Synopsys, Inc. (NASDAQ:SNPS) Given Consensus Recommendation of “Hold” by Brokerages

Shares of Synopsys, Inc. (NASDAQ:SNPS) have received a consensus rating of “Hold” from the seventeen analysts that are presently covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, eight have assigned a hold recommendation and eight have given a buy recommendation to the company. The average 1 year price objective among analysts that have covered the stock in the last year is $544.8750.

A number of brokerages have recently issued reports on SNPS. HSBC cut shares of Synopsys from a “buy” rating to a “hold” rating and set a $455.00 target price on the stock. in a report on Friday, February 20th. Needham & Company LLC reissued a “buy” rating on shares of Synopsys in a research report on Thursday, February 26th. Rosenblatt Securities upped their price objective on Synopsys from $530.00 to $575.00 and gave the company a “buy” rating in a research note on Tuesday. Wells Fargo & Company raised their price objective on Synopsys from $450.00 to $505.00 and gave the company an “equal weight” rating in a research report on Thursday, May 14th. Finally, Morgan Stanley reiterated an “equal weight” rating and set a $480.00 target price (down from $550.00) on shares of Synopsys in a research note on Wednesday, February 25th.

Synopsys News Summary

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys beat Q2 expectations, reporting non-GAAP EPS of $3.35 versus estimates around $3.17 and revenue of $2.276 billion versus consensus near $2.25 billion, showing continued demand for its chip design software. Reuters article
• Positive Sentiment: The company raised FY2026 guidance, now projecting EPS of $14.72 to $14.80 and revenue of roughly $9.6 billion to $9.7 billion, signaling confidence in AI-driven demand and operating momentum. Press release
• Positive Sentiment: Synopsys reached a cooperation agreement with Elliott Investment Management and added Elliott partner Jesse Cohn to its board, which could support efforts to improve margins, governance, and shareholder value. Reuters article
• Neutral Sentiment: Despite the strong report, the stock is reacting cautiously, suggesting some investors may be taking profits after a large run-up and waiting for proof that growth can hold up after the Ansys-related integration and portfolio changes.
• Negative Sentiment: The market may be weighing that Q2 EPS of $3.35 was still below the prior-year $3.67, which can temper enthusiasm even with a beat versus estimates. Zacks article

Synopsys Trading Down 1.6%

NASDAQ SNPS opened at $525.92 on Friday. 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 stock’s 50 day moving average price is $457.56 and its two-hundred day moving average price is $453.69. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.26 and a current ratio of 1.36. Synopsys has a 52 week low of $376.18 and a 52 week high of $651.73.

Synopsys (NASDAQ:SNPS) last issued its quarterly earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.15 by $0.20. The firm had revenue of $2.28 billion for the quarter, compared to analyst estimates of $2.25 billion. Synopsys had a net margin of 13.76% and a return on equity of 6.83%. The company’s revenue was up 41.9% compared to the same quarter last year. During the same period in the previous year, the business earned $3.67 EPS. 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, analysts anticipate that Synopsys will post 10.28 earnings per share for the current fiscal year.

Institutional Trading of Synopsys

Several institutional investors have recently added to or reduced their stakes in SNPS. Essential Partners LLC acquired a new stake in shares of Synopsys in the 1st quarter valued at $50,000. CCM Investment Advisers LLC raised its holdings in shares of Synopsys by 23.9% during the 1st quarter. CCM Investment Advisers LLC now owns 31,137 shares of the semiconductor company’s stock worth $12,345,000 after buying an additional 6,009 shares in the last quarter. Western Wealth Management LLC bought a new stake in shares of Synopsys during the 1st quarter worth $131,000. Bank of America Corp DE boosted its stake in Synopsys by 34.0% in the first quarter. Bank of America Corp DE now owns 1,386,817 shares of the semiconductor company’s stock valued at $549,845,000 after buying an additional 352,004 shares in the last quarter. Finally, Intrinsic Edge Capital Management LLC boosted its stake in Synopsys by 10.0% in the first quarter. Intrinsic Edge Capital Management LLC now owns 11,000 shares of the semiconductor company’s stock valued at $4,361,000 after buying an additional 1,000 shares in the last quarter. 85.47% of the stock is currently owned by institutional investors.

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.