Synopsys (NASDAQ:SNPS) Posts Quarterly Earnings Results

29 May 2026, 09:36 by Jessica Moore · The Cerbat Gem

Synopsys (NASDAQ:SNPS – Get Free Report) announced its earnings results on Wednesday. The semiconductor company reported $3.35 EPS for the quarter, topping the consensus estimate of $3.15 by $0.20, FiscalAI reports. Synopsys had a net margin of 8.91% and a return on equity of 5.91%. The company had revenue of $2.28 billion during the quarter, compared to analysts’ expectations of $2.25 billion. During the same period last year, the company posted $3.67 earnings per share. The business’s revenue for the quarter was up 41.9% on a year-over-year basis. Synopsys updated its FY 2026 guidance to 14.720-14.800 EPS and its Q3 2026 guidance to 3.630-3.690 EPS.

Here are the key takeaways from Synopsys’ conference call:

Synopsys reported a strong Q2 FY2026, with revenue of $2.276 billion, non-GAAP operating margin of 39.5%, and non-GAAP EPS of $3.35, all above guidance. Management also raised full-year revenue, margin, EPS, and free cash flow guidance.
AI-related demand continues to drive the business, with strength across EDA, hardware-assisted verification, IP, and system-level simulation. Management said AI is increasing chip complexity and expanding opportunities across the full “silicon to systems” portfolio.
The Design IP business appears to be recovering after hitting a Q1 bottom, with 12% sequential growth in Q2 and management expecting continued quarter-over-quarter improvement in the second half. Synopsys also highlighted stronger traction in higher-value, more customized IP deals, especially with hyperscalers.
Synopsys said its AI-enabled product roadmap is gaining traction, including agentic AI and Multiphysics Fusion. Early customer trials point to meaningful productivity gains, and commercial ramp for Multiphysics Fusion is expected in the second half of 2026.
The company continues to realize benefits from the Ansys integration, including cost synergies and broader cross-sell opportunities. Management said it expects to be about halfway through committed synergies by fiscal year-end and sees additional margin and revenue opportunities ahead.

Synopsys Price Performance

Shares of SNPS opened at $480.64 on Friday. The company has a market capitalization of $92.07 billion, a price-to-earnings ratio of 111.26, a P/E/G ratio of 4.31 and a beta of 1.25. Synopsys has a fifty-two week low of $376.18 and a fifty-two week high of $651.73. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.36 and a quick ratio of 1.26. The business’s 50-day moving average is $458.59 and its 200-day moving average is $454.30.

Hedge Funds Weigh In On Synopsys

A number of large investors have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd acquired a new position in Synopsys in the fourth quarter worth approximately $28,000. Atlas Capital Advisors Inc. acquired a new stake in Synopsys in the fourth quarter valued at approximately $32,000. Kemnay Advisory Services Inc. acquired a new stake in Synopsys in the fourth quarter valued at approximately $35,000. Greenline Wealth Management LLC acquired a new stake in Synopsys in the fourth quarter valued at approximately $37,000. Finally, WealthCollab LLC lifted its stake in Synopsys by 110.8% in the third quarter. WealthCollab LLC now owns 78 shares of the semiconductor company’s stock valued at $38,000 after acquiring an additional 41 shares during the last quarter. Institutional investors and hedge funds own 85.47% of the company’s stock.

More Synopsys News

Here are the key news stories impacting Synopsys this week:

Positive Sentiment: Synopsys reported fiscal Q2 results above expectations, with revenue of $2.276 billion and non-GAAP EPS of $3.35, both topping estimates. The company also raised full-year revenue and EPS guidance, signaling continued demand for AI chip-design software and related tools. Synopsys Posts Financial Results for Second Quarter Fiscal Year 2026
Positive Sentiment: Management said AI-related demand remains strong, and the company highlighted expanding benefits from the Ansys deal and operating-margin improvement, which could support longer-term growth. Synopsys raises annual forecast on demand for AI chip design software
Positive Sentiment: Synopsys reached a cooperation agreement with Elliott Investment Management and added Elliott partner Jesse Cohn to its board, which may increase pressure for operational improvements and shareholder-friendly changes. Synopsys reaches settlement with Elliott, says Jesse Cohn to join board
Neutral Sentiment: Several analysts responded positively by lifting price targets, but at least one firm still has an underperform/neutral view, showing that Wall Street is still split on the stock’s upside from current levels. Analyst target updates
Neutral Sentiment: Commentary around the stock emphasizes valuation concerns after a strong run, suggesting some investors may be pausing to reassess how much of the AI growth story is already priced in. Is It Too Late To Consider Synopsys (SNPS) After Recent Valuation Concerns?
Negative Sentiment: The shares fell despite the beat-and-raise report, indicating investors are worried about execution risk, integration complexity, and weakness in parts of the chip-IP business. Synopsys slides even as Q2 results, guidance top estimates; adds activist to board

Wall Street Analysts Forecast Growth

SNPS has been the subject of several recent analyst reports. Berenberg Bank set a $633.00 target price on shares of Synopsys in a report on Wednesday. Robert W. Baird set a $558.00 target price on Synopsys in a report on Thursday. Piper Sandler upped their target price on Synopsys from $430.00 to $450.00 and gave the company a “neutral” rating in a report on Thursday. Rosenblatt Securities upped their target price on Synopsys from $530.00 to $575.00 and gave the company a “buy” rating in a report on Tuesday. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $580.00 target price on shares of Synopsys in a report on Thursday. Nine investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $563.81.

Check Out Our Latest Analysis on SNPS

Synopsys Company Profile

(Get Free Report)

Synopsys, Inc is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) used to design, verify and manufacture integrated circuits and complex systems-on-chip (SoCs). Its product portfolio spans tools and technologies for front‑end design and synthesis, simulation and verification, physical implementation and signoff, and design-for-manufacturability, enabling chip designers to move from architecture through tape‑out.