Synopsys
SNPS
$397.87
-0.01%
Synopsys Inc. is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP), enabling the design and verification of complex integrated circuits and electronic systems. As a dominant player in the EDA industry, Synopsys holds a significant market share alongside Cadence and Siemens EDA, and is increasingly benefiting from the convergence of semiconductor and systems companies investing in custom chip design. The current investor narrative centers on the integration of its recent Ansys acquisition, which has boosted reported revenue but raised concerns about organic growth, while the stock has experienced a sharp decline over the past year despite strong earnings beats and raised guidance, creating a disconnect between price action and analyst optimism.…
SNPS
Synopsys
$397.87
Related headlines
SNPS 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Synopsys's 12-month outlook, with a consensus price target around $560.17 and implied upside of +40.8% versus the current price.
Average Target
$560.17
0 analysts
Implied Upside
+40.8%
vs. current price
Analyst Count
—
covering this stock
Price Range
$415 - $650
Analyst target range
Synopsys is covered by 26 analysts, with a consensus recommendation of 'Buy' and a mean rating of 1.71 (where 1 is Strong Buy and 5 is Sell). The average target price is $560.17, implying a substantial 40.8% upside from the current price of $397.87, which suggests that analysts believe the market has overcorrected. The target range spans from a low of $414.77 to a high of $650.00, with the low target still 4.2% above the current price, indicating that even the most bearish analyst sees limited downside. Recent ratings actions show a mix, with Piper Sandler upgrading from Neutral to Overweight in June 2026, while others like BNP Paribas maintain Underperform, reflecting a split sentiment. The wide spread between low and high targets (56.7% difference) signals high uncertainty about the company's growth trajectory, particularly regarding the Ansys integration and organic growth prospects.
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SNPS Technical Analysis
Synopsys is in a pronounced downtrend, with the stock down 33.5% over the past year, significantly underperforming the S&P 500, which gained 20.5% over the same period. The current price of $397.87 sits near the lower end of its 52-week range, at approximately 10% above the low of $366.00 and 35% below the high of $615.79, indicating that the stock is trading near its lows, which could represent a value opportunity or a falling knife depending on fundamental catalysts. The 1-year relative strength of -54.0% versus the S&P 500 underscores the severity of the underperformance, driven by post-earnings selloffs and broader tech sector rotation.
Beta
1.21
1.21x market volatility
Max Drawdown
-42.3%
Largest decline past year
52-Week Range
$366-$616
Price range past year
Annual Return
-33.5%
Cumulative gain past year
| Period | SNPS Return | S&P 500 |
|---|---|---|
| 1m | +5.4% | +3.6% |
| 3m | -24.2% | +2.7% |
| 6m | -9.6% | +11.4% |
| 1y | -33.5% | +18.7% |
| ytd | -17.2% | +12.3% |
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SNPS Fundamental Analysis
Revenue growth has been robust, with the most recent quarter (Q2 FY2026, ended April 30, 2026) showing revenue of $2.276 billion, up 41.9% year-over-year, largely fueled by the Ansys acquisition. However, organic growth appears weaker, as highlighted by analysts, with the prior quarter (Q1 FY2026) revenue of $2.409 billion representing a sequential decline, and the company's net income of $17.1 million in Q2 was a sharp drop from $448.7 million in Q4 FY2025, reflecting integration costs and higher operating expenses. The revenue trajectory shows a spike from $1.604 billion in Q2 FY2025 to $2.276 billion in Q2 FY2026, but the sequential decline from Q1 FY2026 suggests that the acquisition boost may be fading, and investors are questioning the sustainability of growth.
Quarterly Revenue
$2.3B
2026-04
Revenue YoY Growth
+41.9%
YoY Comparison
Gross Margin
72.3%
Latest Quarter
Free Cash Flow
$2.7B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is SNPS Overvalued?
Given that Synopsys has positive net income, the PE ratio is the primary valuation metric. The trailing PE stands at 55.8x, while the forward PE is 23.0x, implying that the market expects significant earnings growth, likely from the Ansys synergies and cost savings. The gap between trailing and forward PE suggests that the market is pricing in a doubling of earnings, which may be optimistic given the recent margin compression. Compared to the software industry average PE of 35x, Synopsys trades at a 59% premium on a trailing basis, but on a forward basis, it is at a 34% discount, indicating that the market is already factoring in substantial growth. Historically, Synopsys' PE has ranged from 17.7x to 1340.6x over the past two years, with the current trailing PE of 55.8x near the middle of that range, suggesting that the stock is not at extreme valuation levels but is pricing in a strong recovery.
PE
55.8x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 37x~73x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
33.6x
Enterprise Value Multiple