Analyst Consensus ?
ConsensusBuy28 ratings
Bullish2382.1%
Neutral414.3%
Bearish13.6%
Synopsys, Inc. · SNPS · FY2026 Q2 · Calendar Q2 2026
Synopsys Beats Q2 Estimates and Raises FY26 Guidance, but Shares Plunge 9%
Synopsys delivered a solid Q2 FY26 beat on both revenue ($2.28B vs $2.25B estimate) and EPS ($3.35 vs $3.15 estimate), raised full-year guidance across all key metrics, and continued advancing its AI-driven EDA and multiphysics portfolio. Despite the positive results, shares fell sharply — down 9.2% on roughly 3x normal volume in the reaction window, with a subsequent downward drift of 5.5%. At $383.82, the stock now trades well below even the lowest analyst target of $455, suggesting the market sees risks that analyst models may not fully reflect. Key concerns center on the pace of IP segment recovery, sustainability of mid-teens ANSYS growth, reduced revenue visibility from the ANSYS channel accounting change, and China export restrictions. Management's AI-driven growth narrative remains intact, with 3D-IC adoption, hyperscaler IP deals, and Agentic AI as primary catalysts.
Reported After market closeNASDAQTechnology
$73.49B market cap
100quality score
Company 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.…
Earnings scorecard
Reported versus consensus
Reported EPS
$3.35
Consensus $3
EPS surprise
+6.3%
Reported versus consensus
Reported revenue
$2.28B
Consensus $2.25B
Revenue surprise
+1.1%
Reported versus consensus
Earnings History
Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$381.58Current
$284Low
$536Average
$663High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Jul 29, 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 |
|---|---|---|---|---|
| Piper Sandler | Overweight | Neutral | Upgrade | Jun 23, 2026 |
| Wells Fargo | Equal Weight | Equal Weight | Maintain | May 28, 2026 |
| Stifel | Buy | Buy | Maintain | May 28, 2026 |
| Rosenblatt | Buy | Buy | Maintain | May 28, 2026 |
| Needham | Buy | Buy | Maintain | May 28, 2026 |
| Morgan Stanley | Equal Weight | Equal Weight | Maintain | May 28, 2026 |
| Citigroup | Buy | Buy | Maintain | May 28, 2026 |
| BNP Paribas | Underperform | Underperform | Maintain | May 28, 2026 |
| B of A Securities | Buy | Buy | Maintain | May 28, 2026 |
| Keybanc | Overweight | Overweight | Maintain | Dec 11, 2025 |
| JP Morgan | Overweight | Overweight | Maintain | Dec 11, 2025 |
| Mizuho | Outperform | Outperform | Maintain | Sep 11, 2025 |
| Goldman Sachs | Buy | Buy | Maintain | Sep 10, 2025 |
| Baird | Neutral | Outperform | Downgrade | 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 |
| Benchmark | Buy | Hold | Upgrade | Dec 6, 2018 |
| 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 $381.58. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Piper Sandler | Clarke Jeffries | $550 | $464.58 | +44.1% | Jun 23, 2026 |
| Piper Sandler | Analyst unavailable | $450 | $487.76 | +17.9% | May 28, 2026 |
| Stifel Nicolaus | Ruben Roy | $600 | $525.92 | +57.2% | May 28, 2026 |
| Robert W. Baird | Analyst unavailable | $558 | $525.92 | +46.2% | May 28, 2026 |
| Wells Fargo | Joe Quatrochi | $535 | $525.92 | +40.2% | May 28, 2026 |
| Morgan Stanley | Lee Simpson | $525 | $525.92 | +37.6% | May 28, 2026 |
| Berenberg Bank | Analyst unavailable | $633 | $534.56 | +65.9% | May 27, 2026 |
| Goldman Sachs | James Schneider | $600 | $449.17 | +57.2% | Feb 25, 2026 |
| HSBC | Analyst unavailable | $455 | $444.62 | +19.2% | Feb 20, 2026 |
| Piper Sandler | Analyst unavailable | $520 | $533.42 | +36.3% | Jan 13, 2026 |
| Morgan Stanley | Analyst unavailable | $550 | $462.05 | +44.1% | Dec 12, 2025 |
| Needham | Analyst unavailable | $580 | $470.9 | +52.0% | Dec 11, 2025 |
| Piper Sandler | Analyst unavailable | $602 | $475.73 | +57.8% | Dec 11, 2025 |
| Wells Fargo | Joe Quatrochi | $500 | $475.73 | +31.0% | Dec 11, 2025 |
| KeyBanc | Jason Celino | $600 | $475.73 | +57.2% | Dec 11, 2025 |
| Wells Fargo | Joe Quatrochi | $445 | $404.63 | +16.6% | Nov 25, 2025 |
| BNP Paribas | Analyst unavailable | $425 | $488.78 | +11.4% | Oct 2, 2025 |
| Needham | Charles Shi | $550 | $387.78 | +44.1% | Sep 10, 2025 |
| Piper Sandler | Analyst unavailable | $630 | $387.78 | +65.1% | Sep 10, 2025 |
| Wells Fargo | Analyst unavailable | $550 | $387.78 | +44.1% | Sep 10, 2025 |
| KeyBanc | Analyst unavailable | $590 | $387.78 | +54.6% | Sep 10, 2025 |
| Robert W. Baird | Analyst unavailable | $535 | $387.78 | +40.2% | Sep 10, 2025 |
| KeyBanc | Jason Celino | $660 | $592.01 | +73.0% | Sep 3, 2025 |
| KeyBanc | Jason Celino | $540 | $466.26 | +41.5% | Jun 3, 2025 |
| KeyBanc | Jason Celino | $575 | $515.61 | +50.7% | May 20, 2025 |
| Stifel Nicolaus | Analyst unavailable | $550 | $443.97 | +44.1% | Apr 28, 2025 |
| Needham | Charles Shi | $640 | $505.59 | +67.7% | Oct 22, 2024 |
| Mizuho Securities | Siti Panigrahi | $650 | $505.59 | +70.3% | Oct 21, 2024 |
| Citigroup | Ryan Levine | $284 | $535.51 | -25.6% | Oct 15, 2024 |
| Berenberg Bank | Nay Soe Naing | $660 | $545.46 | +73.0% | Oct 15, 2024 |
| Robert W. Baird | Joe Vruwink | $663 | $564.68 | +73.8% | Aug 22, 2024 |
| Rosenblatt Securities | Blair Abernethy | $635 | $547.36 | +66.4% | Aug 15, 2024 |
| Robert W. Baird | Joe Vruwink | $661 | $601.75 | +73.2% | Jul 2, 2024 |
| KeyBanc | Jason Celino | $690 | $598.52 | +80.8% | Jun 27, 2024 |
| Griffin | Jay Vleeschhouwer | $650 | $588.61 | +70.3% | May 24, 2024 |
| Deutsche Bank | Gianmarco Conti | $645 | $578.27 | +69.0% | May 23, 2024 |
| Piper Sandler | Clarke Jeffries | $672 | $576.75 | +76.1% | May 23, 2024 |
| Robert W. Baird | Joe Vruwink | $645 | $573.13 | +69.0% | May 23, 2024 |
| Piper Sandler | Clarke Jeffries | $665 | $578.87 | +74.3% | Apr 4, 2024 |
| Needham | Charles Shi | $660 | $541 | +73.0% | Nov 30, 2023 |
| Stifel Nicolaus | Ruben Roy | $445 | $435.56 | +16.6% | Aug 16, 2023 |
| Rosenblatt Securities | Analyst unavailable | $420 | $357.84 | +10.1% | Dec 2, 2022 |
| Robert W. Baird | Analyst unavailable | $444 | $372.6 | +16.4% | Aug 18, 2022 |
| Rosenblatt Securities | Analyst unavailable | $405 | $381 | +6.1% | Aug 18, 2022 |
| Needham | Analyst unavailable | $420 | $381 | +10.1% | Aug 18, 2022 |
| Rosenblatt Securities | Analyst unavailable | $390 | $385.42 | +2.2% | Aug 12, 2022 |
| Wells Fargo | Analyst unavailable | $425 | $375.71 | +11.4% | Aug 11, 2022 |
| Needham | Charles Shi | $380 | $306.72 | -0.4% | May 23, 2022 |
| Wells Fargo | Analyst unavailable | $375 | $272.57 | -1.7% | May 19, 2022 |
| Rosenblatt Securities | Blair Abernethy | $360 | $275.99 | -5.7% | May 15, 2022 |
| Atlantic Equities | Ianjit Bhatti | $400 | $287.63 | +4.8% | Feb 18, 2022 |
| KeyBanc | Jason Celino | $445 | $326.16 | +16.6% | Jan 14, 2022 |
| Credit Suisse | John Pitzer | $360 | $355.87 | -5.7% | Nov 29, 2021 |
| Westpark Capital | Ruben Roy | $340 | $277.68 | -10.9% | Jul 15, 2021 |
Track every rating change on SNPS the moment it posts. Free to start.
Start freeMarket reaction
event-close to next-session close
Stock move
-8.6%
Event window
SPY move
+0.6%
Same window
Abnormal move
-9.2%
Stock minus SPY
Volume
3.0×
Versus trailing sessions
Subsequent drift
-5.5%
Up to 20 sessions
SNPSSPY benchmark
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Try FN2 freeTranscript intelligence
What changed
Q2 revenue of $2.276B beat the $2.251B consensus estimate by 1.1%. Non-GAAP EPS of $3.35 exceeded the $3.15 estimate by 6.3%. Non-GAAP operating margin reached 39.5%. Full-year FY26 guidance was raised for revenue, operating margin, EPS, and free cash flow. Approximately half of committed ANSYS cost synergies were achieved. The first industry HBM4 IP test chip was delivered in Q2. A new gross-basis accounting model was adopted for ANSYS channel revenue. The pending sale of the Processor IP Solutions business was announced. A cooperation agreement with Elliott Management resulted in Jesse Cohn joining the board. The stock fell 9.2% on 3x normal volume with a subsequent drift of -5.5%.
Guidance delta
Raised. Full-year FY26 guidance increased for revenue, non-GAAP operating margin, EPS, and free cash flow. Management cited continued AI-driven demand, ANSYS synergy capture, and expanding adoption of 3D-IC and multiphysics technologies as drivers.
Key takeaways
- Q2 revenue of $2.276B and non-GAAP EPS of $3.35 both exceeded consensus and guidance
- Full-year FY26 guidance raised across revenue, operating margin, EPS, and free cash flow
- AI-driven demand expanding across EDA, IP, and multiphysics with strong 3D-IC and hardware-assisted verification wins
- Multiphysics fusion and Agentic AI technologies showing early productivity gains; commercial launch slated for H2 2026
- Approximately half of committed ANSYS cost synergies achieved; integration on track
- First industry HBM4 IP test chip delivered in Q2
Management priorities
- Commercial launch of multiphysics fusion technology in H2 2026
- Further rollout of Agentic AI agents across EDA workflows
- Closing the sale of Processor IP Solutions business
- Investor Day on September 30 to detail roadmap and monetization strategies
- Continued margin expansion through cost synergies and higher-value IP contracts
Sources
- Earnings call transcript and parsed analysis · 2026-05-28T01:22:25.073037+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-07-29T12:11:54.482944+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-29T12:11:54.480649+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 . For educational purposes only; not investment advice.