Synopsys (NASDAQ:SNPS) Updates Q2 2026 Earnings Guidance

27 Feb 2026, 17:46 by Kim Johansen · The Markets Daily

Synopsys (NASDAQ:SNPS – Get Free Report) issued an update on its second quarter 2026 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 3.110-3.170 for the period, compared to the consensus estimate of 2.690. The company issued revenue guidance of $2.2 billion-$2.3 billion, compared to the consensus revenue estimate of $2.2 billion. Synopsys also updated its FY 2026 guidance to 14.380-14.460 EPS.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on SNPS shares. Wells Fargo & Company reduced their price target on Synopsys from $500.00 to $450.00 and set an “equal weight” rating on the stock in a research report on Thursday. Rosenblatt Securities cut their price objective on Synopsys from $560.00 to $530.00 and set a “buy” rating on the stock in a research note on Thursday. Piper Sandler reduced their target price on Synopsys from $520.00 to $430.00 and set a “neutral” rating on the stock in a report on Thursday. Weiss Ratings reissued a “hold (c)” rating on shares of Synopsys in a research report on Thursday, January 22nd. Finally, JPMorgan Chase & Co. boosted their price target on shares of Synopsys from $600.00 to $650.00 and gave the stock an “overweight” rating in a research report on Thursday, December 11th. Eight equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Synopsys currently has an average rating of “Hold” and an average target price of $531.00.

Check Out Our Latest Stock Report on Synopsys

Synopsys Trading Down 3.1%

SNPS traded down $13.04 during trading on Friday, hitting $412.96. The company’s stock had a trading volume of 1,262,036 shares, compared to its average volume of 2,206,812. The firm has a market capitalization of $79.11 billion, a P/E ratio of 64.08, a PEG ratio of 3.74 and a beta of 1.12. Synopsys has a twelve month low of $365.74 and a twelve month high of $651.73. The stock’s fifty day moving average price is $472.21 and its 200-day moving average price is $478.66. The company has a quick ratio of 1.52, a current ratio of 1.62 and a debt-to-equity ratio of 0.48.

Synopsys (NASDAQ:SNPS – Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The semiconductor company reported $3.77 EPS for the quarter, topping the consensus estimate of $3.56 by $0.21. Synopsys had a net margin of 13.76% and a return on equity of 7.49%. The company had revenue of $2.41 billion during the quarter, compared to the consensus estimate of $2.39 billion. During the same quarter last year, the firm posted $3.03 EPS. The company’s quarterly revenue was up 65.6% on a year-over-year basis. Synopsys has set its FY 2026 guidance at 14.380-14.460 EPS and its Q2 2026 guidance at 3.110-3.170 EPS. Analysts anticipate that Synopsys will post 10.64 EPS for the current year.

Insider Activity

In other Synopsys news, CFO Shelagh Glaser sold 3,657 shares of the firm’s stock in a transaction that occurred on Friday, December 19th. The stock was sold at an average price of $460.77, for a total value of $1,685,035.89. Following the completion of the sale, the chief financial officer owned 17,842 shares of the company’s stock, valued at approximately $8,221,058.34. This trade represents a 17.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Janet Lee sold 250 shares of the business’s stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $530.00, for a total value of $132,500.00. Following the sale, the insider owned 11,959 shares of the company’s stock, valued at approximately $6,338,270. This represents a 2.05% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 4,157 shares of company stock worth $1,945,036 in the last quarter. Company insiders own 0.62% of the company’s stock.

More Synopsys News

Here are the key news stories impacting Synopsys this week:

Positive Sentiment: Q1 beat: Synopsys reported $2.41B revenue (+65% y/y) and $3.77 non‑GAAP EPS, topping estimates and showing AI/EDA momentum. Synopsys Q1 Earnings Surpass Estimates
Positive Sentiment: Board approved a $2.0B share repurchase replenishment — supports buyback-driven EPS support and signals management confidence. PR Newswire: Synopsys Posts Financial Results
Positive Sentiment: Ansys acquisition expands TAM to system simulation; analysts and investors cite long‑term upside from integrated EDA+simulation products and AI tailwinds. Can AI Push in EDA & Ansys Integration Help SNPS Stock Grow Further?
Neutral Sentiment: Option flow and retail/whale activity show heavy call buying (unusual volume), indicating some traders are bullish despite the selloff. Traders Purchase High Volume of Synopsys Call Options What Whales Are Doing With SNPS
Neutral Sentiment: Guidance and outlook are mixed: company provided Q2 and FY26 EPS ranges that some read as conservative — markets saw limited upside to full‑year guidance despite Q1 strength. FY26 Guidance Likely Conservative
Negative Sentiment: Near‑term headwinds: Reuters highlights a muted upcoming quarter tied to China export restrictions and macro uncertainty — a direct catalyst for today’s weakness. Reuters: Synopsys forecasts muted quarter
Negative Sentiment: IP segment weakness and integration costs: Design IP sales remain pressured and Ansys-related GAAP hits and workforce reductions have raised short‑term profitability concerns. Weakness in the IP Segment Weighed on Synopsys’ Performance
Negative Sentiment: Analyst target cuts and mixed ratings: Multiple firms trimmed targets (Piper Sandler, Wells Fargo, Rosenblatt), tempering near‑term sentiment despite a consensus Buy skew. Analyst Price Target Changes
Negative Sentiment: High leverage from the $35B Ansys deal remains a concern for some investors focused on balance‑sheet risk and integration execution. Synopsys Carries $13.5 Billion in Debt

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Brighton Jones LLC raised its stake in shares of Synopsys by 5.7% during the 4th quarter. Brighton Jones LLC now owns 921 shares of the semiconductor company’s stock valued at $447,000 after purchasing an additional 50 shares during the period. DV Equities LLC bought a new stake in shares of Synopsys in the fourth quarter worth approximately $123,000. Sunbelt Securities Inc. lifted its holdings in shares of Synopsys by 1,250.0% during the 4th quarter. Sunbelt Securities Inc. now owns 243 shares of the semiconductor company’s stock valued at $114,000 after buying an additional 225 shares during the period. Fairscale Capital LLC grew its stake in shares of Synopsys by 100.9% during the 4th quarter. Fairscale Capital LLC now owns 223 shares of the semiconductor company’s stock valued at $105,000 after purchasing an additional 112 shares during the period. Finally, Pin Oak Investment Advisors Inc. bought a new stake in Synopsys during the third quarter valued at approximately $77,000. 85.47% of the stock is currently owned by institutional investors and hedge funds.

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.

In addition to core EDA offerings, Synopsys supplies a broad set of semiconductor IP building blocks — such as interface, memory and analog/mixed-signal cores — that customers integrate into SoCs to accelerate development.