Analyst Consensus ?
ConsensusBuy29 ratings
Bullish2793.1%
Neutral26.9%
Bearish00.0%
Synopsys, Inc. · SNPS · FY2025 Q3 · Calendar Q3 2025
Synopsys: AI and ANSYS upside meets IP weakness and lower guidance
The supplied analysis supports a mixed thesis: AI, high-performance computing, and ANSYS expand Synopsys's growth opportunity, but near-term IP weakness, lower guidance, and integration and margin risks limit confidence.
Reported After market closeNASDAQTechnology
$93.81B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$3.39
Consensus $3.80
EPS surprise
-10.8%
Reported versus consensus
Reported revenue
$1.74B
Consensus $1.77B
Revenue surprise
-1.6%
Reported versus consensus
Market reaction
event-close to next-session close
Stock move
-35.8%
Event window
SPY move
+0.3%
Same window
Abnormal move
-36.1%
Stock minus SPY
Volume
18.3×
Versus trailing sessions
Subsequent drift
+26.2%
Up to 20 sessions
SNPSSPY benchmark
Ask FN2 about SNPS FY2025 Q3
Transcript, numbers and history already loaded
Why did SNPS fall 35.8% after missing EPS estimates in FY2025 Q3?What changed in SNPS's guidance and outlook in FY2025 Q3?Give me the bull and bear case for SNPS after FY2025 Q3 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
Compared with the prior quarter, the ANSYS acquisition has closed, but management's tone shifted from confident to cautious as IP weakness emerged. Guidance was lowered, and the company added a roughly 10% headcount reduction plan while prioritizing integration, AI offerings, and higher-growth IP.
Guidance delta
FY2025 guidance was lowered, with a cautious Q4 outlook and expected margin pressure.
Key takeaways
- Q3 revenue reached $1.74B, up 14% year over year, while IP revenue declined 8%.
- The ANSYS acquisition closed and contributed $78M of Q3 revenue, broadening the simulation portfolio.
- Management emphasized AI-driven demand, a strategic IP shift, and a roughly 10% headcount reduction plan.
Management priorities
- Integrate ANSYS products and develop a fully integrated silicon-to-systems solution.
- Refocus IP resources on interface and foundation IP.
- Expand GenAI customer pilots and improve cost efficiency.
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Try FN2 freeEarnings History
Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$489.9Current
$284Low
$544.66Average
$700High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 4, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Wells Fargo | Overweight | Overweight | Maintain | Oct 1, 2026 |
| Rosenblatt | Buy | Buy | Maintain | Oct 1, 2026 |
| Keybanc | Overweight | Overweight | Maintain | Oct 1, 2026 |
| HSBC | Buy | Hold | Upgrade | Sep 25, 2026 |
| BNP Paribas | Neutral | Underperform | Upgrade | Sep 24, 2026 |
| Morgan Stanley | Overweight | Equal Weight | Upgrade | Sep 8, 2026 |
| Needham | Buy | Buy | Maintain | Aug 27, 2026 |
| Mizuho | Outperform | Outperform | Maintain | Aug 27, 2026 |
| Benchmark | Buy | Buy | Maintain | Aug 27, 2026 |
| Baird | Outperform | Neutral | Upgrade | Aug 27, 2026 |
| Piper Sandler | Overweight | Neutral | Upgrade | Jun 23, 2026 |
| Stifel | Buy | Buy | Maintain | May 28, 2026 |
| Citigroup | Buy | Buy | Maintain | May 28, 2026 |
| B of A Securities | Buy | Buy | Maintain | May 28, 2026 |
| JP Morgan | Overweight | Overweight | Maintain | Dec 11, 2025 |
| Goldman Sachs | Buy | Buy | Maintain | Sep 10, 2025 |
| Edward Jones | Hold | Hold | Maintain | Nov 16, 2022 |
| Deutsche Bank | Buy | Buy | Maintain | Sep 29, 2022 |
| UBS | Buy | Buy | Maintain | May 19, 2022 |
| WestPark Capital | Buy | Buy | Maintain | May 16, 2022 |
| Credit Suisse | Outperform | Outperform | Maintain | Nov 29, 2021 |
| RBC Capital | Outperform | Outperform | Maintain | Feb 16, 2021 |
| CFRA | Buy | Buy | Maintain | Feb 21, 2020 |
| Berenberg | Buy | Buy | Maintain | Nov 20, 2018 |
| Pacific Crest | Overweight | Overweight | Maintain | Aug 17, 2016 |
| DA Davidson | Buy | Buy | Maintain | Aug 19, 2015 |
| Bank of America | Buy | Buy | Maintain | Dec 4, 2014 |
| Summit Research Partners | Buy | Hold | Upgrade | May 20, 2014 |
| Summit Insights Group | Buy | Hold | Upgrade | May 20, 2014 |
Named analyst price targets
Upside is calculated against the persisted current price $489.9. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Deutsche Bank | Analyst unavailable | $640 | $479.5 | +30.6% | Oct 1, 2026 |
| KeyBanc | Analyst unavailable | $605 | $434.94 | +23.5% | Oct 1, 2026 |
| Wells Fargo | Analyst unavailable | $540 | $434.94 | +10.2% | Oct 1, 2026 |
| HSBC | Frank Lee | $700 | $424.91 | +42.9% | Sep 25, 2026 |
| BNP Paribas | Analyst unavailable | $420 | $413.06 | -14.3% | Sep 24, 2026 |
| Wells Fargo | Joe Quatrochi | $475 | $393.22 | -3.0% | Sep 10, 2026 |
| UBS | Analyst unavailable | $570 | $453.8 | +16.4% | Aug 27, 2026 |
| Mizuho Securities | Analyst unavailable | $550 | $410 | +12.3% | Aug 27, 2026 |
| Robert W. Baird | Jon Vruwink | $560 | $410 | +14.3% | Aug 27, 2026 |
| Rosenblatt Securities | Blair Abernethy | $575 | $394.51 | +17.4% | Aug 25, 2026 |
| Morgan Stanley | Lee Simpson | $500 | $405.48 | +2.1% | Aug 19, 2026 |
| Wells Fargo | Analyst unavailable | $450 | $411.68 | -8.1% | Aug 11, 2026 |
| Piper Sandler | Clarke Jeffries | $550 | $464.58 | +12.3% | Jun 23, 2026 |
| Piper Sandler | Analyst unavailable | $450 | $487.76 | -8.1% | May 28, 2026 |
| Stifel Nicolaus | Ruben Roy | $600 | $525.92 | +22.5% | May 28, 2026 |
| Robert W. Baird | Analyst unavailable | $558 | $525.92 | +13.9% | May 28, 2026 |
| Wells Fargo | Joe Quatrochi | $535 | $525.92 | +9.2% | May 28, 2026 |
| Morgan Stanley | Lee Simpson | $525 | $525.92 | +7.2% | May 28, 2026 |
| Berenberg Bank | Analyst unavailable | $633 | $534.56 | +29.2% | May 27, 2026 |
| Goldman Sachs | James Schneider | $600 | $449.17 | +22.5% | Feb 25, 2026 |
| HSBC | Analyst unavailable | $455 | $444.62 | -7.1% | Feb 20, 2026 |
| Piper Sandler | Analyst unavailable | $520 | $533.42 | +6.1% | Jan 13, 2026 |
| Morgan Stanley | Analyst unavailable | $550 | $462.05 | +12.3% | Dec 12, 2025 |
| Needham | Analyst unavailable | $580 | $470.9 | +18.4% | Dec 11, 2025 |
| Piper Sandler | Analyst unavailable | $602 | $475.73 | +22.9% | Dec 11, 2025 |
| Wells Fargo | Joe Quatrochi | $500 | $475.73 | +2.1% | Dec 11, 2025 |
| KeyBanc | Jason Celino | $600 | $475.73 | +22.5% | Dec 11, 2025 |
| Wells Fargo | Joe Quatrochi | $445 | $404.63 | -9.2% | Nov 25, 2025 |
| BNP Paribas | Analyst unavailable | $425 | $488.78 | -13.2% | Oct 2, 2025 |
| Needham | Charles Shi | $550 | $387.78 | +12.3% | Sep 10, 2025 |
| Piper Sandler | Analyst unavailable | $630 | $387.78 | +28.6% | Sep 10, 2025 |
| Wells Fargo | Analyst unavailable | $550 | $387.78 | +12.3% | Sep 10, 2025 |
| KeyBanc | Analyst unavailable | $590 | $387.78 | +20.4% | Sep 10, 2025 |
| Robert W. Baird | Analyst unavailable | $535 | $387.78 | +9.2% | Sep 10, 2025 |
| KeyBanc | Jason Celino | $660 | $592.01 | +34.7% | Sep 3, 2025 |
| KeyBanc | Jason Celino | $540 | $466.26 | +10.2% | Jun 3, 2025 |
| KeyBanc | Jason Celino | $575 | $515.61 | +17.4% | May 20, 2025 |
| Stifel Nicolaus | Analyst unavailable | $550 | $443.97 | +12.3% | Apr 28, 2025 |
| Needham | Charles Shi | $640 | $505.59 | +30.6% | Oct 22, 2024 |
| Mizuho Securities | Siti Panigrahi | $650 | $505.59 | +32.7% | Oct 21, 2024 |
| Citigroup | Ryan Levine | $284 | $535.51 | -42.0% | Oct 15, 2024 |
| Berenberg Bank | Nay Soe Naing | $660 | $545.46 | +34.7% | Oct 15, 2024 |
| Robert W. Baird | Joe Vruwink | $663 | $564.68 | +35.3% | Aug 22, 2024 |
| Rosenblatt Securities | Blair Abernethy | $635 | $547.36 | +29.6% | Aug 15, 2024 |
| Robert W. Baird | Joe Vruwink | $661 | $601.75 | +34.9% | Jul 2, 2024 |
| KeyBanc | Jason Celino | $690 | $598.52 | +40.8% | Jun 27, 2024 |
| Griffin | Jay Vleeschhouwer | $650 | $588.61 | +32.7% | May 24, 2024 |
| Deutsche Bank | Gianmarco Conti | $645 | $578.27 | +31.7% | May 23, 2024 |
| Piper Sandler | Clarke Jeffries | $672 | $576.75 | +37.2% | May 23, 2024 |
| Robert W. Baird | Joe Vruwink | $645 | $573.13 | +31.7% | May 23, 2024 |
| Piper Sandler | Clarke Jeffries | $665 | $578.87 | +35.7% | Apr 4, 2024 |
| Loop Capital Markets | Jason Celino | $675 | $541 | +37.8% | Nov 30, 2023 |
| Wells Fargo | Gary Mobley | $505 | $435.56 | +3.1% | Aug 16, 2023 |
| Rosenblatt Securities | Analyst unavailable | $420 | $357.84 | -14.3% | Dec 2, 2022 |
| Robert W. Baird | Analyst unavailable | $444 | $372.6 | -9.4% | Aug 18, 2022 |
| Rosenblatt Securities | Analyst unavailable | $405 | $381 | -17.3% | Aug 18, 2022 |
| Needham | Analyst unavailable | $420 | $381 | -14.3% | Aug 18, 2022 |
| Rosenblatt Securities | Analyst unavailable | $390 | $385.42 | -20.4% | Aug 12, 2022 |
| Wells Fargo | Analyst unavailable | $425 | $375.71 | -13.2% | Aug 11, 2022 |
| Needham | Charles Shi | $380 | $306.72 | -22.4% | May 23, 2022 |
| Wells Fargo | Analyst unavailable | $375 | $272.57 | -23.5% | May 19, 2022 |
| Rosenblatt Securities | Blair Abernethy | $360 | $275.99 | -26.5% | May 15, 2022 |
| Atlantic Equities | Ianjit Bhatti | $400 | $287.63 | -18.4% | Feb 18, 2022 |
| KeyBanc | Jason Celino | $445 | $326.16 | -9.2% | Jan 14, 2022 |
| Credit Suisse | John Pitzer | $360 | $355.87 | -26.5% | Nov 29, 2021 |
| Westpark Capital | Ruben Roy | $340 | $277.68 | -30.6% | Jul 15, 2021 |
Track every rating change on SNPS the moment it posts. Free to start.
Start freeCompany context
Snapshot as of publicationSynopsys, Inc. is a leading provider of electronic design automation (EDA) software, instrumental in the creation and validation of integrated circuits. The company offers a robust portfolio of platforms, including the Fusion Design Platform for digital implementation, and the comprehensive Verification Continuum Platform. The latter provides a suite of solutions such as virtual prototyping, static and formal verification, simulation, emulation, and FPGA-based prototyping with integrated debugging tools. Synopsys also develops FPGA design products, which enable programming for specific functions. A significant part of its business involves intellectual property (IP) solutions. This encompasses IP for widely adopted communication standards like USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth Low Energy. They also furnish analog IP, including data converters and audio codecs, alongside system-on-chip (SoC) infrastructure IP, specialized datapath and building block IP, and verification IP products.…
Historical context
All SNPS earningsTechnology peers this season
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|---|---|---|---|---|
| ACN Accenture plc | FY2026 Q4 · Calendar Q4 2026 | +3.5% | +15.8% | Accenture: AI demand supports strong Q4, while pricing and geopolitics remain risks |
| JBL Jabil Inc. | FY2026 Q4 · Calendar Q3 2026 | +8.1% | -10.0% | Jabil enters FY2027 with AI-led growth and capacity risks |
| MU Micron Technology, Inc. | FY2026 Q4 · Calendar Q3 2026 | +5.4% | +0.0% | Micron: Strong AI Memory Demand, Higher Capex, and HBM4E Ahead |
| SNX TD Synnex Corp | FY2026 Q3 · Calendar Q3 2026 | +20.9% | -9.9% | TD SYNNEX: AI-led growth accelerates, but mix and cash flow matter |
| ADBE Adobe Inc. | FY2026 Q3 · Calendar Q3 2026 | +0.8% | +1.4% | Adobe raises FY26 outlook as AI strategy broadens |
| ORCL Oracle Corporation | FY2027 Q1 · Calendar Q3 2026 | +10.3% | -1.7% | Oracle raises FY27 outlook as AI demand accelerates cloud growth |
Latest beats and misses
Who reports nextBeat on EPS
- ACNFY2026 Q4 · October 1, 2026+3.5% EPS+15.8% move
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- NKEFY2027 Q1 · October 1, 2026+10.0% EPS-0.7% move
- CAGFY2027 Q1 · September 30, 2026+44.4% EPS-4.9% move
- FDSFY2026 Q4 · September 30, 2026+3.9% EPS+3.8% move
- JBLFY2026 Q4 · September 30, 2026+8.1% EPS-10.0% move
Get the SNPS recap when the next report posts
One email per quarter with the scorecard, the market reaction and what changed on the call. No account needed.
Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-10-04T21:00:42.576990+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-04T21:00:42.574238+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-10-04. For educational purposes only; not investment advice.