Synopsys Is A Smart AI Bet, Analysts Say

Core Insights - Synopsys, Inc. reported stronger-than-expected fourth-quarter results with adjusted earnings of $2.90 per share and revenue of $2.26 billion, slightly above analyst estimates [2] - For fiscal 2026, Synopsys projects adjusted EPS between $14.32 and $14.40 and revenue between $9.56 billion and $9.66 billion, exceeding consensus expectations [2] Analyst Ratings and Forecasts - BofA Securities upgraded Synopsys from Neutral to Buy, raising the price target from $500 to $560 [3] - Rosenblatt maintained a Buy rating with a price target of $560 [3] - JPMorgan reiterated an Overweight rating and increased the price target from $600 to $650 [3] Analyst Commentary - BofA's analyst sees Synopsys as a lower-beta way to gain AI exposure in 2026, noting reduced risk around China and Intel revenue, and strong momentum from Ansys [4] - Rosenblatt's analyst highlighted that fourth-quarter revenue was slightly above expectations, driven by a full quarter contribution from Ansys, which grew about 10% year-over-year [7] - JPMorgan's analyst noted that fiscal 2026 is a "transition year" with guidance implying high-single-digit growth for core EDA and low- to mid-single-digit growth for Design IP [9] Revenue and EPS Projections - Analysts project first-quarter revenue of $2.39 billion and adjusted EPS of $3.55 [6][8][10] - Fiscal revenue expectations are $9.61 billion with adjusted EPS of $14.37 according to BofA, while Rosenblatt expects $9.64 billion and $14.35, and JPMorgan anticipates $9.65 billion and $14.39 [6][8][10] Market Performance - Synopsys stock traded lower by 0.59% at $473.03 at the time of publication [10]