Synopsys (NASDAQ:SNPS – Get Free Report) issued an update on its FY 2026 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 15.040-15.100 for the period, compared to the consensus earnings per share estimate of 13.960. The company issued revenue guidance of $9.7 billion-$9.7 billion, compared to the consensus revenue estimate of $9.7 billion. Synopsys also updated its Q4 2026 guidance to 4.100-4.160 EPS.
Wall Street Analyst Weigh In
SNPS has been the subject of several research reports. Zacks Research cut Synopsys from a “strong-buy” rating to a “hold” rating in a research report on Friday, August 21st. Berenberg Bank set a $633.00 target price on shares of Synopsys in a research report on Wednesday, May 27th. KeyCorp reaffirmed an “overweight” rating on shares of Synopsys in a report on Wednesday, August 19th. Wells Fargo & Company dropped their target price on Synopsys from $535.00 to $450.00 and set an “equal weight” rating for the company in a report on Tuesday, August 11th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Synopsys in a report on Monday, June 8th. Eleven equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $563.59.
Check Out Our Latest Stock Analysis on SNPS
Synopsys Trading Up 0.3%
Synopsys (NASDAQ:SNPS – Get Free Report) last posted its quarterly earnings data 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. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The firm had revenue of $2.28 billion for the quarter, compared to the consensus estimate of $2.25 billion. During the same quarter in the previous year, the business earned $3.67 EPS. The company’s quarterly revenue was up 41.9% compared to the same quarter last year. Equities research analysts forecast that Synopsys will post 10.64 EPS for the current year.
Insider Activity at Synopsys
In other news, CEO Sassine Ghazi sold 14,603 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $458.96, for a total value of $6,702,192.88. Following the sale, the chief executive officer directly owned 75,020 shares in the company, valued at approximately $34,431,179.20. This trade represents a 16.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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 business’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $450.02, for a total value of $1,527,367.88. Following the transaction, the chief financial officer directly owned 14,358 shares of the company’s stock, valued at $6,461,387.16. The trade was a 19.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.56% of the company’s stock.
Key Stories Impacting Synopsys
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
A number of institutional investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd acquired a new position in Synopsys during the 4th quarter worth approximately $28,000. Atlas Capital Advisors Inc. acquired a new stake in shares of Synopsys in the 4th quarter valued at $32,000. Kemnay Advisory Services Inc. purchased a new stake in shares of Synopsys during the 4th quarter worth $35,000. Greenline Wealth Management LLC acquired a new position in shares of Synopsys during the fourth quarter worth $37,000. Finally, WealthCollab LLC lifted its holdings in Synopsys by 110.8% during the 3rd quarter. WealthCollab LLC now owns 78 shares of the semiconductor company’s stock worth $38,000 after buying an additional 41 shares during the last quarter. Hedge funds and other institutional investors own 85.47% of the company’s stock.
About Synopsys
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.
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