Synopsys (NASDAQ:SNPS) Announces Earnings Results

Synopsys (NASDAQ:SNPS) released its earnings results on Wednesday. The semiconductor company reported $3.91 earnings per share for the quarter, topping analysts’ consensus estimates of $3.67 by $0.24, FiscalAI reports. Synopsys had a net margin of 8.91% and a return on equity of 5.83%. The business had revenue of $2.48 billion for the quarter, compared to analyst estimates of $2.44 billion. Synopsys updated its Q4 2026 guidance to 4.100-4.160 EPS.

Synopsys Stock Up 0.3%

NASDAQ SNPS traded up $1.21 on Wednesday, hitting $410.00. 2,333,926 shares of the stock were exchanged, compared to its average volume of 1,984,665. Synopsys has a fifty-two week low of $366.00 and a fifty-two week high of $615.79. The company has a 50-day moving average price of $417.74 and a 200-day moving average price of $439.85. The company has a quick ratio of 1.32, a current ratio of 1.43 and a debt-to-equity ratio of 0.33. The company has a market cap of $78.51 billion, a PE ratio of 94.91, a PEG ratio of 2.32 and a beta of 1.23.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on SNPS shares. Robert W. Baird set a $558.00 price objective on shares of Synopsys in a research report on Thursday, May 28th. Bank of America increased their price target on shares of Synopsys from $515.00 to $600.00 and gave the company a “buy” rating in a research note on Thursday, May 28th. Zacks Research downgraded shares of Synopsys from a “strong-buy” rating to a “hold” rating in a report on Friday, August 21st. BNP Paribas Exane lifted their target price on Synopsys from $425.00 to $450.00 and gave the company an “underperform” rating in a research report on Thursday, May 28th. Finally, Berenberg Bank set a $633.00 price target on Synopsys in a research note on Wednesday, May 27th. Eleven analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Synopsys presently has an average rating of “Moderate Buy” and an average target price of $563.59.

Key Headlines Impacting Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Quarterly results exceeded expectations. Fiscal Q3 revenue rose to $2.477 billion from $1.740 billion a year earlier, while GAAP EPS was $2.84 and non-GAAP EPS was $3.91. Revenue and adjusted earnings surpassed analyst expectations, led by broad-based strength in Design Automation, which generated $2.003 billion. Synopsys Posts Financial Results for Third Quarter Fiscal Year 2026
• Positive Sentiment: Synopsys raised its outlook. Management lifted its full-year revenue guidance midpoint to $9.715 billion and non-GAAP EPS guidance midpoint to $15.07. Fourth-quarter revenue is expected to reach $2.530 billion to $2.580 billion, signaling confidence in sustained customer demand. Synopsys Q3 Revenue Reaches $2.477 Billion as GAAP EPS Hits $2.84
• Positive Sentiment: AI is strengthening the growth narrative. Synopsys says customers are achieving productivity gains of up to six times, while its partnership with Nvidia—including Nvidia’s reported $2 billion investment—supports the longer-term opportunity for AI-powered engineering and simulation. Nvidia’s $2 Billion Synopsys Bet Signals AI’s Next Frontier
• Positive Sentiment: Analyst support remains favorable. Rosenblatt Securities reaffirmed its Buy rating and assigned a $575 price target, implying substantial upside from recent trading levels. Rosenblatt Reiterates Buy Rating
• Neutral Sentiment: Institutional positioning was mixed: 772 investors added SNPS shares in their latest reported quarter, while 759 reduced holdings.
• Negative Sentiment: Recent insider activity showed sales rather than purchases, including transactions by CEO Sassine Ghazi and CFO Shelagh Glaser. This may temper sentiment, although the sales appear limited relative to the company’s market value.

Insider Buying and Selling at Synopsys

In other Synopsys news, CFO Shelagh Glaser sold 3,394 shares of the firm’s stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $450.02, for a total transaction of $1,527,367.88. Following the sale, the chief financial officer owned 14,358 shares of the company’s stock, valued at approximately $6,461,387.16. This trade represents a 19.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of Synopsys stock in a transaction on Monday, June 15th. The shares were sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the completion of the transaction, the chief executive officer directly owned 75,020 shares in the company, valued at $34,431,179.20. The trade was a 16.29% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 0.56% of the stock is currently owned by insiders.

Institutional Trading of Synopsys

A number of hedge funds have recently added to or reduced their stakes in the stock. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Synopsys during the fourth quarter worth approximately $28,000. Atlas Capital Advisors Inc. acquired a new position in Synopsys in the 4th quarter valued at $32,000. Kemnay Advisory Services Inc. purchased a new position in Synopsys during the 4th quarter worth $35,000. Greenline Wealth Management LLC purchased a new position in Synopsys during the 4th quarter worth $37,000. Finally, WealthCollab LLC lifted its stake in shares of Synopsys by 110.8% in the 3rd quarter. WealthCollab LLC now owns 78 shares of the semiconductor company’s stock worth $38,000 after acquiring an additional 41 shares during the period. 85.47% of the stock is owned by institutional investors and hedge funds.

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.