Synopsys (NASDAQ:SNPS) Stock Price Down 6.8% – Here’s What Happened

Synopsys, Inc. (NASDAQ:SNPS) fell 6.8% during trading on Thursday . The company traded as low as $496.00 and last traded at $490.2930. 433,560 shares were traded during trading, a decline of 78% from the average session volume of 1,982,338 shares. The stock had previously closed at $525.92.

Key Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys delivered a beat-and-raise quarter, with adjusted EPS of $3.35 topping estimates of $3.15 and revenue rising 41.9% year over year to $2.28 billion, both above forecasts. Reuters: Synopsys raises annual forecast on demand for AI chip design software
• Positive Sentiment: The company lifted full-year guidance, signaling continued demand for its AI chip design software and stronger profitability expectations for the rest of the year. PR Newswire: Synopsys Posts Financial Results for Second Quarter Fiscal Year 2026
• Positive Sentiment: Synopsys also reached a cooperation agreement with activist investor Elliott Investment Management and added Elliott partner Jesse Cohn to its board, which could support margin improvement and shareholder-focused changes. Reuters: Synopsys reaches settlement with Elliott, says Jesse Cohn to join board
• Neutral Sentiment: Several brokerages responded positively after the report, including Bank of America raising its price target to $600 and Needham reiterating a buy rating with a $580 target, which may help support sentiment. Tickerreport: Bank of America raises price target on Synopsys
• Negative Sentiment: The stock fell anyway, likely because investors were disappointed by weakness in the chip IP business and are weighing integration risks tied to the Ansys deal and broader execution concerns. Proactive Investors: Synopsys delivers beat-and-raise, shares fall weakness in chip IP business
• Negative Sentiment: Some commentary also framed SNPS as expensive and a potential “growth trap,” suggesting valuation concerns may be limiting the stock’s reaction to the strong quarter. 247WallSt: Synopsys Is the ‘Growth Trap’ Your Advisor Won’t Warn You About

Analysts Set New Price Targets

A number of research firms have recently commented on SNPS. Citigroup increased their target price on Synopsys from $580.00 to $600.00 and gave the company a “buy” rating in a research report on Wednesday, May 13th. The Goldman Sachs Group set a $600.00 price target on Synopsys and gave the stock a “buy” rating in a research report on Wednesday, February 25th. Bank of America raised their price target on Synopsys from $515.00 to $600.00 and gave the stock a “buy” rating in a research report on Thursday. Berenberg Bank set a $633.00 price target on Synopsys in a research report on Wednesday. Finally, Morgan Stanley raised their price target on Synopsys from $480.00 to $525.00 and gave the stock an “equal weight” rating in a research report on Thursday. Nine analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $561.63.

Synopsys Stock Performance

The firm has a market capitalization of $92.12 billion, a P/E ratio of 74.96, a P/E/G ratio of 4.38 and a beta of 1.25. The firm has a 50-day moving average price of $457.56 and a two-hundred day moving average price of $453.69. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.36 and a quick ratio of 1.26.

Synopsys (NASDAQ:SNPS) last released its earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share for the quarter, topping the consensus estimate of $3.15 by $0.20. Synopsys had a return on equity of 6.83% and a net margin of 13.76%.The business had revenue of $2.28 billion during the quarter, compared to the consensus estimate of $2.25 billion. During the same period last year, the company earned $3.67 earnings per share. The business’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. On average, analysts forecast that Synopsys, Inc. will post 10.28 EPS for the current fiscal year.

Institutional Trading of Synopsys

Several institutional investors and hedge funds have recently made changes to their positions in SNPS. Vanguard Group Inc. raised its holdings in shares of Synopsys by 1.6% in the fourth quarter. Vanguard Group Inc. now owns 18,464,862 shares of the semiconductor company’s stock valued at $8,673,315,000 after acquiring an additional 283,677 shares in the last quarter. State Street Corp raised its holdings in shares of Synopsys by 0.3% in the fourth quarter. State Street Corp now owns 8,788,890 shares of the semiconductor company’s stock valued at $4,128,317,000 after acquiring an additional 28,532 shares in the last quarter. Morgan Stanley raised its holdings in shares of Synopsys by 2.5% in the fourth quarter. Morgan Stanley now owns 4,573,980 shares of the semiconductor company’s stock valued at $2,148,491,000 after acquiring an additional 109,917 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Synopsys by 1.3% in the fourth quarter. Geode Capital Management LLC now owns 4,310,846 shares of the semiconductor company’s stock valued at $2,017,256,000 after acquiring an additional 54,329 shares in the last quarter. Finally, Victory Capital Management Inc. raised its holdings in shares of Synopsys by 238.8% in the third quarter. Victory Capital Management Inc. now owns 2,824,349 shares of the semiconductor company’s stock valued at $1,393,506,000 after acquiring an additional 1,990,608 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.