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Synopsys (SNPS)
NASDAQ:SNPS
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Synopsys (SNPS) Price & Analysis

5,383 Followers

SNPS Stock Chart & Stats

$449.58
$9.76(2.00%)
At close: 4:00 PM EST
$449.58
$9.76(2.00%)

Bulls Say, Bears Say

Bulls Say
Strong Free Cash FlowSustained, high free cash flow provides durable financial flexibility to fund R&D, integrate acquisitions (ANSYS), buy back stock, and service debt. Over months this supports strategic investments and reduces execution risk versus firms with weaker cash conversion.
Very High Gross Margins & Recurring ModelVery high gross margins and a licensing/IP/maintenance mix create scalable economics and predictable recurring revenue. This structural margin advantage supports sustained profit conversion as revenue grows and underpins long-term investment in product leadership.
Structural AI/EDA Demand And Design WinsSecular increases in chip complexity and AI compute drive persistent demand for EDA/IP tools. Documented technical wins and multiphysics productivity gains indicate durable adoption potential, supporting multi-quarter revenue capture and ANSYS integration upside.
Bears Say
Higher Leverage After ANSYS DealMaterial rise in leverage reduces balance-sheet flexibility and raises interest and refinancing sensitivity. Even with strong cash flow, elevated net debt amplifies downside risk if revenue or margins slip over the next several quarters, limiting strategic optionality.
Compressed Profitability And Weak ROEA marked drop in net margins and ROE indicates near-term profitability drivers have weakened. Lower returns reduce the margin of safety on higher leverage and make sustained R&D and integration spending harder to fund without pressuring future cash returns to shareholders.
Monetization Risk For New Tech; IP SoftnessWhile technology trials show promise, delayed or uncertain monetization means anticipated revenue and margin gains are not yet realized. Coupled with YoY IP revenue weakness, this raises execution risk for future growth over the coming quarters.

Synopsys News

SNPS FAQ

What was Synopsys’s price range in the past 12 months?
Synopsys lowest stock price was $376.18 and its highest was $651.73 in the past 12 months.
    What is Synopsys’s market cap?
    Synopsys’s market cap is $86.91B.
      When is Synopsys’s upcoming earnings report date?
      Synopsys’s upcoming earnings report date is Aug 19, 2026 which is in 64 days.
        How were Synopsys’s earnings last quarter?
        Synopsys released its earnings results on May 27, 2026. The company reported $3.35 earnings per share for the quarter, beating the consensus estimate of $3.154 by $0.196.
          Is Synopsys overvalued?
          According to Wall Street analysts Synopsys’s price is currently Undervalued. Get more investment ideas with TipRanks Premium
            Does Synopsys pay dividends?
            Synopsys does not currently pay dividends.
            What is Synopsys’s EPS estimate?
            Synopsys’s EPS estimate is 3.67.
              How many shares outstanding does Synopsys have?
              Synopsys has 191,479,320 shares outstanding.
                What happened to Synopsys’s price movement after its last earnings report?
                Synopsys reported an EPS of $3.35 in its last earnings report, beating expectations of $3.154. Following the earnings report the stock price went down -8.61%.
                  Which hedge fund is a major shareholder of Synopsys?
                  Currently, no hedge funds are holding shares in SNPS
                  What is the TipRanks Smart Score and how is it calculated?
                  Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                    Company Description

                    Synopsys

                    Synopsys, Inc. is a leading provider of electronic design automation (EDA) software, instrumental in the creation and validation of integrated circuits. The company offers a robust portfolio of platforms, including the Fusion Design Platform for digital implementation, and the comprehensive Verification Continuum Platform. The latter provides a suite of solutions such as virtual prototyping, static and formal verification, simulation, emulation, and FPGA-based prototyping with integrated debugging tools. Synopsys also develops FPGA design products, which enable programming for specific functions. A significant part of its business involves intellectual property (IP) solutions. This encompasses IP for widely adopted communication standards like USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth Low Energy. They also furnish analog IP, including data converters and audio codecs, alongside system-on-chip (SoC) infrastructure IP, specialized datapath and building block IP, and verification IP products. Furthermore, their offerings include mathematical and floating-point components, as well as Arm AMBA interconnect fabric and peripherals. Beyond core IP, Synopsys supplies logic libraries, embedded memories, and configurable processor cores, complemented by application-specific instruction-set processor tools for embedded applications. They also develop IP subsystems for audio, sensor, and data fusion functionalities, in addition to specialized security IP solutions. For advanced system design and analysis, Synopsys provides Platform Architect solutions for SoC architecture optimization, along with general virtual prototyping tools and HAPS FPGA-based prototyping systems. Their expertise extends to tools designed for optical systems and photonic devices. In addition to software and IP, the company delivers a range of services, including security testing, managed services, professional programs, and training. These services are designed to help customers identify and resolve security vulnerabilities and defects across the software development lifecycle. Manufacturing solutions are also part of their extensive offerings. Synopsys serves a diverse global client base, with applications across electronics, financial services, automotive, medicine, energy, and various industrial sectors. The company was founded in 1986 and is headquartered in Mountain View, California.

                    Synopsys (SNPS) Earnings & Revenues

                    SNPS Company Deck

                    SNPS Earnings Call

                    Q2 2026
                    0:00 / 0:00
                    Earnings Call Sentiment|Positive
                    The call presented multiple material positive developments: a quarter that beat on revenue and non‑GAAP profitability, raised full‑year guidance, strong free cash flow, broad AI-driven demand across EDA/IP/ANSYS, early productivity gains from multiphysics fusion, and concrete IP/connectivity wins. Offsetting items include a YoY decline in IP revenue (though sequentially recovering), one‑time GAAP headwinds from restructuring that depressed GAAP EPS, significant debt, and the fact that several strategic initiatives (multiphysics fusion, agentic EDA, GPU‑accelerated monetization) are still largely in evaluation with monetization yet to fully convert. Overall, the positives (operational execution, raised guidance, cash flow, and clear AI tailwinds) materially outweigh the negatives, though execution and monetization of new technology and channel accounting nuances will be key watch points.View all SNPS earnings summaries

                    SNPS Revenue Breakdown

                    49.47%49.47%28.50%22.03%
                    49.47% Time-based products
                    28.50% Upfront products
                    22.03% Maintenance and service
                    tipranks

                    SNPS Stock 12 Month Forecast

                    Average Price Target

                    $578.15
                    ▲(28.60% Upside)
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18,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 4, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 2</span>\n      ","marker":{"lineColor":"#199ca5","enabled":true,"symbol":"circle"}},{"y":453.82,"date":1761955200000,"info":" <span style=\"color:#199ca5\" class=\"mb3 mt2 fonth8_semibold\"> Strong Buy</span>\n            <div class=\"flexrcb px3 displayflex fonth9_semibold\"><span  style=\"color:#199ca5\">Buy 18,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 4, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 2</span>\n      ","marker":{"lineColor":"#199ca5","enabled":true,"symbol":"circle"}},{"y":438.29,"date":1764547200000,"info":" <span style=\"color:#199ca5\" class=\"mb3 mt2 fonth8_semibold\"> Strong Buy</span>\n            <div class=\"flexrcb px3 displayflex fonth9_semibold\"><span  style=\"color:#199ca5\">Buy 21,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 4, \t&nbsp;</span>\n  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                    Ownership Overview

                    0.42%23.73%25.07%17.94%
                    25.07% Other Institutional Investors
                    17.94% Public Companies and Individual Investors
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