Synopsys, Inc. (NASDAQ:SNPS) Receives Average Rating of “Moderate Buy” from Analysts

Posted by Brenda Bartman on Aug 31st, 2026

Shares of Synopsys, Inc. (NASDAQ:SNPS – Get Free Report) have received a consensus recommendation of “Moderate Buy” from the eighteen brokerages that are currently covering the firm, MarketBeat.com reports. One analyst has rated the stock with a sell recommendation, five have assigned a hold recommendation and twelve have assigned a buy recommendation to the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $561.2778.

A number of research firms recently commented on SNPS. Citigroup boosted their price objective on shares of Synopsys from $600.00 to $610.00 and gave the stock a “buy” rating in a report on Thursday, May 28th. Bank of America increased their target price on shares of Synopsys from $515.00 to $600.00 and gave the company a “buy” rating in a report on Thursday, May 28th. UBS Group set a $570.00 price target on shares of Synopsys in a research report on Thursday. Zacks Research lowered Synopsys from a “strong-buy” rating to a “hold” rating in a research note on Friday, August 21st. Finally, KeyCorp restated an “overweight” rating on shares of Synopsys in a report on Wednesday, August 19th.

Check Out Our Latest Research Report on Synopsys

Synopsys Price Performance

Synopsys stock opened at $442.61 on Monday. Synopsys has a one year low of $366.00 and a one year high of $615.79. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.24 and a current ratio of 1.34. The business has a fifty day moving average of $416.64 and a two-hundred day moving average of $440.14. The company has a market cap of $84.82 billion, a P/E ratio of 78.20, a price-to-earnings-growth ratio of 2.42 and a beta of 1.23.

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. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The company had revenue of $2.48 billion for the quarter, compared to analyst estimates of $2.44 billion. During the same period in the previous year, the firm earned $3.39 EPS. The business’s revenue was up 42.4% on a year-over-year basis. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. As a group, analysts predict that Synopsys will post 11.03 earnings per share for the current fiscal year.

Trending Headlines about Synopsys

Here are the key news stories impacting Synopsys this week:

Positive Sentiment: Strong Q3 performance: Synopsys reported adjusted earnings of $3.91 per share versus expectations of $3.67, while revenue reached $2.48 billion, up 42.4% year over year and ahead of estimates. Strength in electronic design automation (EDA) and the Ansys acquisition supported the results. SNPS Q3 Earnings Beat Estimates on EDA and Ansys Strength
Positive Sentiment: Higher outlook and AI momentum: Management raised fiscal 2026 guidance, citing accelerating EDA demand, recovering Design IP activity, interest in agentic AI and additional opportunities from integrating Ansys. Fiscal 2026 EPS guidance is $15.04–$15.10, with revenue guidance reportedly raised to approximately $9.72 billion. SNPS Q3 Earnings Call Highlights EDA Acceleration, Outlook Raised
Positive Sentiment: Analyst and strategic support: Goldman Sachs, Benchmark and Needham reaffirmed Buy ratings, with price targets ranging from $570 to $600. Elliott Investment Management also reportedly built a multibillion-dollar position, betting Synopsys can narrow its discount to peers. Elliott Bets Multibillion-Dollar Position on Closing Synopsys’ Peer Discount
Neutral Sentiment: Commentators view Synopsys as a key supplier to major technology companies, including Nvidia, and believe Ansys has strengthened its competitive moat; however, the acquisition’s full contribution depends on successful integration and future synergies. SNPS in Right Place, Right Time?
Negative Sentiment: Valuation and peer concerns: Following the earnings rally, investors are refocusing on valuation, with Synopsys trading at a high earnings multiple. A comparison with PDF Solutions also highlighted stronger growth and margin improvement at the smaller rival, potentially limiting near-term enthusiasm for SNPS. SNPS vs. PDFS: Which Semiconductor Software Stock Has an Edge?

Insiders Place Their Bets

In other news, CEO Sassine Ghazi sold 14,603 shares of the firm’s 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 completion of the transaction, the chief executive officer owned 75,020 shares in the company, valued at $34,431,179.20. This trade represents a 16.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available 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 Synopsys 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. This trade represents a 19.12% 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. 0.56% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Synopsys

Several hedge funds have recently added to or reduced their stakes in SNPS. BlackRock Inc. purchased a new stake in shares of Synopsys in the second quarter valued at about $7,228,099,000. State Street Corp increased its stake in shares of Synopsys by 0.3% during the 4th quarter. State Street Corp now owns 8,788,890 shares of the semiconductor company’s stock worth $4,128,317,000 after purchasing an additional 28,532 shares in the last quarter. Morgan Stanley increased its stake in shares of Synopsys by 2.5% during the 4th quarter. Morgan Stanley now owns 4,573,980 shares of the semiconductor company’s stock worth $2,148,491,000 after purchasing an additional 109,917 shares in the last quarter. Geode Capital Management LLC raised its position in shares of Synopsys by 1.3% during 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 purchasing an additional 54,329 shares during the last quarter. Finally, Van ECK Associates Corp lifted its stake in Synopsys by 19.7% in the 2nd quarter. Van ECK Associates Corp now owns 3,457,249 shares of the semiconductor company’s stock valued at $1,542,175,000 after buying an additional 569,687 shares in the last quarter. 85.47% of the stock is currently owned by hedge funds and other institutional investors.

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.