DailyIQ
|
Sector:TechnologyAll sectors
Last updated 6 minutes ago

SNPS·Synopsys, Inc.

$.
+. (+.%)
After Hours
High
$448.00
Open
$443.49
Market Cap
85.25B
52W High
$651.73
Low
$438.48
P. Close
$445.45
P/E
110.25
52W Low
$376.18
Fwd P/E
25.81
DailyIQ Est.
$585.90
Technical Score (1D)
50
NEUTRAL
News Sentiment
59
BULLISH
Synopsys has just released a valuation assessment that shows a modest 10% upside from discounted cash flow analysis while market multiples still price the shares on the rich side, indicating a valuation crossroads. The company’s pivot toward AI‑enabled chip design tools and new multiphysics fusion solutions is expected to drive future cash flows, which is why the DCF model sees upside. However, the mandatory phase‑out of certain semiconductor manufacturing software introduces execution risk that could temper the expected growth. This valuation tension matters for the next 1–10 trading days because traders will be watching the upcoming earnings release to see how cash flow evolves and whether the AI product rollout accelerates. The recent removal of Synopsys from the Russell 1000 Growth and Defensive Indexes could alter institutional exposure and liquidity, potentially adding pressure on the stock. Institutional traders should monitor any re‑inclusion of the stock in those indexes, as it may trigger a liquidity bump and influence short‑term demand. The company’s AI‑driven tool suite is positioned to capture growth in the semiconductor design space, so any sign of accelerated adoption will be a key catalyst. Investors should also keep an eye on the execution of the multiphysics fusion solutions, as delays could impact the projected cash flow upside. In summary, the valuation gap, AI product rollout, and index removal together create a short‑term window where cash flow performance and institutional trading volume will be the main watch items.
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.

EPS

EstBeatMiss
$2.65$2.96$3.27$3.58$3.89Q4'24Q1'25Q2'25Q3'25Q2'26
QtrEstActual+/−
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$1.9B$2.1B$2.4BQ4'24Q1'25Q2'25Q3'25Q2'26
QtrEstActual+/−
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

SNPS is currently trading at $446.36, giving Synopsys, Inc. a market cap of 85.25B and a P/E ratio of 110.3. Today's range spans $438.48–$448.00, with shares opening at $443.49 and moving up $0.91 (0.2%) from the prior close. DailyIQ's technical score sits at 50/100 (HOLD) with a news sentiment reading of 59/100.

Over the past year SNPS has traded between $376.18 and $651.73 - the current price is +18.7% off the 52-week low and -31.5% 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 +26.3%.

Synopsys, Inc. (SNPS) is a large-cap in Technology with 85.25B in market cap, currently sitting on a HOLD signal at 50/100. Price: $446.36 (in the lower half of its 52-week range). Sentiment: neutral at 59/100. The current P/E ratio stands at 110.3. The 52-week range of $376.18–$651.73 is the structural anchor, and the current neutral phase is the market's way of asking for more information before committing to a direction.

The 52-week range of $376.18–$651.73 for SNPS provides the structural reference that options traders, systematic funds, and discretionary managers all anchor to — and at $446.36 (in the lower half of its 52-week range), the stock sits in a zone where the next 5–10% move will likely define which crowd was right. A HOLD signal at 50/100 and neutral news backdrop (59/100) don't break the tie yet, but they narrow the probability distribution toward the upside.