Synopsys (NASDAQ:SNPS) Issues Q2 2026 Earnings Guidance

Synopsys (NASDAQ:SNPS) updated its second quarter 2026 earnings guidance on Wednesday. The company provided EPS guidance of 3.110-3.170 for the period, compared to the consensus EPS estimate of 2.690. The company issued revenue guidance of $2.2 billion-$2.3 billion, compared to the consensus revenue estimate of $2.2 billion. Synopsys also updated its FY 2026 guidance to 14.380-14.460 EPS.

Analysts Set New Price Targets

Several equities research analysts have issued reports on SNPS shares. Piper Sandler decreased their price target on shares of Synopsys from $520.00 to $430.00 and set a “neutral” rating on the stock in a research note on Thursday. Needham & Company LLC reiterated a “buy” rating on shares of Synopsys in a research report on Thursday. Bank of America upgraded shares of Synopsys from an “underperform” rating to a “neutral” rating and cut their price target for the company from $525.00 to $500.00 in a research report on Monday, December 8th. Wells Fargo & Company decreased their price objective on Synopsys from $500.00 to $450.00 and set an “equal weight” rating on the stock in a report on Thursday. Finally, HSBC cut Synopsys from a “buy” rating to a “hold” rating and set a $455.00 target price for the company. in a report on Friday, February 20th. Nine analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Synopsys presently has an average rating of “Hold” and a consensus target price of $535.67.

Synopsys Stock Down 5.3%

Shares of Synopsys stock traded down $23.75 during midday trading on Thursday, hitting $425.42. The company had a trading volume of 1,425,895 shares, compared to its average volume of 2,166,022. Synopsys has a 52-week low of $365.74 and a 52-week high of $651.73. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.52 and a current ratio of 1.62. The stock has a market capitalization of $81.49 billion, a P/E ratio of 53.32, a P/E/G ratio of 3.67 and a beta of 1.12. The company has a 50 day moving average of $472.85 and a 200 day moving average of $479.02.

Synopsys (NASDAQ:SNPS) last issued its earnings results on Wednesday, February 25th. The semiconductor company reported $3.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.56 by $0.21. The business had revenue of $2.41 billion during the quarter, compared to analysts’ expectations of $2.39 billion. Synopsys had a net margin of 18.89% and a return on equity of 7.89%. The business’s revenue for the quarter was up 65.6% compared to the same quarter last year. During the same period in the previous year, the company earned $3.03 earnings per share. Synopsys has set its FY 2026 guidance at 14.380-14.460 EPS and its Q2 2026 guidance at 3.110-3.170 EPS. On average, equities analysts predict that Synopsys will post 10.64 earnings per share for the current fiscal year.

Insider Activity

In other Synopsys news, insider Janet Lee sold 250 shares of the stock in a transaction on Monday, January 12th. The stock was sold at an average price of $530.00, for a total value of $132,500.00. Following the completion of the sale, the insider owned 11,959 shares in the company, valued at approximately $6,338,270. This represents a 2.05% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Shelagh Glaser sold 3,657 shares of the company’s stock in a transaction dated Friday, December 19th. The stock was sold at an average price of $460.77, for a total value of $1,685,035.89. Following the completion of the transaction, the chief financial officer directly owned 17,842 shares of the company’s stock, valued at approximately $8,221,058.34. This trade represents a 17.01% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 4,157 shares of company stock valued at $1,945,036 in the last three months. 0.62% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Q1 beat and strong top‑line growth — Synopsys reported $3.77 non‑GAAP EPS and $2.41B revenue (up ~65% YoY), beating estimates and hitting the high end of guidance, driven by Design Automation and Ansys contribution; board approved a $2.0B buyback. Synopsys Q1 Earnings Surpass Estimates Press Release
• Positive Sentiment: FY26 EPS guide appears strong/possibly conservative — several analysts say the company’s FY26 EPS framework may be conservative given current demand, supporting longer‑term upside. Guidance Likely Conservative
• Neutral Sentiment: Wall Street consensus remains bullish but mixed — the average brokerage view is a Buy, yet some firms trimmed models/targets after the print; that keeps analyst guidance influential but not uniform. Analyst Coverage
• Negative Sentiment: Guidance and regional risks disappointed traders — commentary and forecasts flagged a muted near‑term revenue outlook (China export restrictions cited), which investors interpreted as a signal that fiscal Q2 growth could be constrained. Reuters: Muted Quarter
• Negative Sentiment: Market reacted poorly despite the beat — shares dipped after the print as investors focused on the softer forward revenue tone and model changes; some firms cut price targets (Piper Sandler to $430, Rosenblatt trimmed its target). 24/7 Wall St. market reaction Benzinga: Analyst Cuts
• Negative Sentiment: Integration, costs and leverage concerns persist — investors flagged Ansys-related integration charges, a GAAP loss in the quarter, workforce reductions and a heavy debt load (~$13.5B), which raise execution and balance‑sheet risk during the near term. QuiverQuant: Integration & outlook 24/7 Wall St.: Debt Concerns

Institutional Investors Weigh In On Synopsys

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd bought a new stake in Synopsys during the 4th quarter valued at $28,000. Atlas Capital Advisors Inc. acquired a new stake in shares of Synopsys during the fourth quarter worth $32,000. Kemnay Advisory Services Inc. purchased a new stake in Synopsys during the 4th quarter valued at about $35,000. WealthCollab LLC raised its position in Synopsys by 110.8% during the 3rd quarter. WealthCollab LLC now owns 78 shares of the semiconductor company’s stock worth $38,000 after buying an additional 41 shares during the last quarter. Finally, Greenline Wealth Management LLC purchased a new position in shares of Synopsys during the fourth quarter worth $37,000. Hedge funds and other institutional investors own 85.47% of the company’s stock.

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.