Synopsys vs Infosys

This page compares Synopsys and Infosys across business models, financial performance, and market context in a neutral, accessible way. It offers a concise overview of how the companies operate, scale, and compete, focusing on structure, outcomes, and industry dynamics. Educational content, not financial advice.

This page compares Synopsys and Infosys across business models, financial performance, and market context in a neutral, accessible way. It offers a concise overview of how the companies operate, scale...

Comparison Snapshot

Key Financial Metrics

SNPS

Metric

INFY

$96.23B

Market Cap

$73.83B

11.38%

Potential Profit

3.66%

Buy

Analyst Rating

Hold

Why It's Moving

Synopsys Dips as Investor Eyes Lawsuit Clouds Amid Strong Buy Ratings

Strs Ohio boosted its stake by 15.5%, adding 5,849 shares to reach $21.47 million, signaling confidence in Synopsys' long-term potential.
A shareholder lawsuit filed over alleged failures to disclose AI customization impacts on Design IP economics adds uncertainty for long-term holders.
Analysts maintain a Moderate Buy rating with positive EPS growth forecasts, including Q1 at $3.57 and full-year at $14.39, underscoring robust revenue outlook.

Sentiment:

⚖️Neutral

Infosys surges as brand power and AI momentum spotlight its IT leadership.

Q3 earnings beat expectations with solid revenue growth, large deal TCV, and raised FY26 guidance, signaling sustained demand resilience.
Recognized by Brand Finance as top 3 IT services brand with 15% CAGR and $16.4B value, highlighting trust in its AI transformation capabilities.
New Zurich office and AI partnerships underscore expansion to accelerate enterprise AI adoption amid positive sector tailwinds.

Sentiment:

🐃Bullish

Synopsys Dips as Investor Eyes Lawsuit Clouds Amid Strong Buy Ratings

Strs Ohio boosted its stake by 15.5%, adding 5,849 shares to reach $21.47 million, signaling confidence in Synopsys' long-term potential.
A shareholder lawsuit filed over alleged failures to disclose AI customization impacts on Design IP economics adds uncertainty for long-term holders.
Analysts maintain a Moderate Buy rating with positive EPS growth forecasts, including Q1 at $3.57 and full-year at $14.39, underscoring robust revenue outlook.

Sentiment:

⚖️Neutral

Infosys surges as brand power and AI momentum spotlight its IT leadership.

Q3 earnings beat expectations with solid revenue growth, large deal TCV, and raised FY26 guidance, signaling sustained demand resilience.
Recognized by Brand Finance as top 3 IT services brand with 15% CAGR and $16.4B value, highlighting trust in its AI transformation capabilities.
New Zurich office and AI partnerships underscore expansion to accelerate enterprise AI adoption amid positive sector tailwinds.

Sentiment:

🐃Bullish

Investment Analysis

Synopsys

SNPS

Pros

Synopsys is a dominant player in the electronic design automation (EDA) market with near-100% customer retention and a strong recurring subscription revenue model.
The company leads in intellectual property licensing with extensive pre-designed chip components, embedding its solutions deeply into the semiconductor design ecosystem.
Recent innovations incorporating AI, such as Synopsys.ai Copilot, are enhancing productivity and design quality, positioning the company well for future growth.

Considerations

Ongoing U.S.-China trade tensions and export restrictions pose significant risks, having already impacted Synopsys’ China business and earnings guidance.
The large acquisition of Ansys introduces integration complexities and short-term margin pressures, causing investor uncertainty and stock volatility in 2025.
Synopsys faces strong competition from Cadence Design Systems, requiring continuous innovation to defend its market share against a rival with often higher operating margins.

Infosys

INFY

Pros

Infosys is a leading global provider of IT consulting and outsourcing services with a strong reputation for delivering digital transformation solutions.
The company has a diversified client base across multiple industries and geographies, reducing its exposure to sector-specific downturns.
Infosys continues to invest in emerging technologies like AI, cloud computing, and automation, supporting future revenue growth and maintaining competitiveness.

Considerations

Infosys faces intense competition from both global IT services firms and emerging digital specialists, which can pressure pricing and margins.
The company is exposed to currency fluctuations and geopolitical risks due to its significant international operations.
Talent retention and management remain challenges in the highly competitive IT services sector, with rising wage costs potentially impacting profitability.

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