Synopsys, Inc.

SNPS

NASDAQ · Infrastructure Software

$490.54

At close - Oct 1, 4:00 PM EDT - USD

Market Cap$93.93B

P/E61.0x

52W High$539.48

Volume6.31M

VCP Research Verdict2026Q3

Acquisition-Driven Growth Masks Structural Margin Compression

Synopsys's fundamental outlook is defined by the transformative Ansys acquisition, which has driven revenue growth to 42.4% YoY in Q3 FY2026 but has simultaneously compressed gross margins by nearly 900 basis points to 72.6% and ballooned total debt to $10.8B....

GrowthAccelerating

ProfitabilityStrained

ValuationAttractive

TechnicalsNeutral

Explore valuation models

MARKET ACTION

SNPS price & volume

Price trend, volume and key moving averages

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Build the investment case

Start with the evidence for owning the stock and the risks that can break the thesis.

EXECUTIVE THESIS

The Investment Case

Full Analysis

Fundamental Trajectory

Revenue growth has accelerated to 42.4% YoY, but this surge masks a structural shift as gross margins have compressed from a peak of 81.4% to 72.6%, suggesting the Ansys integration is impacting the company's core profitability profile.

Analyst Consensus+13.7% target

Buy(29 analysts)

27 Buy2 Hold0 Sell

The Bull Case

Upside Catalysts

Leadership in EDA

Synopsys is a dominant player in electronic design automation (EDA), providing essential tools for semiconductor design.

Recurring revenue base

The company benefits from a stable and predictable revenue stream due to its recurring business model.

AI-powered innovation

Synopsys enables rapid development of AI-powered products, positioning it as a key enabler of AI advancements.

The Bear Case

Key Downside Risks

Market performance

Price History →

Trailing total returns as of 10/2/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).

YTD Return

SNPS+2.11%

S&P 500 (^GSPC)+11.83%

1-Year Return

SNPS+0.36%

S&P 500 (^GSPC)+14.29%

3-Year Return

SNPS+5.76%

S&P 500 (^GSPC)+97.08%

5-Year Return

SNPS+62.17%

S&P 500 (^GSPC)+95.61%

Test the fundamentals

Check whether operating performance supports the current valuation.

VALUATION & INTRINSIC VALUE

Valuation Scenarios

Valuation Analysis

Trailing P/E5Y High

61.0x

Forward P/EExpansion

32.4x

EV/EBITDA100th %ile

66.9x

FCF YieldCash Flow

1.4%

Valuation vs 5-Year History

Multiple Range

Metric

Current

5Y Median

Historical Range

Percentile

P/E

61.0x

56.4x

80th· High

EV/EBITDA

66.9x

47.4x

100th· High

Price/FCF

69.6x

48.2x

100th· High

Current Multiple

5Y Median (50th %ile)

Intrinsic Value Scenarios

DCF Projection

Bear$50.73-89.7%

Base (Fair)$423.84-0.5%

Bull$167.41-65.9%

$50.73 Bear$423.84 Base$167.41 Bull

Current Market Price: $490.54

Trades at a 15.7% premium to Base DCF ($423.84)

Open DCF & Valuation Models →Chart Terminal ↗

Growth & profitability

Annual revenue & EPS trend

Revenue

$7.05B+15.1% YoY

Net income

$1.33B-41.1% YoY

Free cash flow

$1.35B+5.1% YoY

Operating margin

13%-9.2 pts YoY

ROIC (TTM)3%

Avg ROIC 5Y-

ROE (TTM)7.1%

Piotroski Score3 / 9

Financial Statements →

Monitor what changed

Recent results and news deserve attention only when they alter the forward view.

OPERATING RESULTS

Recent Earnings

Earnings History

EPS Beat Rate11/12 (92%)

Revenue Beat Rate11/12 (92%)

Quarter	EPS (Act vs Est)	Revenue (Act vs Est)
Q3 2026Latest Aug 26, 2026	$3.91+6.5% vs $3.67	$2.5B+1.6% vs $2.4B
Q2 2026 May 27, 2026	$3.35+6.3% vs $3.15	$2.3B+1.1% vs $2.3B
Q1 2026 Feb 25, 2026	$3.77+5.9% vs $3.56	$2.4B+0.8% vs $2.4B
Q4 2025 Dec 10, 2025	$2.90+4.3% vs $2.78	$2.3B+0.3% vs $2.2B

Historical baseline: 12 quarters analyzedGAAP / Adjusted

MARKET COVERAGE

Latest News

5 Stories

Invezz·1d ago

Synopsys stock jumps 13% as OpenAI and AWS deals boost outlook

Synopsys (SNPS) shares jumped 13% on Thursday after the chip-design software maker issued fiscal 2027 revenue and profit forecasts above analysts' expectations and announced multi-year agreements with OpenAI and Amazon Web Services. The company outlined its long-term growth targets at its 2026 Investor Day in New York, highlighting demand for chip-design and simulation tools as artificial intelligence investment drives increasingly complex semiconductor development.

Investors Business Daily·1d ago

Synopsys Stock Surges On AI-Driven Transformation Of Engineering

Synopsys stock rose after the company's investor day presentation focused on growth from AI-assisted chip design tools.

Zacks Investment Research·1d ago

Amazon Inks $1B SNPS Deal to Power AWS Custom Chips: Should You Hold?

AMZN's $1B+ Synopsys deal boosts custom chips and AWS growth, but heavy capex, competition and valuation temper the near-term outlook.

Investopedia·1d ago

Synopsys Stock Rallies After AI Deals With OpenAI and Amazon

Synopsys is one of the best-performing stocks in the S&P 500 and Nasdaq today after the chip design software maker struck some major AI deals.

Filtered for Synopsys, Inc.More Headlines

Compare before deciding

Benchmark SNPS against direct peers instead of judging its metrics in isolation.

Peers Comparison

Key metrics vs top competitors for Synopsys, Inc. (SNPS)

Full Screener →

Company	Price	Market Cap	P/E Ratio	Rev Growth (1Y)	Net Margin	ROE	Div Yield
SNPSSynopsys, Inc.Current	$490.54	$93.93B	61.01	15.12%	18.89%	7.13%	—
CDNSCadence Design Systems, Inc.	$350.73	$96.74B	86.39	14.12%	23.61%	22.88%	—
COHUCohu, Inc.	$70.34	$3.32B	-44.24	12.74%	-7.43%	-4.91%	—
ONTOOnto Innovation Inc.	$314.88	$15.66B	113.27	1.82%	11.84%	6.5%	—
FORMFormFactor, Inc.	$148.44	$11.57B	215.13	2.8%	12.8%	10.96%	—
PLABPhotronics, Inc.	$30.83	$1.82B	13.52	-2.04%	19.04%	9.88%	—

Compare SNPS vs Peers

Synopsys, Inc. (SNPS) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs CDNS

Most directly comparable listed peer for SNPS.

Scale Benchmark

vs NVDA

Larger-name benchmark to compare SNPS against a more recognizable public peer.

Peer Set

Compare Top 5

vs CDNS, COHU, ONTO, FORM

Keep researching

Verify the primary filings, follow material updates, and answer the remaining questions.

SNPS SEC Filings & Documents

Synopsys, Inc. (SNPS) SEC filings — annual & quarterly reports (10-K, 10-Q)

8-K Announcements

Material company update

Aug 26, 2026·SEC

Material company update

Aug 12, 2026·SEC

Material company update

May 27, 2026·SEC

10-K Annual Reports

FY 2025

Dec 22, 2025·SEC

FY 2024

Dec 19, 2024·SEC

10-Q Quarterly Reports

FY 2026

Aug 26, 2026·SEC

FY 2026

May 27, 2026·SEC

FY 2026

Feb 25, 2026·SEC

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SNPS Frequently Asked Questions

Synopsys, Inc. (SNPS) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials

What is Synopsys, Inc.'s revenue?

Synopsys, Inc. (SNPS) reported $9.42B in revenue for fiscal year 2025. This represents a 1692% increase from $525.6M in 1996.

How fast is Synopsys, Inc. growing?

Synopsys, Inc. (SNPS) grew revenue by 15.1% over the past year. This is strong growth.

Is SNPS profitable?

Yes, Synopsys, Inc. (SNPS) is profitable, generating $1.08B in net income for fiscal year 2025 (18.9% net margin).

Dividend & Returns

What is SNPS's return on equity?

Synopsys, Inc. (SNPS) has a return on equity (ROE) of 7.1%. This is below average, suggesting room for improvement.

What is Synopsys, Inc.'s free cash flow?

Synopsys, Inc. (SNPS) generated $2.79B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

What if you invested $1,000 in SNPS back in 1996?

Total return calculator · dividends reinvested · 30+ years of data

See returns →

Quarter

EPS (Act vs Est)

Revenue (Act vs Est)

Q3 2026Latest

Aug 26, 2026

$3.91+6.5%

vs $3.67

$2.5B+1.6%

vs $2.4B

Q2 2026

May 27, 2026

$3.35+6.3%

vs $3.15

$2.3B+1.1%

vs $2.3B

Q1 2026

Feb 25, 2026

$3.77+5.9%

vs $3.56

$2.4B+0.8%

vs $2.4B

Q4 2025

Dec 10, 2025

$2.90+4.3%

vs $2.78

$2.3B+0.3%

vs $2.2B

Company

Price

Market Cap

P/E Ratio

Rev Growth (1Y)

Net Margin

ROE

Div Yield

SNPSSynopsys, Inc.Current

$490.54

$93.93B

61.01

15.12%

18.89%

7.13%

—

CDNSCadence Design Systems, Inc.

$350.73

$96.74B

86.39

14.12%

23.61%

22.88%

—

COHUCohu, Inc.

$70.34

$3.32B

-44.24

12.74%

-7.43%

-4.91%

—

ONTOOnto Innovation Inc.

$314.88

$15.66B

113.27

1.82%

11.84%

6.5%

—

FORMFormFactor, Inc.

$148.44

$11.57B

215.13

2.8%

12.8%

10.96%

—

PLABPhotronics, Inc.

$30.83

$1.82B

13.52

-2.04%

19.04%

9.88%

—