Synopsys (NASDAQ:SNPS) Issues FY 2027 Earnings Guidance

Synopsys (NASDAQ:SNPS) updated its FY 2027 earnings guidance on Wednesday. The company provided EPS guidance of 19.040-19.120 for the period, compared to the consensus earnings per share estimate of 16.780. The company issued revenue guidance of $11.1 billion-$11.2 billion, compared to the consensus revenue estimate of $10.8 billion.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on SNPS shares. Benchmark restated a “buy” rating and set a $570.00 price target on shares of Synopsys in a report on Thursday, August 27th. Roth Capital raised shares of Synopsys to a “buy” rating in a research report on Friday, September 25th. KeyCorp upped their target price on Synopsys from $600.00 to $605.00 and gave the company an “overweight” rating in a report on Thursday. Mizuho lowered their target price on Synopsys from $600.00 to $550.00 and set an “outperform” rating on the stock in a research note on Thursday, August 27th. Finally, BNP Paribas Exane raised shares of Synopsys from an “underperform” rating to a “neutral” rating and set a $420.00 target price for the company in a research report on Thursday, September 24th. Seventeen research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $584.11.

Synopsys Trading Up 12.8%

Shares of SNPS opened at $490.54 on Friday. Synopsys has a twelve month low of $362.55 and a twelve month high of $539.48. The stock has a market cap of $94.01 billion, a PE ratio of 86.67, a P/E/G ratio of 2.38 and a beta of 1.21. The company has a quick ratio of 1.24, a current ratio of 1.34 and a debt-to-equity ratio of 0.29. The business’s 50-day moving average price is $405.69 and its 200-day moving average price is $436.03.

Synopsys (NASDAQ:SNPS) last released 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 11.43% and a return on equity of 6.24%. The firm had revenue of $2.48 billion for the quarter, compared to analysts’ expectations of $2.44 billion. During the same quarter in the prior year, the firm posted $3.39 earnings per share. The business’s quarterly revenue was up 42.4% on a year-over-year basis. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. On average, equities analysts forecast that Synopsys will post 10.97 EPS for the current fiscal year.

Insider Buying and Selling at Synopsys

In other news, CEO Sassine Ghazi sold 14,604 shares of the company’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $374.88, for a total transaction of $5,474,747.52. Following the completion of the transaction, the chief executive officer directly owned 76,865 shares of the company’s stock, valued at approximately $28,815,151.20. This represents a 15.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Aart de Geus sold 25,000 shares of the firm’s stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $441.76, for a total value of $11,044,000.00. Following the completion of the sale, the insider directly owned 120,421 shares in the company, valued at $53,197,180.96. The trade was a 17.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 89,245 shares of company stock worth $37,992,919. 0.56% of the stock is owned by insiders.

Key Headlines Impacting Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Above-consensus fiscal 2027 outlook: At its 2026 Investor Day, Synopsys forecast revenue of approximately $11.1 billion to $11.2 billion and adjusted EPS of $19.04 to $19.12, exceeding consensus estimates of $10.8 billion and $16.78, respectively. The company also outlined long-term growth and margin-expansion targets. Synopsys sets fiscal 2027 revenue target of $11.15B at investor day
• Positive Sentiment: Large Amazon agreement: AWS signed a multiyear custom-silicon agreement valued at more than $1 billion. The deal expands Synopsys’ silicon IP business and introduces a license-plus-royalty model that could create recurring revenue as Amazon’s chip production increases. Synopsys, Amazon Web Services sign chip design licensing deal worth more than $1 billion
• Positive Sentiment: OpenAI partnership strengthens the AI narrative: Synopsys and OpenAI will develop GPT-Synopsys, a specialized model combining OpenAI technology with Synopsys’ electronic-design-automation tools. The companies plan joint research, commercialization and revenue sharing, potentially accelerating chip-design workflows and expanding Synopsys’ role in AI infrastructure. Synopsys, OpenAI strike deal to develop AI model for chip design work
• Positive Sentiment: Analyst upgrades and higher targets: Deutsche Bank raised its price target to $640, while Rosenblatt increased its target to $620 and maintained a Buy rating. BofA and KeyBanc also reportedly raised targets after the Investor Day, citing stronger-than-expected growth prospects. Synopsys Stock Surges as Deutsche Bank Boosts Price Target to $640
• Positive Sentiment: Strategic expansion beyond traditional EDA: Synopsys’ Ansys acquisition adds system-level and multiphysics simulation capabilities, broadening its addressable market. Recent quarterly revenue rose 42.4% year over year to $2.48 billion, while adjusted EPS of $3.91 exceeded estimates. Synopsys: AI And Ansys Create A Growth Story
• Neutral Sentiment: Unusually heavy call-option activity reflected bullish trading interest, with 12,317 calls purchased—roughly double the average volume—but this can increase short-term volatility rather than establish fundamental value.
• Negative Sentiment: Execution and valuation remain risks. Synopsys must integrate Ansys and convert large strategic agreements into recurring revenue, while its roughly 86.7 price-to-earnings ratio leaves the stock sensitive to any slowdown or missed expectations.

About Synopsys

Synopsys, Inc is a technology company that develops electronic design automation (EDA) software, semiconductor intellectual property (IP), and software tools used to design, verify, and manufacture advanced electronic systems. Its solutions support the development of semiconductors, systems-on-chip, and electronic products across the design cycle, from initial specification and architecture through testing and production.

The company’s offerings include digital and custom integrated-circuit design tools, simulation and verification software, physical design and signoff products, and semiconductor IP such as processor cores, interface technologies, and foundational components.