With a market cap of\u00a0$84.2 billion, Synopsys, Inc. (SNPS) is a leading provider of design automation and design IP solutions for the semiconductor and electronics industries, operating through its Design Automation and Design IP segments. It delivers advanced EDA software, AI-driven design tools, and pre-verified silicon IP solutions for applications ranging from SoCs to automotive systems.<\/p>\n
Shares of the Sunnyvale, California-based company have lagged behind the broader market over the past 52 weeks.\u00a0SNPS stock has decreased 10.9%\u00a0over this time frame, while the broader S&P 500 Index ($SPX) has\u00a0risen nearly 13%. Moreover, shares of the company have declined 6.3% on a YTD basis, compared to SPX’s marginal gain.<\/p>\n
Looking closer, the technology giant stock has underperformed the State Street Technology Select Sector SPDR ETF’s (XLK)\u00a016.7% return over the past 52 weeks.<\/p>\n Synopsys rose marginally following its\u00a0Q4 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.<\/p>\n For the fiscal year ending in October 2026, analysts expect SNPS’\u00a0EPS 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.<\/p>\n Among the 21 analysts covering the stock, the\u00a0consensus rating is a \u201cModerate Buy.\u201d That\u2019s based on 15 \u201cStrong Buy\u201d ratings, one \u201cModerate Buy,\u201d four \u201cHolds,\u201d and one \u201cStrong Sell.\u201d<\/p>\n On Jan. 8, Stifel Nicolaus analyst Ruben Roy maintained a \u201cBuy\u201d rating on Synopsys and set a\u00a0price target of $550.<\/p>\n The mean price target of $556.90 represents a 26.6% premium to SNPS\u2019 current price levels. The Street-high price target of $650 suggests a 47.7% potential upside.<\/p>\n 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. This article was originally\u00a0published on Barchart.com <\/i><\/p>\n<\/p><\/div>\n<\/div>\n<\/div>
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