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Synopsys builds the software that powers every chip designed for AI, and analysts are practically falling over each other to buy it. But the real question is whether the tailwinds behind this under-the-radar pick can push a modest investment into…

Shares of Synopsys (NASDAQ:SNPS | SNPS Price Prediction) recently changed hands at $466.88. So what could a $10,000 investment look like by 2030? Synopsys sells the software that chipmakers use to design their products.

One 24/7 Wall St. podcast host compared it to “the AutoCAD or the CAD of this industry”. As AI chips get more complex, that tools matters more, and that’s the reason to take a longer look at the stock.

What $10,000 Could Grow Into in the Base Case
The figures below use a five-year period ending October 15, 2031. That’s the projected period closest to 2030. The base case puts a $10,000 investment at about $20,481, a total return of 104.81%. That outcome depends on the stock climbing from a projected entry price of $467.11 to a per-share target of $956.68. The annualized return comes to 15.42%.

A quarterly path is also mapped out by the model, and one point on it falls in 2030. The base-case path reaches $899.95 on October 15, 2030, which would make a $10,000 investment worth about $19,266.34. Treat that 2030 figure as illustrative only. It’s a stop on the projected path.

Bull, Base, and Bear Scenarios for Your $10,000

Scenario
Target Share Price
Total Return
Value of $10,000

Bull
$1,148.19
145.81%
$24,581

Base
$956.68
104.81%
$20,481

Bear
$643
37.66%
$13,766

The projection’s signal reads buy, at 0.9 confidence, a projected output rather than advice. Over the closer one-year period, its base-case target is $598.21, an upside of 28.07%.

Wall Street analysts are also positive. Their consensus target is $572.17, with 4 strong buy, 19 buy, and 2 hold ratings and no sells.

Three Forces Behind the Upside
AI Is Making Chips Harder to Design
The more complex a chip, the more design software it takes to build it. In the fiscal third quarter, revenue rose 42.4% from a year earlier to $2.48 billion. Non-GAAP EPS came in at $3.91, beating the $3.67 consensus.

Management then raised its full-year guidance to non-GAAP EPS of $15.04 to $15.10 and said it expects double-digit growth in EDA, its core design-software business. Synopsys has now beaten earnings estimates 4 quarters in a row.

Ansys Adds Simulation, From Single Chips to Full Systems
Ansys adds simulation tools that reach beyond chips into automotive, aerospace, and industrial customers. The company expects Ansys to contribute about $2.98 billion of fiscal 2026 revenue. Chief executive Sassine Ghazi put it this way: “One year after the transformational acquisition of Ansys, we are executing with focus, extending our leadership and gaining momentum.”

Management has also pointed to a $400 million revenue-synergy opportunity in semiconductor multi-physics, with monetization expected to start in fiscal 2027.

New Ways to Get Paid
At last count, 20 customers were evaluating Synopsys’ agentic AI design tools. Ghazi described a pricing model that would move from “subscription license that our customer has for the human engineers” to “subscription plus consumption for the agents.”

If customers adopt it widely, that model could lift earnings per customer. Margins are already strong: the non-GAAP operating margin reached 41.6% last quarter.

Risks That Could Shrink Your Stake
The bear case still assumes gains, but nothing ensures them. Synopsys’ guidance assumes no further changes to U.S. export controls or Entity List restrictions, and new limits on China could reduce sales.

The company also carries about $10 billion of long-term debt from the Ansys deal, and it has planned restructuring charges for the fiscal fourth quarter. Additional risks come from a few large customers that account for a big share of sales, tough competition in EDA, and the chance that Ansys synergies fall short.

Expect a rough ride, too. The stock has a beta of 1.208, meaning it tends to swing more than the market overall. Shares fell 7.12% over the past week after climbing 22.4% over the past month, and they’re down 0.6% so far this year.

Valuation is another factor: the stock trades at about 87x trailing earnings and 23x forward earnings. If AI-related demand cools off, the share price could drop quickly.

Your $10,000 by 2030: A Range of Outcomes
Over the five-year projected period, a $10,000 stake in Synopsys ranges from about $13,766 in the bear case to $24,581 in the bull case, with the base case landing at $20,481.

To track the thesis, watch Ansys synergy progress, adoption of the AI agent tools, and any changes to export rules. The projection is not investment advice, and actual returns could be higher or lower than any scenario shown here.

Contact [email protected] for any questions or corrections.

The S&P 500 has gained nearly 14.1% so far this year (as of Oct. 9). But much of the market's earnings growth remains concentrated in major technology companies.

According to London Stock Exchange Group (LSEG), S&P 500 earnings are expected to grow around 31% year over year in the third quarter. The global financial markets data and infrastructure provider also expects technology sector and prominent artificial intelligence (AI) players such as Alphabet, Amazon, and Meta Platforms to account for roughly two-thirds of that earnings growth.

Image source: Getty Images.

While the current focus is mainly on AI companies building computing capacity and infrastructure, I expect the next phase of AI adoption will benefit businesses generating measurable productivity gains from AI.

If I had to buy one stock today to benefit from this shift through 2030, it would be Synopsys (SNPS -3.17%). The company provides the software and intellectual property (IP) used to design increasingly complex chips and engineering systems.

The market's next winners may not build AI data centers The U.S. 10-year Treasury yield reached approximately 5.24% on Oct. 9. Morgan Stanley projects that AI infrastructure will need roughly $1.5 trillion in outside funding by 2028. With interest rates remaining elevated, the challenge for companies is not just expanding computing capacity but generating enough profits to justify the enormous investment.

SNPS Synopsys$464.71-$15.22 (-3.17%)

NASDAQ · As of 1:14 PM ET 10/15/26

Hence, I expect investors to increasingly reward companies that make AI computing more efficient and profitable by 2030. The demand for specialized processors, industrial automation, and AI-assisted engineering could accelerate as businesses focus on reducing costs and improving productivity.

While this trend could broaden earnings growth beyond today's dominant AI infrastructure suppliers, established leaders such as Nvidia and Amazon could continue benefiting from growing computing demand. Synopsys, on the other hand, stands to benefit from the increasing number and complexity of chip designs as companies develop computing solutions tailored to different applications.

Synopsys could capture more value from its customers The bigger opportunity for Synopsys lies in changing how it earns revenue. Synopsys earns licensing fees when customers use its IP in chip designs, with some agreements also generating royalties from chip sales.

In September 2026, Synopsys announced a multi-year licensing agreement worth more than $1 billion with Amazon for customized semiconductor IP for multiple generations of chips. The agreement's licensing value excludes potential royalties, which could provide Synopsys with additional revenue as Amazon's chip production increases.

Synopsys' $34.9 billion acquisition of Ansys could also help it generate more revenue from existing customers. Engineers designing advanced chips must account for how heat, electrical interference, and other physical factors affect performance. Synopsys has already launched products that bring these simulations into the chip-design process. Management expects the combination of new products and cross-selling to generate $400 million in additional annualized revenue by fiscal 2029.

The company's partnership with OpenAI could create another growth opportunity. The companies are developing a specialized model GPT-Synopsys to automate certain chip-design tasks. Synopsys' existing tools will help verify the results. The companies also plan to share revenue from the offering. However, Synopsys still needs to prove that increased use of AI-powered tools can offset any decline in demand for traditional software licenses.

Synopsys' ambitious 2030 financial targets Synopsys' reported revenue jumped 49.2% year-over-year over the first nine months of fiscal 2026. However, much of that growth came from its Ansys acquisition. Comparing revenue as if Ansys had been part of Synopsys in both years suggests growth of only about 7.4%. This is an approximate comparison, not the company's official organic growth rate.

The company's Design IP revenue declined 0.7% year-over-year over the first nine months of fiscal 2026. Yet, management is now targeting annual growth of at least 17% for the Design IP business from fiscal 2026 through fiscal 2030. Achieving that target would require a significant acceleration from its recent performance.

Management expects approximately $11.15 billion revenue in fiscal 2027. The company is also targeting 15% annual revenue growth from fiscal 2026 through fiscal 2030. If achieved, revenue could reach nearly $17 billion by fiscal 2030. The company's targeted 50% non-GAAP operating margin would translate into approximately $8.5 billion in adjusted operating income in fiscal 2030.

The cash-flow projections are equally important. Synopsys expects around $3.1 billion in free cash flow in fiscal 2027. The company is also targeting annual free cash flow growth in the mid-20% range from fiscal 2026 through fiscal 2030. Assuming 25% annual growth, free cash flow could nearly double to $6.1 billion by fiscal 2030. This would imply an improvement in free cash flow margin from around 28% in fiscal 2027 to 36% in fiscal 2030. Hence, achieving these projections would require not only higher revenue but also better cash generation from each dollar of sales.

Synopsys' valuation leaves little room for mistakes Synopsys shares were trading at approximately 27 times projected fiscal 2027 adjusted earnings and 61 times GAAP earnings (as of Oct.9). The lower adjusted PE multiple excludes expenses such as acquisition-related amortization and stock-based compensation.

The company expects around $960 million to $980 million in stock-based compensation in fiscal 2027, or around 31% to 32% of its projected $3.1 billion in free cash flow. Issuing shares to employees could dilute existing shareholders, while repurchasing shares to offset that dilution would consume cash.

Management is also targeting annual adjusted earnings growth in the mid-20% range through fiscal 2030. Assuming 25% annual growth from the midpoint of its fiscal 2027 EPS guidance of $19.08, adjusted EPS could reach approximately $37.27 by fiscal 2030.

However, at 20 times those earnings, the stock could reach approximately $745 by fiscal 2030, representing 46% upside. A lower multiple of 15 would imply just $559, or 10% upside. These scenarios show how valuation changes could limit shareholder returns despite strong earnings growth.

Hence, I would buy a modest position in Synopsys, while paying attention to accelerating underlying revenue growth, improving Design IP profitability, and higher free cash flow per share.

Key Takeaways Synopsys' Design IP revenues rose 11% year over year in fiscal Q3 2026, reaching 19.1% of total revenues.Synopsys' IP business targets doubling year over year, with more than 100 cumulative design wins.Automotive design-win rates exceeded 90% for 3 consecutive quarters as ADAS shifted to 5nm & 3nm technologies. Synopsys’ (SNPS - Free Report) Design IP includes logic libraries, embedded memories, wired interface IP, memory interface IP and security IP. In the third quarter of fiscal 2026, Design IP accounted for 19.1% of total revenues and increased 11% year over year, while the adjusted operating margin improved to 26.5%.

Synopsys holds a leading position in interface and foundation IP. The business is increasingly focused on areas benefiting from AI-driven semiconductor complexity. Synopsys said demand for high-speed interconnect IP is accelerating because of AI’s massive data requirements.

Synospys’ standards-based IP that can be developed once and licensed repeatedly across customers and applications is gaining traction. Its portfolio includes high-speed interface, memory and die-to-die connectivity IP, which are increasingly important as AI systems require higher bandwidth, faster data transfer and more complex chip architectures.

IP business is on track to double year over year, with cumulative design wins exceeding 100. In automotive, the company maintained a design-win rate above 90% for three consecutive quarters as advanced driver-assistance systems (ADAS) transitioned to 5-nanometer and 3-nanometer technologies. Its USB IP portfolio has also surpassed $2 billion in lifetime bookings.

SNPS’ also focuses on developing differentiated IP subsystems and enabling custom silicon solutions tailored to customers’ workloads and architectures. Hyperscalers, ASIC vendors, foundries and semiconductor companies are seeking deeper engineering collaboration to accelerate chip development through this model.

How Competitors Fare Against SNPSSynopsys operates in a highly competitive market, with major rivals, including Cadence Design Systems Inc. (CDNS - Free Report) and Keysight Technologies (KEYS - Free Report) . These companies serve different stages of the electronic and IC design lifecycle, offering specialized tools and solutions that help customers improve product development, design efficiency and testing.

Keysight Technologies competes primarily across electronic design, measurement and testing, with software and solutions covering areas such as electromagnetic analysis, circuit simulation and hardware verification. Meanwhile, Cadence Design Systems is benefiting from increasing design complexity and growing customer investments in AI-powered automation.

Cadence is also strengthening its position through its expanding Cadence.ai portfolio. New offerings, including AgentStack, ChipStack, ViraStack and InnoStack AI Super Agents, are broadening the company’s AI capabilities across the design workflow and could help Cadence maintain its momentum as AI adoption accelerates.

Synopsys Performance and ValuationSynopsys’ shares have appreciated 19.3% in the past month, outperforming the Zacks Computer and Technology sector’s return of 2.2%.

SNPS YTD Performance Chart
Image Source: Zacks Investment Research

The outperformance in the stock price led to a premium valuation, with SNPS stock trading at a P/S multiple of 8.44X, much above the industry P/E multiple of 6.37X. The premium valuation is further established by a Zacks Value Score of F.

SNPS Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for SNPS’ fiscal 2026 earnings is pegged at $15.13, indicating 17% year-over-year growth. Estimates have been revised upward in the past 60 days.

Image Source: Zacks Investment Research

SNPS currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

While the AI spotlight stays fixed on megacap darlings, one under-the-radar software company quietly sits at the center of every chip those giants design, and analysts are starting to notice the gap between its valuation and its growth.

Most AI money still flows into the megacaps, but every AI accelerator has to be designed, verified and packaged before it ships. Synopsys (NASDAQ:SNPS | SNPS Price Prediction) sells the software and silicon IP that make that possible.

Shares trade at $509.26. The 24/7 Wall St. price target is $632.92 over the next 12 months, which implies 24.28% upside. The model rates the stock a buy with high confidence.

24/7 Wall St. Price Target Summary Metric Value Current Price $509.26 Price Target from 24/7 Wall St. $632.92 Upside/Downside 24.28% Recommendation BUY Confidence Level 90% Bullish analyst view stands at 92% with zero bearish ratings, and quarterly earnings grew 89.3% year over year. Synopsys leads in electronic design automation (EDA) and added engineering simulation through the Ansys deal.

Every new AI chip adds design complexity, driving more demand for Synopsys tools (we reverse-engineered what the biggest tech winners looked like early in a free playbook you can grab here).

A 29% Monthly Rally Puts Synopsys Back Near Its Highs Shares rose 17.06% over the past week and 29.28% over the past month, up 8.39% year to date. The stock sits about 5.6% below its 52-week high of $539.48 and roughly 40% off its low of $362.55.

The fiscal Q3 report on August 26 showed revenue of $2.48 billion, up 42.4% and ahead of the $2.44 billion estimate. Non-GAAP EPS of $3.91 beat the $3.67 consensus. Management raised full-year guidance to $9.69 billion to $9.74 billion revenue and $15.04 to $15.10 non-GAAP EPS. Shares slipped 10.71% over the following 30 days, setting up the current rebound.

Why Bulls See $730 Ahead Management expects double-digit organic EDA growth in Q4. Multiphysics Fusion, the first joint Synopsys-Ansys product, should add to EDA growth in 2027. Die-to-die IP is on pace to double, and Synopsys won more than 95% of PCIe 7 opportunities. CEO Sassine Ghazi: “These chips will not happen without our interface IP.”

Analysts largely agree, with 23 bullish ratings and just 2 Holds. Our bull case reaches $730.70.

What Could Knock Synopsys Off Course Export controls tied to China, customer concentration and about $10 billion of debt are real risks. Morgan Stanley downgraded the stock over growth-deceleration concerns.

GAAP EPS of $2.84 trailed non-GAAP results, and the trailing P/E stands at 86, partly from roughly $404 million in quarterly non-cash amortization tied to Ansys. Free cash flow guidance of $2.6 billion gives a cleaner read. The bear case of $540.93 still sits above today’s price.

Synopsys Looks Cheaper Than Cadence and Arm Cadence Design Systems (NASDAQ:CDNS) is Synopsys’ closest EDA rival, trading at 32 times forward earnings versus 23 for Synopsys. The valuation gap favors Synopsys.

Arm Holdings (NASDAQ:ARM) competes in licensed silicon IP, trading at 152 times forward earnings with a beta of 3.789. Compared with both peers, our 24/7 Wall St. price target looks reasonable.

Company Forward P/E Quarterly Revenue Growth (YoY) Synopsys 23 42.4% Cadence 32 24.2% Arm 152 22.4% Synopsys Earns Its BUY Rating The 24/7 Wall St. price target of $632.92 carries a buy rating and 90% confidence. Synopsys trades below Cadence despite faster reported growth.

Keep an eye on whether Q4 supports double-digit EDA growth, and on whether export restrictions expand or Design IP stalls. Strong analyst consensus and accelerating earnings back the bullish case.

Year Price Target from 24/7 Wall St. 2026 $632.92 2027 $721.07 2028 $835.76 2029 $919.25 2030 $969.19 These projections assume Synopsys delivers on AI design demand and Ansys integration. Faster royalty adoption could push results higher; trade restrictions could draws them lower.

Contact [email protected] for any questions or corrections.

Before a single AI chip reaches a fab, it passes through Synopsys software, and that chokepoint keeps getting harder to route around. Here is why a stretched valuation, ten billion dollars of acquisition debt, and slowing EDA growth have not…

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I have added Synopsys (NASDAQ:SNPS | SNPS Price Prediction) after every earnings report this year. Before any AI chip reaches a fab, engineers design, verify, and sign off on it using Synopsys software. Each new chip generation is harder to build, requiring more tools, licenses, and simulation. I want to own that toll road for the next decade.

Growth That Keeps Beating the Forecasts Fiscal Q3 revenue reached $2.48B, up 42.4% YoY. Non-GAAP EPS of $3.91 beat the $3.67 consensus by 6.44%, which makes four straight beats. Management then raised full-year guidance for the second time. Non-GAAP EPS guidance has been raised to $15.04 to $15.10, up from an original $14.38 to $14.46, and free cash flow guidance is about $2.6B.

Ansys is pulling its weight. Management expects it to contribute about $2.98 billion this year, $20 million above prior guidance. The company targets $400 million in cost synergies by year four. Joint products like Multiphysics Fusion should add to EDA growth in fiscal 2027.

A Moat Built on Sign-Off Trust EDA runs as a duopoly. Backlog stood at $10.9 billion at Q3 end. CEO Sassine Ghazi noted: “Customers will not invest hundreds of millions of dollars in a product without having the confidence that it is going to work.” Synopsys won more than 95% of PCIe 7 opportunities, and its die-to-die business is on pace to double.

Why My Money Goes Here Instead of Cadence Cadence Design Systems (NASDAQ:CDNS) is the alternative. Cadence trades at a forward P/E of 32 and 16.68 times sales. Synopsys trades at a forward P/E of 23 and 9.94 times sales. The stock rose 21.7% last week to $505.17, and even at that price it sits near 27x the $18.583 fiscal 2027 consensus.

Debt and Integration Risks I Refuse to Ignore Ansys left Synopsys carrying about $10 billion of debt. Restructuring charges should total $200M to $250M this fiscal year, and roughly $403M of quarterly amortization drives the trailing P/E to 86. China export controls, a short customer list, and shareholder lawsuits over Design IP add risk. Q3 EDA growth slowed to 8.5%.

None of that has changed my thesis. Management repaid $3.46B of debt in the first half and paid off term loans early. Total liabilities fell 19.6% YoY, and cash rose to $3.61B. Double-digit organic EDA growth is also expected in Q4 and for the full year.

What Keeps My Buy Button Active Analysts made 18 upward revisions to fiscal 2027 EPS over the past seven days, with none lower. Royalty-based custom IP, agentic AI workflows, and joint Ansys products sit ahead. Synopsys pays no dividend. The stock has returned 752.46% over ten years. Chips keep getting harder to design, Synopsys sends a bill for every added layer of difficulty, and I expect to own a bigger share of those bills.

Contact [email protected] for any questions or corrections.

Wall Street warmed to Synopsys's (SNPS -0.46%) recent investor day presentation, with several analysts promptly hiking price targets, including a Deutsche Bank analyst who maintained a buy rating and raised the target to $640 from $590.

Analysts liked the tech company's growth targets and the multi-year agreement with Amazon.com, which supported its long-term growth aspirations. Are they right to be enthusiastic? I think so, and here's why.

Synopsys is moving to where the AI market is heading The company's roots lie in electronic design automation (EDA) solutions that help customers --  predominantly semiconductor companies -- design and test chips. That's still a major end market for the company, but chip design is moving beyond traditional semiconductor companies and into a wider range of end-market customers. At the same time, the rapid expansion of physical AI (think autonomous vehicles and robots) is increasing the need for computing power in increasingly complex systems.

Premium Feature

Moneyball Superscore

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487.67

The growth opportunity is encapsulated in the announcement of a $1 billion multi-year agreement with Amazon, whereby the hyperscaler will accelerate its "custom silicon innovation and advance the development of increasingly complex AI-powered products."

Meanwhile, Synopsys continues to integrate its acquisition of the engineering simulation solutions company Ansys as it strives to offer a suite of "silicon-to-systems" solutions to an ever-increasing range of customers. By adding Ansys (systems testing) to its silicon design solutions, Synopsys can let customers design and modify chips while also testing their designs.

Image source: Getty Images.

Growth targets from investor day These factors combine to create an opportunity for Synopsys to develop what management calls "differentiated silicon tailored to specific workloads and system architectures." It's an opportunity that management sees as leading to the following over the long term:

Mid-teens revenue growth Operating margin of 50% by 2030, compared to about 44% in 2026 Earnings-per-share growth (EPS) in the mid-20% range Free cash flow (FCF) growth in the mid-20% range Those are pretty aggressive targets, and based on management's guidance for 2026 and 2027, a rough estimate for EPS in 2030 could be $0.37, with FCF of $6 billion. Those estimates would put Synopsys at a price-to-earnings multiple of about 13 and a price-to-FCF multiple of about 15.3 in 2030. These valuations are highly attractive for a company growing at such a rate.

Image source: Getty Images.

Where next for Synopsys? There's no guarantee that these end markets will grow organically in line with Synopsys' expectations, especially since they rely on assumptions about new market growth and technological adoption that might not unfold as smoothly as management's estimates anticipate.

On the other hand, in-house chip design is growing in response to the increasing complexity and demands of physical AI development. Those trends are powerful, and the customer Synopsys just signed, Amazon, is a great example of the kind of lead customer driving that evolution. All this makes Synopsys an excellent stock option for AI bulls.

News Highlights

Leading portfolio of engineering solutions positions Synopsys to capitalize on the continued expansion of digital and physical AI and the AI-driven transformation of engineering. Updates long-term growth targets to reflect accelerating revenue and expanding non-GAAP operating margins. Company expects fiscal year 2027 revenue growth of approximately 15% year over year to $11.15 billion at the midpoint of guidance range. After investing in the business, Synopsys expects to return up to 50% of free cash flow to shareholders via share repurchases; with intent to repurchase approximately $1 billion in shares over the coming months, subject to market conditions. , /PRNewswire/ -- Synopsys, Inc. (NASDAQ: SNPS) today detailed its long-term growth strategy and sustainable long-term financial model at its 2026 Investor Day in New York. Management outlined how AI is driving demand, transforming engineering, unlocking new business models and accelerating growth across the portfolio. A replay of the presentation will be available on Synopsys' investor relations website.

Synopsys headquarters in Sunnyvale, Calif. Synopsys President and CEO, Sassine Ghazi, said: "AI is creating multiple, reinforcing growth engines for Synopsys. The acceleration of frontier intelligence is fueling an unprecedented demand for compute power while increasing system complexity. Simultaneously, purpose-built silicon is reshaping the IP market, while Physical AI and agentic workflows are driving deeper integration of our trusted tools. Together, these forces are expanding our addressable market, increasing consumption of our technology, and creating new, recurring revenue streams."

Highlights from executive presentations include:

Silicon IP Business Expands to Serve Growing Demand for Special-purpose Silicon

Synopsys is expanding beyond traditional standards-based IP into application-optimized IP (AOIP), helping customers develop differentiated silicon tailored to specific workloads and system architectures. As AI drives demand for custom silicon across hyperscalers and system companies, Synopsys is leveraging its interface IP leadership, system expertise, and engineering scale to deliver optimized IP subsystems and platforms that accelerate time-to-market while improving performance and efficiency.

This 'Factory 2' IP model expands Synopsys' value capture per design win and increases its participation in the long-term growth of custom silicon and AI infrastructure. Demonstrating early momentum for the new IP business model, the company has secured multiple AOIP customers spanning compute, ASIC, and AI connectivity architectures. This includes an IP agreement with Amazon, which was announced today.

Powering the Next Frontier of AI-Driven Design

Ghazi today also explained the company's strategy to create and capture value in the delivery of AI-powered engineering solutions and announced a groundbreaking partnership with OpenAI to collaborate as preferred partners to develop and deliver GPT-Synopsys, a specialized model for chip design that brings together OpenAI's frontier AI with Synopsys' trusted EDA tools and chip design expertise.

Synopsys is advancing the next frontier of AI-driven design and simulation with a strategy that enables customers to adopt its agentic AI portfolio in the way that best fits their engineering environment. Customers can deploy the full Synopsys Autopilot platform, integrate Synopsys agents into their own AI platforms, or leverage frontier AI models optimized for specialized engineering workflows. Across all approaches, Synopsys provides the trusted engineering context, domain-specific agents, and ground-truth execution engines that power the development of the world's most advanced products. This flexible model expands Synopsys' opportunity to participate across the emerging AI engineering ecosystem while creating multiple avenues to monetize AI-driven engineering through a combination of subscription and consumption-based models across tools, agents and platform.

Synopsys Fiscal 2027 and Long-term Financial Outlook

Synopsys provided financial guidance for fiscal year 2027 and a comprehensive multi-year financial framework through fiscal year 2030. The company also announced its intent to repurchase approximately $1 billion of Synopsys shares over the coming months, subject to market conditions, underscoring confidence in its long-term cash generation.

Shelagh Glaser, Synopsys CFO, said, "Our updated financial framework reflects confidence in both our growth trajectory and our ability to scale efficiently while helping customers re-engineer their engineering to accelerate AI-powered products. We remain focused on disciplined execution, converting growth into expanding margins and strong free cash flow, while continuing to invest in innovation and deliver sustainable long-term value for our shareholders."

The company's updated long-term targets and fiscal year 2027 outlook are provided below:

Our long-term, FY26E - FY30E objectives (1)

Revenue

Operating Margin

Free Cash Flow (2)

Company (2)

Long-term non-GAAP

Free Cash Flow Growth

Mid-Teens growth ~15%

FY30E operating margin ~50%

in the Mid 20%'s

Design Automation (2)

Earnings (2)

Capital Return(3)

EDA: Mid-Teens: 13%+

Non-GAAP EPS growth

Up to 50%

S&A: Double-Digit: 10%+

in the Mid 20%s

of Free Cash Flow

Design IP (2)

via share repurchases

High-Teens: 17%+

(1) These multi-year objectives are provided as of September 30, 2026. See below for additional information regarding these forward-looking non-GAAP measures, including reconciliations to the most comparable GAAP measures to the extent available without unreasonable efforts

(2) FY26E - FY30E Growth CAGR

(3) Capital allocation objectives are based on current business outlook and may vary based on market conditions, strategic opportunities, and balance sheet priorities

Full Fiscal Year 2027 Financial Targets

(in millions, except per share amounts)

Range for Fiscal Year Ending

October 31, 2027

Low

High

Revenue

$11,100

$11,200

GAAP Expenses

$8,765

$8,905

Non-GAAP Expenses

$6,215

$6,275

Non-GAAP Interest and Other Income (Expense), net

($465)

($455)

Non-GAAP Tax Rate

18 %

18 %

Outstanding Shares (fully diluted)

190

192

GAAP Operating Margin

Midpt: ~20.7%

Non-GAAP Operating Margin

Midpt: ~44.0%

GAAP EPS

$8.16

$8.61

Non-GAAP EPS

$19.04

$19.12

Operating Cash Flow

~$3,600

Free Cash Flow (1)

~$3,100

Capital Expenditures

~$500

(1) Free cash flow is calculated as cash provided from operating activities less capital expenditures

GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2027 Targets

(in thousands, except per share data)

Range for Fiscal Year

Ending October 31, 2027

Low

High

Target GAAP expenses

$     8,765,000

$     8,905,000

Adjustments:

      Amortization of acquired intangible assets

(1,540,000)

(1,550,000)

      Stock-based compensation

(960,000)

(980,000)

      Restructuring charges

(50,000)

(100,000)

Target non-GAAP expenses

$     6,215,000

$     6,275,000

Range for Fiscal Year

Ending October 31, 2027

Low

High

Target GAAP earnings per diluted share attributed to Synopsys

$              8.16

$              8.61

Adjustments:

     Amortization of acquired intangible assets

$              8.12

$              8.06

     Stock-based compensation

$              5.13

$              5.03

     Restructuring charges

$              0.52

$              0.26

     Tax adjustments and settlement

$            (2.89)

$            (2.84)

Target non-GAAP earnings per diluted share attributed to Synopsys    

$            19.04

$            19.12

Shares used in non-GAAP calculation (midpoint of target range)

191,000

191,000

GAAP to Non-GAAP Reconciliation of Operating Margin at Midpoint of Full Fiscal Year 2027 Targets

Twelve Months Ending

October 31, 2027

At midpoint of revenue and expense guidance ranges

GAAP operating margin

20.7 %

      Amortization of acquired intangible assets

13.9 %

      Stock-based compensation

8.7 %

      Restructuring charges

0.7 %

Target non-GAAP operating margin

44.0 %

Presentations and the webcast replay from today's Synopsys 2026 Investor Day are available at: https://investor.synopsys.com/.

Forward Looking Statements

Certain statements contained herein and in our investor conference call contain forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements concerning our anticipated financial performance, guidance, long-term financial objectives and projections; anticipated synergies and other benefits; capital allocation plans, including planned share repurchases; revenue growth objectives and the expected timing and pace of realization; operating margin expansion objectives; customer demand, market opportunities and industry trends, including the anticipated impact of artificial intelligence; products, services, technologies, business offerings and models, strategies, and anticipated product performance and customer benefits; partnerships and customer agreements; and our operating structure and growth strategy. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions or the negatives of these words or other comparable terminology to convey uncertainty of future events or outcomes. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties.

Many risks, uncertainties and other factors that could cause Synopsys' actual future events to differ materially from any future results, time frames, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: (i) macroeconomic conditions and geopolitical uncertainty in the global economy; (ii) uncertainty in the growth of the semiconductor and electronics industries; (iii) the highly competitive industry in which we operate; (iv) actions by the U.S. or foreign governments, such as the imposition of additional export restrictions or tariffs; (v) consolidation among our customers and our dependence on a relatively small number of large customers; (vi) risks and compliance obligations relating to the global nature of our operations; (vii) failure to realize the benefits expected from the transactions we complete, including the acquisition of ANSYS, Inc. ("Ansys"), or unexpected difficulties or expenditures arising therefrom; (viii) risks related to inaccuracies in, or failures to achieve, our operational and business metrics or forecasts of growth; and (ix) other risks and uncertainties described in our filings with the SEC. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.

Additional information on potential risks, uncertainties and other factors that could affect Synopsys' results is included in filings we make with the SEC from time to time, including in the sections entitled "Risk Factors" in our latest Annual Report on Form 10-K and in our latest Quarterly Report on Form 10-Q. The financial information contained in this press release should be read in conjunction with the consolidated financial statements and notes thereto included in Synopsys' most recent reports on Forms 10-K and 10-Q, each as may be amended from time to time. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond Synopsys' control, and are not guarantees of future results. Readers are cautioned not to put undue reliance on forward-looking statements, and Synopsys gives no assurances that it will achieve its expectations.

GAAP to Non-GAAP Reconciliations

This press release contains certain forward-looking financial measures that are not in accordance with the U.S. generally accepted accounting principles ("GAAP"). It also includes future estimates for non-GAAP operating margin, non-GAAP tax rate, non-GAAP interest and other income (expense), net, non-GAAP expenses, non-GAAP earnings per diluted share ("EPS"), non-GAAP EPS compound annual growth rate ("CAGR"), free cash flow ("FCF") and FCF CAGR.

FCF is calculated as cash provided from operating activities less capital expenditures FCF CAGR is calculated as the average annual growth rate of FCF over a period of time Non-GAAP EPS is calculated as GAAP net income excluding amortization of acquired intangible assets, stock-based compensation, restructuring charges, acquisition/divestiture-related items, loss on sale of strategic investments, and legal matters, adjusted for the difference between GAAP and non-GAAP tax rates, divided by fully diluted outstanding shares Non-GAAP EPS CAGR is calculated as the average annual growth rate of non-GAAP EPS over a period of time Non-GAAP expenses are calculated as GAAP expenses, excluding amortization of acquired intangible assets, stock-based compensation, restructuring charges, and acquisition/divestiture-related items Non-GAAP operating margin is non-GAAP operating income for a period divided by revenue for the same period Non-GAAP tax rate is set at a three-year normalized tax rate of 18.0%. In projecting this rate, we evaluated our historical and projected mix of U.S. and international profit before tax, excluding the impact of stock-based compensation, the amortization of purchased intangibles and other GAAP only adjustments. Non-GAAP interest and other income (expense), net is calculated as GAAP interest and other income (expense), net adjusted for the change in fair value of our non-qualified deferred compensation plan Synopsys continues to provide all information required in accordance with GAAP but acknowledges evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, Synopsys presents non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Synopsys' operating results in a manner that focuses on what Synopsys believes to be its core business operations and what Synopsys uses to evaluate its business operations and for internal budgeting and resource allocation purposes. These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles, and management exercises judgment in determining which items should be excluded in the calculation of non-GAAP measures. The presentation of non-GAAP financial information is not meant to be considered in isolation from, as superior to or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. These non-GAAP financial measures are meant to supplement, and be viewed in conjunction with, the corresponding GAAP financial measures.

Certain non-GAAP financial measures used by management, as well as the reconciliation of non-GAAP financial measures to their most closely applicable GAAP financial measures, is contained in this press release and in our investor conference call presentation available in the investor relations portion of Synopsys' corporate website at www.synopsys.com. Synopsys is unable to provide a full reconciliation of non-GAAP tax rate for FY 2027E; non-GAAP interest and other income (expense), net for FY 2027E; non-GAAP operating margin for FY 2028E-FY 2030E; non-GAAP EPS for FY 2028E-FY 2030E; non-GAAP EPS CAGR for FY 2026E-FY 2030E; FCF for FY 2028E-FY 2030E; and FCF CAGR for FY 2026E-FY 2030E projections, targets and guidance measures to the corresponding GAAP financial measures on a forward-looking basis because Synopsys believes that it would not be possible for it to have the information necessary to quantitatively reconcile such measures with sufficient precision without unreasonable efforts due to, among other things, the potential variability and limited predictability of the excluded adjustment items necessary for a full reconciliation such as certain acquisition/divestiture related items, tax deduction variability, changes in the fair value of non-qualified deferred compensation plan, and gains (losses) on the sale of strategic investments. For the same reasons, Synopsys is unable to address the probable significance of the unavailable information. Synopsys is presenting forward looking non-GAAP financial measures for illustrative purposes and may not report on this basis going forward.

Effectiveness of Information

The information provided herein is as of September 30, 2026. Although this press release is expected to remain available on Synopsys' website through the time Synopsys announces its results for the fourth quarter and fiscal year 2026, its continued availability through such time does not mean that Synopsys is reaffirming or confirming its continued validity. Synopsys undertakes no duty, and does not intend, to update any forward-looking statement, whether as a result of new information, future events or otherwise, unless required by law.

About Synopsys

Synopsys, Inc. (Nasdaq: SNPS) is the leader in engineering solutions from silicon to systems, enabling customers to rapidly innovate AI-powered products. We deliver industry-leading silicon design, IP, simulation and analysis solutions, and design services. We partner closely with our customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow. Learn more at www.synopsys.com.

© 2026 Synopsys, Inc. All rights reserved. Synopsys, Ansys, the Synopsys and Ansys logos, and other Synopsys trademarks are available at https://www.synopsys.com/company/legal/trademarks-brands.html. Other company or product names may be trademarks of their respective owners.

Contacts

Investors
Tushar Jain
[email protected]

Media
Cara Walker 
[email protected]
[email protected]

SOURCE Synopsys, Inc.

News Highlights:

Strategic engagement to accelerate the engineering of Amazon custom chips and AWS infrastructure using Synopsys' silicon IP and AI-powered engineering software solutions Multi-year, $1B+ agreement marks the expansion of Synopsys' silicon IP business to serve increasing demand for application-optimized IP while evolving to a license-plus-royalty business model that aims to deliver value to both companies as production volumes grow Synopsys to accelerate product development using AWS services and partner to optimize Synopsys' software on Trainium and Graviton Synopsys engineering will also adopt Amazon Elastic Compute Cloud (Amazon EC2) and Amazon Bedrock to accelerate its product development. , /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today announced a strategic agreement with Amazon to accelerate Amazon's custom silicon innovation and advance the development of increasingly complex AI-powered products and cloud infrastructure. The multi-year agreement marks the expansion of Synopsys' silicon IP business to serve increasing demand for application-optimized IP with Amazon as its lead customer.

Synopsys and Amazon Announce Strategic, Multi-year IP Agreement for Custom Silicon; Collaboration Also Extends to Cloud and AI-Powered Engineering Amazon continues to build on its leadership and longstanding investment in a broad portfolio of purpose-built chips, including Nitro for cloud security, network and storage, Graviton for general-purpose computing, and Trainium for AI training and inference workloads. Building on more than 15 years of collaboration, the agreement expands Amazon's use of Synopsys' IP to include application-optimized silicon IP. The agreement also expands Amazon's use of Synopsys EDA, simulation and analysis (S&A), and agentic AI technologies. Synopsys and Amazon will work to accelerate multiphysics solutions on Trainium and Graviton.

In addition, the companies plan to collaborate on applying AI across silicon-to-system engineering workflows. This includes deploying Synopsys' AI-powered EDA, physics-based simulation and agentic AI solutions, as well as developing custom agentic AI capabilities to help Amazon's engineering teams design, analyze, optimize, and validate complex chips and systems more efficiently.

"Amazon has invested in custom silicon for more than a decade, and it has fundamentally changed what's possible for AWS and our customers," said Peter DeSantis, SVP, foundational AI, custom silicon, quantum computing at Amazon. "From Graviton to Trainium, purpose-built chips deliver better performance at lower cost because they're designed for exactly what customers need. As our chip designs grow more ambitious and AI reshapes the engineering process itself, Synopsys helps us move faster across the design cycle, helping us deliver more capable, efficient computing for customers worldwide."  

To accelerate its own IP and EDA tools development, Synopsys is adopting Amazon EC2 and cloud storage services, as well as Amazon Bedrock to build and deploy AI applications and agents to help innovate faster and scale its product offerings.

"Special purpose silicon is at the heart of AWS innovation. As we expand into application-optimized IP solutions, we're proud to have Amazon as our lead customer for this next phase of growth," said Sassine Ghazi, president and CEO of Synopsys. "More broadly, by combining Amazon's leadership in AI infrastructure and custom silicon with Synopsys' leadership in silicon IP, EDA and Multiphysics solutions, we can dramatically increase the productivity of our teams and shape the future of AI-native engineering." 

About Synopsys 

Synopsys, Inc. (Nasdaq: SNPS) is the leader in engineering solutions from silicon to systems, enabling customers to rapidly innovate AI-powered products. We deliver industry-leading silicon design, IP, simulation and analysis solutions, and design services. We partner closely with our customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow. Learn more at www.synopsys.com. 

© 2026 Synopsys, Inc. All rights reserved. Synopsys, Ansys, the Synopsys and Ansys logos, and other Synopsys trademarks are available at https://www.synopsys.com/company/legal/trademarks-brands.html. Other company or product names may be trademarks of their respective owners.

Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements regarding the strategic multi-year agreement between Synopsys and Amazon and its anticipated benefits, future business and technology opportunities, growth initiatives, product development and innovation, and expected future results and outcomes. These statements involve risks, uncertainties and other factors that could cause our actual results, time frames, or achievements to differ materially from those expressed or implied in such forward-looking statements. Information on potential risks, uncertainties and other factors that could affect Synopsys' results is included in filings we make with the SEC from time to time, including in the sections entitled "Risk Factors" in our latest Annual Report on Form 10-K and in our latest Quarterly Report on Form 10-Q. Synopsys undertakes no duty, and does not intend, to update any forward-looking statement provided in this press release, whether as a result of new information, future events or otherwise, unless required by law.

Contacts

Investors
Tushar Jain
[email protected]

Media
Cara Walker  
[email protected]
[email protected] 

SOURCE Synopsys, Inc.

Open and Secure Synopsys Autopilot Platform Accelerates Engineering Productivity, Improves Design Quality, and Achieves Faster Closure Across Silicon to Systems

Key Highlights

Synopsys Autopilot™ Platform includes a broad portfolio of domain-specific AgentEngineer™ solutions, long-horizon agents that reason, plan, and execute with the support of task agents across silicon to systems workflows The Platform's context intelligence combines trusted engineering expertise with reusable skills and persistent memory to guide workflows with greater accuracy Open, secure architecture provides customer choice across Synopsys, partner, and third-party models, infrastructure, tools, and agents Demonstrated results by market leaders include up to 50x faster verification closure, 20% higher coverage, 30% productivity boost, 2x better token efficiency, and lower latency , /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today announced Synopsys AgentEngineer™ solutions, the industry's broadest portfolio of domain-specific long-horizon agents that can reason, plan, and execute complete engineering workflows from silicon to systems across verification, system validation, implementation, analog, manufacturing, and simulation and analysis domains. Built on the Synopsys Autopilot™ Platform, a comprehensive, open, and secure foundation for autonomous engineering, these agents help teams accelerate engineering productivity, improve design quality, and achieve faster closure across critical workflows while optimizing token efficiency and reducing latency.

Synopsys Powers Autonomous Engineering with a Broad Portfolio of Long-Horizon Agents and Autopilot Platform "Our customers are re-engineering their engineering workflows across semiconductor and systems products to keep pace with increasing system complexity and tight market windows," said Ravi Subramanian, Chief Product Management Officer at Synopsys. "Synopsys' portfolio of AgentEngineer solutions and the Autopilot Platform enable customers to accelerate their shift from AI-assisted design to autonomous engineering, built on trusted EDA and simulation and analysis engines."

Portfolio of Long-Horizon Agents Across Silicon-to-System Design 
Synopsys AgentEngineer solutions bring long-horizon, domain-specific intelligence to critical engineering workflows supporting verification, implementation, analog, manufacturing, and simulation and analysis engineering domains in one unified platform environment.

In addition, task-level agents apply Synopsys engineering expertise to targeted execution, including autonomous coverage closure; software bring-up and validation; multi-die 3DIC assembly; PPA closure; analog layout synthesis and design migration; mask synthesis; combustion, resonance, and signal integrity; and other complex design tasks.

Together, these long-horizon and task-level agents deliver unmatched breadth and depth, enabling autonomous execution of cross-domain tasks. Their effectiveness is powered by deep engineering context, domain expertise, and workflow intelligence uniquely derived from Synopsys' industry-leading EDA and simulation and analysis ground-truth engines.

Built On Synopsys Autopilot Platform: A Trusted Foundation for Agentic Orchestration
The Synopsys Autopilot Platform provides orchestration, skills, memory, telemetry, and governance for autonomous engineering workflows. It creates a trusted environment for AI systems to coordinate activities, access design knowledge, execute actions, and maintain enterprise-grade security and control.

Built for Optionality: Enables customer choice across Synopsys, partner, and third-party infrastructure, models, data, agents, workflows, and ecosystem integrations, while preserving security and data integrity. Context Intelligence: Powered by Synopsys' cognitive model, combines deep domain engineering knowledge and tools, reusable skills, and persistent memory to help AI agents interpret design intent and guide workflows. Advanced Security & Data Management: Protects customer, partner, and Synopsys intellectual property through architecture flexibility, access controls, encryption, and runtime guardrails.  Optimized for Efficiency: Uses privileged APIs and reasoning over proprietary context intelligence to deliver better results at significantly lower token cost/count and latency. Advancing Autonomous Engineering at Scale Industry Collaborations
Beyond automating individual tasks, the Synopsys Autopilot Platform helps engineering teams accelerate entire workflows from design through verification and systems development. Engagements with leading companies are validating the promise of autonomous engineering and demonstrating meaningful improvements in productivity, design quality, and workflow closure.

"As a fast-growing innovator developing next-generation processor architectures, we are continually looking for new ways to accelerate engineering execution and improve productivity across our design workflows," said Alon Mahl, VP of Verification, AheadComputing. "The Synopsys AgentEngineer technology extends AI beyond task assistance to help automate complex workflows and accelerate engineering execution. From RTL handoff through implementation, ECO, and signoff, the Synopsys Implementation AgentEngineer helped us reduce manual engineering effort and accelerate design convergence, enabling our engineering teams to focus more time on the differentiated aspects of our processor architecture."

"We achieved a 10–30% productivity boost in RTL code generation with Synopsys Verification AgentEngineer capabilities," said Toshio Yoshida, Senior Vice President and Head of the Advanced Computing Development Unit at Fujitsu. "This was driven by highly efficient generation of SystemVerilog assertions, wrapper modules, and parameterized modules, as well as code refactoring."

"Advancing the productivity and efficiency of our verification teams is critical as design complexity continues to increase across next-generation computing platforms," said Manoj Selva, Vice President, Product Enablement, Intel. "Our work with Synopsys Verification AgentEngineer technology highlights the promise of agentic AI for debug, enabling engineers to accelerate issue resolution across verification environments. We believe these advancements can help reduce verification bottlenecks, improve engineering efficiency, and accelerate the delivery of our silicon innovations."

"Our engineers have consistently pushed the boundaries of analog and mixed-signal design and are continuously looking for ways to dramatically enhance design and layout productivity," said Ching San Wu, Vice President of MediaTek. "Building on the successful deployment of Synopsys SmartFloorplanning Technology, we are continuing our collaboration with Synopsys on the Agentic AI AMS Platform, driving the next frontier of autonomous analog engineering flows. We believe this transformative technology will fundamentally reshape how our teams create, optimize, and implement complex AMS designs."

"Autonomous engineering requires AI agents that understand design intent, plan and execute complex workflows, and validate their results," said Tim Costa, Vice President and General Manager of Industrial and Computational Engineering at NVIDIA. "Synopsys is combining its silicon-to-systems expertise with NVIDIA accelerated computing and NVIDIA Agent Toolkit, including NVIDIA Nemotron models and the NVIDIA OpenShell secure runtime, to build long-running agents that help engineers improve design quality and accelerate development."

"Breakthroughs in AI increasingly depend on breakthroughs in memory: the industry calls for higher bandwidth, greater efficiency, and faster innovation cycles," said JY Choi, Executive Vice President and Head of Memory Design Technology at Samsung Electronics. "Synopsys agentic AI solutions are helping Samsung's engineering teams accelerate complex development workflows, allowing us to focus more effort on innovating the advanced memory technologies that power the next generation of AI infrastructure."

"As AI drives the shift to multi-die architectures with unprecedented power densities, increasingly complex power delivery networks demand new approaches for power integrity signoff," said Aveek Sarkar, Director of the Ecosystem and Alliance Management Division at TSMC. "Through our enduring partnership with Open Innovation Platform® (OIP) ecosystem partners like Synopsys, we are successfully enabling agentic AI-based solutions to accelerate critical power integrity analysis workflows. As advanced packaging designs rapidly grow in scale and complexity, these AI-based solutions significantly boost engineering productivity and enable groundbreaking designs for next-generation AI systems."

Availability and Resources
More than 50 engagements are underway with Synopsys AgentEngineer solutions and the Autopilot Platform, with general availability planned for the end of 2026.

For more information about Synopsys AgentEngineer solutions and the Autopilot Platform, visit: https://www.synopsys.com/ai/agentic-ai. 

About Synopsys
Synopsys, Inc. (Nasdaq: SNPS) is the leader in engineering solutions from silicon to systems, enabling customers to rapidly innovate AI-powered products. We deliver industry-leading silicon design, IP, simulation and analysis solutions, and design services. We partner closely with our customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow. Learn more at www.synopsys.com. 

© 2026 Synopsys, Inc. All rights reserved. Synopsys, Ansys, the Synopsys and Ansys logos, and other Synopsys trademarks are available at https://www.synopsys.com/company/legal/trademarks-brands.html. Other company or product names may be trademarks of their respective owners. 

Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements concerning our expectations regarding certain of our solutions, including their anticipated performance and benefits, and the development of additional solutions and enhancements. These statements involve risks, uncertainties and other factors that could cause our actual results, time frames, or achievements to differ materially from those expressed or implied in such forward-looking statements. Information on potential risks, uncertainties and other factors that could affect Synopsys' results is included in filings we make with the SEC from time to time, including in the sections entitled "Risk Factors" in our latest Annual Report on Form 10-K and in our latest Quarterly Report on Form 10-Q. 

Contacts
Media          
Kelli Wheeler, [email protected]
Pete Smith, [email protected]
[email protected]

SOURCE Synopsys, Inc.

HSBC just flipped its rating on Synopsys with a price target that towers above Wall Street consensus, and the reasoning behind it reframes the chip design giant as something the market may not have priced in yet.

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HSBC analyst Frank Lee upgraded Synopsys (NASDAQ:SNPS | SNPS Price Prediction) to buy from hold and raised his price target to $700 from $490. Lee argues that a change in the chip design software leader’s business model could lift annual earnings growth from 7% to 28% through 2028.

Synopsys stock rose 4.38% in premarket trading to $443.50. The analyst upgrade presents Synopsys as an AI growth story, and near-term volatility remains a real risk.

Ticker Company Firm Action Old Rating New Rating Old Target New Target SNPS Synopsys HSBC Upgrade Hold Buy $490 $700 HSBC’s Royalty Thesis Could Reset Synopsys’ Growth Curve In a research note, Lee said the new business model will turn Synopsys from a “slow-growth software play to a high-growth AI beneficiary,” with the faster earnings growth “creating significant re-rating potential.” He sees the design intellectual property royalty model as the main driver of that earnings growth.

Management has described the same shift. On the third-quarter call, the chief executive said Synopsys is in advanced talks to move from a traditional IP license to “a license plus a royalty” with customers that include hyperscalers and ASIC vendors. He added, “We are in active discussions with multiple Factory 2 customers.”

Design IP revenue reached $474 million, up about 11% year-over-year. The die-to-die business is “on pace to double year over year,” and Synopsys won more than 95% of PCIe 7 opportunities.

Company Snapshot: Synopsys One Year After Ansys Synopsys is a leading provider of electronic design automation (EDA) software and semiconductor IP. It expanded into wider engineering software when its $35B Ansys acquisition closed in fiscal Q3 2025.

Fiscal Q3 2026 revenue rose 42.4% YoY to $2.48B. Non-GAAP EPS came in at $3.91, beating the $3.67 consensus, and the non-GAAP operating margin was 41.6%. Management raised its full-year guidance to revenue of $9.69B to $9.74B and non-GAAP EPS of $15.04 to $15.10. Backlog stood at $10.9 billion.

Why Wall Street Is Rethinking Synopsys Right Now Shares have gained 16.35% over the past week but remain down 5.58% year to date. The stock trades at about 23x forward earnings, compared with a trailing P/E near 72.

Analysts’ estimates are moving higher. The consensus fiscal 2027 EPS estimate rose to $17.5259 from $17.2343 90 days ago.

Over the past 30 days, there were 17 up updates and just 1 down updates. HSBC’s $700 target is well above the consensus target of $545.55. Synopsys also announced an agentic AI partnership with TSMC (NYSE:TSM) this week.

What It Means for Your Portfolio Synopsys offers retirement-focused investors exposure to AI chip design complexity through recurring software and IP revenue. The stock pays no dividend, so any return depends on earnings growth.

The risks are real:

Export controls and Entity List restrictions Customer concentration Ansys integration Fourth-quarter restructuring charges Total debt of about $10 billion Key signals to watch include signed Factory 2 royalty deals and the updates to the long-term IP growth outlook that management has promised for Investor Day.

The royalty shift is really an AI infrastructure story, since Synopsys gets paid every time a hyperscaler or ASIC vendor produces new silicon (we featured seven companies riding the same expansion, outside the chipmakers themselves, in a free report here: 7 Stocks Powering the AI Boom (That Aren’t Chipmakers)).

Contact [email protected] for any questions or corrections.

Ameritas Advisory Services LLC lifted its holdings in shares of Synopsys, Inc. (NASDAQ:SNPS – Free Report) by 399.3% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 3,011 shares of the semiconductor company’s stock after buying an additional 2,408 shares during the period. Ameritas Advisory Services LLC’s holdings in Synopsys were worth $1,343,000 at the end of the most recent reporting period.

Other large investors also recently bought and sold shares of the company. Sankala Group LLC purchased a new stake in Synopsys in the fourth quarter worth approximately $25,000. Elevation Wealth Partners LLC raised its stake in Synopsys by 96.4% during the 2nd quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock valued at $25,000 after buying an additional 27 shares during the last quarter. Osbon Capital Management LLC bought a new position in shares of Synopsys during the 2nd quarter valued at $25,000. IMG Wealth Management Inc. purchased a new position in shares of Synopsys in the 2nd quarter worth $28,000. Finally, Caitong International Asset Management Co. Ltd purchased a new position in Synopsys in the fourth quarter worth about $28,000. 85.47% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth Several equities research analysts have recently commented on SNPS shares. UBS Group set a $570.00 price target on shares of Synopsys in a research report on Thursday, August 27th. Bank of America upped their price objective on Synopsys from $515.00 to $600.00 and gave the stock a “buy” rating in a research note on Thursday, May 28th. Citigroup raised their target price on Synopsys from $600.00 to $610.00 and gave the stock a “buy” rating in a report on Thursday, May 28th. Rosenblatt Securities reiterated a “buy” rating and set a $575.00 target price on shares of Synopsys in a research report on Tuesday, August 25th. Finally, Needham & Company LLC reissued a “buy” rating and set a $580.00 price target on shares of Synopsys in a report on Thursday, August 27th. Twelve investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $561.28.

View Our Latest Stock Report on Synopsys Synopsys Trading Up 0.3% Shares of SNPS stock opened at $393.22 on Thursday. The stock has a fifty day simple moving average of $408.89 and a two-hundred day simple moving average of $438.59. Synopsys, Inc. has a 52-week low of $366.00 and a 52-week high of $539.48. The firm has a market capitalization of $75.36 billion, a PE ratio of 69.47, a PEG ratio of 2.15 and a beta of 1.23. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.24 and a current ratio of 1.34.

Synopsys (NASDAQ:SNPS – Get Free Report) last released its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, topping analysts’ consensus estimates of $3.67 by $0.24. The firm had revenue of $2.48 billion during the quarter, compared to analyst estimates of $2.44 billion. Synopsys had a return on equity of 6.24% and a net margin of 11.43%.The business’s quarterly revenue was up 42.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $3.39 earnings per share. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. On average, analysts predict that Synopsys, Inc. will post 10.97 EPS for the current fiscal year.

Insider Activity In related news, insider Aart de Geus sold 24,641 shares of the company’s stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $419.44, for a total transaction of $10,335,421.04. Following the completion of the transaction, the insider owned 120,443 shares in the company, valued at approximately $50,518,611.92. This represents a 16.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of the firm’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the transaction, the chief executive officer directly owned 75,020 shares of the company’s stock, valued at $34,431,179.20. The trade was a 16.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 92,638 shares of company stock worth $40,747,732 over the last quarter. Insiders own 0.56% of the company’s stock.

Synopsys Company Profile (Free Report)

Synopsys, Inc is a technology company that develops electronic design automation (EDA) software, semiconductor intellectual property (IP), and related services. Its products help semiconductor and electronics companies design, verify, test and manufacture integrated circuits and complex electronic systems.

The company’s EDA portfolio includes tools for digital and analog design, simulation, verification, physical implementation, signoff and manufacturing preparation. Synopsys also provides reusable semiconductor IP, including processor cores, interface technologies, embedded memories and security-related components, which customers can incorporate into system-on-chip designs.

Synopsys additionally offers software integrity and application security solutions that help organizations identify and manage vulnerabilities and risks in the software development lifecycle.

Further Reading Five stocks we like better than Synopsys Qualcomm’s Data Center Bet Looks More Real After Amazon’s AI Deal GE Aerospace’s $11.75B Deal Puts Howmet Aerospace in Focus Casey’s Post-Earnings Drop May Give Investors a Better Entry Into a Quality Retailer Sovereign AI: Palantir and Nebius Cut the Cloud Cord Want to see what other hedge funds are holding SNPS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Synopsys, Inc. (NASDAQ:SNPS – Free Report).

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Nvidia Corp (NASDAQ:NVDA) and Synopsys, Inc (NASDAQ:SNPS) are set to report earnings after the bell Wednesday, putting the companies’ financial results in focus as investors assess the impact of their expanding AI partnership. Nvidia’s $2 billion investment in Synopsys may signal a bet on something much bigger than electronic design automation (EDA) software.

In an exclusive email interview with Benzinga, Synopsys Chief Product Development Officer Shankar Krishnamoorthy said the investment reflects a broader shift toward AI-powered engineering—one that could eventually change how everything from semiconductors to turbine engines is designed.

Nvidia’s Synopsys Investment Is a Bet on AI EngineeringKrishnamoorthy said the strategic value of Nvidia’s investment extends beyond capital, describing it as a reflection of where engineering is headed over the next decade.

“The investment reflects a shared vision that the next generation of engineering will be powered by AI, simulation, and holistic system design,” he told Benzinga.

That vision is already shaping the partnership between the two companies. According to Krishnamoorthy, Synopsys and Nvidia are combining expertise in engineering software and accelerated computing to develop autonomous workflows that help customers tackle increasingly complex design challenges.

The collaboration recently produced an end-to-end autonomous verification workflow that, according to Synopsys, “compresses weeks of manual labor into hours of agentic execution,” addressing one of the most time-consuming stages of chip verification.

The larger objective, however, is not simply to design chips faster. It’s to rethink how products are engineered from concept to completion.

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Synopsys Sees AI Replacing Costly Physical PrototypesKrishnamoorthy believes one of the biggest shifts will occur well before products reach the factory floor.

“Customers can no longer afford the time and cost of creating and testing physical prototypes of their products, from turbine engines to tennis racquets,” he said.

Instead, AI models, simulation tools and digital engineering workflows are increasingly allowing companies to validate designs virtually before committing to expensive physical testing.

That, according to Synopsys, is why the convergence of AI and engineering matters beyond the semiconductor industry. Krishnamoorthy said combining Synopsys’ engineering software with Nvidia’s AI infrastructure is helping accelerate “the industry’s transition toward AI-powered, silicon-to-systems design and development.”

The phrase “silicon-to-systems” reflects a broader ambition: using AI not just to optimize individual chips, but to improve the design of complete products by integrating hardware, software and physics into a unified engineering workflow.

Why Investors Should Watch AI Engineering, Not Just AI ChipsNvidia has become synonymous with the AI infrastructure boom, but Krishnamoorthy suggests the next phase of growth may be driven by the software that enables engineers to build AI-powered products faster and more efficiently.

Rather than viewing the investment as another semiconductor deal, investors may want to see it as a signal that AI is moving deeper into industrial engineering, product development and simulation—areas that have traditionally relied on lengthy design cycles and costly physical prototypes.

If that transition unfolds as Synopsys expects, the biggest winners may not simply be the companies building AI chips, but those enabling an entirely new way of designing products.

For investors, the trend to watch is whether AI-powered engineering platforms can translate today’s strategic vision into measurable productivity gains and broader enterprise adoption over the next several years.

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Key Takeaways Synopsys Q3 earnings rose 15.3% and revenues jumped 42.4%, both topping consensus estimates.EDA strength, Ansys contributions and Design IP growth drove broad-based gains across Synopsys.Synopsys raised fiscal 2026 revenue and earnings guidance and expects double-digit EDA growth. Synopsys, Inc. (SNPS - Free Report) reported third-quarter fiscal 2026 non-GAAP earnings of $3.91 per share, which increased 15.3% year over year and beat the Zacks Consensus Estimate by 6.5%. Broad-based strength, led by EDA and Ansys, supported the earnings outperformance.

Revenues rose 42.4% year over year to $2.48 billion, topping the consensus mark by 1.7%. Backlog remained strong at $10.9 billion, while Design IP returned to year-over-year growth.

SNPS Revenue Mix Shows Broad-Based GrowthTime-based product revenues were $1 billion, which increased 12.4% from the year-ago quarter. Upfront product revenues increased 28.8% to $665.2 million, reflecting higher product contributions during the quarter.

Maintenance and service revenues surged 144.4% year over year to $808.8 million. Ansys contributed approximately $711 million to total quarterly revenues.

Synopsys Segments Gain on EDA and IP GrowthDesign Automation revenues were $2 billion, which increased 52.7% year over year, accounting for 80.9% of total revenues. Within the segment, EDA revenues increased 8.5%, supported by robust software performance and record hardware-assisted verification revenues.

Design IP revenues rose 10.8% to $473.8 million and represented 19.1% of revenues. Management cited broad AI infrastructure demand, including strength in interface, memory and die-to-die IP. The company said its die-to-die business is on pace to double year over year and has surpassed 100 cumulative design wins.

SNPS Margin Expansion Reflects Cost DisciplineThe non-GAAP operating margin was 41.6% in the quarter. Design Automation’s adjusted operating margin expanded to 45.2% from 44.5% a year ago, while the Design IP adjusted margin improved to 26.5% from 20.1%.

Total non-GAAP costs and expenses were $1.45 billion, landing at the lower end of management’s guided range. Synopsys credited operational efficiency and Ansys cost synergies that are running ahead of schedule.

Synopsys Cash Flow and Balance Sheet StrengthenFree cash flow was $746 million in the third quarter. For the first nine months of fiscal 2026, net cash provided by operating activities totaled $2.30 billion.

Synopsys ended the third quarter with $3.61 billion in cash, cash equivalents and short-term investments. Total debt was about $10 billion after the company repaid term loans earlier than planned.

Synopsys AI and Multiphysics Drive New OpportunitiesManagement highlighted AI-driven design complexity as a key demand driver across the portfolio. More than 30 customer engagements are underway for Synopsys’ agentic AI platform, which is designed to automate engineering workflows while increasing use of the company’s underlying EDA tools.

Synopsys also launched Multiphysics Fusion, its first joint Synopsys-Ansys solution. Early customer validations showed up to 10 times faster design closure and three times faster runtime. Management expects these add-on capabilities to begin contributing to EDA growth in fiscal 2027.

SNPS Raises Fiscal 2026 OutlookSynopsys raised its fiscal 2026 revenue guidance to $9.69-$9.74 billion, with the midpoint up $50 million. The company expects Ansys to contribute about $2.98 billion, up $20 million from its previous outlook, and continues to expect Design IP revenues to grow sequentially in the fourth quarter.

The company lifted its fiscal 2026 non-GAAP earnings guidance to $15.04-$15.10 per share, a 31-cent increase at the midpoint from the prior forecast. Non-GAAP operating margin is now projected at about 41.5% at the midpoint, up 50 basis points from the previous guidance.

For the fourth quarter, SNPS projects revenues of $2.53-$2.58 billion and non-GAAP earnings of $4.10-$4.16 per share. Management expects EDA revenue growth to accelerate to double digits in the fourth quarter and for fiscal 2026.

SNPS’ Zacks Rank and Stocks to ConsiderCurrently, SNPS carries a Zacks Rank #3 (Hold).

Some better-ranked stocks worth considering in the broader Zacks Computer and Technology sector are Applied Materials (AMAT - Free Report) , Lam Research (LRCX - Free Report) and Palo Alto Networks (PANW - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.73 per share, up by 4.9% over the past 30 days, indicating a year-over-year surge of 35.1%. Applied Materials shares have surged 87.5% year to date (YTD).

The Zacks Consensus Estimate for Lam Research’s fiscal 2027 earnings has moved northward by 17.8% to $9.32 per share over the past 30 days and calls for a year-over-year jump of 60.4%. Lam Research shares have soared 83.8% YTD.

The Zacks Consensus Estimate for Palo Alto Networks’ fiscal 2026 earnings has remained unchanged at $3.78 per share, over the past 30 days, implying a year-over-year increase of 13.2%. Palo Alto Networks shares have risen 94.1% YTD.

Key Takeaways Synopsys expects Q3 revenues of $2.41-$2.46 billion, with the consensus estimate implying 40% growth.AI chip complexity is driving demand for EDA, verification, simulation and advanced 3DIC design solutions.Weak industrial and automotive design starts, along with China restrictions, could weigh on SNPS' Q3 results. Synopsys (SNPS - Free Report) is scheduled to report third-quarter fiscal 2026 results on Aug. 26, 2026, after market close.

Synopsys expects non-GAAP earnings per share between $3.63 and $3.69. The Zacks Consensus Estimate for fiscal third-quarter earnings is pinned at $3.67 per share, which indicates a year-over-year increase of 8.3%.

The company anticipates revenues between $2.41 billion and $2.46 billion for the fiscal third quarter. The Zacks Consensus Estimate is pegged at $2.44 billion, which suggests a rise of 40% from the year-ago period's reported figure.

In the trailing four quarters, SNPS’ earnings surpassed the Zacks Consensus Estimate thrice while missing the same on one occasion, with an average surprise of 0.9%.

Factors Influencing Synopsys’ Q3 ResultsSynopsys’ fiscal third-quarter performance is likely to have benefited from continued AI-driven demand for semiconductor design and engineering solutions. Management noted that AI is increasing chip complexity, architectural diversity and system-level design requirements, driving demand across EDA, IP, hardware-assisted verification and simulation. Strong AI semiconductor activity, including increased design starts among semiconductor companies and hyperscalers developing their own chips, is expected to have supported SNPS’ top-line growth in the to-be-reported quarter.

Strength in the Design Automation business is likely to have remained a key driver in the third quarter of fiscal 2026. The company continues to see strong demand for advanced-node and 3DIC solutions, while hardware-assisted verification is benefiting from hyperscalers and leading semiconductor customers scaling emulation and prototyping for increasingly complex AI designs. The growing adoption of multi-die and chiplet architectures, along with Synopsys’ leadership in 3DIC design, is expected to aid its third-quarter results.

The Ansys business is also likely to have supported SNPS’ fiscal third-quarter performance. Management noted continued demand for system-level digital engineering and physics-based simulation, with AI data center build-outs driving demand for simulation solutions beyond semiconductors. Growth in aerospace and defense, automotive and industrial applications is also supporting Ansys, particularly as customers increasingly use simulation for complex and intelligent systems, which is likely to have driven SNPS’ top-line growth in the fiscal third quarter.

The Design IP business is expected to have shown sequential improvement in the fiscal third quarter. Management expects sequential growth in the Design IP business throughout the second half of fiscal 2026. Strong demand for high-speed interconnect IP, including PCIe 7.0 and UCIe, as well as memory IP for hyperscalers and AI companies, is likely to aid its third-quarter results.

However, weak design-start activity in industrial and automotive markets might have remained a headwind in the fiscal third quarter. Management said that while customers in these markets are reporting stronger revenue trends, design starts remain muted compared with AI-related activity. China is another concern, as the design-start environment remains challenging due to ongoing restrictions and their cumulative impact. Management has maintained a cautious outlook for China, which might have posed an investor concern in the to-be-reported quarter.

What Our Model Says About SNPSOur proven model does not conclusively predict an earnings beat for SNPS this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That’s the exact case here.

SNPS has an Earnings ESP of +0.35% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to ConsiderHere are some other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases:

Dell Technologies (DELL - Free Report) has an Earnings ESP of +6.42% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dell Technologies is slated to report second-quarter fiscal 2027 results on Sept. 1. The Zacks Consensus Estimate for DELL’s second-quarter earnings is pegged at $4.88 per share, down by a penny over the past 30 days, indicating a rise of 110.3% from the year-ago quarter’s reported figure.

Hewlett Packard (HPE - Free Report) has an Earnings ESP of +9.96% and carries a Zacks Rank #2 at present.

Hewlett Packard is set to report third-quarter fiscal 2026 results on Sept. 2. The Zacks Consensus Estimate for HPE’s third-quarter earnings is pegged at 94 cents per share, up by a penny over the past 30 days, indicating a rise of 113.6% from the year-ago quarter’s reported figure.

NVIDIA (NVDA - Free Report) has an Earnings ESP of +0.92% and carries a Zacks Rank #3 at present.

NVIDIA is set to report second-quarter fiscal 2027 results on Aug. 26. The Zacks Consensus Estimate for NVDA’s second-quarter earnings is pegged at $2.09 per share, unchanged over the past 30 days, indicating a rise of 99.1% from the year-ago quarter’s reported figure.

EP Wealth Advisors LLC acquired a new stake in shares of Synopsys, Inc. (NASDAQ:SNPS – Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 7,122 shares of the semiconductor company’s stock, valued at approximately $3,177,000.

Other institutional investors have also modified their holdings of the company. Sankala Group LLC purchased a new position in shares of Synopsys in the 4th quarter worth approximately $25,000. Elevation Wealth Partners LLC raised its holdings in Synopsys by 96.4% during the 2nd quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock valued at $25,000 after buying an additional 27 shares during the period. Caitong International Asset Management Co. Ltd purchased a new stake in Synopsys during the 4th quarter valued at $28,000. IMG Wealth Management Inc. bought a new stake in Synopsys in the second quarter worth $28,000. Finally, Atlas Capital Advisors Inc. bought a new stake in Synopsys in the fourth quarter worth $32,000. 85.47% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth Several research analysts have commented on the stock. Weiss Ratings reiterated a “hold (c-)” rating on shares of Synopsys in a research report on Monday, June 8th. Morgan Stanley reduced their target price on shares of Synopsys from $525.00 to $500.00 and set an “equal weight” rating on the stock in a research note on Wednesday. Bank of America raised their target price on shares of Synopsys from $515.00 to $600.00 and gave the stock a “buy” rating in a report on Thursday, May 28th. Citigroup lifted their price target on shares of Synopsys from $600.00 to $610.00 and gave the stock a “buy” rating in a research note on Thursday, May 28th. Finally, KeyCorp reiterated an “overweight” rating on shares of Synopsys in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $563.59.

Check Out Our Latest Analysis on Synopsys Insiders Place Their Bets In related news, CFO Shelagh Glaser sold 3,394 shares of the firm’s stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $450.02, for a total value of $1,527,367.88. Following the transaction, the chief financial officer owned 14,358 shares of the company’s stock, valued at $6,461,387.16. This trade represents a 19.12% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of Synopsys stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the sale, the chief executive officer owned 75,020 shares of the company’s stock, valued at $34,431,179.20. The trade was a 16.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 0.56% of the stock is currently owned by insiders.

Synopsys Price Performance SNPS opened at $397.87 on Friday. The business has a fifty day moving average of $419.73 and a 200 day moving average of $440.22. Synopsys, Inc. has a 52-week low of $366.00 and a 52-week high of $615.79. The company has a quick ratio of 1.32, a current ratio of 1.43 and a debt-to-equity ratio of 0.33. The stock has a market cap of $76.18 billion, a P/E ratio of 92.10, a PEG ratio of 2.34 and a beta of 1.23.

Synopsys (NASDAQ:SNPS – Get Free Report) last announced its quarterly earnings data on Wednesday, May 27th. The semiconductor company reported $3.35 EPS for the quarter, beating the consensus estimate of $3.15 by $0.20. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The company had revenue of $2.28 billion for the quarter, compared to the consensus estimate of $2.25 billion. During the same quarter in the prior year, the company posted $3.67 EPS. Synopsys’s quarterly revenue was up 41.9% on a year-over-year basis. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. As a group, sell-side analysts anticipate that Synopsys, Inc. will post 10.64 EPS for the current year.

About Synopsys (Free Report)

Synopsys, Inc is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) used to design, verify and manufacture integrated circuits and complex systems-on-chip (SoCs). Its product portfolio spans tools and technologies for front‑end design and synthesis, simulation and verification, physical implementation and signoff, and design-for-manufacturability, enabling chip designers to move from architecture through tape‑out.

In addition to core EDA offerings, Synopsys supplies a broad set of semiconductor IP building blocks — such as interface, memory and analog/mixed-signal cores — that customers integrate into SoCs to accelerate development.

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Advisors Capital Management LLC bought a new position in Synopsys, Inc. (NASDAQ:SNPS – Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The firm bought 9,124 shares of the semiconductor company’s stock, valued at approximately $4,070,000.

Other large investors have also recently made changes to their positions in the company. Sankala Group LLC purchased a new position in Synopsys during the 4th quarter worth $25,000. Elevation Wealth Partners LLC lifted its position in shares of Synopsys by 96.4% in the 2nd quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock worth $25,000 after purchasing an additional 27 shares during the period. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Synopsys in the 4th quarter worth approximately $28,000. IMG Wealth Management Inc. bought a new position in Synopsys in the second quarter worth approximately $28,000. Finally, Atlas Capital Advisors Inc. bought a new position in Synopsys in the fourth quarter worth approximately $32,000. 85.47% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets In other Synopsys news, CFO Shelagh Glaser sold 3,394 shares of the firm’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $450.02, for a total value of $1,527,367.88. Following the transaction, the chief financial officer owned 14,358 shares in the company, valued at approximately $6,461,387.16. This trade represents a 19.12% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of Synopsys stock in a transaction on Monday, June 15th. The stock was sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the sale, the chief executive officer directly owned 75,020 shares in the company, valued at approximately $34,431,179.20. This trade represents a 16.29% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 0.56% of the company’s stock.

Wall Street Analysts Forecast Growth Several research analysts have recently commented on SNPS shares. Zacks Research raised Synopsys from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, June 30th. BNP Paribas Exane raised their price objective on Synopsys from $425.00 to $450.00 and gave the company an “underperform” rating in a research report on Thursday, May 28th. Robert W. Baird set a $558.00 target price on Synopsys in a research note on Thursday, May 28th. Benchmark reaffirmed a “buy” rating on shares of Synopsys in a research report on Wednesday. Finally, KeyCorp reiterated an “overweight” rating on shares of Synopsys in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $563.59. Read Our Latest Report on SNPS

Synopsys Stock Down 0.0% SNPS stock opened at $397.87 on Friday. Synopsys, Inc. has a 52 week low of $366.00 and a 52 week high of $615.79. The company has a quick ratio of 1.32, a current ratio of 1.43 and a debt-to-equity ratio of 0.33. The firm has a 50-day simple moving average of $419.73 and a 200-day simple moving average of $440.22. The stock has a market capitalization of $76.18 billion, a P/E ratio of 92.10, a P/E/G ratio of 2.34 and a beta of 1.23.

Synopsys (NASDAQ:SNPS – Get Free Report) last posted its quarterly earnings data on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.15 by $0.20. The company had revenue of $2.28 billion for the quarter, compared to analysts’ expectations of $2.25 billion. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.Synopsys’s revenue was up 41.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.67 EPS. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. Equities analysts forecast that Synopsys, Inc. will post 10.65 earnings per share for the current fiscal year.

Synopsys Profile (Free Report)

Synopsys, Inc is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) used to design, verify and manufacture integrated circuits and complex systems-on-chip (SoCs). Its product portfolio spans tools and technologies for front‑end design and synthesis, simulation and verification, physical implementation and signoff, and design-for-manufacturability, enabling chip designers to move from architecture through tape‑out.

In addition to core EDA offerings, Synopsys supplies a broad set of semiconductor IP building blocks — such as interface, memory and analog/mixed-signal cores — that customers integrate into SoCs to accelerate development.

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Allworth Financial LP bought a new position in Synopsys, Inc. (NASDAQ:SNPS – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 9,608 shares of the semiconductor company’s stock, valued at approximately $4,286,000.

Other institutional investors have also recently made changes to their positions in the company. Sankala Group LLC bought a new stake in shares of Synopsys in the fourth quarter worth $25,000. Elevation Wealth Partners LLC boosted its position in Synopsys by 96.4% in the second quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock worth $25,000 after purchasing an additional 27 shares during the last quarter. IMG Wealth Management Inc. purchased a new position in Synopsys in the second quarter worth about $28,000. Caitong International Asset Management Co. Ltd bought a new stake in shares of Synopsys during the 4th quarter valued at about $28,000. Finally, Atlas Capital Advisors Inc. bought a new stake in shares of Synopsys during the 4th quarter valued at about $32,000. Hedge funds and other institutional investors own 85.47% of the company’s stock.

Synopsys Stock Performance SNPS opened at $397.92 on Friday. The stock has a market capitalization of $76.19 billion, a price-to-earnings ratio of 92.11, a PEG ratio of 2.36 and a beta of 1.23. The company has a fifty day moving average of $420.85 and a 200 day moving average of $440.51. Synopsys, Inc. has a fifty-two week low of $366.00 and a fifty-two week high of $615.79. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.32 and a current ratio of 1.43.

Synopsys (NASDAQ:SNPS – Get Free Report) last announced its quarterly earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 EPS for the quarter, beating analysts’ consensus estimates of $3.15 by $0.20. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The company had revenue of $2.28 billion during the quarter, compared to analyst estimates of $2.25 billion. During the same period in the prior year, the company earned $3.67 earnings per share. The firm’s revenue was up 41.9% on a year-over-year basis. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. As a group, sell-side analysts forecast that Synopsys, Inc. will post 10.65 earnings per share for the current fiscal year. Insiders Place Their Bets In related news, CFO Shelagh Glaser sold 3,394 shares of the company’s stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $450.02, for a total transaction of $1,527,367.88. Following the transaction, the chief financial officer directly owned 14,358 shares in the company, valued at approximately $6,461,387.16. This represents a 19.12% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $458.96, for a total value of $6,702,192.88. Following the completion of the sale, the chief executive officer owned 75,020 shares in the company, valued at approximately $34,431,179.20. The trade was a 16.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 0.56% of the company’s stock.

Analyst Ratings Changes A number of brokerages have commented on SNPS. Benchmark reaffirmed a “buy” rating on shares of Synopsys in a report on Wednesday. Morgan Stanley dropped their price target on shares of Synopsys from $525.00 to $500.00 and set an “equal weight” rating on the stock in a research note on Wednesday. Berenberg Bank set a $633.00 price objective on shares of Synopsys in a research report on Wednesday, May 27th. BNP Paribas Exane upped their price objective on Synopsys from $425.00 to $450.00 and gave the stock an “underperform” rating in a research note on Thursday, May 28th. Finally, Citigroup raised their target price on Synopsys from $600.00 to $610.00 and gave the stock a “buy” rating in a report on Thursday, May 28th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $563.59.

Check Out Our Latest Stock Report on Synopsys

Synopsys Company Profile (Free Report)

Synopsys, Inc is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) used to design, verify and manufacture integrated circuits and complex systems-on-chip (SoCs). Its product portfolio spans tools and technologies for front‑end design and synthesis, simulation and verification, physical implementation and signoff, and design-for-manufacturability, enabling chip designers to move from architecture through tape‑out.

In addition to core EDA offerings, Synopsys supplies a broad set of semiconductor IP building blocks — such as interface, memory and analog/mixed-signal cores — that customers integrate into SoCs to accelerate development.

See Also Five stocks we like better than Synopsys 3 Energy Stocks Raising Dividends as the Sector Surges 5 Reasons the S&P 500 Could Keep Rallying Through Year-End Walmart’s Post-Earnings Drop Could Be a Buying Opportunity The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future Want to see what other hedge funds are holding SNPS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Synopsys, Inc. (NASDAQ:SNPS – Free Report).

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Key Takeaways Synopsys is embedding AI across its portfolio to automate engineering and accelerate design cycles.DSO.ai has optimized over 700 tape-outs, while VSO.ai reaches up to 90% of some SoC blocks.Synopsys cites up to 50% faster knowledge assistance and five times faster formal testbench generation. Synopsys (SNPS - Free Report) is benefiting from the large AI infrastructure expansion, which is fueling semiconductor R&D, system-level design activity and demand for advanced AI computing capabilities. The company is integrating AI throughout its product portfolio to automate engineering processes, accelerate design cycles and enhance customer productivity. This is driving solid design wins, driven by a robust product portfolio.

Synopsys is pursuing a multi-layered AI strategy. At the product level, the company has introduced XSO.ai to embed AI capabilities directly into its solutions. The second layer focuses on customer-specific AI, allowing customers to train AI models on their own workflows and develop knowledge-assistant tools tailored to their requirements. Synopsys is also advancing the use of agentic generative AI to enable more autonomous engineering workflows.

The company also offers DSO.ai and VSO.ai. DSO.ai serves as an optimization engine for chip tape-outs, while VSO.ai is being deployed more extensively across SoC blocks and verification processes. Customers have used DSO.ai to optimize more than 700 cumulative tape-outs, while VSO.ai has been deployed across as much as 90% of SoC blocks in certain chips.

Synopsys benefits from its decades of engineering expertise, proprietary software codebases and solvers, silicon-proven design technologies and strong foundry co-optimization capabilities. These advantages have enabled the company to deliver significant productivity gains, including up to 50% faster knowledge assistance, 70% faster workflow assistance and five times faster formal testbench generation for customers.

Synopsys is leveraging AI on two key fronts like accelerating and improving chip design at present while positioning itself for a broader transition toward more autonomous AI-driven workflows spanning design, verification and simulation. These capabilities should strengthen SNPS’ position as an important player in the AI semiconductor value chain over the long term.

How Competitors Fare Against SNPSSynopsys operates in a highly competitive EDA market, with major rivals, including Cadence Design Systems Inc. (CDNS - Free Report) and Keysight Technologies (KEYS - Free Report) . These companies serve different stages of the electronic and IC design lifecycle, offering specialized tools and solutions that help customers improve product development, design efficiency and testing.

Keysight Technologies competes primarily across electronic design, measurement and testing, with software and solutions covering areas such as electromagnetic analysis, circuit simulation and hardware verification. Meanwhile, Cadence Design Systems is benefiting from increasing design complexity and growing customer investments in AI-powered automation.

Cadence is also strengthening its position through its expanding Cadence.ai portfolio. New offerings, including AgentStack, ChipStack, ViraStack and InnoStack AI Super Agents, are broadening the company’s AI capabilities across the design workflow and could help Cadence maintain its momentum as AI adoption accelerates.

SNPS’ Price Performance, Valuation and EstimatesShares of SNPS have lost 12.5% year to date against the Computer - Software industry’s decline of 3.3%.

SNPS YTD Performance Chart
Image Source: Zacks Investment Research

From a valuation standpoint, SNPS trades at a forward price-to-sales ratio of 7.52X, higher than the industry’s average of 6.31X.

SNPS Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for SNPS’ fiscal 2026 earnings is pegged at $14.49, indicating 12% year-over-year growth. The estimates have remained unchanged in the past 60 days.

Image Source: Zacks Investment Research

SNPS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Synopsys Certified AI-powered EDA flows, integrated multiphysics analysis, and broad IP portfolio accelerate Angstrom-scale AI and multi-die designs

Key Highlights

Certified AI-powered EDA flows and multiphysics analysis for Intel 14A designs: Provide early insight into power integrity, thermal, and electromagnetic effects, improving predictability and accelerating convergence From DTCO to system-aware co-optimization: Extends co-optimization across silicon, package, IP and system domains to enable full system realization with optimal PPA Multi-die and advanced packaging leadership: Synopsys 3DIC Compiler platform extends exploration-to-signoff support to designs integrated with Intel EMIB and Intel EMIB-T, enabling multi-die designs Broad IP portfolio for faster time-to-tapeout: Interface and Foundation IP for Intel 14A — including PCIe 7.0, 224G SerDes, USB 4 and eUSB reduce integration risk and accelerate design readiness , /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today announced at the 2026 DAC Chips to Systems Conference, expanded collaborations with Intel Foundry with the certification of AI-powered EDA flows on Intel 14A process technology, advancing design enablement from design technology co-optimization (DTCO) to system-aware co-design, building on its certified and production-ready EDA flows and IP portfolio for Intel 18A and Intel 18A-P technologies. As AI and high-performance computing designs move beyond monolithic scaling, success requires connecting process technology with AI-powered EDA flows, multi-die design, integrated multiphysics analysis, and broad IP portfolio to accelerate system-level realization.

"Angstrom-scale design is no longer only about extracting more power, performance, and area from a process node. It is about turning process innovation into predictable system-level outcomes," said Michael Buehler-Garcia, Senior Vice President at Synopsys. "Together with Intel Foundry, Synopsys is helping customers accelerate convergence, reduce late-stage rework, and achieve first-pass silicon success. We applaud the Intel Foundry team for their progress on Intel 14A to expand the capabilities of advanced semiconductor manufacturing."

"In this increasingly AI-driven world, Intel Foundry is committed to supporting our customers by accelerating innovation and providing predictable execution from silicon to packaging on our most advanced technologies," said Shawn Han, SVP and GM, Foundry Services, Intel Corporation. "Our wide-ranging collaboration with Synopsys, including AI-driven, certified flows and IP, gives our customers greater ease of use and confidence to achieve their design goals."

System-Aware Co-Design: EDA Meets Multiphysics

At angstrom-scale geometries with backside power delivery and dense 3D integration, electrical, thermal, and mechanical effects can no longer be effectively analyzed in isolation. Synopsys is uniquely positioned to address this challenge with the integration of Synopsys certified, AI-powered implementation and signoff flows and multiphysics analysis — including power integrity, thermal, and electromagnetic solutions on Intel 14A.

Enabling the Multi-Die Era

With multi-die design now mainstream in AI and HPC, Synopsys and Intel Foundry are extending their proven collaboration to enable efficient system-level integration, analysis, and optimization of advanced chiplet-based architectures. The Synopsys reference design flow based on 3DIC Compiler supports Intel Embedded Multi-die Interconnect Bridge (EMIB) and Embedded Multi-die Interconnect Bridge-T (EMIB-T) advanced packaging technology, with early bump and TSV planning, automated UCIe and HBM routing, and unified multiphysics analysis across dies. Designers can analyze and optimize power delivery networks, thermal gradients, and signal integrity concurrently across die, Intel EMIB and EMIB-T interconnect, and package, catching system-level issues at design time rather than after tapeout. 

Advancing Ecosystem Readiness with Broad IP Portfolio Across Intel 18A, Intel 18A-P and Intel 14A

Synopsys and Intel Foundry continue to enable AI and HPC innovation with Synopsys' expanding portfolio of high-performance interface and foundation IP available today for Intel 18A and Intel 18A-P while expanding to support Intel 14A technologies, helping reduce integration risk and accelerate time-to-tapeout for complex SoCs and multi-die designs. New titles optimized for Intel 14A include:

Interface IP, including 224G SerDes, PCIe 7.0, USB 4 and eUSB, addresses the high throughput and connectivity demands of next-generation AI and HPC applications Foundation IP, including embedded memories, logic libraries, and IOs, helps optimize performance, power, and area while lowering total cost of ownership. Resources

Blog: Learn more about Process Design Kits and how Synopsys and Intel Foundry Are Accelerating Customer Success Blog: Learn about the Next-Generation EMIB-T Packaging: A Collaboration Between Synopsys and Intel Foundry Webinar: Learn about EMIB Design Methodology using Synopsys Tools Join Synopsys at the 2026 DAC Chips to Systems Conference

Attendees can visit the Synopsys' booth #631 for demonstrations of the latest solutions and collaborations. For a complete list of Synopsys sessions and activities at DAC 2026, visit the Synopsys DAC 2026 event page.  

About Synopsys 

Synopsys, Inc. (Nasdaq: SNPS) is the leader in engineering solutions from silicon to systems, enabling customers to rapidly innovate AI-powered products. We deliver industry-leading silicon design, IP, simulation and analysis solutions, and design services. We partner closely with our customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow. Learn more at www.synopsys.com. 

 © 2026 Synopsys, Inc. All rights reserved. Synopsys, Ansys, the Synopsys and Ansys logos, and other Synopsys trademarks are available at https://www.synopsys.com/company/legal/trademarks-brands.html. Other company or product names may be trademarks of their respective owners. 

Forward-Looking Statements 

This press release contains forward-looking statements, which involve risks, uncertainties and other factors that could cause our actual results, time frames, or achievements to differ materially. Information on potential risks, uncertainties and other factors that could affect our results is included in filings we make with the SEC from time to time, including in the sections entitled "Risk Factors" in our latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

Contacts 

Kelli Wheeler: [email protected]
Pete Smith: [email protected]
[email protected] 

SOURCE Synopsys, Inc.

New long-running, fully agentic workflows spanning EDA to CAE multiply engineering productivity

Key Highlights

Synopsys unveils a fully autonomous long-running design verification agent that orchestrates the entire chip verification cycle delivering up to 50X faster time-to-validated RTL while achieving 20% additional coverage improvement Demonstrating Synopsys' first fully autonomous computer-aided engineering (CAE) workflow for thermal management and electronic device cooling capable of autonomously executing set-up, pre-processing, and post-processing in a fraction of the time required for manual approaches  Expanded portfolio of more than 20 GPU-accelerated Synopsys EDA and multiphysics products, including 18X speedup of PrimeSim™ SPICE simulations , /PRNewswire/ -- Today at the 2026 DAC Chips to Systems Conference, Synopsys, Inc. (NASDAQ: SNPS) announced advancements to agentic AI for engineering in collaboration with NVIDIA. Synopsys has developed fully autonomous, long-running agentic capabilities for chip design and electronics system design enabled with NVIDIA Nemotron on NVIDIA's accelerated computing platform and secured by the NVIDIA OpenShell runtime. Demonstrated at DAC for the first time, Synopsys' capabilities promise to be a force multiplier for R&D teams beyond task agents, transforming time-consuming chip verification and thermal simulation into automated insight delivery, engineering productivity, and system performance improvement engines.

"AI is fundamentally reshaping engineering, and Synopsys is at the forefront of this transformation, enabling fully autonomous agents across every stage of silicon and systems development," said Ravi Subramanian, Chief Product Management Officer at Synopsys. "Our close collaboration with NVIDIA continues to accelerate the development of next-generation AI technologies by combining Synopsys' domain expertise spanning EDA and CAE with NVIDIA's advanced AI infrastructure and technologies. Together, we are enabling a new class of autonomous engineering workflows that elevate productivity, unlock deeper insights, and help customers innovate faster."

"The future of engineering is agentic, where AI agents reason, plan, execute complex workflows and verify their own work across the entire product development lifecycle," said Tim Costa, Vice President and General Manager for Computational Engineering at NVIDIA. "Synopsys is using NVIDIA AI tools and accelerated computing to build simulation and AI physics agents that help teams close verification, automate thermal analysis and compress development cycles from weeks to hours." 

Introducing Synopsys' Fully Autonomous Design Verification (DV) Workflow
Coverage closure has been among the most significant bottlenecks in the DV process. Despite assistive tools, engineering teams spend significant labor and compute resources on incremental improvements. The companies are evolving the DV approach from tool-assisted to a goal-driven workflow that autonomously pursues coverage closure and traces root failure causes throughout development.

The solution, built on Synopsys' agentic AI platform and powered by Synopsys AgentEngineer™ technology and NVIDIA's agentic AI infrastructure — including NVIDIA Agent Toolkit, NVIDIA Nemotron 3 Ultra open model, and OpenShell runtime — features a fully autonomous, long-running orchestrator agent. The orchestrator agent deconstructs DV goals from specification, design, test repository, and user inputs, and orchestrates specialized agents and tools in a closed loop workflow spanning the full chip verification lifecycle, from test plan generation to coverage closure and advanced debug. Demonstrated at DAC, the end-to-end fully autonomous verification closure agentic flow compresses weeks of manual labor into hours of agentic execution that achieves up to 50X faster time-to-validated RTL with an additional 20% improvement in coverage.1

Autonomous Analog & Mixed-Signal (AMS) Workflows
AI-powered Custom Compiler™ Layout Synthesis (CCLS) is laying the foundation for autonomous analog and mixed-signal (AMS) design by automating layout generation, optimization, and design-layout convergence. Building on these capabilities, Synopsys AgentEngineer™ technology orchestrates multi-step analog flow spanning design creation, SPICE simulation, implementation, and verification. Engineers define design intent and performance goals in natural language, while autonomous agents execute and optimize the workflow, accelerating design closure and improving productivity by up to 3X.2

Delivering Autonomous Engineering Agents Across Design and Simulation
Synopsys developed a fully autonomous agentic CAE workflow for electronics thermal analysis using NVIDIA Agent Toolkit and NVIDIA CUDA-X libraries. Built with Ansys Icepak® electronics cooling simulation software — now part of the Synopsys portfolio — and open-source PyAEDT libraries, the agentic workflow autonomously executes simulation set-up, pre- and post-processing in a fraction of the time required for traditional approaches.

Extending the Value of GPU Acceleration to More Engineering Workflows
Synopsys continues to accelerate innovation with the industry's broadest portfolio of more than 20 GPU-enabled EDA and multiphysics products, unlocking deeper analysis and faster time-to-market across the design flow — from physical verification to photonics simulation. Recent developments include:

PrimeSim™ SPICE circuit simulations perform up to 18X faster leveraging NVIDIA GPUs.3 Synopsys QuantumATK® accelerates next-generation semiconductor material innovation by up to 50X for Gaussian-basis quantum chemistry simulations enabled by cuEST and up to 200x faster machine-learned force field simulations using NVIDIA Blackwell GPU infrastructure. Ansys Lumerical FDTD™ 3D electromagnetic simulation software achieved a 10X speedup on NVIDIA GPUs compared to CPUs when used within Synopsys' Multiphysics Fusion™ solution for analog and photonic design.  In addition, Synopsys continues its deep collaboration with NVIDIA leveraging CUDA-X libraries to accelerate its solvers, including cuLitho, cuDSS, cuEST, and use cases in development with the newly announced cuISS library. Availability
Customers are currently evaluating Synopsys' agentic EDA and CAE capabilities with availability planned for the second half of 2026. 

Follow Synopsys online for updates via our Newsroom, on LinkedIn, and on X. 

Join Synopsys at the 2026 DAC Chips to Systems Conference
This week at DAC, Synopsys is showcasing AI-powered engineering solutions that enable customers to rapidly design from silicon to system with increased quality, efficiency, precision, and scale. Attendees can visit Synopsys' booth #631 for demonstrations of newly announced autonomous workflows. For a complete list of Synopsys sessions and activities at DAC 2026, visit the Synopsys DAC 2026 event page. 

1 Compared to traditional verification workflows not powered by AgentEngineer technology.
2 AMS workflow leverages CCLS which delivers 3X gains in productivity.
3 PrimeSim SPICE delivered approximately 18X faster overall wall-clock time by introducing NVIDIA GPUs compared to CPU-only workloads.

About Synopsys
Synopsys, Inc. (Nasdaq: SNPS) is the leader in engineering solutions from silicon to systems, enabling customers to rapidly innovate AI-powered products. We deliver industry-leading silicon design, IP, simulation and analysis solutions, and design services. We partner closely with our customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow. Learn more at www.synopsys.com.

© 2026 Synopsys, Inc. All rights reserved. Synopsys, Ansys, the Synopsys and Ansys logos, and other Synopsys trademarks are available at https://www.synopsys.com/company/legal/trademarks-brands.html. Other company or product names may be trademarks of their respective owners.

Forward-Looking Statements  
This press release contains forward-looking statements, which involve risks, uncertainties and other factors that could cause our actual results, time frames, or achievements to differ materially. Information on potential risks, uncertainties and other factors that could affect our results is included in filings we make with the SEC from time to time, including in the sections entitled "Risk Factors" in our latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q. 

Media Contacts
Kelli Wheeler, [email protected]
Pete Smith, [email protected]
[email protected] 

SOURCE Synopsys, Inc.

In the latest trading session, Synopsys (SNPS - Free Report) closed at $417.03, marking a -1.94% move from the previous day. This change lagged the S&P 500's daily loss of 0.51%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq decreased by 1.47%.

The maker of software used to test and develop chips's stock has dropped by 7.9% in the past month, falling short of the Computer and Technology sector's loss of 2.99% and the S&P 500's gain of 0.53%.

The upcoming earnings release of Synopsys will be of great interest to investors. The company is predicted to post an EPS of $3.68, indicating a 8.55% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.44 billion, up 40.31% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.75 per share and revenue of $9.69 billion. These totals would mark changes of +14.25% and +37.37%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Synopsys. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Synopsys is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Synopsys is presently being traded at a Forward P/E ratio of 28.83. This expresses a premium compared to the average Forward P/E of 16.49 of its industry.

Meanwhile, SNPS's PEG ratio is currently 1.8. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software industry had an average PEG ratio of 1.26 as trading concluded yesterday.

The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 39% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Synopsys (NASDAQ:SNPS | SNPS Price Prediction) is one of the most strategically positioned software franchises in the AI-era semiconductor stack, and the recent pullback has reset the setup for investors evaluating the name.

The 24/7 Wall St. price target for Synopsys is $561.40, implying 23.25% upside from $455.51. Our model classifies SNPS as a high-conviction setup, with 90% confidence in the target.

24/7 Wall St. Price Target Summary Metric Value Current Price $455.51 24/7 Wall St. Price Target $561.40 Upside 23.25% Recommendation BUY Confidence 90% A Strong Quarter Met With a Sleepy Stock SNPS is down 7.77% over the past month and 3.03% year to date, trading 14% below its 52-week high of $651.73 and well off the low of $376.18.

The cooldown followed a strong Q2 FY26 print on May 27, 2026: revenue of $2.276B, up 42% YoY, with non-GAAP EPS of $3.35 beating estimates by 5.96%. Design Automation operating margin expanded to 43.3% from 40.9% a year earlier. Management raised FY26 guidance to $9.625B to $9.705B in revenue and $14.72 to $14.80 in non-GAAP EPS.

  The Case for $667 and Beyond Bulls have a clean thesis. CEO Sassine Ghazi said on the Q2 call that “AI is scaling semiconductor demand, architectural diversity and complexity of chips and the systems they power, driving demand across our portfolio.”

Synopsys sits at the choke point for every advanced-node design, and the $35 billion Ansys acquisition that closed July 17, 2025 extends that moat into multi-physics simulation.

Q1 FY26 revenue grew 65.4% YoY, and the backlog stood at $11.4B exiting FY25. Of 25 analysts, 17 rate the stock Buy or Strong Buy against just one Strong Sell. Our bull case scenario puts SNPS at $667.14 within 12 months, a 46.46% return, if Ansys synergies accelerate and the September 30 Investor Day reveals raised long-term targets.

The Risks Worth Watching The bear case starts with the balance sheet. SNPS carries roughly $10B in long-term debt and $403.6M in quarterly intangibles amortization, which crushed GAAP net income to $17.1M in Q2.

Bulls will counter that this is purely a non-cash artifact of purchase accounting and that non-GAAP EPS and free cash flow of $2B tell the real story. Design IP remains soft, with management divesting Processor IP Solutions, and export controls into China remain an overhang.

Year-over-year quarterly earnings growth of -0.96% trimmed our factor by 0.03. The bear scenario lands the stock at $494.55 over the next year, still 8.57% above today.

Synopsys Price Prediction 2026-2030 The 24/7 Wall St. price target of $561.40 reflects a high-confidence buy. The tipping factor is the disconnect between accelerating non-GAAP fundamentals and a stock that has gone nowhere YTD.

The bull case rests on AI-driven design complexity remaining a multi-year tailwind and Ansys synergies landing as guided. The bear case strengthens if the trailing P/E of 104 matters more than the forward P/E of 31, or if China export controls tighten further.

Looking further out, here is where our model projects SNPS could trade, assuming current growth and margin trajectories hold.

Year 24/7 Wall St. Price Target 2026 $561.40 2027 $666.63 2028 $710.01 2029 $805.26 2030 $849.44 These projections assume Synopsys keeps executing on Ansys integration and AI design demand stays robust. Significant upside or downside could come from China export policy, EDA pricing power, or the pace of advanced-node design starts.