Synopsys (NASDAQ:SNPS) Releases FY 2025 Earnings Guidance

Synopsys (NASDAQ:SNPS) updated its FY 2025 earnings guidance on Wednesday. The company provided earnings per share guidance of 15.110-15.190 for the period, compared to the consensus earnings per share estimate of 14.920. The company issued revenue guidance of $6.7 billion-$6.8 billion, compared to the consensus revenue estimate of $6.8 billion. Synopsys also updated its Q3 2025 guidance to 3.820-3.87 EPS.

Wall Street Analysts Forecast Growth

SNPS has been the subject of several research analyst reports. Rosenblatt Securities reaffirmed a “buy” rating and issued a $660.00 price objective on shares of Synopsys in a report on Tuesday, February 25th. Wells Fargo & Company dropped their target price on Synopsys from $540.00 to $520.00 and set an “equal weight” rating on the stock in a research report on Thursday, February 27th. KeyCorp set a $575.00 price target on shares of Synopsys and gave the company an “overweight” rating in a research report on Tuesday, May 20th. Piper Sandler dropped their price objective on shares of Synopsys from $655.00 to $653.00 and set an “overweight” rating on the stock in a report on Thursday, February 27th. Finally, Morgan Stanley cut their target price on shares of Synopsys from $625.00 to $590.00 and set an “overweight” rating for the company in a research report on Monday, February 24th. One investment analyst has rated the stock with a hold rating and twelve have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $614.86.

Synopsys Trading Down 9.6%

Synopsys stock opened at $462.43 on Thursday. Synopsys has a 12-month low of $365.74 and a 12-month high of $624.80. The firm has a market capitalization of $71.50 billion, a price-to-earnings ratio of 31.85, a P/E/G ratio of 3.23 and a beta of 1.16. The firm has a 50 day moving average of $453.45 and a 200 day moving average of $487.42.

Synopsys (NASDAQ:SNPS) last posted its quarterly earnings results on Wednesday, May 28th. The semiconductor company reported $3.67 earnings per share for the quarter, topping analysts’ consensus estimates of $3.40 by $0.27. The business had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.60 billion. Synopsys had a net margin of 36.12% and a return on equity of 20.48%. The company’s revenue was up 10.3% on a year-over-year basis. During the same period in the prior year, the business posted $3.00 earnings per share. On average, analysts predict that Synopsys will post 10.64 EPS for the current year.

Insider Buying and Selling

In other Synopsys news, CEO Sassine Ghazi sold 11,366 shares of the stock in a transaction that occurred on Monday, March 3rd. The shares were sold at an average price of $463.75, for a total transaction of $5,270,982.50. Following the completion of the sale, the chief executive officer now directly owns 70,922 shares of the company’s stock, valued at $32,890,077.50. This trade represents a 13.81% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Geus Aart De sold 15,705 shares of Synopsys stock in a transaction that occurred on Thursday, March 6th. The shares were sold at an average price of $444.42, for a total transaction of $6,979,616.10. Following the sale, the insider now owns 116,671 shares in the company, valued at approximately $51,850,925.82. The trade was a 11.86% decrease in their position. The disclosure for this sale can be found here. 0.62% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Synopsys

Hedge funds and other institutional investors have recently modified their holdings of the stock. Integrated Wealth Concepts LLC increased its holdings in Synopsys by 11.6% in the 1st quarter. Integrated Wealth Concepts LLC now owns 760 shares of the semiconductor company’s stock valued at $326,000 after acquiring an additional 79 shares during the last quarter. Brighton Jones LLC grew its position in shares of Synopsys by 5.7% during the fourth quarter. Brighton Jones LLC now owns 921 shares of the semiconductor company’s stock valued at $447,000 after purchasing an additional 50 shares in the last quarter. Finally, NewEdge Advisors LLC increased its holdings in shares of Synopsys by 15.1% in the first quarter. NewEdge Advisors LLC now owns 3,010 shares of the semiconductor company’s stock worth $1,291,000 after purchasing an additional 395 shares during the last quarter. Institutional investors own 85.47% of the company’s stock.

About Synopsys

Synopsys, Inc provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions.