Synopsys, Inc.

(NASDAQ Global Select)

Top News rankings and signal summaries are processed using AI and may contain errors.

1
Bullish +75

Synopsys Earnings Call: AI Tailwinds Lift Outlook

AI-generated analysis

Synopsys (SNPS) reported strong Q2 earnings with revenue of $2.276 billion, beating guidance, and non-GAAP EPS of $3.35 exceeding expectations. Management raised full-year 2026 revenue guidance to $9.625-$9.705 billion and non-GAAP EPS to $14.72-$14.80, driven by AI demand in electronic design automation (EDA) and the...

Bullish Signals

  • Synopsys Q2 revenue hit $2.276B, beating guidance.
  • Non-GAAP EPS of $3.35 exceeded expectations.
  • Fiscal 2026 revenue guidance raised to $9.625B-$9.705B.
  • Q2 free cash flow reached $575 million.
  • Company launched $250M accelerated share repurchase program.

Bearish Signals

  • Design IP revenue declined 6% year-over-year.
  • Restructuring charges boosted costs by $2.156B, yielding minimal $0.09 GAAP EPS.
  • $10B debt creates leverage risks if demand softens.
  • Processor IP divestiture cuts fiscal 2026 revenue by ~$40M.
  • China export restrictions limit near-term growth potential.
  • ANSYS accounting changes complicate top-line comparisons.
2
Bullish +72

Morgan Stanley raised target for Synopsys stock to USD 574

Analyst upgrade AI-generated analysis

Morgan Stanley raised its price target for Synopsys Inc. to USD 574 on October 20, 2026, maintaining an Overweight rating following a robust fiscal third quarter. The company reported fiscal Q3 revenue of USD 2.48 billion, representing a significant 42.4 percent year-over-year increase, with diluted...

Bullish Signals

  • Morgan Stanley raised price target to $574, Overweight rating.
  • Q3 revenue accelerated 42.4% YoY to $2.48 billion.
  • EPS rose to $2.84 with net income of $545.8M.
  • Authorized $1.0B share repurchase program for capital allocation.
3
Bullish +65

Synopsys Is the Nasdaq 100’s Top Stock Today. The Target Says It’s Not Done

AI partnership Financial outlook New AI features AI-generated analysis

Synopsys (SNPS) surged 8.8% to approximately $474.28 following a blockbuster Investor Day, positioning it as the top performer in the Nasdaq 100 for the session. The rally was driven by significant strategic partnerships with OpenAI and Amazon, alongside a raised full-year earnings outlook that exceeded...

Bullish Signals

  • Revenue hit $2.48B, up 42.4% YoY vs $2.44B estimate.

Bearish Signals

  • Synergies from Ansys won't hit until FY27.
  • Bull case hinges on risky Ansys integration.
4
Bullish +72

What to Know as Wells Fargo Upgrades Synopsys Stock

AI-generated analysis

Wells Fargo analyst Joe Quatrochi upgraded Synopsys (SNPS) to an 'Overweight' rating and raised his price target to $475, citing accelerating demand in artificial intelligence and advanced semiconductor design automation. The analyst views the company as a primary beneficiary of growing AI adoption, which is...

Bullish Signals

  • Wells Fargo upgraded to Overweight with $475 target, ~20% upside.

Bearish Signals

  • Historical September losses average -3.55%, reducing near-term appeal.
  • Stock trades 25% below YTD high despite recent upgrade.
5
Bullish +65

Synopsys shares rally as activist Elliott builds multibillion-dollar stake in chip design firm - CNBC

AI-generated analysis

Activist investor Elliott Investment Management has established a multibillion-dollar stake in Synopsys (SNPS), prompting a roughly 3% rally in the chip design firm's shares. Jesse Cohn, Elliott's managing partner, described Synopsys as essential to the global chip industry, noting that AI-driven increases in chip complexity...

Bullish Signals

  • Activist Elliott holds a multibillion-dollar stake signaling strong confidence.
  • Elliott states Synopsys is essential to the global chip industry.
  • Nvidia's $2 billion purchase underscores high demand for AI tools.
  • Elliott aims to align financial performance with delivered value.
  • Synopsys benefits from AI-driven complexity and capital investment growth.

Bearish Signals

  • Memory chip shortage may persist through 2027, constraining AI supply.
  • Elliott stake value undisclosed, creating activist involvement uncertainty.
6
Bullish +65

Synopsys Stock (SNPS) Opinions on Earnings Beat - Quiver Quantitative

AI-generated analysis

Synopsys (SNPS) reported a significant earnings beat in Q1 2026, with revenue surging to $2.4 billion, representing a 65.52% year-over-year increase. The company demonstrated robust execution and strong AI-driven demand, particularly within its design automation segment, which drove margin expansion. Social media sentiment was overwhelmingly...

Bullish Signals

  • Revenue surged 65.52% YoY to $2.4 billion.
  • NVIDIA invested $2.26 billion in Synopsys AI ecosystem.
  • Essential partner for semiconductor capital expenditure surge.
  • Median price target is $560 with Buy ratings.
  • Members of Congress bought shares recently.

Bearish Signals

  • UBS cut position by $2.56B (-73.6%), signaling major holder loss of confidence.
  • Institutional investors sold over $1B combined in Q4 2025.
  • Top executives net sold nearly $9.5 million worth of shares.
  • Piper Sandler and Wells Fargo set lower price targets at $430 and $450.
  • Exane BNP Paribas issued an 'Underperform' rating in October 2025.
7
Bullish +75

Synopsys Set Price Surge: Here Is The Bullish Prediction

AI-generated analysis

Synopsys (SNPS) shares are trading at $483.89, reflecting recent volatility and a significant rebound following its Q1 FY2026 earnings report released on February 25, 2026. The company reported revenue of $2.41 billion, representing a 65.4% year-over-year increase driven largely by the integration with Ansys, while...

Bullish Signals

  • Synopsys trades at $483.89 with a price target of $597.11, implying 23.4% upside.
  • Q1 FY2026 revenue hit $2.41B, up 65.4% year-over-year driven by Ansys integration.
  • Non-GAAP EPS of $3.77 beat consensus by 5.98%, showing strong operational performance.
  • Operating cash flow reached $856.83M after retiring $3.45B in debt.
  • Board replenished $2B buyback authorization, signaling confidence in stock value.
  • AI-driven backlog of $11.4B strengthens strategic advantage under CEO Sassine Ghazi.
  • Analyst consensus target of $534.65 reflects broad institutional confidence with 17 Buy ratings.
  • Bear-case scenario offers 7.37% return, providing downside protection in current pricing.
  • MACD turned bullish on April 20-21, suggesting renewed investor interest.
  • Bullish thesis remains robust if Ansys synergies track and Q2 guide holds.

Bearish Signals

  • Stock sits 18% below 52-week high of $651.73.
  • October selloff saw 35.84% drop after 9.48% EPS miss.
  • GAAP income fell 78.03% year-over-year in Q1.
  • $404 million amortization from Ansys purchase hurt earnings.
  • Morgan Stanley downgraded stock due to growth concerns.
  • China export controls risk revenue streams.
  • Restructuring charges flagged for FY26 costs.
  • Bear case targets $519.55 with only 7.37% return.
  • Earnings at risk if exports escalate or guidance cut.
  • Seasoned observer skeptic excludes Synopsys from top 10.
8
Bullish +75

This AI Chip Design Stock Is 24% Below Its High While Revenue Grew 42%. Wall Street Is Focused on the Wrong Number

AI-generated analysis

Synopsys (NASDAQ:SNPS) is trading at $494.48, which is 24% below its 52-week high of $651.73, as Wall Street focuses on accounting noise from the $35 billion Ansys acquisition rather than the underlying agentic AI catalyst. The company sits at the center of advanced chip design,...

Bullish Signals

  • Synopsys Q2 FY2026 revenue hit $2.275B, up 41.98% YoY.
  • Non-GAAP EPS of $3.35 beat estimates by 5.96%.
  • Full-year guidance raised to $9.665B revenue and $14.76 EPS.
  • Design Automation adjusted operating margin expanded to 43.3%.
  • $11.4B backlog and $2B free cash flow ensure stability.
  • 17 of 25 analysts rate stock Buy or Strong Buy.
  • Stock trades at $494.48 with ~13% upside to $560.38 target.
  • Institutional ownership stands at 90.89%.

Bearish Signals

  • Stock trades at $494.48, 24% below 52-week high.
  • Shares dropped 35.84% on Q3 miss before stabilizing.
  • $10B debt saddles company after Ansys acquisition.
  • GAAP income collapsed 95.05% due to amortization.
  • $234.2M restructuring charges hit Design IP segment.
  • Unresolved shareholder lawsuits over prior disclosures.
  • Trailing P/E of 114 remains expensive on earnings.
  • Shares up only 5.27% YTD vs S&P 500's 10.8%.
  • Technical indicators signal consolidation, not breakout.
9
Bullish +75

AI Designing AI: The Hidden Reason Nvidia Owns a $2 Billion Stake in Synopsys

AI-generated analysis

NVIDIA has expanded its strategic partnership with Synopsys following a $2 billion investment disclosed earlier in the year, which was confirmed as one of NVIDIA's top holdings in Q4 2025 alongside Intel. This investment is intended to accelerate debt repayment related to Synopsys' acquisition of...

Bullish Signals

  • Synopsys Q2 FY2026 revenue hit $2.28B, up 42% YoY.
  • Non-GAAP EPS of $3.35 beat consensus by 5.96%.
  • Design Automation margins expanded to 43.3% from 40.9%.
  • Full-year guidance raised to $9.665B revenue and $14.72-$14.80 EPS.
  • NVIDIA partnership and $2B investment highlight AI tool importance.
  • Elliott acquired stake, pushing for margin expansion vs Cadence.
  • Shares trade at 33x forward earnings despite 42% growth.
  • Analyst target price is $560.38 with 17 Buy ratings.

Bearish Signals

  • $10B debt may pressure liquidity or raise interest costs.
  • Export controls could disrupt operations and revenue in key markets.
10
Bullish +75

Marvell, Synopsys close lower despite forecast-topping earnings buoyed by AI

AI-generated analysis

Marvell Technology Inc. and Synopsys Inc. reported first-quarter earnings that exceeded analyst expectations, driven by surging demand for artificial intelligence data center components. Despite the strong financial performance, both stocks closed lower on the day, with Marvell down 4.6% and Synopsys down 1.6%. Marvell posted...

Bullish Signals

  • Marvell & Synopsys beat quarterly revenue expectations.
  • Both raised fiscal year guidance on AI demand.
  • Marvell Q1 profit met targets; revenue up 28% to $2.41B.
  • Marvell raised annual sales guidance to $11.5B.
  • Synopsys Q2 adjusted profit beat estimates at $3.35/share.
  • Synopsys raised full-year earnings target to $14.76/share.
  • AI scaling drives sustained growth and margin expansion.

Bearish Signals

  • Marvell and Synopsys stocks fell despite earnings beats.
  • Synopsys guidance hinges on uncertain Ansys synergy savings.
11
Somewhat Bullish +35

Synopsys sets 2027 targets: Synopsys stock falls 1.70 percent

Acquisition Financial outlook AI-generated analysis

Synopsys Inc. provided updated fiscal 2027 revenue guidance ranging from USD 11.10 billion to USD 11.20 billion, with a midpoint of USD 11.15 billion representing approximately 15% growth. This outlook was presented during the company's Investor Day on September 30, 2026, establishing a clear benchmark...

Bullish Signals

  • Fiscal 2027 revenue guidance set at $11.1B-$11.2B, implying ~15% growth.

Bearish Signals

  • Export restrictions pose material uncertainty for future operations.
  • Heavy reliance on few large customers is a risk.
  • Ansys acquisition execution risks are explicitly listed as material.
  • Q3 growth includes full Ansys quarter, making comparison less clean.
12
Bullish +75

Needham raises target for Synopsys stock to USD 620.00

Analyst upgrade AI-generated analysis

Needham & Company raised its price target for Synopsys Inc. (SNPS) from USD 580.00 to USD 620.00 on October 12, 2026, while maintaining a Buy rating. The analyst upgrade cites strong third-quarter performance as the primary driver, noting that revenue growth provides a robust operating...

Bullish Signals

  • Needham raised price target to USD 620.00 with Buy rating.
  • Q3 revenue surged 42.40% YoY to USD 2.48 billion.
  • EPS of USD 3.91 beat consensus estimates of USD 3.67.
13
Bullish +55

Synopsys Stock Will End The Year at This Price - 24/7 Wall St.

AI-generated analysis

Synopsys (NASDAQ:SNPS) has faced headwinds in 2026, trading at $448.38 with a 10.76% decline over the past month and 4.54% year-to-date, despite its critical role as a duopoly leader in semiconductor design software. The company recently reported strong Q2 FY2026 results on May 27, 2026,...

Bullish Signals

  • Q2 FY2026 revenue surged 42% to $2.276 billion.
  • Non-GAAP EPS of $3.35 beat consensus by 5.96%.
  • Full-year guidance raised to revenue midpoint of $9.665 billion.
  • Analysts upgraded with price targets above $600.
  • Structural moat as essential technology for modern chip design.

Bearish Signals

  • $10B debt load weighs on financial flexibility.
  • $403.6M quarterly amortization compresses GAAP margins.
  • CFO $1.53M sale signals potential insider caution.
  • $40M Processor IP divestiture cuts FY26 revenue.
  • 104x P/E ratio indicates high valuation multiple.
14
Bullish +55

Can Synopsys Stock Hit $600 by March 2027?

AI-generated analysis

Synopsys (NASDAQ:SNPS) stock is currently trading at $465, down 1% year-to-date, despite reporting a robust 42% year-over-year revenue growth to $2.28 billion in Q2 FY26 and non-GAAP EPS of $3.35 that beat estimates. The disconnect between strong fundamentals and stock performance is attributed to the...

Bullish Signals

  • Revenue grew 42% YoY in Q2 FY26.
  • Non-GAAP EPS of $3.35 beat estimates.
  • FY26 EPS guidance raised to $14.72-$14.80.
  • Norges Bank added $730 million stake.
  • Stock trades at 31x forward earnings.

Bearish Signals

  • $10B debt from $35B Ansys acquisition increases leverage risk.
  • Zacks 'Sell' rating cites premium valuation and margin compression.
  • Design IP softening due to Processor IP Solutions divestiture.
  • Delayed integration may pressure margins, derailing $600 target.
15
Bullish +65

Synopsys shares rally as activist Elliott builds multibillion-dollar stake in chip design firm - CNBC

AI-generated analysis

Activist investor Elliott Investment Management has established a multibillion-dollar stake in Synopsys (SNPS), prompting a roughly 3% rally in the chip design firm's shares. Jesse Cohn, Elliott's managing partner, described Synopsys as essential to the global chip industry, noting that AI-driven increases in chip complexity...

Bullish Signals

  • Activist Elliott takes multibillion-dollar stake signaling strong confidence.
  • Jesse Cohn calls Synopsys essential to global chip industry.
  • Nvidia invested $2 billion and expanded partnership with Synopsys.
  • Elliott aims to improve execution for enhanced financial performance.
  • Synopsys holds $80 billion market cap reflecting dominance.

Bearish Signals

  • Memory chip shortage expected through 2027 constrains AI supply.
  • Elliott stake value undisclosed creates uncertainty on commitment scale.
16
Slightly Bullish +25

New Synopsys tool lets carmakers test 90% of code before hardware - Stock Titan

AI-generated analysis

Synopsys (NASDAQ: SNPS) launched the Electronics Digital Twin (eDT) Platform on March 10, 2026, an open cloud-native solution designed to accelerate the development of physical AI systems. Initially targeting the automotive sector, the platform enables Original Equipment Manufacturers (OEMs) to validate up to 90% of...

Bullish Signals

  • Enables shift-left strategy validating 90% of software before hardware.
  • Partnerships with AWS, Arm, Vector, and Volvo ensure robust scaling.
  • Open cloud-native architecture supports flexible SaaS and BYOC models.
  • Pre-built tools reduce friction for early SoC design evaluation.
  • Manages massive 600M+ lines of code in automotive systems.

Bearish Signals

  • Stock price declined 1.05% on announcement day.
  • Limited focus on high-value automotive use cases.
  • High compute needs may increase customer capex.
17
Bullish +65

If You Invest $1,000 in Synopsys Today, Here’s What It Could Be Worth by 2029

Earnings report Guidance raised AI-generated analysis

Synopsys (SNPS) reported a significant beat in its third-quarter fiscal 2026 results, with revenue jumping 42% year-over-year to $2.48 billion against estimates of $2.44 billion. The company also delivered non-GAAP EPS of $3.91, surpassing the expected $3.67, marking the fourth consecutive quarter of beating earnings...

Bullish Signals

  • Revenue surged 42% to $2.48B, beating estimates.

Bearish Signals

  • Export controls risk severely impacting key markets.
  • Reliance on few large customers creates concentration risk.
  • $10B debt from Ansys deal impacts financial flexibility.
  • $404M intangible amortization weighs on GAAP profits.
  • Stock dropped 11.91% with high market sensitivity.
18
Somewhat Bearish -25

How Low Can Synopsys Stock Go?

Earnings report Financial outlook AI-generated analysis

Synopsys (SNPS) shares have declined 8.4% over the past month, underperforming the S&P 500 and sitting 12.6% below their yearly high. The article analyzes the company's historical resilience during market shocks, noting that while it has recovered from previous downturns with a median wait of...

Bullish Signals

  • Revenue grew 42.4% YoY to $2.48B in Q3 2026.
  • AI design starts accelerated among customers.
  • Operating margins improved to 14.5% from 9.5%.

Bearish Signals

  • Shares slipped 8.4% over past month, underperforming S&P 500.
  • Operating margins compressed to 11.0%, down from 24.6% two years ago.
  • Debt climbed to $10.8 billion, up from $0.67 billion two years earlier.
  • Non-AI chip designs slowing create headwinds in non-AI revenue streams.
  • Restructuring charges raised for fiscal 2026 as cost-saving initiatives accelerate.
19
Bullish +65

Here’s What $10,000 Invested in Synopsys Stock Could Be Worth by 2030

AI integration Acquisition Company update AI-generated analysis

Synopsys (SNPS) is projected to deliver significant returns over the next five years, with analysts estimating a $10,000 investment could grow to approximately $20,481 by 2030 in a base case scenario. The company's growth thesis relies heavily on its dominant position in electronic design automation...

Bullish Signals

  • Revenue grew 42.4% to $2.48B driven by AI chip designs.

Bearish Signals

  • $10B debt from Ansys creates financial leverage risks.
20
Somewhat Bearish -45

SNPS Rises 8.2% YTD: Should Investors Hold or Fold the Stock?

AI-generated analysis

Synopsys, Inc. (SNPS) shares have risen 8.2% year-to-date, significantly outperforming the broader Zacks Computer - Software industry which declined 6.9%. Despite this price appreciation, the stock trades at a premium valuation with a P/E multiple of 44.45x compared to the industry average of 24.02x, resulting...

Bullish Signals

  • SNPS shares up 8.2% YTD, outperforming software sector.
  • AI automation boosts engineering workflows and customer productivity.
  • Knowledge assistance 50% faster; workflow 70% faster.
  • Formal testbench generation accelerated 5x by AI tools.
  • Fiscal 2026 earnings estimated at $14.49 with 12% growth.

Bearish Signals

  • P/E of 44.45x is double industry average of 24.02x.
  • Design IP revenue fell to $454.2M in Q2 fiscal 2026.
  • Adjusted operating margins dropped to 24% in Q2 and 21% avg.
  • Debt of $10.014B far exceeds cash reserves of $2.484B.
  • High debt financing costs negatively impact the bottom line.