Key Stats for Synopsys Stock
- Pre-market Price Change for Synopsys stock: -1%
- $SNPS Share Price as of Dec. 10: 476
- 52-Week High: $652
- $SNPS Stock Price Target: $541
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Synopsys (SNPS) stock is down 1% in pre-market after the chip design software company reported fourth-quarter results that beat Wall Street expectations.
In Q4, Synopsys posted adjusted earnings of $2.90 per share on revenue of $2.25 billion, topping analyst estimates of $2.88 per share and $2.24 billion in revenue.
More significantly, Synopsys provided fiscal 2026 guidance indicating it is transforming into a much larger business following its acquisition of engineering simulation software maker Ansys.
The company expects fiscal 2026 revenue between $9.56 billion and $9.66 billion, which includes roughly $2.9 billion in revenue contribution from Ansys, expected to grow at double-digit rates.
It also raised its operating margin target to 40.5% for fiscal 2026, up about 320 basis points from fiscal 2025. This improvement comes from both the addition of Ansys and accelerated cost synergies, including a 10% workforce reduction announced earlier. Synopsys expects adjusted earnings per share between $14.32 and $14.40 for the full year.
CEO Sassine Ghazi emphasized that Synopsys has transformed from an electronic design automation (EDA) leader to “the leader in engineering solutions from silicon to systems” following the Ansys acquisition.
The company exited fiscal 2025 with more than $11 billion in backlog, up from $10.1 billion the previous quarter, providing strong visibility into future revenue.
Earlier this month, Synopsys announced a strategic partnership with NVIDIA, including a $2 billion equity investment. The partnership aims to revolutionize chip design and engineering using AI and accelerated computing.
NVIDIA CEO Jensen Huang personally endorsed the investment, expressing confidence in the combined company’s ability to generate returns.
Synopsys stock has struggled this year, down almost 5% as the company navigates several headwinds.
The Design IP business is facing a transitional year with “muted growth” expected in fiscal 2026. China’s revenue fell 22% (excluding Ansys) in fiscal 2025 due to export restrictions and technology limitations. Management expects the challenging China environment to continue into fiscal 2026.
See analysts’ growth forecasts and price targets for SNPS stock (It’s free!) >>>
What the Market Is Telling Us About Synopsys Stock
The market’s positive reaction shows investors are focused on the long-term opportunity rather than near-term headwinds.
Synopsys stock had been under pressure recently, trading 23% below its 52-week high, as concerns mounted about slowing growth in the core EDA and IP businesses.
But the fiscal 2026 guidance demonstrates that the Ansys acquisition is already paying off. The combined company is targeting 40.5% operating margins while investing heavily in AI-powered engineering tools.
Synopsys expects to deliver its first joint solutions combining Ansys simulation software with its chip design tools in the first half of 2026, opening up new monetization opportunities.
The backlog growth is particularly encouraging. At $11.4 billion, Synopsys has roughly 1.2 years of revenue locked up in committed contracts.
This provides stability even as the company works through challenges in China and its IP business. Management expressed confidence that demand from AI infrastructure buildout will continue to drive semiconductor design activity, benefiting Synopsys in the long term.
The NVIDIA partnership adds another validation point as the $2 billion equity investment signals strong industry support for Synopsys’ silicon-to-systems strategy.
The partnership should accelerate the adoption of AI-powered design tools and help Synopsys modernize engineering workflows across multiple industries.
For investors, Synopsys stock offers exposure to both the AI chip design boom and the broader engineering software market through Ansys.
If the company executes on its cost synergies and delivers successful joint products, Synopsys stock could recover toward its previous highs as fiscal 2026 progresses.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does Synopsys Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
