Synopsys (NASDAQ:SNPS) Releases Q3 2026 Earnings Guidance

Synopsys (NASDAQ:SNPS) updated its third quarter 2026 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 3.630-3.690 for the period, compared to the consensus estimate of 3.420. The company issued revenue guidance of $2.4 billion-$2.5 billion, compared to the consensus revenue estimate of $2.4 billion. Synopsys also updated its FY 2026 guidance to 14.720-14.800 EPS.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on SNPS. HSBC downgraded shares of Synopsys from a “buy” rating to a “hold” rating and set a $455.00 price objective on the stock. in a report on Friday, February 20th. Piper Sandler decreased their target price on shares of Synopsys from $520.00 to $430.00 and set a “neutral” rating on the stock in a research note on Thursday, February 26th. Rosenblatt Securities lifted their price objective on shares of Synopsys from $530.00 to $575.00 and gave the company a “buy” rating in a research report on Tuesday. Citigroup lifted their price objective on shares of Synopsys from $580.00 to $600.00 and gave the company a “buy” rating in a research report on Wednesday, May 13th. Finally, Needham & Company LLC reissued a “buy” rating on shares of Synopsys in a report on Thursday, February 26th. Eight equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $544.88.

Synopsys Trading Down 1.6%

NASDAQ SNPS traded down $8.64 on Wednesday, hitting $525.92. 2,382,788 shares of the stock were exchanged, compared to its average volume of 1,990,614. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.26 and a current ratio of 1.36. The stock has a fifty day moving average price of $455.56 and a two-hundred day moving average price of $452.78. The firm has a market capitalization of $100.75 billion, a P/E ratio of 81.66, a P/E/G ratio of 4.30 and a beta of 1.25. Synopsys has a 52-week low of $376.18 and a 52-week high of $651.73.

Synopsys (NASDAQ:SNPS) last posted its quarterly earnings data on Wednesday, May 27th. The semiconductor company reported $3.35 EPS for the quarter, topping the consensus estimate of $3.17 by $0.18. The company had revenue of $2.28 billion during the quarter, compared to analyst estimates of $2.25 billion. Synopsys had a net margin of 13.76% and a return on equity of 6.83%. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. Research analysts forecast that Synopsys will post 10.28 EPS for the current fiscal year.

Key Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys raised FY 2026 EPS guidance to 14.72-14.80, topping the consensus estimate of 13.61, while revenue guidance of $9.6 billion-$9.7 billion was in line to slightly ahead of expectations.
• Positive Sentiment: The company also lifted third-quarter 2026 EPS guidance to 3.63-3.69 versus the 3.42 consensus estimate, with revenue guidance of $2.4 billion-$2.5 billion also matching or modestly exceeding forecasts.
• Positive Sentiment: Rosenblatt Securities raised its price target on Synopsys to $575 from $530 and reiterated a buy rating, signaling additional upside confidence ahead of the earnings report. Benzinga
• Neutral Sentiment: Investors are also watching the company’s earnings release and its Ansys merger integration, both of which could influence sentiment and future guidance. Blockonomi
• Neutral Sentiment: Some pre-earnings commentary suggested Synopsys could report softer quarterly results and highlighted valuation concerns, but these reports were outweighed by the company’s stronger-than-expected outlook. Benzinga
• Negative Sentiment: Bearish articles described Synopsys as a “growth trap,” raising concerns about the stock’s longer-term growth profile and valuation in the EDA industry. 247wallst

Institutional Trading of Synopsys

Institutional investors and hedge funds have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd bought a new stake in shares of Synopsys in the fourth quarter valued at about $28,000. Atlas Capital Advisors Inc. bought a new stake in shares of Synopsys in the fourth quarter valued at about $32,000. Kemnay Advisory Services Inc. bought a new stake in shares of Synopsys in the fourth quarter valued at about $35,000. WealthCollab LLC raised its holdings in Synopsys by 110.8% in the third quarter. WealthCollab LLC now owns 78 shares of the semiconductor company’s stock worth $38,000 after purchasing an additional 41 shares in the last quarter. Finally, Greenline Wealth Management LLC bought a new position in Synopsys in the fourth quarter worth about $37,000. 85.47% of the stock is currently owned by 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.