Synopsys (NASDAQ:SNPS) Releases Q2 2026 Earnings Guidance

Synopsys (NASDAQ:SNPS) updated its second quarter 2026 earnings guidance on Wednesday. The company provided EPS guidance of 3.110-3.170 for the period, compared to the consensus EPS estimate of 2.690. The company issued revenue guidance of $2.2 billion-$2.3 billion, compared to the consensus revenue estimate of $2.2 billion. Synopsys also updated its FY 2026 guidance to 14.380-14.460 EPS.

Analysts Set New Price Targets

SNPS has been the topic of several research reports. JPMorgan Chase & Co. increased their target price on Synopsys from $600.00 to $650.00 and gave the stock an “overweight” rating in a research note on Thursday, December 11th. Wells Fargo & Company boosted their price target on shares of Synopsys from $445.00 to $500.00 and gave the stock an “equal weight” rating in a research note on Thursday, December 11th. Weiss Ratings reissued a “hold (c)” rating on shares of Synopsys in a research note on Thursday, January 22nd. Wall Street Zen raised shares of Synopsys from a “sell” rating to a “hold” rating in a research note on Saturday, December 13th. Finally, HSBC lowered shares of Synopsys from a “buy” rating to a “hold” rating and set a $455.00 target price on the stock. in a report on Friday, February 20th. Nine research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $547.00.

Synopsys Stock Up 1.9%

Shares of SNPS traded up $8.45 during midday trading on Wednesday, reaching $449.17. The stock had a trading volume of 2,903,310 shares, compared to its average volume of 2,187,868. The company has a market cap of $86.04 billion, a price-to-earnings ratio of 56.22, a PEG ratio of 3.50 and a beta of 1.12. The company’s fifty day simple moving average is $472.93 and its two-hundred day simple moving average is $479.23. Synopsys has a 1-year low of $365.74 and a 1-year high of $651.73. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.62 and a quick ratio of 1.52.

Synopsys (NASDAQ:SNPS) last posted its 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 firm had revenue of $2.25 billion during the quarter, compared to analysts’ expectations of $2.25 billion. Synopsys had a return on equity of 7.89% and a net margin of 18.89%.The firm’s revenue was up 37.8% compared to the same quarter last year. During the same quarter in the previous year, the business 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. Equities research analysts expect that Synopsys will post 10.64 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Janet Lee sold 250 shares of the stock in a transaction on Monday, January 12th. The shares were sold at an average price of $530.00, for a total value of $132,500.00. Following the transaction, the insider directly owned 11,959 shares of the company’s stock, valued at $6,338,270. This trade represents a 2.05% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Shelagh Glaser sold 3,657 shares of the business’s stock in a transaction 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 sale, the chief financial officer directly owned 17,842 shares of the company’s stock, valued at approximately $8,221,058.34. This trade represents a 17.01% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 4,157 shares of company stock worth $1,945,036 over the last ninety days. Insiders own 0.62% of the company’s stock.

Key Stories Impacting Synopsys

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

Hedge Funds Weigh In On Synopsys

A number of hedge funds and other institutional investors have recently bought and sold shares of SNPS. Sunbelt Securities Inc. lifted its stake in shares of Synopsys by 1,250.0% in the 4th quarter. Sunbelt Securities Inc. now owns 243 shares of the semiconductor company’s stock worth $114,000 after acquiring an additional 225 shares during the period. Axxcess Wealth Management LLC raised its holdings in Synopsys by 39.4% during the fourth quarter. Axxcess Wealth Management LLC now owns 4,581 shares of the semiconductor company’s stock worth $2,152,000 after purchasing an additional 1,295 shares in the last quarter. Corient Private Wealth LLC raised its holdings in Synopsys by 31.0% during the fourth quarter. Corient Private Wealth LLC now owns 35,155 shares of the semiconductor company’s stock worth $16,513,000 after purchasing an additional 8,322 shares in the last quarter. Mercer Global Advisors Inc. ADV lifted its position in Synopsys by 1.3% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 7,534 shares of the semiconductor company’s stock valued at $3,539,000 after purchasing an additional 96 shares during the period. Finally, Vident Advisory LLC boosted its holdings in Synopsys by 35.6% in the 4th quarter. Vident Advisory LLC now owns 36,721 shares of the semiconductor company’s stock valued at $17,249,000 after purchasing an additional 9,633 shares in the last quarter. 85.47% of the stock is currently owned by hedge funds and other institutional investors.

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.