Synopsys (NASDAQ:SNPS) Releases 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 14.380-14.460 for the period, compared to the consensus earnings per share estimate of 12.670. 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 Q2 2026 guidance to 3.110-3.170 EPS.

Synopsys Stock Up 1.9%

SNPS stock traded up $8.45 on Wednesday, hitting $449.17. 2,903,310 shares of the company’s stock were exchanged, compared to its average volume of 2,187,868. The firm has a 50 day moving average price of $472.93 and a two-hundred day moving average price of $479.23. Synopsys has a 12-month low of $365.74 and a 12-month high of $651.73. The stock has a market cap of $86.04 billion, a P/E ratio of 56.22, a price-to-earnings-growth ratio of 3.50 and a beta of 1.12. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.52 and a current ratio of 1.62.

Synopsys (NASDAQ:SNPS) last issued its quarterly earnings results on Wednesday, December 10th. The semiconductor company reported $2.90 earnings per share for the quarter, topping the consensus estimate of $2.79 by $0.11. The business had revenue of $2.25 billion during the quarter, compared to the consensus estimate of $2.25 billion. Synopsys had a return on equity of 7.89% and a net margin of 18.89%.The company’s quarterly revenue was up 37.8% on a year-over-year basis. 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. As a group, equities research analysts expect that Synopsys will post 10.64 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the stock. Citigroup began coverage on shares of Synopsys in a report on Monday, November 24th. They issued a “buy” rating and a $580.00 price target for the company. Wells Fargo & Company raised their target price on Synopsys from $445.00 to $500.00 and gave the stock an “equal weight” rating in a research note on Thursday, December 11th. KeyCorp boosted their price target on Synopsys from $575.00 to $600.00 and gave the company an “overweight” rating in a research note on Thursday, December 11th. Bank of America upgraded Synopsys from an “underperform” rating to a “neutral” rating and reduced their price objective for the stock from $525.00 to $500.00 in a research note on Monday, December 8th. Finally, Piper Sandler lowered Synopsys from an “overweight” rating to a “neutral” rating and dropped their target price for the company from $602.00 to $520.00 in a research report on Tuesday, January 13th. Nine analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Synopsys currently has a consensus rating of “Hold” and an average target price of $547.00.

Insider Activity at Synopsys

In other news, CFO Shelagh Glaser sold 3,657 shares of Synopsys stock in a transaction that occurred on Friday, December 19th. The shares were sold at an average price of $460.77, for a total transaction of $1,685,035.89. Following the completion of the transaction, the chief financial officer directly owned 17,842 shares of the company’s stock, valued at $8,221,058.34. The trade was a 17.01% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Janet Lee sold 250 shares of the business’s stock in a transaction on Monday, January 12th. The shares were sold at an average price of $530.00, for a total transaction of $132,500.00. Following the completion of the transaction, the insider owned 11,959 shares of the company’s stock, valued at approximately $6,338,270. This represents a 2.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 4,157 shares of company stock valued at $1,945,036. 0.62% of the stock is owned by company insiders.

Synopsys News Summary

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Q1 results beat and strong profit metrics — Synopsys reported $3.77 non‑GAAP EPS (vs. $3.57 consensus) and $2.41B revenue (vs. $2.39B est.), with healthy margins. This EPS/revenue beat is the immediate catalyst for the stock bump. View Press Release
• Positive Sentiment: Raised guidance well above Street — Synopsys set Q2 FY2026 EPS guidance of $3.110–$3.170 (consensus ~$2.69) and FY2026 EPS of $14.380–$14.460 (consensus ~$12.67), and revenue guidance roughly in line to slightly above estimates. The sizable EPS beat in guidance materially improves forward earnings expectations and underpins multiple expansion. Synopsys Posts Financial Results for First Quarter Fiscal Year 2026
• Positive Sentiment: $2.0B stock repurchase authorization — The board approved up to $2.0B of additional buybacks, which supports EPS and signals management confidence in cash generation (and helps justify part of the rally). Synopsys Posts Financial Results for First Quarter Fiscal Year 2026
• Positive Sentiment: Unusual options flow — Elevated call buying (roughly +169% vs. normal volume) suggests bullish positioning from traders betting on further upside after the print.
• Neutral Sentiment: Positive analyst/coverage commentary — Recent coverage (Seeking Alpha preview) highlights Synopsys’ competitive moat and attractive valuation arguments, which can reinforce investor sentiment but are not new catalysts. Synopsys: Super-Wide Moat And Attractive Valuation Thanks To ‘SaaSpocalypse’
• Negative Sentiment: Acquisition-related leverage remains a key risk — Coverage (24/7 Wall St.) calls out ~$13.5B of debt and questions Synopsys’ ability to integrate/digest a ~ $35B acquisition without stress; that leverage profile leaves the stock vulnerable to any execution or cash‑flow hiccups. Synopsys Carries $13.5 Billion in Debt Into Its Most Consequential Earnings Yet

Institutional Investors Weigh In On Synopsys

Hedge funds have recently modified their holdings of the company. Brighton Jones LLC increased its position in shares of Synopsys by 5.7% in the fourth 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. Symmetry Peak Management LLC acquired a new stake in Synopsys in the 4th quarter valued at $230,000. MUFG Securities EMEA plc purchased a new stake in Synopsys in the 2nd quarter worth $233,000. Modern Wealth Management LLC acquired a new position in Synopsys during the second quarter worth $237,000. Finally, OpenArc Corporate Advisory LLC purchased a new position in Synopsys during the fourth quarter valued at $253,000. 85.47% of the stock is owned by hedge funds and other 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.