating investors are worried about execution risk, integration complexity, and weakness in parts of the chip-IP business. Synopsys slides even as Q2 results, guidance top estimates; adds activist to board

Hedge Funds Weigh In On Synopsys

Hedge funds have recently bought and sold shares of the company. Centaurus Financial Inc. increased its stake in Synopsys by 2.2% in the third 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 in the last quarter. Resources Management Corp CT ADV increased its stake in Synopsys by 1.2% in 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 purchasing an additional 31 shares in the last quarter. Synergy Financial Group LTD increased its stake in Synopsys by 6.2% in the fourth quarter. Synergy Financial Group LTD now owns 599 shares of the semiconductor company’s stock valued at $281,000 after purchasing an additional 35 shares in the last quarter. Vise Technologies Inc. increased its stake in Synopsys by 1.5% in the third quarter. Vise Technologies Inc. now owns 2,707 shares of the semiconductor company’s stock valued at $1,336,000 after purchasing an additional 40 shares in the last quarter. Finally, WealthCollab LLC increased its stake in Synopsys by 110.8% in 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.