Synopsys vs Motorola Solutions

This page compares Synopsys and Motorola Solutions, examining business models, financial performance, and market context in a neutral, accessible manner. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

SNPS

Metric

MSI

$97.76B

Market Cap

$65.14B

7.28%

Potential Profit

23.24%

Buy

Analyst Rating

Buy

Why It's Moving

Synopsys Stock Climbs Ahead of Q1 Earnings as Investors Eye Robust Growth Outlook.

Q1 expectations call for $3.57 EPS, up 17.82% year-over-year, with revenue forecasted at $2.39 billion—a 64% surge—highlighting surging demand for EDA tools.
Recent trading outpaced the S&P 500 and Nasdaq declines, reflecting investor confidence in Synopsys' FY2026 guidance of $14.32-$14.40 adjusted EPS.
Analyst sentiment leans bullish with 'Moderate Buy' ratings from most firms, bolstered by the company's history of beating estimates and focus on high-value AI opportunities.

Sentiment:

🐃Bullish

Synopsys Stock Climbs Ahead of Q1 Earnings as Investors Eye Robust Growth Outlook.

Q1 expectations call for $3.57 EPS, up 17.82% year-over-year, with revenue forecasted at $2.39 billion—a 64% surge—highlighting surging demand for EDA tools.
Recent trading outpaced the S&P 500 and Nasdaq declines, reflecting investor confidence in Synopsys' FY2026 guidance of $14.32-$14.40 adjusted EPS.
Analyst sentiment leans bullish with 'Moderate Buy' ratings from most firms, bolstered by the company's history of beating estimates and focus on high-value AI opportunities.

Sentiment:

🐃Bullish

Investment Analysis

Synopsys

SNPS

Pros

Synopsys holds a dominant duopoly position in the electronic design automation (EDA) market with near-100% customer retention, supported by a high proportion of recurring subscription revenue.
The company operates the largest intellectual property licensing business in the industry, embedding its pre-designed digital and analog components deeply into the semiconductor design ecosystem.
Synopsys has strong financials with a gross margin over 81% and a solid net profit margin above 18%, reflecting efficient operations and profitability.

Considerations

U.S.-China trade tensions and export restrictions have materially impacted Synopsys' China business, causing recent earnings misses and resulting in lowered financial guidance.
The integration of the large Ansys acquisition presents substantial execution risks and short-term margin pressure due to increased costs and required divestitures in 2025.
Synopsys faces constant competitive pressure from Cadence Design Systems, which often achieves higher operating margins and leverages AI innovations aggressively, requiring Synopsys to continually defend market share.

Motorola Solutions

MSI

Pros

Motorola Solutions benefits from a diversified portfolio offering public safety and enterprise security products and software, with strong presence in the U.S., U.K., Canada, and internationally.
The company has robust profitability metrics, including a normalized return on equity exceeding 200% and a return on invested capital above 33%, indicating efficient capital use and strong earnings generation.
Motorola Solutions maintains consistent revenue growth with a trailing twelve months (TTM) revenue of over $11 billion and solid net income of $2.12 billion, underpinned by a stable customer base in critical infrastructure sectors.

Considerations

The company’s relatively high price-to-earnings ratio near 32 may indicate rich valuation compared to its historical averages, which could limit upside potential if growth slows.
Motorola Solutions operates in highly regulated government and public safety markets, exposing it to regulatory and political risks that may affect contract awards and pricing.
The business faces competitive technology innovation risks, requiring ongoing investments in software and systems integration to maintain leadership against rivals in fast-evolving communication equipment sectors.

About The Companies

Synopsys (SNPS)

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 data‑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.

Motorola Solutions (MSI)

Motorola Solutions is a global leader in public safety and enterprise security. While you might associate the Motorola name with mobile phones, this is a separate company focused on mission-critical communications. It provides technologies for police forces, fire departments, and other first responders, as well as for commercial businesses. Its offerings include land mobile radio (LMR) systems, video security cameras, and advanced command centre software that helps manage emergencies. The company operates through two main segments: 'Products and Systems Integration', which involves hardware like radios and cameras, and 'Software and Services', which delivers cloud-based solutions and support. For investors, this represents a company deeply embedded in the infrastructure of public safety and enterprise security, a field driven by the constant need for reliable technology. As always, remember that the value of investments can go down as well as up.

Synopsys (SNPS) Next Earnings Date

Synopsys (SNPS) next earnings date is estimated for February 25, 2026. This report will cover the first quarter of fiscal 2026 (Q1 FY2026). The estimate aligns with Synopsys' historical pattern of late-February releases for Q1 results, though the company has not yet confirmed the exact date.

Synopsys (SNPS) Next Earnings Date

Synopsys (SNPS) next earnings date is estimated for February 25, 2026. This report will cover the first quarter of fiscal 2026 (Q1 FY2026). The estimate aligns with Synopsys' historical pattern of late-February releases for Q1 results, though the company has not yet confirmed the exact date.

Which Baskets Do They Appear In?

EDA Underdogs

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

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

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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Which Baskets Do They Appear In?

EDA Underdogs

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

Explore Basket

China's AI Chip Access

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

Explore Basket

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

Explore Basket

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

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

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

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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Comparison Snapshot

Why It's Moving

Synopsys Stock Climbs Ahead of Q1 Earnings as Investors Eye Robust Growth Outlook.

Synopsys Stock Climbs Ahead of Q1 Earnings as Investors Eye Robust Growth Outlook.