Key Takeaways
- Investor Day Pop: Synopsys stock jumped 13% on October 1, closing at $491.
- FY27 Beat: Guidance of $11.10B to $11.20B in revenue and $19.04 to $19.12 in EPS cleared consensus of $10.81B and $17.81, while the fiscal 2030 operating margin target rose to ~50%.
- Street Gap: A $553 mean target from 19 buys, 4 outperforms, 2 holds, and 1 underperform still sits 13% above the close.
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Why Synopsys Stock Jumped 13% on Thursday After Its Investor Day Guidance
Synopsys (SNPS) stock jumped 13% on Thursday, October 1, after the chip-design software maker guided fiscal 2027 revenue and earnings well above Wall Street’s estimates at its Investor Day in New York. Shares closed at $491, up from $435 the day before.
Management guided revenue of $11.10 billion to $11.20 billion, about 15% growth, against the $10.81 billion analysts expected. Non-GAAP earnings per share of $19.04 to $19.12 beat the $17.81 consensus by a wider margin. The operating margin target of 44% adds 250 basis points to fiscal 2026’s 41.5%.
The long-term model moved up as well. Synopsys now targets 15% annual revenue growth through fiscal 2030, up from double digits, and an operating margin of about 50% by then, versus a prior mid-40s goal. CFO Shelagh Glaser also pulled the $400 million cost synergy target from the ANSYS deal forward a year, to fiscal 2027, and announced a $1 billion buyback over the coming months.
Two partnerships carried the AI argument. Amazon Web Services signed a multi-year deal worth more than $1 billion to license chip-design IP for multiple generations of its custom silicon. CEO Sassine Ghazi said that figure covers license fees only: royalties start once designs reach production, roughly 14 months out, and none land in fiscal 2027.
OpenAI will build GPT-Synopsys, a chip-design model trained on Synopsys tools, under a revenue-sharing agreement. OpenAI pays a training subscription fee, and customer revenue then splits based on how much the model improves a chip. “We structured the agreement in a way that it will not be cannibalizing our business,” Ghazi told Reuters.
That deal answers the worry that AI models could replace EDA software, and it landed on a stock that entered the event down 7% for the year. The jump pays for signed contracts and hard guidance.
Synopsys Stock’s Mean Target Sits at $553, 13% Above Thursday’s Close
Synopsys stock carries 19 buys, 4 outperforms, 2 holds, and 1 underperform, with a mean target of $553 across 26 estimates. That target sat 27% above the $435 close on September 30, so the rally closed nearly half the distance, and the target now sits 13% above the $491 close. The mean target has slipped 11% since July 2025 while the stock fell 31% to its September 30 close. Buys climbed from 16 to 19 over that stretch.
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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 of the stocks mentioned. Thank you for reading, and happy investing!
