Synopsys (NASDAQ:SNPS) Releases Earnings Results, Beats Estimates By $0.24 EPS

Synopsys (NASDAQ:SNPS) issued its quarterly earnings data on Wednesday. The semiconductor company reported $3.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.67 by $0.24, FiscalAI reports. The company had revenue of $2.48 billion for the quarter, compared to analyst estimates of $2.44 billion. Synopsys had a net margin of 8.91% and a return on equity of 5.83%. Synopsys updated its Q4 2026 guidance to 4.100-4.160 EPS.

Synopsys Stock Up 0.3%

SNPS stock traded up $1.21 on Wednesday, hitting $410.00. 2,333,926 shares of the company’s stock were exchanged, compared to its average volume of 1,984,665. Synopsys has a 12-month low of $366.00 and a 12-month high of $615.79. The firm has a 50 day moving average price of $417.74 and a two-hundred day moving average price of $439.85. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.32 and a current ratio of 1.43. The stock has a market cap of $78.51 billion, a P/E ratio of 94.91, a price-to-earnings-growth ratio of 2.32 and a beta of 1.23.

Key Headlines Impacting Synopsys

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.

Analysts Set New Price Targets

Several research firms have recently commented on SNPS. BNP Paribas Exane boosted their price target on Synopsys from $425.00 to $450.00 and gave the stock an “underperform” rating in a research report on Thursday, May 28th. Berenberg Bank set a $633.00 price objective on Synopsys in a research report on Wednesday, May 27th. Bank of America lifted their target price on Synopsys from $515.00 to $600.00 and gave the company a “buy” rating in a research note on Thursday, May 28th. Wells Fargo & Company reduced their target price on shares of Synopsys from $535.00 to $450.00 and set an “equal weight” rating for the company in a report on Tuesday, August 11th. Finally, Citigroup increased their price target on shares of Synopsys from $600.00 to $610.00 and gave the company a “buy” rating in a research report on Thursday, May 28th. Eleven investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Synopsys currently has a consensus rating of “Moderate Buy” and a consensus target price of $563.59.

Insider Activity

In other news, CFO Shelagh Glaser sold 3,394 shares of the business’s stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $450.02, for a total transaction of $1,527,367.88. Following the sale, the chief financial officer owned 14,358 shares in the company, valued at approximately $6,461,387.16. The trade was a 19.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of the firm’s stock in a transaction 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 transaction, the chief executive officer owned 75,020 shares of the company’s stock, valued at $34,431,179.20. This trade represents a 16.29% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. 0.56% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Synopsys

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Synopsys in the fourth quarter valued at about $28,000. Atlas Capital Advisors Inc. acquired a new position in shares of Synopsys during the 4th quarter worth about $32,000. Kemnay Advisory Services Inc. acquired a new position in shares of Synopsys during the 4th quarter worth about $35,000. WealthCollab LLC lifted its stake 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 in the last quarter. Finally, Greenline Wealth Management LLC purchased a new position in Synopsys in the 4th quarter valued at about $37,000. Hedge funds and other institutional investors own 85.47% of the company’s stock.

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.