Synopsys, Inc logo

Synopsys, IncNasdaq: SNPS

Information Technology · Application Software

$456.82

-9.36%

Vol: 196K

Research Digest

Monday, June 15, 2026

Neutral

No significant overnight updates

No material news in the last 48 hours.

Price 50d 200d

Previous Market Intelligence

13 days
Jun 14No significant overnight updatesNeutral

No material news in the last 48 hours.

May 21Synopsys to report Q2 FY26 earnings on May 27 as Citi raises price target to $600 amid Ansys integration momentumPositive

Synopsys is set to release Q2 fiscal 2026 results on May 27 after market close, with analysts expecting EPS of $2.24 (a 13.5% YoY decline). The stock has gained 14.6% over the past month, closing recently at $502.42, supported by strong Q1 FY26 results showing $2.41B revenue (up 66% YoY) and an $11.3B backlog. Citi raised its price target to $600 from $580 and Wells Fargo raised its target to $505 from $450, citing the Ansys acquisition expanding TAM by 63% to $31B. However, Design IP revenue fell 6% YoY to $407M as major AI chipmakers rely on custom proprietary IP. Activist investor Elliott Investment Management has reportedly taken a multi-billion-dollar stake to push for greater profitability.

May 20Synopsys faces Elliott Management activist pressure ahead of its May 27 fiscal Q2 earnings, with Wells Fargo lifting its target to $505 on May 14.Mixed

Activist Elliott Investment Management has taken a multi-billion-dollar stake in Synopsys and is pushing the company to extract more profitability from its software and sales operations — a notable overhang heading into the fiscal Q2 2026 earnings release scheduled for May 27 after the bell. Consensus is for $2.24 EPS, a 13.5% YoY decline. The stock closed near $502 on May 16, up 14.6% over the past month and 14.9% over three months. Q1 FY26 had been strong with revenue of $2.41B (up 65.6% YoY post-Ansys), non-GAAP EPS of $3.77 (beat by ~6%), operating cash flow of $857M, and $3.45B of debt paydown. The Ansys acquisition expanded the TAM by 63% to $31B and added partnerships with TSMC, Arm AGI CPU collaboration, NVIDIA acceleration work, and NASA's Artemis program. On May 14, Wells Fargo raised its target to $505 from $450.

May 19No significant overnight updatesNeutral

No material news in the last 48 hours.

May 18Synopsys stock gains momentum ahead of May 27 Q2 earnings; Wells Fargo raises PT to $505 and Elliott Management discloses multi-billion-dollar activist stake.Positive

SNPS is trading near $502, up 14.6% over the past month, ahead of its Q2 FY2026 earnings release on May 27. Wells Fargo raised its price target to $505 (from $450) on May 14. The bigger catalyst: activist investor Elliott Investment Management disclosed a multi-billion-dollar stake and is pushing the EDA leader to extract more profitability from its software and sales operations, sending shares up ~5% on the news. The Ansys integration continues to drive the bull case, expanding TAM by 63% to $31B and enabling chip-to-system simulation. Q1 FY2026 already showed revenue of $2.41B (+65.4% YoY) and adjusted EPS of $3.77 (beat by 5.9%), with operating cash flow swinging to +$857M and $3.45B in debt repaid. Bear case: Elliott pressure could force near-term cost actions; integration risk on Ansys is ongoing; valuation now reflects significant optimism into May 27 print.

May 15Synopsys announced it will report fiscal Q2 2026 results on May 27, with Citi raising its price target to $600 from $580.Positive

Synopsys announced it will report fiscal Q2 2026 results on May 27, 2026 after market close, with analysts expecting EPS of $2.24 (a 13.5% YoY decline reflecting tough comparisons). Citi raised its price target to $600 from $580 on May 6. The stock is up 23.5% over the past month around $550 amid strong demand from AI-driven semiconductor work. Synopsys continues partnerships with TSMC on AI-driven EDA flows, supports NASA's Artemis program, and integrated Ansys (Ansys deal expands TAM by 63% to $31B). Q1 results showed adjusted EPS of $3.77 and revenue of $2.41B.

May 14Synopsys stock up 26% in past month on AI EDA demand as Citi raises target to $600 ahead of May 27 earningsPositive

Synopsys stock has rallied roughly 26% over the past month into its fiscal Q2 2026 earnings release scheduled for May 27, with analysts expecting EPS of $2.24. Citi raised its price target to $600 from $580 in May, citing AI-driven demand for the company's EDA tools and growing software security business; Piper Sandler maintained a Hold. Recent strategic developments include partnerships with TSMC on advanced AI-driven EDA flows, Arm AGI CPU collaboration, NASA Artemis support, and Ansys 2026 R1 launch as the Ansys integration progresses. Q1 FY26 results delivered adjusted EPS of $3.77 (vs ~$3.56 consensus) and revenue of $2.41B. The stock traded near $720 on May 8. Bear case: the consensus Q2 EPS implies a 13.5% YoY decline reflecting Ansys integration friction; the stock's run-up creates valuation risk.

May 13Synopsys rides 7-day winning streak ahead of May 27 fiscal Q2 earnings as AI-driven EDA demand lifts shares.Positive

Synopsys announced it will report fiscal Q2 2026 results on Wednesday, May 27 after the close, with analysts modeling EPS of $2.24 (down 13.5% YoY due to Ansys integration impacts). Shares extended a 7-day winning streak with cumulative gains of ~7.3% (market cap +$6.7B), closing near $502.51 on May 11, up ~27% over the past month on AI-driven semiconductor software demand. Q1 fiscal 2026 results beat with adj. EPS of $3.77 (~5.9% above consensus) and revenue of $2.41B. The company continues integrating Ansys while showcasing TSMC, Arm, NVIDIA and NASA Artemis partnerships. Consensus is Hold with average target near $531.

May 12Synopsys shares hit $502 ahead of May 27 Q2 FY26 earnings as analysts debate stretched valuation after 27% one-month rally.Mixed

Synopsys shares closed near $502.51 on May 11, up roughly 27% over the past month and 23% over the past 3 months heading into Q2 FY26 earnings scheduled for May 27 after market close. Q1 FY26 results showed adjusted EPS of $3.77 (beat by ~5.9%) and revenue of $2.41B, up roughly 65.6% YoY reflecting the Ansys acquisition contribution and strong demand for design tools and IP for advanced semiconductor nodes and AI workloads. Full-year FY26 guidance stands at $9.56B-$9.66B in revenue. Recent partnership and product updates include work with TSMC on AI-driven EDA flows, support for NASA's Artemis program, collaboration on Arm's AGI CPU, NVIDIA-related acceleration showcases, and the Ansys 2026 R1 launch. Analyst consensus is Hold with average target ~$531 vs. fair value estimate trimmed to $534.65. Risk: P/E ratio of ~87x is nearly triple the US Software industry average of 29.3x, leaving little margin for any execution miss on Q2.

May 11No significant overnight updatesNeutral

No material news in the last 48 hours. Synopsys is scheduled to report Q2 fiscal 2026 results May 27 with consensus EPS of $2.24, and the stock has rallied ~26% over the past month on Ansys integration optimism.

May 8Synopsys stock surges 27% past month on AI momentum; Q2 FY2026 earnings due May 27 with 13.5% EPS decline forecastMixed

Synopsys stock rallied 27% past month and 23% past 3 months, though P/E at 87x is nearly triple the software industry average of 29.3x and well above fair value of 44.9x. Q2 FY2026 earnings announcement scheduled May 27, 2026 after close (conference call 5pm ET), with analyst EPS consensus of $2.24 reflecting 13.5% YoY decline. Recent strategic initiatives: TSMC collaboration on advanced AI-driven EDA flows, NASA Artemis program support, Arm AGI CPU collaboration, NVIDIA acceleration gains, and Ansys 2026 R1 launch. Piper Sandler initiated Hold rating on May 6. Stock positioned on AI chip design/verification demand but elevated valuation risks investor capital.

May 6Q2 FY2026 earnings May 27; GaN collaboration with Atomera expanded; strong momentum (+23.5%)Positive

Synopsys scheduled to report Q2 FY2026 earnings on May 27 after market close, with analyst consensus expecting EPS of $2.24 (down 13.5% YoY). Company expanding collaboration with Atomera on gallium nitride device modeling for advanced semiconductor applications. Announced major advances in AI-powered EDA, 3D multi-die design, and silicon-proven IP for TSMC 3nm, 2nm, and A-series technologies. Sahil Gupta promoted to Executive Director of Program Management, signaling focus on AI scaling and execution. Stock gained 23.5% over past month and closed at $497.50 (+1.73% May 5). Management projects $12.1B revenue and $1.8B earnings by 2029 requiring 14.7% yearly growth. Analyst sentiment remains strong despite upcoming guidance beat expectations.

May 5Synopsys up 23.5% past month with strong Q2 earnings expected and TSMC partnership expansionPositive

Synopsys announcing Q2 FY2026 results May 27 with analyst expectations EPS $2.24 (down 13.5% YoY but revenue $2.25B up 40.29% YoY) reflecting strong semicond demand. Stock up 23.5% past month trading $499.86-$509.22 range May 5. Partnered with TSMC on next-gen AI silicon with proven IP and certified EDA flows. Extended Arm partnership for new data center CPU with EDA, IP, hardware verification solutions. PFA Pension purchased new 109,852 share position in Q4. Bellecapital raised 1,477.8%. Analyst recommendation average 1.68 is favorable despite valuation and integration concerns. Strong momentum in AI/HPC design tools.

Sector Peers

CompanyPriceDay1MFwd P/EBetaMkt Cap
SNPSSYNOPSYS$456.82-9.36%+1.1%29.6x1.25$96.5B
ORCLORACLE$192.30+1.33%+1.7%23.6x1.54$545.8B
PLTRPALANTIR$131.65-4.20%+1.7%66.3x1.52$329.4B
APPAPPLOVIN$520.37+7.10%-1.3%22.2x2.37$163.2B
CRMSALESFORCE$169.11-4.08%-1.8%11.8x1.14$144.2B
CDNSCADENCE$392.20+9.41%+3.6%38.2x1.13$98.9B

Key Fundamentals

Market Cap$96.5B
P/E (TTM)77.1
Forward P/E29.6
Beta1.25
Div Yield
Prev Close$503.98

RSI (14-Day)

53Neutral
0305070100

52-Week Range

$376.18$456.82$651.73
From High-29.9%
From Low+21.4%

Moving Averages

50d SMA
$447.29+2.1%
200d SMA
$474.49-3.7%

Price below 200d MA — bearish structure.

Historical Returns

1W
-10.4%
1M
+3.5%
3M
+4.5%
6M
+14.5%
1Y
-11.8%
YTD
-4.9%

Volume

Today196K
20d Avg1.6M
Ratio0.12x