Synopsys (NASDAQ:SNPS) Issues FY 2026 Earnings Guidance

Synopsys (NASDAQ:SNPS) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 14.720-14.800 for the period, compared to the consensus earnings per share estimate of 13.610. The company issued revenue guidance of $9.6 billion-$9.7 billion, compared to the consensus revenue estimate of $9.6 billion. Synopsys also updated its Q3 2026 guidance to 3.630-3.690 EPS.

Synopsys Stock Down 1.6%

Shares of SNPS stock traded down $8.46 during midday trading on Wednesday, reaching $526.10. 1,633,149 shares of the stock were exchanged, compared to its average volume of 1,989,810. Synopsys has a 1 year low of $376.18 and a 1 year high of $651.73. The company’s 50 day moving average is $455.56 and its two-hundred day moving average is $452.78. The company has a current ratio of 1.36, a quick ratio of 1.26 and a debt-to-equity ratio of 0.33. The firm has a market cap of $100.78 billion, a PE ratio of 81.69, a price-to-earnings-growth ratio of 4.30 and a beta of 1.25.

Synopsys (NASDAQ:SNPS) last posted its earnings results on Wednesday, February 25th. The semiconductor company reported $3.77 earnings per share for the quarter, topping analysts’ consensus estimates of $3.56 by $0.21. Synopsys had a return on equity of 6.83% and a net margin of 13.76%.The firm had revenue of $2.41 billion for the quarter, compared to the consensus estimate of $2.39 billion. During the same quarter in the prior year, the business earned $3.03 EPS. The business’s revenue for the quarter was up 65.6% on a year-over-year basis. On average, equities research analysts predict that Synopsys will post 10.28 EPS for the current year.

Wall Street Analyst Weigh In

SNPS has been the topic of a number of analyst reports. Wells Fargo & Company boosted their price target on Synopsys from $450.00 to $505.00 and gave the stock an “equal weight” rating in a research report on Thursday, May 14th. Piper Sandler dropped their price target on Synopsys from $520.00 to $430.00 and set a “neutral” rating on the stock in a research report on Thursday, February 26th. HSBC cut Synopsys from a “buy” rating to a “hold” rating and set a $455.00 price target on the stock. in a research report on Friday, February 20th. Rosenblatt Securities boosted their price target on Synopsys from $530.00 to $575.00 and gave the stock a “buy” rating in a research report on Tuesday. Finally, Needham & Company LLC reissued a “buy” rating on shares of Synopsys in a research report on Thursday, February 26th. Eight research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $544.88.

Hedge Funds Weigh In On Synopsys

Several hedge funds and other institutional investors have recently modified their holdings of SNPS. Caitong International Asset Management Co. Ltd bought a new position in shares of Synopsys during the 4th quarter valued at $28,000. Atlas Capital Advisors Inc. bought a new position in shares of Synopsys during the 4th quarter valued at $32,000. Kemnay Advisory Services Inc. bought a new position in shares of Synopsys during the 4th quarter valued at $35,000. Greenline Wealth Management LLC bought a new position in shares of Synopsys during the 4th quarter valued at $37,000. Finally, WealthCollab LLC lifted its holdings in shares of Synopsys by 110.8% during the 3rd quarter. WealthCollab LLC now owns 78 shares of the semiconductor company’s stock valued at $38,000 after buying an additional 41 shares during the period. 85.47% of the stock is owned by institutional investors.

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.