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SNPSSynopsys, Inc.
$413.06$79.1B
Overview & Tools
OverviewChart Terminal ↗Visualize
Valuation & Forecasts
Valuation ModelsEstimatesDCF Model
Price & Analyst Data
Analyst TargetsPrice History
Financial Statements
Income StatementBalance SheetCash FlowRatios & Margins
Performance
P/E HistoryRevenue HistoryEarnings HistoryDividend HistoryTotal Return
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SNPS logo

Synopsys, Inc.

SNPS
NASDAQ · Infrastructure Software
$413.06
At close - Sep 23, 4:00 PM EDT - USD
Market Cap$79.09B
P/E51.4x
52W High$539.48
Volume2.09M
OverviewTerminalAnalysisFinancialsValuationEarningsBreakoutsOwnership
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
TechnicalsWeak
Explore valuation models
MARKET ACTION

SNPS price & volume

Price trend, volume and key moving averages

Launch Terminal
Loading chart...
Decision Checklist4 Core Signals

What matters now

The signals most likely to change the investment case.

01

Earnings momentum

11/12 Beats

EPS beat 11 of last 12 quarters

02

Valuation risk

-9% Peers

P/E is 9% below peer median

03

Market leadership

RS 31 · Lag

Laggard (Underperforming 69% of market)

04

Weak Trend

Below 200DMA

Price < 200DMA

Next CatalystEstimated earnings · Nov 26
01

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+34.8% target
Buy(29 analysts)
27 Buy1 Hold1 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 9/24/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).

YTD Return
SNPS-14.02%
S&P 500 (^GSPC)+12.39%
1-Year Return
SNPS-15.76%
S&P 500 (^GSPC)+15.77%
3-Year Return
SNPS-7.76%
S&P 500 (^GSPC)+78.65%
5-Year Return
SNPS+27.93%
S&P 500 (^GSPC)+73.57%
02

Test the fundamentals

Check whether operating performance supports the current valuation.

VALUATION & INTRINSIC VALUE

Valuation Scenarios

Valuation Analysis
Trailing P/EMedian
51.4x
Forward P/EExpansion
27.3x
EV/EBITDA100th %ile
57.4x
FCF YieldCash Flow
1.7%

Valuation vs 5-Year History

Multiple Range
Metric
Current
5Y Median
Historical Range
Percentile
P/E
51.4x
56.4x
40th· Fair
EV/EBITDA
57.4x
47.4x
100th· High
Price/FCF
58.6x
48.2x
80th· High
Current Multiple
5Y Median (50th %ile)

Intrinsic Value Scenarios

DCF Projection
Bear$52.17-87.4%
Base (Fair)$424.67+10.4%
Bull$172.02-58.4%
$52.17 Bear$424.67 Base$172.02 Bull
Current Market Price: $413.06
Trades at a 2.7% discount to Base DCF ($424.67)
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 →
03

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%)
QuarterEPS (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
PRNewsWire·12h ago
Synopsys and TSMC Partner to Accelerate AI Systems Innovation with Agentic AI and Advanced Design

New collaborations span A14 design enablement, AI-assisted engineering workflows, CoWoS® support for multi-die designs, and unified multiphysics signoff Certified EDA flows on TSMC A14 accelerate design readiness for next-generation AI and HPC applications Collaboration on agentic AI workflows accelerates automation and improves productivity for complex analog, digital, and multi-die designs Continued enablement for IVR multi-die designs on TSMC CoWoS® technology addresses power integrity and thermal requirements for AI systems Continued joint enablement for TSMC-COUPE™ streamlines co-packaged optics development and verification Expanded 2nm IP portfolio and tape-out milestones including for PCIe 7.0 and HBM4 speed the development of differentiated AI, data center, edge, and automotive products SUNNYVALE, Calif., Sept. 23, 2026 /PRNewswire/ -- Synopsys (Nasdaq: SNPS) today announced new innovations with TSMC that accelerate the development of next-generation AI, high-performance computing (HPC), and advanced semiconductor systems.

Zacks Investment Research·16h ago
Cadence's New RTL Generation Agent Could Reshape AI-Driven Chip Design

CDNS' new RTL Generation Agent automates chip design and optimization, delivering 24% lower area and 18% lower power in early evaluations.

24/7 Wall Street·1d ago
The More Complicated Chips Become, the More Interesting Synopsys Gets

Chip design complexity is hitting levels only a handful of software vendors can handle, and one under-the-radar name keeps collecting a toll on every advanced design that ships.

Zacks Investment Research·1d ago
Wall Street Analysts See a 37.44% Upside in Synopsys (SNPS): Can the Stock Really Move This High?

The mean of analysts' price targets for Synopsys (SNPS) points to a 37.4% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock.

Filtered for Synopsys, Inc.More Headlines
04

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 →
CompanyPriceMarket CapP/E RatioRev Growth (1Y)Net MarginROEDiv Yield
SNPS logoSNPSSynopsys, Inc.Current
$413.06$79.09B51.3815.12%18.89%7.13%—
CDNS logoCDNSCadence Design Systems, Inc.
$309.09$85.25B76.1314.12%23.61%22.88%—
COHU logoCOHUCohu, Inc.
$64.48$3.04B-40.5512.74%-7.43%-4.91%—
ONTO logoONTOOnto Innovation Inc.
$282.31$14.04B101.551.82%11.84%6.5%—
FORM logoFORMFormFactor, Inc.
$131.26$10.23B190.232.8%12.8%10.96%—
PLAB logoPLABPhotronics, Inc.
$30.35$1.79B13.31-2.04%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

05

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

6
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

2
FY 2025

Dec 22, 2025·SEC

FY 2024

Dec 19, 2024·SEC

10-Q Quarterly Reports

6
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 →