Key Stats for Synopsys Stock as of July 2026
- Thirteen of the 24 analysts covering Synopsys stock rate it a buy, four more call it an outperform, and just one carries an underperform rating, leaving the $564 mean target 33% above the current price of $425.
- TIKR’s mid-case model puts Synopsys stock at $775 by October 2030, an 82% return.
- Synopsys stock looks underpriced against its own results: EBITDA beat Street estimates by 5.40% last quarter, with margins projected to reach 48% by January 2027.
- Since Synopsys raised full-year guidance on May 27, beating EPS estimates by 6% and free cash flow estimates by 132%, the stock has fallen 19% through mid-July, widening the gap between what the business delivered and where the market has priced it.
Synopsys Stock Beats on Every Metric, but Wall Street Still Wants More
Synopsys (SNPS) stock has fallen 19% since May 27, the day the company beat its fiscal second-quarter targets across the board and still raised full-year guidance. Revenue came in at $2.28 billion, above the Street’s $2.25 billion estimate and up 42% year over year on the strength of the Ansys business.
That top-line beat carried straight through the income statement. EBITDA reached $952.59 million, topping consensus by 5.40% and climbing 47.35% year over year, while EBITDA margins expanded to 41.85% from 40.30% a year earlier. EBIT followed the same pattern, beating estimates by 4% with margins up 155 basis points.
Free cash flow told the sharpest version of the story. FCF hit $574.74 million against a Street estimate of just $247.40 million, a 132% beat and a 161.5% jump from the prior year, even as GAAP EPS of $0.09 missed estimates on accelerated restructuring costs.
CEO Sassine Ghazi framed the quarter as proof of a broader margin push already underway, telling analysts on the Q2 earnings call: “This year, we’re raising our operating margin by more than 300 basis points in terms of delivery to where we finished last year.” That commitment came the same day Synopsys settled with activist investor Elliott Management, adding managing partner Jesse Cohn to an expanded 11-member board.
Still, the stock dropped premarket the next morning, and JPMorgan analysts said the raised outlook “looks conservative,” leaving room for upside as AI-driven chip design demand remains strong. Benchmark initiated coverage on July 16 with a buy rating and a $570 target, the latest sign that sell-side conviction has kept building even as the share price has not followed.
Wall Street’s Buy-Heavy Consensus on Synopsys Stock
Wall Street’s consensus rating on Synopsys stock sits firmly in buy territory, with 13 buys and 4 outperforms against 5 holds, 1 no-opinion rating and just 1 underperform among the 24 analysts tracked. The mean target of $564 sits 33% above the current $425 price, while the median target of $575 and high target of $650 show little disagreement about direction, even if the size of the gain is debated.
That conviction has only grown recently: Benchmark initiated coverage on July 16 with a buy rating and a $570 target, arriving alongside a wave of upgrades across the software and semiconductor space the same week.
Wall Street Expects Synopsys Stock’s EBITDA Margins to Keep Expanding Through Fiscal 2027
Synopsys posted EBITDA of $952.59 million in its fiscal second quarter, up 47% year over year and 5% ahead of Street estimates, with margins climbing to 42% from 40% a year earlier. That beat sets up the next two quarters to build on it.
Analysts expect EBITDA of $1.03 billion in the fiscal third quarter, up 45% year over year with margins ticking to 42%, followed by $1.12 billion in the fourth quarter, up 29%, as margins expand further to 44%.
The trajectory steepens from there. The Street models EBITDA margins peaking at 48% in the January 2027 quarter on $1.28 billion of EBITDA, up 21% year over year, before cooling to 9% growth and a 41% margin by April 2027 as prior-year comparisons normalize.
Bulls point to that January 2027 margin peak as proof the Ansys synergy and IP royalty monetization plans are already showing up in the model. Bears note that EBITDA growth is still projected to slow to single digits by mid-2027, the exact point where the Street’s caution and TIKR’s more aggressive re-rating diverge.
TIKR Values Synopsys Stock at $775, Pricing In Full Margin Realization
TIKR’s mid-case model values Synopsys stock at $775 by October 2030, implying an 82% total return from the current price of $425, or 15% annualized over roughly 4.3 years.
That annualized pace would put Synopsys stock’s return profile ahead of the broader software sector, which has traded in a far choppier band since the AI-driven selloff and rebound earlier this year.
The target rests on the same operating leverage already visible in the numbers: EBITDA margins expanding 156 basis points last quarter and modeled to reach 48% by January 2027 as Ansys synergy realization and IP royalty monetization move from pipeline discussions to signed contracts.
Should You Invest in Synopsys, Inc.?
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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!
