Synopsys Inc.

Synopsys Inc.

Synopsys Inc (SNPS) is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) used to design, verify and secure modern chips and systems. With a market capitalisation of about $85.27 billion, the company supplies tools and IP blocks to semiconductor firms, cloud providers, automotive OEMs and consumer-electronics companies. Revenue comes mainly from licence fees, subscriptions and IP royalties, giving Synopsys a recurring, high-margin profile. Growth is supported by rising chip complexity, AI and dataโ€‘centre demand, automotive electrification and advanced packaging. The business invests heavily in R&D and has pursued an acquisitive strategy to broaden its product set. Key risks include semiconductor industry cyclicality, customer concentration, technology shifts, acquisition integration and geopolitical or export-control pressures. This summary is general educational information, not personal financial advice; investors should assess their own needs and consider professional guidance.

Why It's Moving

Synopsys Inc.

Synopsys Delivers Stellar Q1 Results, Boosting Analyst Confidence in AI-Driven Growth

Synopsys kicked off fiscal 2026 with Q1 revenue hitting $2.409 billion at the high end of guidance, alongside non-GAAP EPS of $3.77 that topped expectations. This strong performance underscores surging demand for its electronic design automation tools amid the AI boom, with the company reiterating full-year revenue guidance at $9.61 billion.
Sentiment:
๐ŸƒBullish
  • Revenue landed at the top of prior forecasts, signaling robust chip design demand from major tech players.
  • Non-GAAP EPS exceeded guidance, highlighting efficient operations and healthy margins in a competitive semiconductor landscape.
  • Board greenlit a $2.0 billion stock repurchase replenishment, reinforcing faith in long-term value creation.

When is the next earnings date for Synopsys Inc. (SNPS)?

Synopsys (SNPS) is scheduled to report Q2 fiscal year 2026 earnings on May 27, 2026, after market close. The company's next earnings announcement will cover the second quarter of their fiscal year 2026. Based on historical patterns, this timing aligns with Synopsys's typical earnings release schedule, which generally occurs in late May for second-quarter results. Investors should monitor this date for the company's financial performance and updated guidance for the remainder of fiscal 2026.

Stock Performance Snapshot

Buy

Analyst Rating

Analysts recommend buying Synopsys Inc. stock with a target price of $559.93, indicating strong potential growth.

Above Average

Financial Health

Synopsys is performing well, showing strong revenue and cash flow, with healthy profit margins.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Baskets Featuring SNPS

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This collection features carefully selected companies in the electronic design automation (EDA) and semiconductor IP space. Our professional analysts have identified these stocks as potential beneficiaries of the changing competitive landscape following Synopsys' massive $35 billion acquisition of Ansys.

Published: July 15, 2025

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China's AI Chip Access

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This carefully selected group of stocks represents companies poised to benefit from China's renewed access to advanced AI chips. Our professional analysts have identified key players across the semiconductor supply chain that could see significant growth as this massive market reopens.

Published: July 15, 2025

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AI's Foundry Foundation

AI's Foundry Foundation

This carefully curated group of stocks represents the essential companies building the hardware backbone of the AI revolution. Selected by professional analysts, these stocks include the critical semiconductor manufacturers, equipment suppliers, and design software firms that make advanced AI chips possible.

Published: July 11, 2025

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Riding Microsoft's AI Wave

Riding Microsoft's AI Wave

This carefully selected group of stocks represents companies powering the AI revolution beyond just Microsoft. Professional analysts have identified these firms in semiconductors, cloud infrastructure, and AI software as positioned to benefit from the massive industry-wide investment surge in artificial intelligence.

Published: July 11, 2025

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Tech Titans' Triumph

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Ride the wave of tech giants' success with this carefully selected group of stocks. These companies are vital suppliers to industry leaders like Apple, Nvidia, and Tesla, handpicked by our expert analysts to help you capitalize on the tech sector's powerful momentum.

Published: July 3, 2025

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The Figma Effect: Investing in Collaborative Tech

The Figma Effect: Investing in Collaborative Tech

Figma's upcoming IPO is creating waves in the tech industry. This collection features companies positioned to benefit from growing demand for digital collaboration tools and a revitalized tech IPO landscape, carefully selected by our expert analysts.

Published: July 2, 2025

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Race to Four Trillion

Race to Four Trillion

Invest in the companies building the foundation of the AI revolution. These carefully selected stocks represent crucial suppliers and enablers benefiting from Nvidia and Microsoft's historic race to $4 trillion valuations and their unprecedented spending on AI infrastructure.

Published: June 30, 2025

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Why Youโ€™ll Want to Watch This Stock

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Recurring Revenue Profile

Licences and subscriptions provide a recurring, highโ€‘margin revenue mix that can support stability, though semiconductor cycles may still affect bookings.

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Tech Leadership & R&D

Heavy investment in R&D and boltโ€‘on acquisitions aims to keep Synopsys at the cutting edge of chipโ€‘design tools, but integration and execution are important risks.

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End Market Exposure

Exposure to AI, cloud, automotive and mobile chips offers growth potential, while tying performance to industry cycles and geopolitical developments.

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