Synopsys (NASDAQ:SNPS) Updates Q4 2026 Earnings Guidance

Synopsys (NASDAQ:SNPS) updated its fourth quarter 2026 earnings guidance on Wednesday. The company provided EPS guidance of 4.100-4.160 for the period, compared to the consensus EPS estimate of 3.780. The company issued revenue guidance of $2.5 billion-$2.6 billion, compared to the consensus revenue estimate of $2.6 billion.

Synopsys Stock Up 0.3%

Shares of Synopsys stock traded up $1.21 during trading on Wednesday, reaching $410.00. The company’s stock had a trading volume of 2,333,926 shares, compared to its average volume of 1,984,665. The company has a 50-day simple moving average of $417.74 and a two-hundred day simple moving average of $439.85. The company has a quick ratio of 1.32, a current ratio of 1.43 and a debt-to-equity ratio of 0.33. The company has a market cap of $78.51 billion, a price-to-earnings ratio of 94.91, a P/E/G ratio of 2.32 and a beta of 1.23. Synopsys has a 1-year low of $366.00 and a 1-year high of $615.79.

Synopsys (NASDAQ:SNPS) last issued its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, topping the consensus estimate of $3.67 by $0.24. Synopsys had a net margin of 8.91% and a return on equity of 5.83%. The company had revenue of $2.48 billion for the quarter, compared to the consensus estimate of $2.44 billion. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS. As a group, equities analysts forecast that Synopsys will post 10.64 earnings per share for the current year.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the stock. Bank of America increased their price target on shares of Synopsys from $515.00 to $600.00 and gave the company a “buy” rating in a research note on Thursday, May 28th. Berenberg Bank set a $633.00 target price on Synopsys in a research report on Wednesday, May 27th. Benchmark reaffirmed a “buy” rating on shares of Synopsys in a report on Wednesday, August 19th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Synopsys in a research note on Monday, June 8th. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $580.00 price objective on shares of Synopsys in a research note on Thursday, May 28th. Eleven investment analysts have rated the stock with a Buy rating, six have issued 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 “Moderate Buy” and a consensus price target of $563.59.

Insider Buying and Selling

In other news, CEO Sassine Ghazi sold 14,603 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $458.96, for a total value of $6,702,192.88. Following the completion of the sale, the chief executive officer owned 75,020 shares of the company’s stock, valued at approximately $34,431,179.20. This represents a 16.29% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Shelagh Glaser sold 3,394 shares of the firm’s stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $450.02, for a total value of $1,527,367.88. Following the completion of the sale, the chief financial officer directly owned 14,358 shares of the company’s stock, valued at approximately $6,461,387.16. The trade was a 19.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.56% of the stock is currently owned by insiders.

Synopsys News Roundup

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Quarterly results exceeded expectations. Fiscal Q3 revenue rose to $2.477 billion from $1.740 billion a year earlier, while GAAP EPS was $2.84 and non-GAAP EPS was $3.91. Revenue and adjusted earnings surpassed analyst expectations, led by broad-based strength in Design Automation, which generated $2.003 billion. Synopsys Posts Financial Results for Third Quarter Fiscal Year 2026
• Positive Sentiment: Synopsys raised its outlook. Management lifted its full-year revenue guidance midpoint to $9.715 billion and non-GAAP EPS guidance midpoint to $15.07. Fourth-quarter revenue is expected to reach $2.530 billion to $2.580 billion, signaling confidence in sustained customer demand. Synopsys Q3 Revenue Reaches $2.477 Billion as GAAP EPS Hits $2.84
• Positive Sentiment: AI is strengthening the growth narrative. Synopsys says customers are achieving productivity gains of up to six times, while its partnership with Nvidia—including Nvidia’s reported $2 billion investment—supports the longer-term opportunity for AI-powered engineering and simulation. Nvidia’s $2 Billion Synopsys Bet Signals AI’s Next Frontier
• Positive Sentiment: Analyst support remains favorable. Rosenblatt Securities reaffirmed its Buy rating and assigned a $575 price target, implying substantial upside from recent trading levels. Rosenblatt Reiterates Buy Rating
• Neutral Sentiment: Institutional positioning was mixed: 772 investors added SNPS shares in their latest reported quarter, while 759 reduced holdings.
• Negative Sentiment: Recent insider activity showed sales rather than purchases, including transactions by CEO Sassine Ghazi and CFO Shelagh Glaser. This may temper sentiment, although the sales appear limited relative to the company’s market value.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd bought a new stake in Synopsys in the 4th quarter valued at about $28,000. Atlas Capital Advisors Inc. acquired a new stake in shares of Synopsys during the 4th quarter worth $32,000. Kemnay Advisory Services Inc. acquired a new position in Synopsys in the fourth quarter valued at about $35,000. Greenline Wealth Management LLC acquired a new stake in Synopsys during the fourth quarter worth about $37,000. Finally, WealthCollab LLC increased its holdings in Synopsys by 110.8% in 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 and hedge funds.

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.