Synopsys (NASDAQ:SNPS) Updates Q3 2026 Earnings Guidance

Synopsys (NASDAQ:SNPS) updated its third quarter 2026 earnings guidance on Wednesday. The company provided earnings per share guidance of 3.630-3.690 for the period, compared to the consensus earnings per share estimate of 3.420. The company issued revenue guidance of $2.4 billion-$2.5 billion, compared to the consensus revenue estimate of $2.4 billion. Synopsys also updated its FY 2026 guidance to 14.720-14.800 EPS.

Analysts Set New Price Targets

Several research firms have weighed in on SNPS. The Goldman Sachs Group set a $600.00 price target on shares of Synopsys and gave the stock a “buy” rating in a research note on Wednesday, February 25th. Berenberg Bank set a $633.00 price target on shares of Synopsys in a research note on Wednesday. Citigroup boosted their price target on shares of Synopsys from $580.00 to $600.00 and gave the stock a “buy” rating in a research note on Wednesday, May 13th. Morgan Stanley reissued an “equal weight” rating and issued a $480.00 price target (down from $550.00) on shares of Synopsys in a research note on Wednesday, February 25th. Finally, Needham & Company LLC reissued a “buy” rating on shares of Synopsys in a research note on Thursday, February 26th. Eight equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Synopsys presently has a consensus rating of “Hold” and an average price target of $544.88.

Synopsys Price Performance

SNPS stock opened at $525.92 on Thursday. The firm’s 50-day moving average price is $457.56 and its two-hundred day moving average price is $453.69. Synopsys has a 12-month low of $376.18 and a 12-month high of $651.73. The stock has a market capitalization of $100.75 billion, a price-to-earnings ratio of 81.66, a PEG ratio of 4.38 and a beta of 1.25. The company has a current ratio of 1.36, a quick ratio of 1.26 and a debt-to-equity ratio of 0.33.

Synopsys (NASDAQ:SNPS) last released its quarterly earnings data on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.15 by $0.20. Synopsys had a net margin of 13.76% and a return on equity of 6.83%. The firm had revenue of $2.28 billion for the quarter, compared to analysts’ expectations of $2.25 billion. During the same quarter in the previous year, the company earned $3.67 earnings per share. The company’s revenue for the quarter was up 41.9% compared to the same quarter last year. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. As a group, equities analysts predict that Synopsys will post 10.28 earnings per share for the current year.

Key Headlines Impacting Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys beat Q2 estimates with revenue of $2.276 billion and non-GAAP EPS of $3.35, while also raising its full-year revenue and EPS outlook on strong demand for AI-driven chip design software. Reuters article
• Positive Sentiment: The company said backlog remains large and highlighted momentum from AI infrastructure spending and successful progress on Ansys integration, which supports confidence in future growth. Yahoo Finance article
• Positive Sentiment: Synopsys also reached a governance agreement with activist investor Elliott, adding Jesse Cohn to the board, a move that may increase pressure for margin improvement and capital discipline. WSJ article
• Neutral Sentiment: Despite the beat-and-raise report, several market reports noted the stock slipped anyway, suggesting investors may be taking profits or waiting for more clarity on valuation and merger integration before rewarding the results. Barron’s article
• Negative Sentiment: The market’s muted reaction implies concern that much of the AI growth and guidance strength may already be priced into SNPS after a sharp run-up, limiting upside despite the solid quarter. Yahoo Finance article

Hedge Funds Weigh In On Synopsys

A number of hedge funds have recently modified their holdings of the company. Brighton Jones LLC increased its position in shares of Synopsys by 5.7% during the fourth quarter. Brighton Jones LLC now owns 921 shares of the semiconductor company’s stock valued at $447,000 after buying an additional 50 shares during the period. Integrated Wealth Concepts LLC increased its position in shares of Synopsys by 11.6% during the first quarter. Integrated Wealth Concepts LLC now owns 760 shares of the semiconductor company’s stock valued at $326,000 after buying an additional 79 shares during the period. NewEdge Advisors LLC increased its position in shares of Synopsys by 15.1% during the first quarter. NewEdge Advisors LLC now owns 3,010 shares of the semiconductor company’s stock valued at $1,291,000 after buying an additional 395 shares during the period. WINTON GROUP Ltd increased its position in shares of Synopsys by 9.2% during the second quarter. WINTON GROUP Ltd now owns 758 shares of the semiconductor company’s stock valued at $389,000 after buying an additional 64 shares during the period. Finally, Treasurer of the State of North Carolina increased its position in shares of Synopsys by 2.1% during the second quarter. Treasurer of the State of North Carolina now owns 72,095 shares of the semiconductor company’s stock valued at $36,962,000 after buying an additional 1,505 shares during the period. Hedge funds and other institutional investors own 85.47% of the company’s stock.

About Synopsys

Synopsys, Inc is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) used to design, verify and manufacture integrated circuits and complex systems-on-chip (SoCs). Its product portfolio spans tools and technologies for front‑end design and synthesis, simulation and verification, physical implementation and signoff, and design-for-manufacturability, enabling chip designers to move from architecture through tape‑out.

In addition to core EDA offerings, Synopsys supplies a broad set of semiconductor IP building blocks — such as interface, memory and analog/mixed-signal cores — that customers integrate into SoCs to accelerate development.