Synopsys (NASDAQ:SNPS) Updates Q3 2026 Earnings Guidance

Synopsys (NASDAQ:SNPS) updated its third quarter 2026 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 3.630-3.690 for the period, compared to the consensus estimate of 3.420. The company issued revenue guidance of $2.4 billion-$2.5 billion, compared to the consensus revenue estimate of $2.4 billion. Synopsys also updated its FY 2026 guidance to 14.720-14.800 EPS.

Analyst Ratings Changes

Several brokerages have issued reports on SNPS. Needham & Company LLC reissued a “buy” rating on shares of Synopsys in a research report on Thursday, February 26th. Citigroup raised their price objective on shares of Synopsys from $580.00 to $600.00 and gave the stock a “buy” rating in a research report on Wednesday, May 13th. Piper Sandler lowered their price objective on shares of Synopsys from $520.00 to $430.00 and set a “neutral” rating on the stock in a research report on Thursday, February 26th. The Goldman Sachs Group set a $600.00 price objective on shares of Synopsys and gave the stock a “buy” rating in a research report on Wednesday, February 25th. Finally, Morgan Stanley reissued an “equal weight” rating and set a $480.00 price objective (down from $550.00) on shares of Synopsys in a research report on Wednesday, February 25th. Eight research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $544.88.

Synopsys Stock Performance

SNPS stock traded down $8.46 during trading on Wednesday, hitting $526.10. 1,633,149 shares of the company’s stock traded hands, compared to its average volume of 1,989,810. The company has a quick ratio of 1.26, a current ratio of 1.36 and a debt-to-equity ratio of 0.33. Synopsys has a 52 week low of $376.18 and a 52 week high of $651.73. The stock has a fifty day moving average price of $455.56 and a two-hundred day moving average price of $452.78. The stock has a market capitalization of $100.78 billion, a price-to-earnings ratio of 81.69, a price-to-earnings-growth ratio of 4.30 and a beta of 1.25.

Synopsys (NASDAQ:SNPS) last released its earnings results on Wednesday, February 25th. The semiconductor company reported $3.77 earnings per share for the quarter, beating the consensus estimate of $3.56 by $0.21. Synopsys had a net margin of 13.76% and a return on equity of 6.83%. The firm had revenue of $2.41 billion during the quarter, compared to analyst estimates of $2.39 billion. During the same quarter in the previous year, the firm earned $3.03 earnings per share. The firm’s revenue for the quarter was up 65.6% compared to the same quarter last year. As a group, equities analysts anticipate that Synopsys will post 10.28 EPS for the current fiscal year.

Institutional Trading of Synopsys

A number of hedge funds have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Synopsys in the fourth quarter worth $28,000. Atlas Capital Advisors Inc. acquired a new position in Synopsys in the fourth quarter worth approximately $32,000. Kemnay Advisory Services Inc. acquired a new position in Synopsys in the fourth quarter worth approximately $35,000. Greenline Wealth Management LLC acquired a new position in Synopsys in the fourth quarter worth approximately $37,000. Finally, WealthCollab LLC boosted its position in Synopsys by 110.8% during the third quarter. WealthCollab LLC now owns 78 shares of the semiconductor company’s stock worth $38,000 after purchasing an additional 41 shares during the period. 85.47% of the stock is owned by hedge funds and other institutional investors.

About Synopsys

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.