Synopsys (NASDAQ:SNPS) Issues Earnings Results

Synopsys (NASDAQ:SNPS) announced its quarterly earnings data on Wednesday. The semiconductor company reported $1.90 earnings per share for the quarter, missing the consensus estimate of $2.79 by ($0.89), Zacks reports. Synopsys had a net margin of 31.04% and a return on equity of 10.82%. Synopsys updated its FY 2026 guidance to 14.320-14.400 EPS and its Q1 2026 guidance to 3.520-3.580 EPS.

Synopsys Price Performance

Synopsys stock traded up $9.98 during mid-day trading on Wednesday, reaching $475.83. The company had a trading volume of 2,905,709 shares, compared to its average volume of 1,878,206. The business has a fifty day simple moving average of $436.17 and a 200 day simple moving average of $504.88. The company has a market cap of $88.39 billion, a P/E ratio of 37.35, a P/E/G ratio of 5.34 and a beta of 1.16. Synopsys has a fifty-two week low of $365.74 and a fifty-two week high of $651.73. The company has a current ratio of 1.62, a quick ratio of 1.51 and a debt-to-equity ratio of 0.52.

Wall Street Analysts Forecast Growth

SNPS has been the subject of a number of analyst reports. Morgan Stanley dropped their price target on Synopsys from $715.00 to $510.00 and set an “overweight” rating for the company in a research note on Thursday, September 11th. Mizuho dropped their target price on shares of Synopsys from $700.00 to $600.00 and set an “outperform” rating for the company in a research report on Thursday, September 11th. Piper Sandler reduced their price target on shares of Synopsys from $660.00 to $630.00 and set an “overweight” rating on the stock in a research report on Wednesday, September 10th. JPMorgan Chase & Co. lowered their price objective on shares of Synopsys from $685.00 to $600.00 and set an “overweight” rating for the company in a research report on Wednesday, September 10th. Finally, Citigroup initiated coverage on Synopsys in a research note on Monday, November 24th. They set a “buy” rating and a $580.00 target price for the company. Eleven equities research 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. Based on data from MarketBeat, Synopsys has a consensus rating of “Moderate Buy” and a consensus price target of $550.67.

Insiders Place Their Bets

In related news, CAO Sudhindra Kankanwadi sold 9,873 shares of the firm’s stock in a transaction on Monday, September 22nd. The stock was sold at an average price of $500.90, for a total transaction of $4,945,385.70. Following the sale, the chief accounting officer owned 20,520 shares of the company’s stock, valued at $10,278,468. This trade represents a 32.48% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Robert G. Painter acquired 350 shares of Synopsys stock in a transaction that occurred on Thursday, September 11th. The shares were purchased at an average price of $425.44 per share, for a total transaction of $148,904.00. Following the transaction, the director directly owned 2,291 shares in the company, valued at $974,683.04. The trade was a 18.03% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.62% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Synopsys

A number of hedge funds have recently modified their holdings of SNPS. Centaurus Financial Inc. increased its holdings in Synopsys by 2.2% in the third quarter. Centaurus Financial Inc. now owns 1,364 shares of the semiconductor company’s stock valued at $673,000 after purchasing an additional 30 shares during the period. Resources Management Corp CT ADV increased its stake in shares of Synopsys by 1.2% in the second quarter. Resources Management Corp CT ADV now owns 2,639 shares of the semiconductor company’s stock valued at $1,353,000 after buying an additional 31 shares during the period. Vise Technologies Inc. raised its position in shares of Synopsys by 1.5% during the third quarter. Vise Technologies Inc. now owns 2,707 shares of the semiconductor company’s stock worth $1,336,000 after acquiring an additional 40 shares during the last quarter. WealthCollab LLC lifted its stake in shares of Synopsys by 110.8% in the third quarter. WealthCollab LLC now owns 78 shares of the semiconductor company’s stock worth $38,000 after acquiring an additional 41 shares during the period. Finally, Hancock Whitney Corp boosted its holdings in Synopsys by 1.9% in the third quarter. Hancock Whitney Corp now owns 2,510 shares of the semiconductor company’s stock valued at $1,238,000 after acquiring an additional 46 shares during the last quarter. Institutional investors and hedge funds own 85.47% of the company’s stock.

Synopsys Company Profile

Synopsys, Inc provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions.