Synopsys, Inc. (SNPS) Stock Price, News, Analysis

Technical Score (1D)

SELL

News Sentiment

BEARISH

Synopsys’ management has lifted its non‑GAAP EPS guidance to a midpoint of $14.76, citing AI‑driven demand for its design IP, while a $403.6 million amortization charge on acquired intangibles has depressed GAAP net income and compressed margins. This guidance hike signals a potential rebound in earnings momentum, but the heavy amortization and margin compression from the Ansys acquisition mean the company’s profitability remains under pressure. In parallel, Synopsys was removed from the Russell 1000 Growth, 3000 Growth, and Top 200 Growth indices on June 27, a move that could reduce passive fund exposure and dampen short‑term liquidity. The index removal does not alter Synopsys’ core AI and Ansys integration business, yet the loss of passive flows may influence trading dynamics over the next few days. Analysts have recently cut their price target to $493, reflecting concerns over slower revenue growth and heightened competition in the semiconductor security space, which may prompt a short‑term price correction. Despite the target cut, a bullish outlook persists, with some analysts projecting an 18% upside to $516.71 based on continued AI adoption and margin expansion, underscoring the company’s position as a key pick‑and‑shovel player in the AI buildout. Synopsys’ launch of its first Multiphysics Fusion solutions—integrating AI‑enabled EDA tools with Ansys golden signoff—expands its product portfolio into multi‑die design, timing signoff, and analog workflows, potentially accelerating revenue mix. The company is also discontinuing its chip manufacturing process control software to reallocate resources toward higher‑margin AI design offerings, a strategic pivot that could reshape its revenue mix and cost structure. Traders should monitor the upcoming earnings release for details on amortization impact, margin recovery, and the uptake of the new AI‑driven product suite, as well as passive fund rebalancing flows following the index removal. Additionally, watch for guidance on AI‑related revenue growth and any regulatory developments affecting semiconductor IP licensing, which could influence the company’s valuation trajectory over the next 1–10 trading days.

SNPS|Company Info

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.

SNPS|Earnings Snapshot

Earnings Summary

Synopsys, Inc. is a leading provider of design intellectual property (IP) solutions and electronic design automation (EDA) tools for the semiconductor and electronics industries, enabling the creation of complex integrated circuits. Operating within the technology sector, specifically software infrastructure, Synopsys plays a critical role in the chip design value chain, an area experiencing significant growth driven by artificial intelligence. Examining the most recent earnings data, Synopsys reported Q2 2026 EPS of $3.35 against an estimate of $3.16, and revenue of $2.276 billion against an estimate of $2.296 billion, indicating a slight miss on revenue. Prior to this, Q3 2025 saw an EPS of $2.90 versus an estimate of $2.88, and revenue of $2.255 billion, with no revenue estimate provided. The preceding quarters show a mixed performance: Q2 2025 EPS was $3.39 against an estimate of $3.75, and Q1 2025 EPS was $3.67 against an estimate of $3.40. This pattern suggests a recent trend of beating EPS estimates in Q1 and Q3 2025, but missing in Q2 2025, with revenue estimates only available for the most recent quarter. Historically, Synopsys has demonstrated a strong revenue growth trajectory, with Q1 FY26 revenue surging 65.4% year-over-year, as noted in recent news. While specific historical EPS growth trends are not fully detailed across multiple years, the recent quarterly data indicates some variability in beating analyst expectations, with a notable miss in Q2 2025. The company's ability to consistently deliver revenue growth, even when EPS performance fluctuates against estimates, appears to be a recurring theme. Recent news highlights significant developments for Synopsys, including its scheduled earnings report and the market's focus on the integration of its $35 billion Ansys acquisition. Analyst sentiment remains largely positive, with price target increases from firms like Rosenblatt Securities and Baird, reflecting optimism about the company's position in the AI sector and its robust fundamentals. However, a substantial reduction in Coatue Management's stake warrants monitoring. Looking ahead, investors will be watching for Synopsys's commentary on the financial and operational progress of the Ansys integration and any updated guidance related to AI-driven demand. Key will be the company's ability to translate its strong market position and the Ansys acquisition into sustained revenue and EPS growth, particularly in light of the mixed performance against estimates in recent quarters.

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EPS

EstBeatMiss

Qtr	Est	Actual	+/−
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

Qtr	Est	Actual	+/−
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

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Market Data

SNPS Stock Snapshot

SNPS is currently trading at $432.91, giving Synopsys, Inc. a market cap of 85.01B and a P/E ratio of 109.9. Today's range spans $432.73–$455.00, with shares opening at $448.84 and moving down $0.91 (0.2%) from the prior close. DailyIQ's technical score sits at 36/100 (HOLD) with a news sentiment reading of 31/100.

Over the past year SNPS has traded between $376.18 and $651.73 - the current price is +15.1% off the 52-week low and -33.6% from the high. 32 analysts cover the stock with a Buy consensus and a mean 12-month target of $563.74 (range $403.85–$650.00), implying upside of +30.2%.

Neither bulls nor bears have the upper hand on Synopsys, Inc. (SNPS) right now. Score: 36/100 (HOLD). Sentiment: bearish (31/100). Price: $432.91 (in the lower half of its 52-week range). (P/E: 109.9) At 85.01B in Technology market cap, the 52-week range of $376.18–$651.73 is the relevant frame - where the stock sits within that range, and whether volume confirms any directional move, matters more than the HOLD label alone.

In neutral phases, large-cap Technology names like SNPS are often where sector rotation debates play out quietly — at 85.01B in capitalization, the stock receives incremental allocation from funds reducing mega-cap exposure without the volatility of a small-cap entry. The 36/100 (HOLD) and bearish sentiment (31/100) at $432.91 (in the lower half of its 52-week range) describe a stock that is being considered rather than avoided.

News Sentiment Analysis

Sentiment gathered from recent headlines

31/100

Strong NegativeNeutralStrong Positive

BEARISH

Recent News Coverage

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

10+ articles

What did this article say?

SNPS shares fell 19% over the past year even as revenue grew 42% YoY, largely due to a $403.6 million amortization charge on acquired intangibles that pushed GAAP net income down 95%. Management lifted non‑GAAP EPS guidance to a midpoint of $14.76, citing AI‑driven demand for its design IP. CEO Sassine Ghazi noted that AI is expanding semiconductor complexity, but the Ansys acquisition has strained margins, which fell from 36.7% to 20%. Investors should monitor the upcoming earnings release for further details on amortization impact and margin recovery.

What did this article say?

Synopsys (SNPS) was removed from the Russell 1000 Growth, 3000 Growth, and Top 200 Growth indices on June 27, 2026. The exclusion could reduce passive fund exposure to the company, potentially impacting its liquidity and trading profile. The move may also influence the narrative around Synopsys’s AI initiatives and its integration with Ansys. Traders should monitor how passive rebalancing flows and any subsequent guidance or product updates affect the stock.

What did this article say?

Synopsys (SNPS) sits at a valuation crossroads: a discounted cash flow model suggests a modest 10.4% upside, while traditional market multiples indicate the shares are priced on the rich side. The company has delivered a 59.7% gain over five years, but recent pullbacks have tempered short‑term performance. The pivot toward AI‑enabled chip design tools, including new multiphysics fusion solutions, positions SNPS to capture growth in the semiconductor design space. Investors should watch how the company’s cash flow evolves in upcoming earnings and monitor the rollout of its AI‑driven product suite.

What did this article say?

Synopsys (SNPS) was recently removed from several Russell indexes, including the Russell 1000 Growth Benchmark and Russell 1000 Defensive Index. This technical shift may alter how institutional investors gain exposure to the stock, potentially affecting liquidity and demand. The removal does not reflect a fundamental change in the company’s business or financial health. Traders should monitor whether SNPS is re‑added to these indexes and observe any resulting impact on institutional trading volume.

What did this article say?