Should You Buy Synopsys Inc (SNPS) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Buy
Latest Price
511.350
1 Day change
1.72%
52 Week Range
651.730
Analysis Updated At
2026/01/26
Synopsys Inc (SNPS) is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. Despite short-term challenges, the company's strong analyst support, positive congressional trading data, and favorable long-term growth prospects in AI and semiconductor sectors make it a solid investment opportunity.
Technical Analysis
The stock is currently in a neutral to slightly bearish short-term trend, as indicated by a negative MACD histogram (-2.417) and RSI of 41.98. However, the moving averages (SMA_5 > SMA_20 > SMA_200) suggest a bullish long-term trend. The stock is trading near its support level of 497.794, providing a potential entry point for long-term investors.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Technical Summary
Sell
2
Buy
12
Positive Catalysts
ARK Invest has added Synopsys to its portfolio, reflecting confidence in the company's long-term growth potential.
Recent upgrades and increased price targets from analysts like JPMorgan ($650) and KeyBanc ($600) highlight optimism in the company's future performance.
Congress members have made significant purchase transactions, indicating positive sentiment.
The cancellation of EU tariffs has boosted tech stock valuations, benefiting Synopsys.
Neutral/Negative Catalysts
Hedge funds have significantly increased their selling activity, which may indicate short-term bearish sentiment.
Legal investigations into Synopsys executives for potential fiduciary breaches could create uncertainty.
Financial performance in Q4 2025 showed a significant drop in net income (-59.73%) and EPS (-66.48%), raising concerns about profitability.
Financial Performance
In Q4 2025, revenue increased by 37.83% YoY to $2.25B, showcasing strong top-line growth. However, net income dropped by 59.73%, and EPS fell by 66.48%, reflecting challenges in profitability. Gross margin also declined to 64.05%, down 16.63% YoY.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analysts are largely bullish on Synopsys, with multiple firms raising price targets recently. JPMorgan has the highest price target at $650, while KeyBanc and Needham also raised their targets to $600 and $580, respectively. Analysts highlight strong backlog, better-than-expected FY26 EPS guidance, and growth in the AI-driven semiconductor market as key positives.
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 565.64 USD with a low forecast of 500 USD and a high forecast of 602 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.
12 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 565.64 USD with a low forecast of 500 USD and a high forecast of 602 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.
10 Buy
2 Hold
0 Sell
Strong Buy
Current: 502.700
Low
500
Averages
565.64
High
602
Current: 502.700
Low
500
Averages
565.64
High
602
Needham
Buy
maintain
$550 -> $580
AI Analysis
2025-12-11
Reason
Needham
Price Target
$550 -> $580
AI Analysis
2025-12-11
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
Reason
KeyBanc
Jason Celino
Price Target
$575 -> $600
2025-12-11
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.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for SNPS
