Synopsys (NASDAQ:SNPS) Releases FY 2027 Earnings Guidance

Synopsys (NASDAQ:SNPS) issued an update on its FY 2027 earnings guidance on Wednesday. The company provided EPS guidance of 19.040-19.120 for the period, compared to the consensus EPS estimate of 16.780. The company issued revenue guidance of $11.1 billion-$11.2 billion, compared to the consensus revenue estimate of $10.8 billion.

Wall Street Analysts Forecast Growth

Several brokerages have commented on SNPS. Barclays assumed coverage on shares of Synopsys in a report on Friday, September 25th. They issued an “overweight” rating for the company. Sanford C. Bernstein assumed coverage on shares of Synopsys in a research report on Friday, September 25th. They issued an “outperform” rating for the company. Zacks Research cut shares of Synopsys from a “strong-buy” rating to a “hold” rating in a research report on Friday, August 21st. BNP Paribas Exane raised shares of Synopsys from an “underperform” rating to a “neutral” rating and set a $420.00 target price on the stock in a research note on Thursday, September 24th. Finally, Piper Sandler upgraded Synopsys from a “neutral” rating to an “overweight” rating and increased their target price for the company from $450.00 to $550.00 in a report on Tuesday, June 23rd. Fifteen equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $574.61.

Synopsys Stock Up 4.8%

Shares of NASDAQ:SNPS traded up $19.85 during midday trading on Wednesday, hitting $434.94. 4,454,043 shares of the stock were exchanged, compared to its average volume of 1,993,588. Synopsys has a 52-week low of $362.55 and a 52-week high of $539.48. The business’s fifty day simple moving average is $402.20 and its two-hundred day simple moving average is $435.37. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.24 and a current ratio of 1.34. The company has a market capitalization of $83.35 billion, a PE ratio of 76.84, a P/E/G ratio of 2.29 and a beta of 1.23.

Synopsys (NASDAQ:SNPS) last announced its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.67 by $0.24. Synopsys had a return on equity of 6.24% and a net margin of 11.43%.The business had revenue of $2.48 billion during the quarter, compared to analyst estimates of $2.44 billion. During the same period in the previous year, the company earned $3.39 EPS. The firm’s revenue was up 42.4% on a year-over-year basis. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. As a group, research analysts predict that Synopsys will post 10.97 earnings per share for the current fiscal year.

Insider Buying and Selling at Synopsys

In related news, CEO Sassine Ghazi sold 14,604 shares of the company’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $374.88, for a total value of $5,474,747.52. Following the completion of the sale, the chief executive officer directly owned 76,865 shares in the company, valued at approximately $28,815,151.20. This represents a 15.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Aart de Geus sold 25,000 shares of the stock in a transaction on Monday, August 31st. The stock was sold at an average price of $441.76, for a total transaction of $11,044,000.00. Following the transaction, the insider directly owned 120,421 shares in the company, valued at $53,197,180.96. The trade was a 17.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 89,245 shares of company stock worth $37,992,919. 0.56% of the stock is currently owned by company insiders.

Trending Headlines about Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Amazon deal exceeds $1 billion: Amazon Web Services agreed to a multi-year agreement worth more than $1 billion to license Synopsys’ semiconductor intellectual property for custom chips and AWS infrastructure. The arrangement expands Synopsys’ silicon IP business and uses a license-plus-royalty model, potentially creating recurring revenue tied to Amazon’s production volumes. Reuters article
• Positive Sentiment: Broader AWS collaboration: Synopsys will help accelerate development of Amazon’s custom silicon while optimizing its software on AWS Trainium and Graviton processors. Synopsys also plans to use Amazon EC2 and Amazon Bedrock for product development, deepening the commercial relationship and supporting cloud-based engineering growth. Synopsys and Amazon agreement
• Positive Sentiment: OpenAI partnership adds an AI catalyst: Synopsys and OpenAI agreed to develop “GPT-Synopsys,” a specialized AI model combining OpenAI technology with Synopsys’ EDA tools and chip-design expertise. OpenAI will license Synopsys’ tools, while the companies will collaborate on research, go-to-market efforts and a shared revenue framework. The partnership could accelerate semiconductor design and create new software revenue opportunities. Synopsys and OpenAI partnership
• Neutral Sentiment: Synopsys also recently introduced AgentEngineer solutions and its Autopilot platform, indicating continued investment in agentic AI tools for engineering. The products support the company’s AI strategy, although their near-term financial contribution was not disclosed. AgentEngineer and Autopilot article

About Synopsys

Synopsys, Inc is a technology company that develops electronic design automation (EDA) software, semiconductor intellectual property (IP), and software tools used to design, verify, and manufacture advanced electronic systems. Its solutions support the development of semiconductors, systems-on-chip, and electronic products across the design cycle, from initial specification and architecture through testing and production.

The company’s offerings include digital and custom integrated-circuit design tools, simulation and verification software, physical design and signoff products, and semiconductor IP such as processor cores, interface technologies, and foundational components.