Q3 Financial Results: Synopsys reported third-quarter revenue of $1.74 billion and non-GAAP EPS of $3.39, facing challenges primarily in its IP business due to geopolitical factors and underperformance from a major foundry customer.
ANSYS Acquisition Impact: The acquisition of ANSYS is seen as a transformational milestone, expanding Synopsys' revenue and customer base, while also integrating advanced simulation and analysis solutions to enhance their engineering capabilities.
Strategic Adjustments: Synopsys is pivoting its IP resources towards higher growth opportunities and expects to reduce its global headcount by approximately 10% by the end of fiscal year 2026 to optimize costs and improve efficiency.
Future Outlook: Despite current headwinds, Synopsys remains optimistic about long-term growth, particularly in AI and high-performance computing sectors, while taking a cautious approach to Q4 forecasts.
SNPS
$461.17+Infinity%1D
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
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.
11 Buy
3 Hold
2 Sell
Moderate Buy
Current: 452.950
Low
425.00
Averages
559.38
High
630.00
Current: 452.950
Low
425.00
Averages
559.38
High
630.00
Needham
Buy
maintain
$550 -> $580
2025-12-11
New
Reason
Needham
Price Target
$550 -> $580
2025-12-11
New
maintain
Buy
Reason
Needham raised the firm's price target on Synopsys to $580 from $550 and keeps a Buy rating on the shares. The company issued the first FY26 outlook that is slightly below the Street in revenue but decently above consensus in earnings, the analyst tells investors in a research note. Investors had been expecting a rocky FY26 guide given the typical post-M&A integration risks, but that Synopsys is guiding largely in-line and slightly better than the Street is certainly a pleasant surprise, the firm added.
KeyBanc
Jason Celino
Overweight
maintain
$575 -> $600
2025-12-11
New
Reason
KeyBanc
Jason Celino
Price Target
$575 -> $600
2025-12-11
New
maintain
Overweight
Reason
KeyBanc analyst Jason Celino raised the firm's price target on Synopsys to $600 from $575 and keeps an Overweight rating on the shares. The firm notes Synopsys posted modestly better Q4 revenue and EPS, and solid backlog of $11.4B. More importantly, the initial FY26 EPS outlook is meaningfully better than expected, driven by accelerated debt pay-down and cost synergies. KeyBanc is encouraged by the better bottom-line outlook.
Piper Sandler
Overweight
to
NULL
downgrade
$630 -> $602
2025-12-11
New
Reason
Piper Sandler
Price Target
$630 -> $602
2025-12-11
New
downgrade
Overweight
to
NULL
Reason
Piper Sandler lowered the firm's price target on Synopsys to $602 from $630 and keeps an Overweight rating on the shares. The firm would argue that Synopsys largely achieved what was needed. That said, organic EDA growth and free cash flow margins are likely to be the main nagging items coming out of the quarter. The company was not precise in its EDA vs. IP growth assumptions, but Piper believes FY26 guidance points to high single digit overall organic growth and low-double digits organic EDA growth.
BofA
Neutral -> Buy
upgrade
$500 -> $560
2025-12-11
New
Reason
BofA
Price Target
$500 -> $560
2025-12-11
New
upgrade
Neutral -> Buy
Reason
BofA upgraded Synopsys to Buy from Neutral with a price target of $560, up from $500.
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
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.
