Synopsys (NASDAQ:SNPS – Get Free Report) issued an update on its FY 2027 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 19.040-19.120 for the period, compared to the consensus earnings per share estimate of 16.780. The company issued revenue guidance of $11.1 billion-$11.2 billion, compared to the consensus revenue estimate of $10.8 billion.
Wall Street Analysts Forecast Growth
Several equities analysts have issued reports on the company. Roth Capital upgraded Synopsys to a “buy” rating in a research note on Friday, September 25th. Morgan Stanley decreased their price target 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. Sanford C. Bernstein began coverage on shares of Synopsys in a report on Friday, September 25th. They issued an “outperform” rating on the stock. Needham & Company LLC reaffirmed a “buy” rating and issued a $580.00 price objective on shares of Synopsys in a research report on Thursday, August 27th. Finally, Piper Sandler upgraded shares of Synopsys from a “neutral” rating to an “overweight” rating and boosted their price objective for the stock from $450.00 to $550.00 in a research note on Tuesday, June 23rd. Fifteen investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Synopsys has an average rating of “Moderate Buy” and a consensus price target of $574.61.
Get Our Latest Stock Analysis on Synopsys
Synopsys Stock Up 4.8%
Synopsys (NASDAQ:SNPS – Get Free Report) last released its earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.67 by $0.24. Synopsys had a return on equity of 6.24% and a net margin of 11.43%.The firm had revenue of $2.48 billion for the quarter, compared to the consensus estimate of $2.44 billion. During the same period in the prior year, the firm earned $3.39 EPS. The firm’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. On average, analysts forecast that Synopsys will post 10.97 EPS for the current year.
Insider Transactions at Synopsys
In related news, CEO Sassine Ghazi sold 14,604 shares of Synopsys stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $374.88, for a total value of $5,474,747.52. Following the completion of the transaction, the chief executive officer owned 76,865 shares in the company, valued at $28,815,151.20. The trade was a 15.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Aart de Geus sold 24,641 shares of the company’s stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $419.44, for a total value of $10,335,421.04. Following the completion of the transaction, the insider directly owned 120,443 shares of the company’s stock, valued at $50,518,611.92. The trade was a 16.98% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 89,245 shares of company stock worth $37,992,919 over the last 90 days. Insiders own 0.56% of the company’s stock.
Key Synopsys News
Here are the key news stories impacting Synopsys this week:
- Positive Sentiment: Amazon deal exceeds $1 billion: Amazon Web Services agreed to a multi-year agreement worth more than $1 billion to license Synopsys’ semiconductor intellectual property for custom chips and AWS infrastructure. The arrangement expands Synopsys’ silicon IP business and uses a license-plus-royalty model, potentially creating recurring revenue tied to Amazon’s production volumes. Reuters article
- Positive Sentiment: Broader AWS collaboration: Synopsys will help accelerate development of Amazon’s custom silicon while optimizing its software on AWS Trainium and Graviton processors. Synopsys also plans to use Amazon EC2 and Amazon Bedrock for product development, deepening the commercial relationship and supporting cloud-based engineering growth. Synopsys and Amazon agreement
- Positive Sentiment: OpenAI partnership adds an AI catalyst: Synopsys and OpenAI agreed to develop “GPT-Synopsys,” a specialized AI model combining OpenAI technology with Synopsys’ EDA tools and chip-design expertise. OpenAI will license Synopsys’ tools, while the companies will collaborate on research, go-to-market efforts and a shared revenue framework. The partnership could accelerate semiconductor design and create new software revenue opportunities. Synopsys and OpenAI partnership
- Neutral Sentiment: Synopsys also recently introduced AgentEngineer solutions and its Autopilot platform, indicating continued investment in agentic AI tools for engineering. The products support the company’s AI strategy, although their near-term financial contribution was not disclosed. AgentEngineer and Autopilot article
About Synopsys
Synopsys, Inc is a technology company that develops electronic design automation (EDA) software, semiconductor intellectual property (IP), and software tools used to design, verify, and manufacture advanced electronic systems. Its solutions support the development of semiconductors, systems-on-chip, and electronic products across the design cycle, from initial specification and architecture through testing and production.
The company’s offerings include digital and custom integrated-circuit design tools, simulation and verification software, physical design and signoff products, and semiconductor IP such as processor cores, interface technologies, and foundational components.
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