Synopsys (NASDAQ:SNPS) Updates FY 2026 Earnings Guidance

Posted by Geri Gentry on May 27th, 2026

Synopsys (NASDAQ:SNPS – Get Free Report) updated its FY 2026 earnings guidance on Wednesday. The company provided earnings per share guidance of 14.720-14.800 for the period, compared to the consensus earnings per share estimate of 13.610. The company issued revenue guidance of $9.6 billion-$9.7 billion, compared to the consensus revenue estimate of $9.6 billion. Synopsys also updated its Q3 2026 guidance to 3.630-3.690 EPS.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. Morgan Stanley reissued an “equal weight” rating and issued a $480.00 price target (down from $550.00) on shares of Synopsys in a report on Wednesday, February 25th. Rosenblatt Securities increased their target price on shares of Synopsys from $530.00 to $575.00 and gave the stock a “buy” rating in a research report on Tuesday. Piper Sandler reduced their price target on shares of Synopsys from $520.00 to $430.00 and set a “neutral” rating on the stock in a research report on Thursday, February 26th. Berenberg Bank set a $633.00 price target on shares of Synopsys in a research report on Wednesday. Finally, HSBC downgraded shares of Synopsys from a “buy” rating to a “hold” rating and set a $455.00 price objective for the company. in a research note on Friday, February 20th. Eight investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $544.88.

Check Out Our Latest Analysis on SNPS

Synopsys Trading Down 1.6%

Shares of SNPS stock traded down $8.64 during trading hours on Wednesday, hitting $525.92. 2,382,788 shares of the company’s stock traded hands, compared to its average volume of 1,990,614. The stock’s 50 day simple moving average is $455.56 and its 200 day simple moving average is $452.78. The stock has a market cap of $100.75 billion, a PE ratio of 81.66, a price-to-earnings-growth ratio of 4.30 and a beta of 1.25. Synopsys has a 12 month low of $376.18 and a 12 month high of $651.73. The company has a quick ratio of 1.26, a current ratio of 1.36 and a debt-to-equity ratio of 0.33.

Synopsys (NASDAQ:SNPS – Get Free Report) 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 $3.17 by $0.18. 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 the consensus estimate of $2.25 billion. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. On average, sell-side analysts anticipate 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 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

Hedge Funds Weigh In On Synopsys

Several institutional investors have recently made changes to their positions in the stock. Caitong International Asset Management Co. Ltd acquired a new stake in Synopsys in the fourth quarter valued at approximately $28,000. Atlas Capital Advisors Inc. bought a new stake in Synopsys during the 4th quarter worth approximately $32,000. Kemnay Advisory Services Inc. bought a new stake in Synopsys during the 4th quarter worth approximately $35,000. Greenline Wealth Management LLC purchased a new position in Synopsys during the fourth quarter worth about $37,000. Finally, WealthCollab LLC boosted its holdings in Synopsys by 110.8% during the third quarter. WealthCollab LLC now owns 78 shares of the semiconductor company’s stock worth $38,000 after purchasing an additional 41 shares during the last quarter. Institutional investors and hedge funds own 85.47% of the company’s stock.

About Synopsys

(Get Free Report)

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.