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 EPS guidance of 14.320-14.400 for the period, compared to the consensus EPS estimate of 12.090. The company issued revenue guidance of $9.6 billion-$9.7 billion, compared to the consensus revenue estimate of $9.7 billion. Synopsys also updated its Q1 2026 guidance to 3.520-3.580 EPS.

Synopsys Stock Up 2.1%

Shares of SNPS opened at $475.83 on Thursday. Synopsys has a 52 week low of $365.74 and a 52 week high of $651.73. The firm’s 50-day simple moving average is $435.91 and its 200 day simple moving average is $504.68. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.51 and a current ratio of 1.62. The firm has a market cap of $88.39 billion, a P/E ratio of 37.35, a price-to-earnings-growth ratio of 5.78 and a beta of 1.16.

Synopsys (NASDAQ:SNPS) last announced its earnings results on Wednesday, December 10th. The semiconductor company reported $2.90 earnings per share for the quarter, topping analysts’ consensus estimates of $2.79 by $0.11. The company had revenue of $2.25 billion for the quarter, compared to analyst estimates of $2.25 billion. Synopsys had a return on equity of 10.82% and a net margin of 31.04%.The firm’s quarterly revenue was up 37.8% compared to the same quarter last year. During the same quarter last year, the company earned $3.40 earnings per share. Synopsys has set its FY 2026 guidance at 14.320-14.400 EPS and its Q1 2026 guidance at 3.520-3.580 EPS. On average, analysts forecast that Synopsys will post 10.64 earnings per share for the current year.

Analyst Ratings Changes

SNPS has been the topic of several research reports. Robert W. Baird restated a “neutral” rating and issued a $535.00 price target (down from $670.00) on shares of Synopsys in a research note on Wednesday, September 10th. KeyCorp set a $600.00 target price on shares of Synopsys in a research report on Thursday. Mizuho dropped their price target on shares of Synopsys from $700.00 to $600.00 and set an “outperform” rating for the company in a research report on Thursday, September 11th. The Goldman Sachs Group reduced their price target on Synopsys from $700.00 to $600.00 and set a “buy” rating on the stock in a research report on Wednesday, September 10th. Finally, Stifel Nicolaus dropped their price objective on Synopsys from $650.00 to $550.00 and set a “buy” rating for the company in a report on Wednesday, September 10th. Eleven equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Synopsys presently has a consensus rating of “Moderate Buy” and an average price target of $556.13.

Insiders Place Their Bets

In other news, CAO Sudhindra Kankanwadi sold 9,873 shares of the stock in a transaction dated Monday, September 22nd. The stock was sold at an average price of $500.90, for a total value of $4,945,385.70. Following the completion of the sale, the chief accounting officer owned 20,520 shares of the company’s stock, valued at approximately $10,278,468. This represents a 32.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 0.62% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. State Street Corp increased its holdings in shares of Synopsys by 20.6% during the third quarter. State Street Corp now owns 8,760,358 shares of the semiconductor company’s stock valued at $4,322,273,000 after acquiring an additional 1,493,912 shares in the last quarter. Northern Trust Corp grew its holdings in shares of Synopsys by 22.5% in the third quarter. Northern Trust Corp now owns 1,986,970 shares of the semiconductor company’s stock valued at $980,351,000 after acquiring an additional 364,541 shares in the last quarter. Invesco Ltd. increased its position in shares of Synopsys by 17.2% during the 3rd quarter. Invesco Ltd. now owns 1,885,761 shares of the semiconductor company’s stock valued at $930,416,000 after purchasing an additional 276,983 shares during the last quarter. Amundi lifted its stake in Synopsys by 14.1% in the third quarter. Amundi now owns 1,104,888 shares of the semiconductor company’s stock valued at $528,380,000 after purchasing an additional 136,504 shares during the last quarter. Finally, Bank of America Corp DE increased its holdings in Synopsys by 31.6% in the 2nd quarter. Bank of America Corp DE now owns 898,612 shares of the semiconductor company’s stock worth $460,701,000 after acquiring an additional 215,721 shares during the last quarter. 85.47% of the stock is owned by institutional investors.

Synopsys Company Profile

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.