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SNPS·Synopsys, Inc.

$505.17
+16.70 (+3.42%)
Pre-Market
High
$504.50
Open
$504.50
Market Cap
94.49B
52W High
$539.50
Low
$503.02
P. Close
$505.17
P/E
87.77
52W Low
$362.55
Fwd P/E
27.18
DailyIQ Est.
$597.35
Inst. Ownership
45.0%
Short Interest
3.05%
Days to Cover
3.1
Technical Score (1D)
100
BULLISH
News Sentiment
47
MIXED
On Oct 7, Synopsys Deputy CFO Sudhindra Kankanwadi sold 12,170 shares worth $6,039,340, reducing her holdings to 22,717 shares, a transaction disclosed in a Form 4 filing with the SEC. The sale was reported as a significant outflow of insider capital that could dampen short‑term investor confidence, though the company did not explain the rationale. On Oct 6, Synopsys announced multi‑year collaborations with OpenAI and Amazon to co‑develop AI‑optimized chip‑design solutions, including a GPT‑Synopsys chip‑design model and accelerated custom chip engineering, and unveiled its AgentEngineer autonomous engineering platform while expanding partnerships with TSMC and Alchip. Earlier that same day, Synopsys reported a 42.4 % year‑over‑year revenue increase to $2.48 B and non‑GAAP EPS of $3.91, surpassing consensus, and lifted full‑year guidance to $15.0 B in non‑GAAP EPS for the second consecutive quarter. The earnings beat was followed by a roughly 10 % decline in the month after each report, and Morgan Stanley downgraded the stock citing slowing growth and high valuation. An article published on Oct 6 compared Synopsys and Progress Software as value investment options, noting that both companies hold a Zacks Rank of #1 (Strong Buy) and show improving earnings outlooks, but reported no new corporate events or material changes for either company.
LOW TARGET
$415 -17.7%
2 analysts
MEAN TARGET
$570 +13.0%
15 analysts
HIGH TARGET
$700 +38.9%
16 analysts
PRICE RANGE
$414.77 - $700.00
SB / B / H / S / SS
10/16/5/1/1
DAILYIQ EST.
$597.35 (+18.5%)
Sector
Technology
Industry
Software - Infrastructure
Exchange
NMS
Country
United States
Website
synopsys.com
Symbol
SNPS
Description
Synopsys, Inc. is a leading provider of design intellectual property (IP) solutions for the semiconductor and electronics sectors. The company's core business revolves around two primary segments: Design Automation and Design IP. Synopsys delivers a comprehensive suite of tools and technologies, including digital and custom integrated circuit (IC) design solutions, verification platforms, and FPGA design products. Furthermore, the company offers pre-verified IP solutions, logic libraries, and embedded memories, which are crucial for enabling advanced chip designs. Incorporated in 1986 and based in Sunnyvale, California, Synopsys empowers its customers to innovate and bring complex electronic products to market.
Bought (1Y)
0 shares
$0
Sold (1Y)
126,760 shares
$55.5M
Kankanwadi SudhindraDeputy CFO & CAO
Option Exercise9,170 shares2026-10-06
Kankanwadi SudhindraDeputy CFO & CAO
Sell9,170 shares2026-10-06
Kankanwadi SudhindraDeputy CFO & CAO
Option Exercise9,170 shares2026-10-06
Kankanwadi SudhindraDeputy CFO & CAO
Option Exercise3,000 shares2026-10-05
Kankanwadi SudhindraDeputy CFO & CAO
Sell3,000 shares2026-10-05
View full insider trading history →
83/ 100
Bullish
Overall: Bullish
✓Revenue growing year over year
✓Positive net margin
✓Positive operating cash flow
Gross Margin
77.0%
Net Margin
18.9%
Revenue CAGR
10.3%
Current Ratio
1.62x
Debt / Equity
0.48x
Return on Equity
4.7%
View full financials →
Earnings Summary
Synopsys, Inc. is a leading provider of design intellectual property (IP) solutions for the semiconductor and electronics sectors, operating primarily through Design Automation and Design IP segments that supply digital and custom IC design tools, verification platforms, and pre‑verified IP. The company sits at the intersection of software infrastructure and semiconductor manufacturing, serving a broad base of chip designers worldwide. In the most recent two quarters, Q2 2026 revenue of $2.27599 billion fell slightly below the $2.29601 billion estimate, while EPS of $3.35 beat the $3.16172 forecast, indicating a modest revenue slowdown but continued earnings strength. In contrast, Q3 2025 revenue surged to $2.25486 billion, up from $1.73974 billion in Q2 2025, and EPS of $2.90 narrowly surpassed the $2.87906 estimate, reflecting accelerated top‑line growth and solid profitability. Over the past four quarters, Synopsys has consistently outperformed earnings expectations, with EPS beats in three of the last four periods, while revenue growth has accelerated from $1.45431 billion in Q4 2024 to $2.25486 billion in Q3 2025, a 55% YoY increase, underscoring a robust growth trajectory despite occasional revenue misses. Recent news highlights a multi‑year silicon IP agreement with Amazon Web Services valued over $1 billion, expanding the company’s custom AI chip portfolio and introducing a license‑plus‑royalty model that promises recurring revenue; this development aligns with the company’s earnings narrative of sustained demand for its EDA tools.

EPS

EstBeatMiss
$2.59$3.02$3.46$3.89$4.33Q4'24Q1'25Q2'25Q3'25Q2'26Q3'26
QtrEstActual+/−
Q3'26$4.13 - -
Q2'26$3.16$3.35+6.0%
Q3'25$2.88$2.90+0.7%
Q2'25$3.75$3.39-9.5%
Q1'25$3.40$3.67+8.0%
Q4'24$2.79$3.03+8.6%

Revenue

EstBeatMiss
$1.3B$1.6B$2.0B$2.4B$2.7BQ4'24Q1'25Q2'25Q3'25Q2'26Q3'26
QtrEstActual+/−
Q3'26$2.6B - -
Q2'26$2.3B$2.3B-0.9%
Q3'25 - $2.3B -
Q2'25 - $1.7B -
Q1'25 - $1.6B -
Q4'24 - $1.5B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
→

Market Data

SNPS Stock Snapshot

BULLISH100/100
$504.11−$0.49 (0.1%)
Market cap
94.49B
P/E ratio
87.8
Day range
$503.02 – $504.50
News sentiment
47/100 · Neutral
Analyst target
$569.78 (+13.0%)
Consensus
Buy · 33 analysts
52-week range+39.0% off low · -6.6% from high
$362.55$539.50
Price $504.11 DailyIQ Est. $597.35

Momentum is working in SNPS's favour - the indicator set leans bullish rather than mixed. Sector peers are worth watching - large caps in Technology tend to move together on rotation.

Reverse DCF

What growth is priced into SNPS?

RICH

At today's price, Synopsys, Inc. needs to grow free cash flow about 50.2% a year for the next 10 years to justify its valuation at a 10.53% cost of capital. Over its actual history it has compounded free cash flow at 11.6% a year, so the market is asking for 38.6 percentage points above its own delivered rate. On that basis SNPS looks priced above what its own growth record supports.

Implied FCF growth
50.2%
Historical FCF CAGR
11.6%
Growth gap
+38.6 pts
Verdict
RICH
Discount rate (WACC)
10.53%
Beta
1.27

Behaviour On Record

What SNPS's own history says about today's numbers

Realized volatility (21d)
54.9% 97th pct
Below its peak
-23.9%
vs 200-day average
+9.8%
Up days (1y)
48%

Synopsys, Inc. is currently running 54.9% annualised volatility over the last 21 sessions. Measured against SNPS's own 13 years of daily returns rather than a market-wide average, that is the 97th percentile — an extreme by its own standards, against a typical reading of 26.0%. The distinction matters because a number that looks calm for one stock is turbulent for another, and the absolute figure on its own tells you neither.

SNPS is trading -23.9% below its running peak. Across 12 full years on file, its median worst-drawdown-in-a-year was -18.8%, and the deepest was -40.4% in 2025. The current drawdown is already deeper than this stock's typical annual low point, which puts it in the part of its range where past recoveries began — and where past declines also continued.

Price sits +9.8% from its 200-day moving average. Against every other day in its history, that gap ranks at the 50th percentile — close to the gap it normally carries. Over the past year SNPS closed higher on 48% of sessions, and it is currently 2 sessions into a falling streak.

On October specifically: over 13 years of records, SNPS finished the month higher 7 of 13 times, with a median return of +0.7% and an average of +0.6%. Its strongest month historically has been May at +6.0% on average, its weakest September at -2.7%. Seasonality is a weak signal on its own — a decade is a small sample and regimes change — but it is a real distribution rather than a rule of thumb.

Overnight risk is measurable too: SNPS has opened more than 2% away from the prior close in 127 of 3,267 sessions (3.9% of the time), with the largest gaps running +9.0% and -9.0%. For anyone holding through an event, that rate is a better guide to overnight exposure than the intraday range.

All figures computed from 3,268 daily closes between 2013-10-07 and 2026-10-05, split-adjusted, recomputed daily. Percentiles are against SNPS's own 13-year history, not a peer group or index.

Sector Rotation

Is money rotating into or out of SNPS's sector?

Synopsys, Inc. sits in the Software sector, currently ranked 2nd of 12 GICS sectors by relative-strength rotation score (leading). Within its narrower Software industry group, SNPS ranks 2nd of 15 tracked industries, leading.

Sector rank
#2 of 12
Sector state
Leading
Sector rotation score
100
Industry rank
#2 of 15

Options Market

What is the options market pricing for SNPS?

CallsPuts

For Synopsys, Inc.'s nearest expiry (2026-10-16, 9 days out), open interest is tracked across both sides of the chain, with at-the-money implied volatility around 6.3%. The options market is pricing roughly a ±1.0% move by that expiry — a range of about $478.98–$488.48.

ATM implied volatility
6.3%
Total open interest
2
Expected move by 2026-10-16
±1.0% ($478.98–$488.48)

Analyst Rating Changes

Are analysts turning bullish or bearish on SNPS?

Wells Fargo most recently reiterated its rating on Synopsys, Inc. to Overweight on Oct 1, 2026 with a price target of $540 (from $475). Over the last 90 days, coverage has run 5 upgrades against 0 downgrades, a net bullish lean.

Latest action
Wells Fargo — Overweight
90-day upgrades
5
90-day downgrades
0
Net rating momentum
+5
DateFirmActionRatingPrice target
Oct 1, 2026Wells FargoMaintainedOverweight$475 → $540
Oct 1, 2026KeybancMaintainedOverweight$600 → $605
Oct 1, 2026RosenblattMaintainedBuy$575 → $620
Sep 25, 2026HSBCUpgradeHold → Buy$490 → $700
Sep 24, 2026BNP ParibasUpgradeUnderperform → Neutral$420
Sep 10, 2026Wells FargoUpgradeEqual-Weight → Overweight$450 → $475
Sep 8, 2026Morgan StanleyUpgradeEqual-Weight → Overweight$500
Aug 27, 2026MizuhoMaintainedOutperform$600 → $550
Aug 27, 2026BairdUpgradeNeutral → Outperform$558 → $560
Aug 27, 2026RosenblattMaintainedBuy$575
Aug 27, 2026BenchmarkReiteratedBuy$570
Aug 27, 2026NeedhamReiteratedBuy$580

SNPS Competitive Positioning

Synopsys, Inc. (SNPS) is tracked alongside these names in Software - Infrastructure on DailyIQ — ranked by market cap, with today's move alongside.

Held by These ETFs

SNPS is a top holding in these ETFs tracked on DailyIQ — bar length shows portfolio weight.

News Sentiment Analysis

Sentiment gathered from recent headlines

47/100
Strong NegativeNeutralStrong Positive
MIXED

Recent News Coverage

Most recent articles, ranked by recency (click to expand).

10+ articles
What did this article say?
On October 5, 2026, Synopsys Deputy CFO Sudhindra Kankanwadi sold 12,170 shares worth $6,039,340, reducing her holdings to 22,717 shares. The transaction was disclosed via a Form 4 filing with the SEC. The sale represents a significant outflow of insider capital, potentially signaling a lack of confidence in the company’s near‑term prospects. No accompanying statement from the company explained the rationale behind the sale. The move may influence short‑term investor sentiment but does not indicate an immediate operational or financial crisis.
What did this article say?
The article compares Synopsys (SNPS) and Progress Software (PRGS) for value investors, noting both companies hold a Zacks Rank of #1 (Strong Buy). It highlights that both firms have improving earnings outlooks due to positive analyst estimate revisions. The piece emphasizes the importance of valuation metrics such as P/E ratio and other style scores in determining undervaluation. No material corporate actions or earnings releases are discussed, so the analysis remains a neutral comparison.
What did this article say?
In late September 2026 Synopsys announced multi‑year collaborations with OpenAI and Amazon to co‑develop AI‑optimized chip‑design solutions, including a GPT‑Synopsys chip‑design model and accelerated custom chip engineering. The company also unveiled its AgentEngineer autonomous engineering platform and expanded partnerships with TSMC and Alchip, positioning Synopsys as a key infrastructure provider for AI‑driven semiconductor design across cloud, foundry, and multi‑die architectures. These agreements are expected to strengthen Synopsys’ market leadership and support future revenue growth.
What did this article say?
Synopsys reported a 42.4% year‑over‑year revenue increase to $2.48 B and non‑GAAP EPS of $3.91, surpassing consensus. Management lifted full‑year guidance to $15.0 B in non‑GAAP EPS for the second consecutive quarter. Despite the earnings beat, shares declined roughly 10% in the month following each report, and Morgan Stanley downgraded the stock citing slowing growth and high valuation. The company’s recent $35 B acquisition of Ansys expanded its silicon‑to‑systems engineering capabilities, contributing to a brief 16.97% share rally earlier in the week.
What did this article say?
Synopsys (SNPS) announced a $1 billion multi‑year agreement with Amazon, expanding its reach into AI‑driven markets. The investor day presentation prompted several analysts to raise price targets, with Deutsche Bank lifting its target to $640 from $590. The deal underscores the company’s positioning in the growing physical AI sector and signals confidence in its long‑term growth prospects.
What did this article say?
Synopsys announced an expanded partnership with Amazon that adds a $1 billion revenue stream, reinforcing the company’s position in the semiconductor IP market. The deal extends Synopsys’ existing collaboration, providing a steady source of income and strengthening its competitive moat. The announcement is expected to support future earnings growth and enhance shareholder value.
What did this article say?
On October 5, 2026 Synopsys, Inc. entered into an accelerated share repurchase agreement with JPMorgan Chase to buy back up to $1 billion of its own stock. The deal will deliver approximately 1.7 million shares immediately, with the remainder settled by January 5, 2027, based on average daily share prices. The transaction signals management’s confidence in the company’s valuation and provides a direct return to shareholders.
What did this article say?
Synopsys, Inc. announced on October 5 that it had entered into an accelerated share repurchase agreement with JPMorgan Chase to buy back $1 billion of its own stock. The deal is expected to reduce the company’s share count and support the share price. The buyback reflects confidence in the company’s cash flow and is a significant capital allocation move for investors.
What did this article say?
Synopsys surged to the top of the Nasdaq 100 following a high‑profile Investor Day that highlighted new OpenAI collaborations, Amazon contracts, and an upgraded earnings forecast. The rally was supported by the company’s recent integration of Ansys and its focus on AI‑driven chip design complexity. Analysts noted that the stock’s upside potential remains significant, with a 24/7 Wall Street price target of $594.34 implying roughly 25% upside over the next year. The move underscores Synopsys’s growing influence in the semiconductor software market and its ability to secure high‑value partnerships.
What did this article say?
Synopsys reported earnings that surpassed analyst expectations, prompting a notable rise in its share price. The company highlighted stronger-than-anticipated revenue growth driven by demand for its electronic design automation tools. Management emphasized continued investment in product innovation and a robust pipeline of upcoming releases. The positive earnings outcome reinforced investor confidence in SNPS’s ability to maintain pricing power amid competitive pressures.

Technical Analysis

Real-time indicators across multiple timeframes

100
BULLISH
Technical indicators reflect the latest computed signal mix for this timeframe.
Unlock full technicals
Create a free account to access more indicators and deeper timeframe data.
Institutional & Hedge Fund Ownership
25 tracked managers · $37.00B combined position · 11 adding, 13 trimming, 1 unchanged (latest 13F filings)
ManagerTrendShares Held% of Co.Position ValueFiled
Vanguard Group Inc▲ Buy18,464,8629.85%$8.67B2026-01-29
BlackRock, Inc.▲ Buy16,203,9588.65%$7.23B2026-08-07
Capital World Investors▼ Sell6,635,0803.54%$3.12B2026-02-11
Invesco Ltd.▲ Buy6,028,8043.22%$2.69B2026-08-14
FMR LLC (Fidelity)▼ Sell5,989,7853.20%$2.67B2026-08-13
Geode Capital Management, LLC▼ Sell4,510,9292.41%$2.01B2026-08-12
Morgan Stanley▼ Sell3,768,6072.01%$1.68B2026-08-13
Goldman Sachs Group Inc▲ Buy3,187,4531.70%$1.42B2026-08-14
Capital Research Global Investors▲ Buy2,279,8771.22%$1.02B2026-08-12
Northern Trust Corp▼ Sell1,817,5150.97%$810.74M2026-08-13
Susquehanna International Group, LLP▲ Buy1,710,2070.91%$762.87M2026-08-14
Norges Bank▲ Buy1,606,4930.86%$716.61M2026-08-12
AQR Capital Management LLC▲ Buy1,507,7320.80%$672.49M2026-08-14
Bank of America Corp▼ Sell1,210,5400.65%$539.99M2026-08-14
JPMorgan Chase & Co▼ Sell1,185,8750.63%$530.40M2026-08-12
Citadel Advisors LLC• Hold1,131,1930.60%$504.59M2026-09-02
Farallon Capital Management LLC▼ Sell829,6000.44%$370.06M2026-08-14
Citigroup Inc▲ Buy742,7680.40%$331.33M2026-08-03
Wellington Management Group LLP▼ Sell529,0430.28%$235.99M2026-08-14
Neuberger Berman Group LLC▼ Sell438,1530.23%$195.45M2026-08-13
Pentwater Capital Management LP▼ Sell390,0000.21%$183.19M2026-02-17
Eminence Capital, LP▲ Buy449,2200.24%$178.11M2026-05-15
D1 Capital Partners L.P.▲ Buy378,3500.20%$177.72M2026-02-17
Wells Fargo & Company▼ Sell319,1370.17%$142.36M2026-08-14
Coatue Management LLC▼ Sell317,4650.17%$141.61M2026-08-14
Q2 2026 flow:4.40M sh bought ($1.96B)4.47M sh sold ($2.00B)net -77.5K sh (−$35.25M)
View full institutional holdings history →
Congressional Trading Activity
18 disclosed trades · ~$227.5K est. traded value · 7 buys, 10 sells
MemberChamberStateTypeAmountTradedFiled
Alan ArmstrongSenateOK▲ Buy$1K - $15K2026-03-272026-07-21
Dan NewhouseHouseWA04▲ Buy$1K - $15K2025-12-312026-01-15
Gilbert CisnerosHouseCA31▼ Sell$1K - $15K2025-11-182025-12-15
Gilbert CisnerosHouseCA31▼ Sell$1K - $15K2025-10-092025-11-18
Valerie HoyleHouseOR04▼ Sell$1K - $15K2025-09-232025-10-10
Lisa McClainHouseMI09▼ Sell$1K - $15K2025-09-112025-10-22
Lisa McClainHouseMI09▲ Buy$1K - $15K2025-08-132025-09-12
Julie JohnsonHouseTX32↔ Exchange$1K - $15K2025-07-182025-08-14
Lisa McClainHouseMI09▼ Sell$1K - $15K2025-06-092025-08-13
Jefferson ShreveHouseIN06▲ Buy$50K - $100K2025-04-172025-05-08
Rob BresnahanHousePA08▼ Sell$1K - $15K2025-04-082025-04-28
Jefferson ShreveHouseIN06▼ Sell$15K - $50K2025-03-132025-04-11
Rob BresnahanHousePA08▼ Sell$1K - $15K2025-01-132025-02-13
Lisa McClainHouseMI09▲ Buy$1K - $15K2024-12-112025-08-13
Josh GottheimerHouseNJ05▼ Sell$1K - $15K2024-12-092025-01-14
Valerie HoyleHouseOR04▲ Buy$1K - $15K2024-10-292025-09-12
Tommy TubervilleSenateAL▼ Sell$1K - $15K2024-05-032026-08-05
Tommy TubervilleSenateAL▲ Buy$1K - $15K2024-04-052024-05-15
View full congressional trading history →

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