SNPS
NEUTRAL
$389.83
Live
Synopsys, Inc. · NASDAQ
Target $556.4
(+42.7%)
$365.74
52W Range
$651.73
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Nov 16, 2025
Market cap
$73.17B
P/E
52.61
ROE
6.5%
Profit margin
31.0%
Debt/Equity
0.55
Dividend yield
N/A
AI Analysis
AI-powered fundamental assessment
Confidence
65%
Synopsys (SNPS) trades at a premium valuation with strong gross margins and solid long-term revenue growth, but faces significant near-term headwinds reflected in sharply declining earnings and negative price momentum. Despite a bullish analyst target price of $556.40 implying 43% upside, recent quarters have shown deteriorating profitability, with YoY EPS down 56.3% and a -44.3% earnings surprise in Q3 2025. The company maintains a healthy balance sheet with a Debt/Equity of 0.55 and strong liquidity, yet insider selling worth $29.76M over the past six months raises caution. Relative to peers like SNOW and ADI, SNPS exhibits better margins and cash flow discipline but lags in earnings growth and market sentiment, trading 40% below its 52-week high amid broader semiconductor cyclicality concerns.
Key Strengths
Exceptional gross margin of 81.13%, reflecting pricing power and low variable costs in software licensing model
Revenue growth of 14.00% YoY outpaces sector average of 19.46% but remains resilient in a high-margin business
Strong liquidity profile with Current Ratio of 1.62 and Quick Ratio of 1.40, indicating robust short-term financial health
Profit margin of 31.04% significantly exceeds sector average of 16.54%, highlighting operational efficiency
Analyst target price of $556.40 suggests 43% upside, reflecting confidence in recovery and AI-driven design demand
Key Risks
Earnings growth collapsing: YoY EPS down 56.3% and Q/Q EPS down 59.1%, signaling severe profitability compression
High valuation despite earnings decline: Forward P/E of 26.22 appears stretched given negative earnings momentum
Recent insider selling by CFO and CEO totaling $29.76M over 6 months signals leadership's lack of near-term confidence
Operating margin at 9.50% is weak relative to gross margin, suggesting rising SG&A or R&D pressure
Price down 28.9% over the past year and 10.6% in the last month, indicating sustained negative momentum and sentiment erosion
AI Fair Value Estimate
Based on comprehensive analysis
$556.4
+42.7% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
50
Moderate
55
58
65
70
0
AI Verdict
Synopsys presents a mixed profile: fundamentally strong in margins and sector positioning, but weighed down by collapsing earnings growth and negative insider activity; while valued below peers like SNOW on growth-adjusted metrics, its recovery hinges on margin stabilization and AI-driven design cycle rebound.
Key drivers: Resilient 14% revenue growth in a mature software-infrastructure segment, Superior profitability with 31% net margin and 81% gross margin, Analyst optimism anchored in AI/ML and semiconductor design tailwinds
Confidence
70%
Value
55/100
While SNPS appears cheaper than hyper-growth peers like Snowflake (no P/E), its valuation remains rich relative to its deteriorating earnings trend, especially compared to Analog Devices (P/E 59.92) with stronger earnings growth (24.6%)
Positives
- Forward P/E of 26.22 is below sector average P/E of 155.76, suggesting relative value
- Price/Sales of 11.37 is reasonable for a high-margin software player
Watchpoints
- Current P/E of 52.61 is elevated given negative earnings growth
- Lack of EV/EBITDA and ROIC data limits full valuation clarity
Future
58/100
Despite solid revenue momentum, the sharp divergence between top-line growth and bottom-line collapse creates uncertainty; price action shows no sign of reversal, with shares down 10.6% in the last month
Positives
- Exposure to AI-driven chip design and EDA tools, a structurally growing TAM
- 14% revenue growth suggests continued demand for core products
Watchpoints
- Earnings growth of -42.7% YoY and -40.6% Q/Q indicate margin erosion or investment overhang
- Recent price decline of 28.9% over 1Y reflects weak investor confidence in near-term outlook
Past
65/100
SNPS has a strong historical track record of execution and margin discipline, but the past two quarters represent a material break from trend, coinciding with broader semiconductor inventory correction and rising R&D costs
Positives
- Consistent history of beating earnings estimates, with 23 out of 25 quarters positive surprises prior to recent misses
- Long-term profitability maintained with stable gross margins above 80%
Watchpoints
- Last two reported quarters missed estimates by -44.3% and had EPS declines over 55% YoY
- 5Y return of +75.3% masks recent underperformance, with 3Y return at only +16.6% and 1Y down 28.9%
Health
70/100
SNPS maintains a healthier leverage profile than peers like TEAM (0.89) and SNOW (1.13), but low returns on equity and assets raise questions about reinvestment efficiency despite solid liquidity
Positives
- Debt/Equity of 0.55 is manageable and below sector average of 0.76
- Current and Quick Ratios of 1.62 and 1.40 indicate strong liquidity and low near-term solvency risk
Watchpoints
- Missing Total Cash and Total Debt figures limit full assessment of capital structure
- ROE of 6.50% and ROA of 2.31% are weak despite high margins, suggesting inefficient capital deployment
Dividend
0/100
Synopsys does not pay a dividend, which is common among growth software firms, but contrasts with peers like ADI that offer yield and capital return
Positives
No standout positives identified.
Watchpoints
- No dividend paid, limiting appeal to income-oriented investors
- Payout ratio of 0.00% indicates no current commitment to shareholder yield
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$389.83
Analyst Target
$556.4
Upside/Downside
+42.7%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for SNPS and closest competitors.
Updated 2025-11-14
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
SNPS
Synopsys, Inc.
Primary
|
+75.3% | +16.6% | -28.9% | -24.2% | -10.6% | -0.9% |
|
CIEN
Ciena Corporation
Peer
|
+858.9% | +1049.4% | +710.1% | +190.9% | +19.0% | +2.6% |
|
NET
Cloudflare, Inc.
Peer
|
+187.4% | +234.6% | +83.1% | -3.8% | +14.0% | -3.2% |
|
MRVL
Marvell Technology, Inc.
Peer
|
+103.8% | +95.7% | -4.4% | +35.8% | -2.7% | -4.9% |
|
GLW
Corning Incorporated
Peer
|
+154.6% | +161.6% | +78.8% | +72.4% | -4.9% | -3.7% |
SNP
Synopsys, Inc.
Primary
5Y
+75.3%
3Y
+16.6%
1Y
-28.9%
6M
-24.2%
1M
-10.6%
1W
-0.9%
CIE
Ciena Corporation
Peer
5Y
+858.9%
3Y
+1049.4%
1Y
+710.1%
6M
+190.9%
1M
+19.0%
1W
+2.6%
NET
Cloudflare, Inc.
Peer
5Y
+187.4%
3Y
+234.6%
1Y
+83.1%
6M
-3.8%
1M
+14.0%
1W
-3.2%
MRV
Marvell Technology, Inc.
Peer
5Y
+103.8%
3Y
+95.7%
1Y
-4.4%
6M
+35.8%
1M
-2.7%
1W
-4.9%
GLW
Corning Incorporated
Peer
5Y
+154.6%
3Y
+161.6%
1Y
+78.8%
6M
+72.4%
1M
-4.9%
1W
-3.7%
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
52.61
Forward P/E
26.22
PEG Ratio
N/A
P/B Ratio
2.62
P/S Ratio
11.37
EV/Revenue
13.2
EV/EBITDA
64.79
Market Cap
$73.17B
Profitability
Profit margins and return metrics
Profit Margin
31.04%
Operating Margin
9.5%
Gross Margin
81.13%
ROE
6.5%
ROA
2.31%
Growth
Revenue and earnings growth rates
Revenue Growth
+14.0%
Earnings Growth
-42.7%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
-40.6%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.55
Moderate
Current Ratio
1.62
Good
Quick Ratio
1.4
Good
Cash/Share
$13.96
Quarterly Earnings History
EPS performance vs analyst estimates
2025-12-10
$N/A
2025-09-09
$1.5
-44.3% surprise
2025-05-28
$3.67
+8.0% surprise
2025-02-26
$3.03
+8.6% surprise
Technology Sector Comparison
Comparing SNPS against 565 companies in the Technology sector
(45 bullish, 197 neutral, 323 bearish)
P/E Ratio
52.61
This Stock
vs
82.88
Sector Avg
-36.5%
(Discount)
Return on Equity (ROE)
6.5%
This Stock
vs
-33.47%
Sector Avg
-119.4%
(Below Avg)
Profit Margin
31.04%
This Stock
vs
-11.75%
Sector Avg
-364.2%
(Weaker)
Debt to Equity
0.55
This Stock
vs
0.74
Sector Avg
-26.3%
(Less Debt)
Revenue Growth
14.0%
This Stock
vs
4383.21%
Sector Avg
-99.7%
(Slower)
Current Ratio
1.62
This Stock
vs
3.59
Sector Avg
-54.7%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
SNPS
Synopsys, Inc.
|
NEUTRAL | $73.17B | 52.61 | 6.5% | 31.0% | $389.83 | |
|
CIEN
Ciena Corporation
|
BEARISH | $73.64B | 333.85 | 8.2% | 4.5% | $520.8 | Compare |
|
NET
Cloudflare, Inc.
|
BEARISH | $72.63B | - | -8.2% | -4.7% | $206.34 | Compare |
|
MRVL
Marvell Technology, Inc.
|
NEUTRAL | $75.45B | - | -0.7% | -1.4% | $86.45 | Compare |
|
GLW
Corning Incorporated
|
NEUTRAL | $70.61B | 52.6 | 12.7% | 9.2% | $82.06 | Compare |
SNPS
Synopsys, Inc.
NEUTRAL
Mkt Cap
$73.2B
P/E
52.6
ROE
6.5%
Price
$389.83
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-09-22 | KANKANWADI SUDHINDRA | Officer | Option Exercise | 15,873 | $1,424,760 |
| 2025-09-22 | KANKANWADI SUDHINDRA | Officer | Sale | 15,873 | $7,837,408 |
| 2025-09-11 | PAINTER ROBERT G | Director | Purchase | 350 | $148,904 |
| 2025-09-11 | GOPAL AJEI S | Director | Stock Award | 1,140 | - |
| 2025-09-11 | VIJAYARAGHAVAN RAVI K | Director | Stock Award | 1,140 | - |
| 2025-09-05 | GLASER SHELAGH M | Chief Financial Officer | Option Exercise | 3,655 | $1,279,111 |
| 2025-09-05 | GLASER SHELAGH M | Chief Financial Officer | Sale | 3,655 | $2,228,709 |
| 2025-09-03 | LEE JANET | General Counsel | Stock Award | 293 | - |
| 2025-09-02 | GHAZI SASSINE E | Chief Executive Officer | Option Exercise | 11,366 | $1,020,212 |
| 2025-09-02 | GHAZI SASSINE E | Chief Executive Officer | Sale | 11,366 | $6,694,725 |
| 2025-08-29 | LEE JANET | General Counsel | Stock Award | 700 | - |
| 2025-07-31 | GOPAL AJEI S | Director | Stock Award | 117,256 | - |
| 2025-06-18 | MAHONEY RICHARD S | Officer | Option Exercise | 4,141 | $1,363,825 |
| 2025-06-18 | MAHONEY RICHARD S | Officer | Sale | 9,010 | $4,245,645 |
| 2025-06-13 | MAHONEY RICHARD S | Officer | Stock Award | 7,832 | - |
KANKANWADI SUDHINDRA
Officer
2025-09-22
15,873 shares
·
$1,424,760
KANKANWADI SUDHINDRA
Officer
2025-09-22
15,873 shares
·
$7,837,408
PAINTER ROBERT G
Director
2025-09-11
350 shares
·
$148,904
GOPAL AJEI S
Director
2025-09-11
1,140 shares
VIJAYARAGHAVAN RAVI K
Director
2025-09-11
1,140 shares
GLASER SHELAGH M
Chief Financial Officer
2025-09-05
3,655 shares
·
$1,279,111
GLASER SHELAGH M
Chief Financial Officer
2025-09-05
3,655 shares
·
$2,228,709
LEE JANET
General Counsel
2025-09-03
293 shares
GHAZI SASSINE E
Chief Executive Officer
2025-09-02
11,366 shares
·
$1,020,212
GHAZI SASSINE E
Chief Executive Officer
2025-09-02
11,366 shares
·
$6,694,725
LEE JANET
General Counsel
2025-08-29
700 shares
GOPAL AJEI S
Director
2025-07-31
117,256 shares
MAHONEY RICHARD S
Officer
2025-06-18
4,141 shares
·
$1,363,825
MAHONEY RICHARD S
Officer
2025-06-18
9,010 shares
·
$4,245,645
MAHONEY RICHARD S
Officer
2025-06-13
7,832 shares
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
23 analysts
Exane BNP Paribas
2025-10-02
Underperform
Mizuho
2025-09-11
Outperform
Outperform
Morgan Stanley
2025-09-11
Overweight
Overweight
B of A Securities
2025-09-10
Buy
Underperform
Goldman Sachs
2025-09-10
Buy
Buy
Keybanc
2025-09-10
Overweight
Overweight
Stifel
2025-09-10
Buy
Buy
Wells Fargo
2025-09-10
Equal-Weight
Equal-Weight
JP Morgan
2025-09-10
Overweight
Overweight
Baird
2025-09-10
Outperform
Neutral
Past News Coverage
Recent headlines mentioning SNPS from our newsroom.
Newest → oldest
No matching news yet.