Synopsys (NASDAQ:SNPS – Get Free Report)‘s stock had its “buy” rating reissued by equities researchers at Needham & Company LLC in a note issued to investors on Thursday,Benzinga reports. They presently have a $580.00 target price on the semiconductor company’s stock. Needham & Company LLC’s price target points to a potential upside of 41.46% from the company’s previous close.
SNPS has been the subject of a number of other reports. Morgan Stanley cut their price objective on shares of Synopsys from $525.00 to $500.00 and set an “equal weight” rating for the company in a research report on Wednesday, August 19th. Citigroup upped their target price on shares of Synopsys from $600.00 to $610.00 and gave the stock a “buy” rating in a report on Thursday, May 28th. Rosenblatt Securities reiterated a “buy” rating and issued a $575.00 target price on shares of Synopsys in a research note on Tuesday. Robert W. Baird set a $560.00 price target on shares of Synopsys in a report on Thursday. Finally, Bank of America boosted their price target on shares of Synopsys from $515.00 to $600.00 and gave the company a “buy” rating in a research report on Thursday, May 28th. Eleven equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Synopsys presently has an average rating of “Moderate Buy” and an average target price of $563.71.
Get Our Latest Analysis on SNPS
Synopsys Stock Performance
Synopsys (NASDAQ:SNPS – Get Free Report) last issued its earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 EPS for the quarter, topping the consensus estimate of $3.67 by $0.24. The business had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.44 billion. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The firm’s revenue was up 42.4% compared to the same quarter last year. During the same quarter last year, the company earned $3.39 EPS. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. Research analysts predict that Synopsys will post 10.64 EPS for the current year.
Insider Activity
In other news, CFO Shelagh Glaser sold 3,394 shares of the business’s stock in a transaction dated 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 completion of the sale, the chief financial officer 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 position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were 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 of the company’s stock, valued at approximately $34,431,179.20. This trade represents a 16.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Corporate insiders own 0.56% of the company’s stock.
Hedge Funds Weigh In On Synopsys
Hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. bought a new stake in shares of Synopsys in the second quarter worth about $7,228,099,000. State Street Corp raised its position in Synopsys by 0.3% during the 4th quarter. State Street Corp now owns 8,788,890 shares of the semiconductor company’s stock valued at $4,128,317,000 after purchasing an additional 28,532 shares during the last quarter. Morgan Stanley lifted its holdings in Synopsys by 2.5% in the 4th quarter. Morgan Stanley now owns 4,573,980 shares of the semiconductor company’s stock worth $2,148,491,000 after buying an additional 109,917 shares during the period. Geode Capital Management LLC lifted its holdings in Synopsys by 1.3% in the 4th quarter. Geode Capital Management LLC now owns 4,310,846 shares of the semiconductor company’s stock worth $2,017,256,000 after buying an additional 54,329 shares during the period. Finally, Van ECK Associates Corp grew its position in shares of Synopsys by 19.7% in the 2nd quarter. Van ECK Associates Corp now owns 3,457,249 shares of the semiconductor company’s stock worth $1,542,175,000 after buying an additional 569,687 shares during the last quarter. 85.47% of the stock is owned by institutional investors.
More Synopsys News
Here are the key news stories impacting Synopsys this week:
- Positive Sentiment: Synopsys reported fiscal Q3 revenue of $2.477 billion, up 42.4% year over year, while non-GAAP EPS of $3.91 exceeded the $3.67 consensus estimate. GAAP EPS was $2.84, compared with $1.51 a year earlier. Synopsys Posts Financial Results for Third Quarter Fiscal Year 2026
- Positive Sentiment: Management raised fiscal 2026 guidance to approximately $9.715 billion in revenue and $15.07 in non-GAAP EPS at the midpoint. Fourth-quarter EPS guidance of $4.10-$4.16 also sits above the $3.78 consensus estimate, supporting confidence in continued demand. Synopsys raises annual forecasts on AI-driven chip design software demand
- Positive Sentiment: Synopsys cited broad-based strength in Design Automation and sustained AI-related investment in semiconductor and infrastructure development. Its partnership with Nvidia, including Nvidia’s reported $2 billion investment, reinforces the long-term AI engineering opportunity. Nvidia’s $2 Billion Synopsys Bet Signals AI’s Next Frontier
- Positive Sentiment: Rosenblatt Securities reaffirmed its Buy rating and maintained a $575 price target, implying substantial upside from the reference price. Rosenblatt Reiterates Buy Rating on Synopsys
- Neutral Sentiment: The earnings call emphasized Synopsys’s shift toward autonomous engineering systems and significant customer productivity gains from AI, strengthening the long-term narrative but also raising investor expectations. Synopsys Q3 2026 Earnings Call Transcript
- Negative Sentiment: Despite the earnings beat and raised outlook, SNPS traded lower after the release. Fourth-quarter revenue guidance of $2.53-$2.58 billion is slightly below the roughly $2.6 billion consensus, while the stock’s elevated valuation—near 95 times earnings—leaves limited room for execution concerns or merely incremental guidance improvements.
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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