Synopsys Faces Class Action Lawsuit After Missing Q3 Revenue Guidance; Investors Must Apply by December 30
Written by Emily J. Thompson, Senior Investment Analyst
Source: Globenewswire
Updated: 3 day ago0mins
- Class Action Reminder: Kahn Swick & Foti LLC advises investors who purchased Synopsys securities between December 4, 2024, and September 9, 2025, to file lead plaintiff applications by December 30, 2025, to recover losses due to undisclosed material information.
- Earnings Miss: Synopsys reported Q3 2025 revenue of $1.740 billion on September 9, 2025, falling short of prior guidance of $1.755 billion to $1.785 billion, with net income plummeting 43% year-over-year, raising significant investor concerns.
- Stock Price Plunge: Following the earnings announcement, Synopsys shares dropped 35.8% to close at $387.78 on September 10, 2025, amid unusually high trading volume, reflecting heightened market anxiety regarding the company's outlook.
- Design IP Segment Decline: The Design IP segment accounted for approximately 25% of total revenue at $426.6 million, down 7.7% year-over-year, with guidance indicating at least a 5% decline in full-year revenues for fiscal 2025, potentially jeopardizing the company's long-term growth trajectory.
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Analyst Views on SNPS
Wall Street analysts forecast SNPS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SNPS is 559.38 USD with a low forecast of 425.00 USD and a high forecast of 630.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
11 Buy
3 Hold
2 Sell
Moderate Buy
Current: 463.740
Low
425.00
Averages
559.38
High
630.00
Current: 463.740
Low
425.00
Averages
559.38
High
630.00
Wells Fargo
Joe Quatrochi
Equal Weight
downgrade
$550 -> $445
2025-11-25
Reason
Wells Fargo
Joe Quatrochi
Price Target
$550 -> $445
2025-11-25
downgrade
Equal Weight
Reason
Wells Fargo analyst Joe Quatrochi lowered the firm's price target on Synopsys to $445 from $550 and keeps an Equal Weight rating on the shares. The firm notes shares returning to post Q3 EPS lows creates an easier setup. However, Wells is lowering its estimates and expects a conservative initial 2026 guide in line with the Street.
Citi
Kelsey Chia
initiated
$580
2025-11-24
Reason
Citi
Kelsey Chia
Price Target
$580
2025-11-24
initiated
Reason
Citi analyst Kelsey Chia initiated coverage of Synopsys with a Buy rating and $580 price target. The firm believes the electronic design automation market is "emerging as the backbone" of the next growth phase of artificial intelligence. The sector is brining intelligence from software to the physical world, which should drive double-digit revenue growth with 40% operating margins, the analyst tells investors in a research note. Citi sees a favorable fundamental setup for Synopsys.
Mizuho
Outperform -> NULL
downgrade
$700 -> $600
2025-09-11
Reason
Mizuho
Price Target
$700 -> $600
2025-09-11
downgrade
Outperform -> NULL
Reason
Mizuho lowered the firm's price target on Synopsys to $600 from $700 and keeps an Outperform rating on the shares. The company's fiscal Q3 results were mixed as strength in design automation was offset by weakness in the intellectual property segment, the analyst tells investors in a research note. The firm says that while fiscal 2026 is a transition year for Synopsys with the Ansys acquisition and IP roadmap reset, it remains confident in management's ability to sustain growth in simulation while focusing on profitability and debt reduction. The stock's 36% selloff yesterday is an overreaction and presents a buying opportunity, contends Mizuho.
Baird
Outperform -> Neutral
downgrade
$670 -> $535
2025-09-10
Reason
Baird
Price Target
$670 -> $535
2025-09-10
downgrade
Outperform -> Neutral
Reason
Baird downgraded Synopsys to Neutral from Outperform with a price target of $535, down from $670. The company's fiscal Q4 outlook came in well below expectations after de-risking the intellectual property forecast, the analyst tells investors in a research note. The firm expects the company's IP growth in fiscal 2026 to be "muted." The Q4 report and lack of forward visibility create an overhang on the shares that will likely take time to clear, contends Baird.
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About SNPS
Synopsys, Inc. is engaged in providing engineering solutions from silicon to systems, enabling customers to innovate artificial intelligence (AI)-powered products. It delivers silicon design, intellectual property (IP), simulation and analysis solutions, and design services. It supplies mission-critical electronic design automation (EDA) software that engineers use to design and test integrated circuits (ICs). Its Design Automation segment includes its advanced silicon design, verification products and services and system integration products. This segment also includes digital, custom and field programmable gate arrays, integrated circuit design software, verification software and hardware products, system integration products and services, and manufacturing software products. Its Design IP segment includes its interface, foundation, security, and embedded processor IP, IP subsystems, and IP implementation services that serve companies in the semiconductor and electronics industries.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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