Synopsys (NASDAQ:SNPS) Posts Quarterly Earnings Results, Beats Expectations By $0.24 EPS

Posted by Stanley Muller on Aug 27th, 2026

Synopsys (NASDAQ:SNPS – Get Free Report) posted its earnings results on Wednesday. The semiconductor company reported $3.91 EPS for the quarter, topping analysts’ consensus estimates of $3.67 by $0.24, FiscalAI reports. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The company had revenue of $2.48 billion for the quarter, compared to the consensus estimate of $2.44 billion. During the same period in the previous year, the business earned $3.39 earnings per share. The firm’s revenue for the quarter was up 42.4% on a year-over-year basis. Synopsys updated its Q4 2026 guidance to 4.100-4.160 EPS and its FY 2026 guidance to 15.040-15.100 EPS.

Here are the key takeaways from Synopsys’ conference call:

Synopsys raised full-year guidance after Q3 revenue of $2.477 billion, non-GAAP operating margin of 41.6%, and EPS of $3.91 all exceeded the high end of its targets. Full-year revenue is now expected at $9.69 billion–$9.74 billion, with non-GAAP EPS of $15.04–$15.10.
EDA revenue grew 8.5% year over year despite a difficult comparison, supported by strong software demand and record hardware-assisted verification revenue. Management expects organic EDA growth to accelerate to double digits in Q4 and for the full fiscal year.
Ansys continued to perform strongly one year after the acquisition, while Synopsys said cost synergies are ahead of schedule and term loans have been repaid earlier than planned. The companies launched Multiphysics Fusion, with early customers reporting up to 10x faster design closure, although meaningful revenue contribution is not expected until 2027.
Design IP returned to growth, rising approximately 11% year over year, driven by AI infrastructure demand. Synopsys highlighted more than 100 cumulative die-to-die design wins, 25 LPDDR6 wins year to date, and a developing “Factory Two” strategy focused on customized IP, royalties, and custom silicon partnerships.
Management views agentic AI as complementary to, rather than disruptive to, commercial EDA because autonomous workflows require Synopsys’s sign-off tools and underlying design infrastructure. More than 30 customer engagements are underway, with potential upside from increased software consumption and new subscription or usage-based pricing models.

Synopsys Stock Performance

Shares of NASDAQ:SNPS opened at $410.00 on Thursday. The company has a market capitalization of $78.51 billion, a price-to-earnings ratio of 94.91, a PEG ratio of 2.40 and a beta of 1.23. Synopsys has a 12 month low of $366.00 and a 12 month high of $615.79. The firm’s 50-day moving average is $416.71 and its 200 day moving average is $439.84. The company has a current ratio of 1.43, a quick ratio of 1.32 and a debt-to-equity ratio of 0.33.

Trending Headlines about Synopsys

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.

Analysts Set New Price Targets

SNPS has been the topic of a number of research reports. Wells Fargo & Company reduced their price objective on Synopsys from $535.00 to $450.00 and set an “equal weight” rating on the stock in a research note on Tuesday, August 11th. Morgan Stanley cut their target price on shares of Synopsys from $525.00 to $500.00 and set an “equal weight” rating for the company in a report on Wednesday, August 19th. KeyCorp restated an “overweight” rating on shares of Synopsys in a research report on Wednesday, August 19th. Needham & Company LLC restated a “buy” rating and issued a $580.00 price target on shares of Synopsys in a research report on Thursday, May 28th. Finally, Bank of America upped their price target on shares of Synopsys from $515.00 to $600.00 and gave the company a “buy” rating in a research note on Thursday, May 28th. Eleven research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Synopsys currently has a consensus rating of “Moderate Buy” and an average target price of $563.71.

Check Out Our Latest Analysis on SNPS

Insider Transactions at Synopsys

In other Synopsys news, CFO Shelagh Glaser sold 3,394 shares of the firm’s stock in a transaction dated Friday, June 12th. The shares were 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 $6,461,387.16. This trade represents a 19.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of the business’s 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 transaction, the chief executive officer owned 75,020 shares of the company’s stock, valued at $34,431,179.20. This trade represents a 16.29% decrease in their position. The disclosure for this sale is available in the SEC filing. 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

A number of large investors have recently bought and sold shares of SNPS. Brighton Jones LLC grew its holdings in shares of Synopsys by 5.7% in the fourth quarter. Brighton Jones LLC now owns 921 shares of the semiconductor company’s stock worth $447,000 after purchasing an additional 50 shares during the last quarter. Integrated Wealth Concepts LLC lifted its holdings in Synopsys by 11.6% during the 1st quarter. Integrated Wealth Concepts LLC now owns 760 shares of the semiconductor company’s stock valued at $326,000 after buying an additional 79 shares in the last quarter. NewEdge Advisors LLC lifted its holdings in Synopsys by 15.1% during the 1st quarter. NewEdge Advisors LLC now owns 3,010 shares of the semiconductor company’s stock valued at $1,291,000 after buying an additional 395 shares in the last quarter. WINTON GROUP Ltd boosted its position in Synopsys by 9.2% in the 2nd quarter. WINTON GROUP Ltd now owns 758 shares of the semiconductor company’s stock valued at $389,000 after buying an additional 64 shares during the period. Finally, Treasurer of the State of North Carolina boosted its position in Synopsys by 2.1% in the 2nd quarter. Treasurer of the State of North Carolina now owns 72,095 shares of the semiconductor company’s stock valued at $36,962,000 after buying an additional 1,505 shares during the period. Hedge funds and other institutional investors 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.