Synopsys (NASDAQ:SNPS) Releases FY 2026 Earnings Guidance

Synopsys (NASDAQ:SNPS) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 14.720-14.800 for the period, compared to the consensus estimate of 13.610. The company issued revenue guidance of $9.6 billion-$9.7 billion, compared to the consensus revenue estimate of $9.6 billion. Synopsys also updated its Q3 2026 guidance to 3.630-3.690 EPS.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on SNPS. Needham & Company LLC reiterated a “buy” rating and issued a $580.00 price objective on shares of Synopsys in a research report on Thursday. Rosenblatt Securities boosted their price objective on Synopsys from $530.00 to $575.00 and gave the company a “buy” rating in a research report on Tuesday. Berenberg Bank set a $633.00 price target on shares of Synopsys in a report on Wednesday. Morgan Stanley upped their price target on shares of Synopsys from $480.00 to $525.00 and gave the company an “equal weight” rating in a report on Thursday. Finally, HSBC lowered shares of Synopsys from a “buy” rating to a “hold” rating and set a $455.00 price target for the company. in a report on Friday, February 20th. Nine equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Synopsys currently has a consensus rating of “Hold” and a consensus price target of $563.81.

Synopsys Stock Down 8.6%

Shares of Synopsys stock opened at $480.64 on Friday. Synopsys has a 1 year low of $376.18 and a 1 year high of $651.73. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.36 and a quick ratio of 1.26. The company has a 50-day moving average of $458.59 and a 200 day moving average of $454.30. The firm has a market cap of $92.07 billion, a price-to-earnings ratio of 111.26, a PEG ratio of 4.31 and a beta of 1.25.

Synopsys (NASDAQ:SNPS) last issued its quarterly earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share for the quarter, beating the consensus estimate of $3.15 by $0.20. The firm had revenue of $2.28 billion during the quarter, compared to the consensus estimate of $2.25 billion. Synopsys had a return on equity of 5.91% and a net margin of 8.91%.The company’s revenue was up 41.9% on a year-over-year basis. During the same period last year, the company earned $3.67 earnings per share. 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, sell-side analysts anticipate that Synopsys will post 10.28 earnings per share for the current fiscal year.

Synopsys News Roundup

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys reported fiscal Q2 results above expectations, with revenue of $2.276 billion and non-GAAP EPS of $3.35, both topping estimates. The company also raised full-year revenue and EPS guidance, signaling continued demand for AI chip-design software and related tools. Synopsys Posts Financial Results for Second Quarter Fiscal Year 2026
• Positive Sentiment: Management said AI-related demand remains strong, and the company highlighted expanding benefits from the Ansys deal and operating-margin improvement, which could support longer-term growth. Synopsys raises annual forecast on demand for AI chip design software
• Positive Sentiment: Synopsys reached a cooperation agreement with Elliott Investment Management and added Elliott partner Jesse Cohn to its board, which may increase pressure for operational improvements and shareholder-friendly changes. Synopsys reaches settlement with Elliott, says Jesse Cohn to join board
• Neutral Sentiment: Several analysts responded positively by lifting price targets, but at least one firm still has an underperform/neutral view, showing that Wall Street is still split on the stock’s upside from current levels. Analyst target updates
• Neutral Sentiment: Commentary around the stock emphasizes valuation concerns after a strong run, suggesting some investors may be pausing to reassess how much of the AI growth story is already priced in. Is It Too Late To Consider Synopsys (SNPS) After Recent Valuation Concerns?
• Negative Sentiment: The shares fell despite the beat-and-raise report, indicating investors are worried about execution risk, integration complexity, and weakness in parts of the chip-IP business. Synopsys slides even as Q2 results, guidance top estimates; adds activist to board

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Centaurus Financial Inc. raised its stake in shares of Synopsys by 2.2% in the third quarter. Centaurus Financial Inc. now owns 1,364 shares of the semiconductor company’s stock valued at $673,000 after acquiring an additional 30 shares during the last quarter. Resources Management Corp CT ADV raised its stake in shares of Synopsys by 1.2% in the second quarter. Resources Management Corp CT ADV now owns 2,639 shares of the semiconductor company’s stock valued at $1,353,000 after acquiring an additional 31 shares during the last quarter. Synergy Financial Group LTD raised its stake in shares of Synopsys by 6.2% in the fourth quarter. Synergy Financial Group LTD now owns 599 shares of the semiconductor company’s stock valued at $281,000 after acquiring an additional 35 shares during the last quarter. Vise Technologies Inc. raised its stake in shares of Synopsys by 1.5% in the third quarter. Vise Technologies Inc. now owns 2,707 shares of the semiconductor company’s stock valued at $1,336,000 after acquiring an additional 40 shares during the last quarter. Finally, WealthCollab LLC raised its stake in shares of Synopsys by 110.8% in the third quarter. WealthCollab LLC now owns 78 shares of the semiconductor company’s stock valued at $38,000 after acquiring an additional 41 shares during the last quarter. 85.47% of the stock is owned by hedge funds and other institutional investors.

Synopsys Company Profile

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.