Zacks Investment Research·1d ago
3 Reasons Growth Investors Will Love Synopsys (SNPS)Synopsys (SNPS) could produce exceptional returns because of its solid growth attributes.
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.
Price trend, volume and key moving averages
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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.
Synopsys is a dominant player in electronic design automation (EDA), providing essential tools for semiconductor design.
The company benefits from a stable and predictable revenue stream due to its recurring business model.
Synopsys enables rapid development of AI-powered products, positioning it as a key enabler of AI advancements.
Trailing total returns as of 11/8/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| 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 |
Synopsys (SNPS) could produce exceptional returns because of its solid growth attributes.
Synopsys (SNPS) reached $440.31 at the closing of the latest trading day, reflecting a -4.89% change compared to its last close.
SUNNYVALE, Calif., Nov. 5, 2026 /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today announced it will report results for the fourth quarter and fiscal year 2026 on Tuesday, Dec. 8, 2026, after market close.
Robotics is poised for robust long-term growth. Consider OMCL, SNPS, CDNS and MCHP for potential market dominance across sectors.
Benchmark SNPS against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Synopsys, Inc. (SNPS)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $450.46 | $86.25B | 80.49 | 15.12% | 11.43% | 3.57% | — | |
| $319.92 | $88.24B | 63.79 | 14.12% | 22.51% | 21.43% | — | |
| $38.49 | $1.82B | -92.66 | 12.74% | -3.97% | -2.9% | — | |
| $173.28 | $8.62B | 64.92 | 1.82% | 11.84% | 6.5% | — | |
| $81.12 | $6.32B | 37.12 | 2.8% | 17.72% | 15.83% | — | |
| $27.36 | $1.61B | 9.73 | -2.04% | 19.04% | 9.88% | — |
Synopsys, Inc. (SNPS) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Synopsys, Inc. (SNPS) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 26, 2026·SEC
Aug 12, 2026·SEC
May 27, 2026·SEC
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Synopsys, Inc. (SNPS) stock FAQ — growth, dividends, profitability & financials explained
Synopsys, Inc. (SNPS) reported $9.42B in revenue over the trailing twelve months. Revenue was $7.05B in fiscal year 2025. That is 1242% more than the $525.6M of fiscal year 1996.
Synopsys, Inc. (SNPS) grew revenue by 46.3% over the trailing twelve months, compared with the twelve months before.
Yes. Synopsys, Inc. (SNPS) earned $1.08B in net income over the trailing twelve months (a 11.4% net margin).
Synopsys, Inc. (SNPS) had a return on equity (ROE) of 3.6% over the trailing twelve months. That is below the market's typical 10-15%.
Synopsys, Inc. (SNPS) generated $2.79B in free cash flow over the trailing twelve months.
