Synopsys (NASDAQ:SNPS – Get Free Report)‘s stock had its “buy” rating restated by equities research analysts at Benchmark in a report released on Thursday,Benzinga reports. They currently have a $570.00 price objective on the semiconductor company’s stock. Benchmark’s target price suggests a potential upside of 39.02% from the company’s previous close.
Other research analysts have also issued reports about the company. Zacks Research lowered Synopsys from a “strong-buy” rating to a “hold” rating in a research report on Friday, August 21st. Stifel Nicolaus raised their price objective on Synopsys from $550.00 to $600.00 and gave the company a “buy” rating in a research 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. Berenberg Bank set a $633.00 target price on shares of Synopsys in a report on Wednesday, May 27th. Finally, Wells Fargo & Company reduced their target price on shares of Synopsys from $535.00 to $450.00 and set an “equal weight” rating for the company in a report on Tuesday, August 11th. Twelve equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $563.71.
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Synopsys Price Performance
Synopsys (NASDAQ:SNPS – Get Free Report) last issued its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 EPS for the quarter, topping analysts’ consensus estimates of $3.67 by $0.24. The company had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.44 billion. Synopsys had a net margin of 8.91% and a return on equity of 5.83%. Synopsys’s revenue for the quarter was up 42.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $3.39 earnings per share. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. Sell-side analysts forecast that Synopsys will post 10.64 EPS for the current fiscal year.
Insider Buying and Selling
In related news, 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 transaction, the chief executive officer owned 75,020 shares in the company, valued at approximately $34,431,179.20. This represents a 16.29% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 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 that occurred on Friday, June 12th. The shares were sold at an average price of $450.02, for a total transaction of $1,527,367.88. Following 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.56% of the stock is owned by corporate insiders.
Hedge Funds Weigh In On Synopsys
Several institutional investors and hedge funds have recently modified their holdings of the stock. Foronjy Financial LLC raised its holdings in Synopsys by 5.2% in the 4th quarter. Foronjy Financial LLC now owns 446 shares of the semiconductor company’s stock valued at $210,000 after buying an additional 22 shares during the last quarter. AGH Wealth Advisors LLC increased its position in Synopsys by 4.4% in the 1st quarter. AGH Wealth Advisors LLC now owns 569 shares of the semiconductor company’s stock valued at $226,000 after acquiring an additional 24 shares during the period. Hardy Reed LLC increased its position in Synopsys by 0.8% in the 4th quarter. Hardy Reed LLC now owns 3,309 shares of the semiconductor company’s stock valued at $1,554,000 after acquiring an additional 25 shares during the period. Annis Gardner Whiting Capital Advisors LLC lifted its holdings in shares of Synopsys by 16.9% during the fourth quarter. Annis Gardner Whiting Capital Advisors LLC now owns 180 shares of the semiconductor company’s stock worth $85,000 after purchasing an additional 26 shares during the period. Finally, MCF Advisors LLC grew its stake in shares of Synopsys by 17.8% in the fourth quarter. MCF Advisors LLC now owns 172 shares of the semiconductor company’s stock worth $81,000 after purchasing an additional 26 shares during the last quarter. Institutional investors and hedge funds own 85.47% 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. Synopsys reported fiscal Q3 revenue of $2.477 billion, up 42.4% year over year and ahead of the $2.44 billion consensus estimate. Non-GAAP EPS was $3.91 versus expectations of $3.67 and $3.39 a year earlier. Synopsys Posts Financial Results for Third Quarter Fiscal Year 2026
- Positive Sentiment: Management raised its fiscal 2026 outlook. Full-year revenue guidance was lifted to a midpoint of approximately $9.715 billion, while non-GAAP EPS guidance rose to $15.07, well above the roughly $13.96 analyst consensus cited in the reports. Fourth-quarter EPS guidance of $4.10–$4.16 also exceeds the $3.78 consensus. Synopsys raises annual forecasts on AI-driven chip design software demand
- Positive Sentiment: AI-related demand remains the primary growth catalyst. Synopsys said rising chip complexity and investments in AI infrastructure are accelerating demand for its electronic-design-automation tools. Design Automation revenue reached $2.003 billion, supported by broad-based strength. Synopsys Boosts Annual Outlook as AI Complexity Drives Demand
- Positive Sentiment: Analyst sentiment remains favorable. Needham reaffirmed its “Buy” rating and set a $580 price target, while Rosenblatt also assigned a “Buy” rating. These targets imply substantial upside from recent trading levels.
- Neutral Sentiment: The company’s Nvidia relationship and vision for autonomous, AI-powered engineering workflows reinforce the long-term growth narrative, although these developments do not immediately change reported results. Nvidia’s $2 Billion Synopsys Bet Signals AI’s Next Frontier
- Negative Sentiment: Despite the earnings beat and raised outlook, shares slipped initially after the report. With a price-to-earnings ratio near 95 and the stock below its 50- and 200-day moving averages, investors may be demanding even stronger results or using the announcement to lock in gains.
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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