Synopsys Stock: Analyst Estimates & Ratings

Company Overview - Synopsys, Inc. (SNPS) has a market capitalization of $84.2 billion and is a leading provider of design automation and design IP solutions for the semiconductor and electronics industries, operating through its Design Automation and Design IP segments [1] - The company offers advanced EDA software, AI-driven design tools, and pre-verified silicon IP solutions for applications ranging from SoCs to automotive systems [1] Stock Performance - Over the past 52 weeks, SNPS stock has decreased by 10.9%, while the S&P 500 Index has risen nearly 13% [2] - Year-to-date, shares of the company have declined by 6.3%, contrasting with the marginal gain of the S&P 500 Index [2] - The stock has underperformed the State Street Technology Select Sector SPDR ETF (XLK), which has returned 16.7% over the same period [3] Financial Results - For Q4 2025, Synopsys reported revenue of $2.255 billion, significantly higher than the prior year's $1.636 billion and exceeding the midpoint of guidance [4] - The adjusted EPS for Q4 2025 was $2.90, beating expectations, and the company achieved a record full-year 2025 revenue of $7.05 billion with a strong backlog of $11.4 billion [4] Earnings Expectations - Analysts project that for the fiscal year ending in October 2026, SNPS' EPS will grow by 16.9% year-over-year to $10.11 [5] - The company's earnings surprise history is mixed, having beaten consensus estimates in three of the last four quarters while missing once [5] Analyst Ratings - Among the 21 analysts covering SNPS, the consensus rating is a "Moderate Buy," consisting of 15 "Strong Buy" ratings, one "Moderate Buy," four "Holds," and one "Strong Sell" [5] - Stifel Nicolaus analyst Ruben Roy maintained a "Buy" rating on Synopsys with a price target of $550, while the mean price target of $556.90 suggests a 26.6% premium to current price levels [6] - The highest price target of $650 indicates a potential upside of 47.7% [6]