Synopsys (NASDAQ:SNPS) Issues Q3 2025 Earnings Guidance

Synopsys (NASDAQ:SNPS) updated its third quarter 2025 earnings guidance on Wednesday. The company provided EPS guidance of 3.820-3.87 for the period, compared to the consensus EPS estimate of 3.970. The company issued revenue guidance of $1.8 billion-$1.8 billion, compared to the consensus revenue estimate of $1.8 billion. Synopsys also updated its FY 2025 guidance to 15.110-15.190 EPS.

Synopsys Trading Down 9.6%

Shares of SNPS traded down $49.36 during mid-day trading on Wednesday, reaching $462.43. The company’s stock had a trading volume of 4,758,538 shares, compared to its average volume of 1,120,499. The stock has a market cap of $71.50 billion, a PE ratio of 31.85, a P/E/G ratio of 3.23 and a beta of 1.16. Synopsys has a 52 week low of $365.74 and a 52 week high of $624.80. The company’s fifty day moving average price is $453.18 and its two-hundred day moving average price is $487.60.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on SNPS shares. Bank of America lowered their price target on shares of Synopsys from $630.00 to $560.00 and set a “buy” rating for the company in a report on Wednesday, April 16th. KeyCorp set a $575.00 price target on shares of Synopsys and gave the company an “overweight” rating in a report on Tuesday, May 20th. Needham & Company LLC reiterated a “buy” rating and issued a $650.00 price objective on shares of Synopsys in a research note on Thursday, February 27th. Mizuho decreased their target price on shares of Synopsys from $650.00 to $600.00 and set an “outperform” rating on the stock in a research note on Tuesday, April 15th. Finally, Piper Sandler decreased their target price on shares of Synopsys from $655.00 to $653.00 and set an “overweight” rating on the stock in a research note on Thursday, February 27th. One analyst has rated the stock with a hold rating and twelve have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $614.86.

Insider Buying and Selling

In other Synopsys news, CEO Sassine Ghazi sold 11,366 shares of the stock in a transaction dated Monday, March 3rd. The shares were sold at an average price of $463.75, for a total transaction of $5,270,982.50. Following the completion of the sale, the chief executive officer now directly owns 70,922 shares of the company’s stock, valued at approximately $32,890,077.50. This represents a 13.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Geus Aart De sold 15,705 shares of the stock in a transaction dated Thursday, March 6th. The shares were sold at an average price of $444.42, for a total transaction of $6,979,616.10. Following the sale, the insider now directly owns 116,671 shares of the company’s stock, valued at approximately $51,850,925.82. The trade was a 11.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.62% of the stock is owned by insiders.

Hedge Funds Weigh In On Synopsys

Several hedge funds have recently modified their holdings of the stock. Integrated Wealth Concepts LLC increased its holdings in Synopsys by 11.6% in the 1st quarter. Integrated Wealth Concepts LLC now owns 760 shares of the semiconductor company’s stock worth $326,000 after buying an additional 79 shares during the period. Brighton Jones LLC lifted its position in shares of Synopsys by 5.7% during the 4th quarter. Brighton Jones LLC now owns 921 shares of the semiconductor company’s stock valued at $447,000 after buying an additional 50 shares in the last quarter. Finally, NewEdge Advisors LLC lifted its position in shares of Synopsys by 15.1% during the 1st quarter. NewEdge Advisors LLC now owns 3,010 shares of the semiconductor company’s stock valued at $1,291,000 after buying an additional 395 shares in the last quarter. Institutional investors and hedge funds own 85.47% of the company’s stock.

About Synopsys

Synopsys, Inc provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions.