With a market cap of $84.2 billion, Synopsys, Inc. (SNPS) is a leading provider of design automation and design IP solutions for the semiconductor and electronics industries, operating through its Design Automation and Design IP segments. It delivers advanced EDA software, AI-driven design tools, and pre-verified silicon IP solutions for applications ranging from SoCs to automotive systems.
Shares of the Sunnyvale, California-based company have lagged behind the broader market over the past 52 weeks. SNPS stock has decreased 10.9% over this time frame, while the broader S&P 500 Index ($SPX) has risen nearly 13%. Moreover, shares of the company have declined 6.3% on a YTD basis, compared to SPX's marginal gain.
Looking closer, the technology giant stock has underperformed the State Street Technology Select Sector SPDR ETF's (XLK) 16.7% return over the past 52 weeks.
Synopsys rose marginally following its Q4 2025 results on Dec. 10, 2025, as the company reported Q4 2025 revenue of $2.255 billion, well above the prior-year $1.636 billion and exceeding the midpoint of guidance, with adjusted EPS of $2.90, beating expectations. Investor sentiment was further supported by record full-year 2025 revenue of $7.05 billion and a strong backlog of $11.4 billion.
For the fiscal year ending in October 2026, analysts expect SNPS' EPS to grow 16.9% year-over-year to $10.11. The company's earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 21 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 15 “Strong Buy” ratings, one “Moderate Buy,” four “Holds,” and one “Strong Sell.”
On Jan. 8, Stifel Nicolaus analyst Ruben Roy maintained a “Buy” rating on Synopsys and set a price target of $550.
The mean price target of $556.90 represents a 26.6% premium to SNPS’ current price levels. The Street-high price target of $650 suggests a 47.7% potential upside.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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