Synopsys (NASDAQ:SNPS) Updates Q4 2026 Earnings Guidance

Synopsys (NASDAQ:SNPS) issued an update on its fourth quarter 2026 earnings guidance on Wednesday. The company provided EPS guidance of 4.100-4.160 for the period, compared to the consensus earnings per share estimate of 3.780. The company issued revenue guidance of $2.5 billion-$2.6 billion, compared to the consensus revenue estimate of $2.6 billion. Synopsys also updated its FY 2026 guidance to 15.040-15.100 EPS.

Synopsys Trading Up 0.3%

Shares of NASDAQ SNPS opened at $410.00 on Thursday. Synopsys has a twelve month low of $366.00 and a twelve month high of $615.79. The firm has a market cap of $78.51 billion, a PE ratio of 94.91, a price-to-earnings-growth ratio of 2.40 and a beta of 1.23. The business has a fifty day simple moving average of $416.71 and a two-hundred day simple moving average of $439.84. The company has a quick ratio of 1.32, a current ratio of 1.43 and a debt-to-equity ratio of 0.33.

Synopsys (NASDAQ:SNPS) last posted its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.67 by $0.24. The business had revenue of $2.48 billion for the quarter, compared to the consensus estimate of $2.44 billion. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The business’s revenue was up 42.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $3.39 EPS. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. Analysts expect that Synopsys will post 10.64 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on SNPS. Benchmark reaffirmed a “buy” rating on shares of Synopsys in a research report on Wednesday, August 19th. Zacks Research lowered shares of Synopsys from a “strong-buy” rating to a “hold” rating in a research report on Friday, August 21st. Rosenblatt Securities reissued a “buy” rating and set a $575.00 target price on shares of Synopsys in a research report on Tuesday. Morgan Stanley cut their price target on shares of Synopsys from $525.00 to $500.00 and set an “equal weight” rating on the stock in a research note on Wednesday, August 19th. Finally, BNP Paribas Exane lifted their price objective on shares of Synopsys from $425.00 to $450.00 and gave the stock an “underperform” rating in a research note on Thursday, May 28th. Eleven research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $563.71.

Insiders Place Their Bets

In other Synopsys news, CEO Sassine Ghazi sold 14,603 shares of the company’s stock in a transaction dated Monday, June 15th. The shares were 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 in the company, valued at approximately $34,431,179.20. This represents a 16.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 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. Also, CFO Shelagh Glaser sold 3,394 shares of the 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 directly 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.56% of the stock is currently owned by insiders.

Synopsys News Summary

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys reported fiscal Q3 revenue of $2.477 billion, up 42.4% year over year, while non-GAAP EPS of $3.91 exceeded the $3.67 consensus estimate. GAAP EPS was $2.84, compared with $1.51 a year earlier. Synopsys Posts Financial Results for Third Quarter Fiscal Year 2026
• Positive Sentiment: Management raised fiscal 2026 guidance to approximately $9.715 billion in revenue and $15.07 in non-GAAP EPS at the midpoint. Fourth-quarter EPS guidance of $4.10-$4.16 also sits above the $3.78 consensus estimate, supporting confidence in continued demand. Synopsys raises annual forecasts on AI-driven chip design software demand
• Positive Sentiment: Synopsys cited broad-based strength in Design Automation and sustained AI-related investment in semiconductor and infrastructure development. Its partnership with Nvidia, including Nvidia’s reported $2 billion investment, reinforces the long-term AI engineering opportunity. Nvidia’s $2 Billion Synopsys Bet Signals AI’s Next Frontier
• Positive Sentiment: Rosenblatt Securities reaffirmed its Buy rating and maintained a $575 price target, implying substantial upside from the reference price. Rosenblatt Reiterates Buy Rating on Synopsys
• Neutral Sentiment: The earnings call emphasized Synopsys’s shift toward autonomous engineering systems and significant customer productivity gains from AI, strengthening the long-term narrative but also raising investor expectations. Synopsys Q3 2026 Earnings Call Transcript
• Negative Sentiment: Despite the earnings beat and raised outlook, SNPS traded lower after the release. Fourth-quarter revenue guidance of $2.53-$2.58 billion is slightly below the roughly $2.6 billion consensus, while the stock’s elevated valuation—near 95 times earnings—leaves limited room for execution concerns or merely incremental guidance improvements.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Brighton Jones LLC raised its position in shares of Synopsys by 5.7% in the fourth quarter. Brighton Jones LLC now owns 921 shares of the semiconductor company’s stock valued at $447,000 after buying an additional 50 shares during the last quarter. DV Equities LLC acquired a new stake in Synopsys in the 4th quarter valued at about $123,000. Fairscale Capital LLC boosted its holdings in shares of Synopsys by 100.9% during the 4th quarter. Fairscale Capital LLC now owns 223 shares of the semiconductor company’s stock worth $105,000 after purchasing an additional 112 shares during the last quarter. Aster Capital Management DIFC Ltd purchased a new position in Synopsys during the fourth quarter worth approximately $129,000. Finally, IFC & Insurance Marketing Inc. purchased a new position in shares of Synopsys during the 4th quarter worth $52,000. 85.47% of the stock is owned by institutional investors and hedge funds.

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.