Synopsys (NASDAQ:SNPS) Issues Q1 2026 Earnings Guidance

Synopsys (NASDAQ:SNPS) issued an update on its first quarter 2026 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 3.520-3.580 for the period, compared to the consensus estimate of 2.920. The company issued revenue guidance of $2.4 billion-$2.4 billion, compared to the consensus revenue estimate of $2.4 billion. Synopsys also updated its FY 2026 guidance to 14.320-14.400 EPS.

Analyst Ratings Changes

A number of brokerages have issued reports on SNPS. Wall Street Zen cut shares of Synopsys from a “hold” rating to a “sell” rating in a report on Saturday, September 13th. Wells Fargo & Company cut their price target on Synopsys from $550.00 to $445.00 and set an “equal weight” rating on the stock in a report on Tuesday, November 25th. Needham & Company LLC lowered their price objective on Synopsys from $660.00 to $550.00 and set a “buy” rating for the company in a research note on Wednesday, September 10th. Mizuho dropped their target price on Synopsys from $700.00 to $600.00 and set an “outperform” rating on the stock in a research report on Thursday, September 11th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Synopsys in a research note on Wednesday, October 8th. Eleven research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $550.67.

Synopsys Price Performance

SNPS traded up $9.98 during trading on Wednesday, reaching $475.83. The stock had a trading volume of 3,126,946 shares, compared to its average volume of 1,880,490. The stock has a 50 day moving average of $436.17 and a two-hundred day moving average of $504.88. The company has a quick ratio of 1.51, a current ratio of 1.62 and a debt-to-equity ratio of 0.52. The firm has a market capitalization of $88.39 billion, a price-to-earnings ratio of 37.35, a price-to-earnings-growth ratio of 5.34 and a beta of 1.16. Synopsys has a 1-year low of $365.74 and a 1-year high of $651.73.

Synopsys (NASDAQ:SNPS) last announced its earnings results on Tuesday, September 9th. The semiconductor company reported $2.30 earnings per share for the quarter, missing the consensus estimate of $3.75 by ($1.45). Synopsys had a net margin of 31.04% and a return on equity of 10.82%. The firm had revenue of $1.74 billion for the quarter, compared to the consensus estimate of $1.77 billion. During the same period in the prior year, the business earned $3.43 EPS. The company’s quarterly revenue was up 14.0% compared to the same quarter last year. As a group, equities analysts anticipate that Synopsys will post 10.64 EPS for the current fiscal year.

Insider Buying and Selling

In other Synopsys news, CAO Sudhindra Kankanwadi sold 9,873 shares of the company’s stock in a transaction on Monday, September 22nd. The stock was sold at an average price of $500.90, for a total value of $4,945,385.70. Following the transaction, the chief accounting officer owned 20,520 shares of the company’s stock, valued at approximately $10,278,468. This represents a 32.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Robert G. Painter acquired 350 shares of Synopsys stock in a transaction dated Thursday, September 11th. The shares were bought at an average cost of $425.44 per share, with a total value of $148,904.00. Following the completion of the purchase, the director owned 2,291 shares in the company, valued at approximately $974,683.04. This represents a 18.03% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.62% of the stock is owned by insiders.

Institutional Trading of Synopsys

Several institutional investors and hedge funds have recently bought and sold shares of SNPS. State Street Corp grew its stake in shares of Synopsys by 20.6% in the 3rd quarter. State Street Corp now owns 8,760,358 shares of the semiconductor company’s stock valued at $4,322,273,000 after buying an additional 1,493,912 shares in the last quarter. Northern Trust Corp increased its position in Synopsys by 22.5% during the third quarter. Northern Trust Corp now owns 1,986,970 shares of the semiconductor company’s stock worth $980,351,000 after buying an additional 364,541 shares during the last quarter. Invesco Ltd. raised its holdings in Synopsys by 17.2% during the third quarter. Invesco Ltd. now owns 1,885,761 shares of the semiconductor company’s stock valued at $930,416,000 after buying an additional 276,983 shares in the last quarter. Amundi lifted its position in shares of Synopsys by 14.1% in the third quarter. Amundi now owns 1,104,888 shares of the semiconductor company’s stock worth $528,380,000 after buying an additional 136,504 shares during the last quarter. Finally, Bank of America Corp DE increased its holdings in shares of Synopsys by 31.6% during the 2nd quarter. Bank of America Corp DE now owns 898,612 shares of the semiconductor company’s stock valued at $460,701,000 after acquiring an additional 215,721 shares during the last quarter. Institutional investors and hedge funds own 85.47% of the company’s stock.

Synopsys Company Profile

Synopsys, Inc provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions.