Analyst Consensus ?
ConsensusBuy28 ratings
Bullish2692.8%
Neutral13.6%
Bearish13.6%
Synopsys, Inc. · SNPS · FY2026 Q3 · Calendar Q3 2026
Synopsys Q3 FY2026: AI-Driven Growth and Guidance Raise
Synopsys's Q3 evidence supports a constructive growth thesis: AI-induced design complexity, advanced packaging, Design IP and the Ansys integration are contributing to stronger operating momentum, while raised guidance reinforces management's confidence. The thesis still depends on execution, monetization of agentic AI and Factory 2, and sustained demand beyond AI-led chip activity.
Reported After market closeNASDAQTechnology
$73.71B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$3.91
Consensus $3.67
EPS surprise
+6.5%
Reported versus consensus
Reported revenue
$2.48B
Consensus $2.44B
Revenue surprise
+1.6%
Reported versus consensus
Market reaction
event-close to next-session close
Stock move
+13.4%
Event window
SPY move
+0.7%
Same window
Abnormal move
+12.7%
Stock minus SPY
Volume
2.6×
Versus trailing sessions
Subsequent drift
-17.2%
Up to 20 sessions
SNPSSPY benchmark
Ask FN2 about SNPS FY2026 Q3
Transcript, numbers and history already loaded
Why did SNPS rise 13.4% after beating EPS estimates in FY2026 Q3?What changed in SNPS's guidance and outlook in FY2026 Q3?Give me the bull and bear case for SNPS after FY2026 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 analysis, the supplied Q3 analysis describes faster EDA growth, a larger contribution from the Ansys integration through Multiphysics Fusion, rapid agentic AI adoption and stronger Design IP momentum. Management raised full-year guidance again and added detail on Factory 2's licensing-plus-royalty model.
Guidance delta
Management raised full-year FY2026 revenue, non-GAAP margin, EPS and cash-flow guidance again.
Key takeaways
- Q3 revenue was $2.477 billion, up 42%, with a 41.6% non-GAAP operating margin and $3.91 EPS.
- Management cited accelerating EDA growth, AI-driven design complexity, advanced packaging demand and continued Design IP momentum.
- The Ansys integration produced joint Multiphysics Fusion offerings, while agentic AI workflows and Factory 2 broadened the longer-term opportunity set.
- Die-to-die IP wins doubled year over year to more than 100 cumulative design wins, according to the supplied analysis.
Management priorities
- Scale Multiphysics Fusion, with revenue contribution expected in FY2027
- Roll out agentic AI subscription and consumption models in coming quarters
- Advance the Factory 2 custom-IP strategy and royalty-based licensing
- Capture Ansys cost synergies while reducing capital expenditure
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Analyst 52W Price Targets
$384.97Current
$284Low
$534.94Average
$675High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Sep 21, 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 | Equal Weight | Upgrade | Sep 10, 2026 |
| Morgan Stanley | Overweight | Equal Weight | Upgrade | Sep 8, 2026 |
| Rosenblatt | Buy | Buy | Maintain | Aug 27, 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 |
| 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 |
| 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 $384.97. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Wells Fargo | Joe Quatrochi | $475 | $393.22 | +23.4% | Sep 10, 2026 |
| UBS | Analyst unavailable | $570 | $453.8 | +48.1% | Aug 27, 2026 |
| Mizuho Securities | Analyst unavailable | $550 | $410 | +42.9% | Aug 27, 2026 |
| Robert W. Baird | Jon Vruwink | $560 | $410 | +45.5% | Aug 27, 2026 |
| Rosenblatt Securities | Blair Abernethy | $575 | $394.51 | +49.4% | Aug 25, 2026 |
| Morgan Stanley | Lee Simpson | $500 | $405.48 | +29.9% | Aug 19, 2026 |
| Wells Fargo | Analyst unavailable | $450 | $411.68 | +16.9% | Aug 11, 2026 |
| Piper Sandler | Clarke Jeffries | $550 | $464.58 | +42.9% | Jun 23, 2026 |
| Piper Sandler | Analyst unavailable | $450 | $487.76 | +16.9% | May 28, 2026 |
| Stifel Nicolaus | Ruben Roy | $600 | $525.92 | +55.9% | May 28, 2026 |
| Robert W. Baird | Analyst unavailable | $558 | $525.92 | +44.9% | May 28, 2026 |
| Wells Fargo | Joe Quatrochi | $535 | $525.92 | +39.0% | May 28, 2026 |
| Morgan Stanley | Lee Simpson | $525 | $525.92 | +36.4% | May 28, 2026 |
| Berenberg Bank | Analyst unavailable | $633 | $534.56 | +64.4% | May 27, 2026 |
| Goldman Sachs | James Schneider | $600 | $449.17 | +55.9% | Feb 25, 2026 |
| HSBC | Analyst unavailable | $455 | $444.62 | +18.2% | Feb 20, 2026 |
| Piper Sandler | Analyst unavailable | $520 | $533.42 | +35.1% | Jan 13, 2026 |
| Morgan Stanley | Analyst unavailable | $550 | $462.05 | +42.9% | Dec 12, 2025 |
| Needham | Analyst unavailable | $580 | $470.9 | +50.7% | Dec 11, 2025 |
| Piper Sandler | Analyst unavailable | $602 | $475.73 | +56.4% | Dec 11, 2025 |
| Wells Fargo | Joe Quatrochi | $500 | $475.73 | +29.9% | Dec 11, 2025 |
| KeyBanc | Jason Celino | $600 | $475.73 | +55.9% | Dec 11, 2025 |
| Wells Fargo | Joe Quatrochi | $445 | $404.63 | +15.6% | Nov 25, 2025 |
| BNP Paribas | Analyst unavailable | $425 | $488.78 | +10.4% | Oct 2, 2025 |
| Needham | Charles Shi | $550 | $387.78 | +42.9% | Sep 10, 2025 |
| Piper Sandler | Analyst unavailable | $630 | $387.78 | +63.6% | Sep 10, 2025 |
| Wells Fargo | Analyst unavailable | $550 | $387.78 | +42.9% | Sep 10, 2025 |
| KeyBanc | Analyst unavailable | $590 | $387.78 | +53.3% | Sep 10, 2025 |
| Robert W. Baird | Analyst unavailable | $535 | $387.78 | +39.0% | Sep 10, 2025 |
| KeyBanc | Jason Celino | $660 | $592.01 | +71.4% | Sep 3, 2025 |
| KeyBanc | Jason Celino | $540 | $466.26 | +40.3% | Jun 3, 2025 |
| KeyBanc | Jason Celino | $575 | $515.61 | +49.4% | May 20, 2025 |
| Stifel Nicolaus | Analyst unavailable | $550 | $443.97 | +42.9% | Apr 28, 2025 |
| Needham | Charles Shi | $640 | $505.59 | +66.2% | Oct 22, 2024 |
| Mizuho Securities | Siti Panigrahi | $650 | $505.59 | +68.8% | Oct 21, 2024 |
| Citigroup | Ryan Levine | $284 | $535.51 | -26.2% | Oct 15, 2024 |
| Berenberg Bank | Nay Soe Naing | $660 | $545.46 | +71.4% | Oct 15, 2024 |
| Robert W. Baird | Joe Vruwink | $663 | $564.68 | +72.2% | Aug 22, 2024 |
| Rosenblatt Securities | Blair Abernethy | $635 | $547.36 | +64.9% | Aug 15, 2024 |
| Robert W. Baird | Joe Vruwink | $661 | $601.75 | +71.7% | Jul 2, 2024 |
| KeyBanc | Jason Celino | $690 | $598.52 | +79.2% | Jun 27, 2024 |
| Griffin | Jay Vleeschhouwer | $650 | $588.61 | +68.8% | May 24, 2024 |
| Deutsche Bank | Gianmarco Conti | $645 | $578.27 | +67.5% | May 23, 2024 |
| Piper Sandler | Clarke Jeffries | $672 | $576.75 | +74.6% | May 23, 2024 |
| Robert W. Baird | Joe Vruwink | $645 | $573.13 | +67.5% | May 23, 2024 |
| Piper Sandler | Clarke Jeffries | $665 | $578.87 | +72.7% | Apr 4, 2024 |
| Loop Capital Markets | Jason Celino | $675 | $541 | +75.3% | Nov 30, 2023 |
| Stifel Nicolaus | Ruben Roy | $445 | $435.56 | +15.6% | Aug 16, 2023 |
| Rosenblatt Securities | Analyst unavailable | $420 | $357.84 | +9.1% | Dec 2, 2022 |
| Robert W. Baird | Analyst unavailable | $444 | $372.6 | +15.3% | Aug 18, 2022 |
| Rosenblatt Securities | Analyst unavailable | $405 | $381 | +5.2% | Aug 18, 2022 |
| Needham | Analyst unavailable | $420 | $381 | +9.1% | Aug 18, 2022 |
| Rosenblatt Securities | Analyst unavailable | $390 | $385.42 | +1.3% | Aug 12, 2022 |
| Wells Fargo | Analyst unavailable | $425 | $375.71 | +10.4% | Aug 11, 2022 |
| Needham | Charles Shi | $380 | $306.72 | -1.3% | May 23, 2022 |
| Wells Fargo | Analyst unavailable | $375 | $272.57 | -2.6% | May 19, 2022 |
| Rosenblatt Securities | Blair Abernethy | $360 | $275.99 | -6.5% | May 15, 2022 |
| Atlantic Equities | Ianjit Bhatti | $400 | $287.63 | +3.9% | Feb 18, 2022 |
| KeyBanc | Jason Celino | $445 | $326.16 | +15.6% | Jan 14, 2022 |
| Credit Suisse | John Pitzer | $360 | $355.87 | -6.5% | Nov 29, 2021 |
| Westpark Capital | Ruben Roy | $340 | $277.68 | -11.7% | 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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|---|---|---|---|---|
| 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 |
| SAIL SailPoint, Inc. | FY2027 Q2 · Calendar Q3 2026 | +13.8% | -1.2% | SailPoint pairs 25% ARR growth with accelerating AI-driven adoption |
| CIEN Ciena Corporation | FY2026 Q3 · Calendar Q3 2026 | +22.0% | -10.4% | Ciena raises outlook as AI networking demand lifts backlog |
| DOCU DocuSign, Inc. | FY2027 Q2 · Calendar Q3 2026 | +6.4% | +3.7% | DocuSign Q2 FY27: IAM momentum supports a raised outlook |
| IOT Samsara Inc. | FY2027 Q2 · Calendar Q3 2026 | +25.0% | +3.7% | Samsara: AI adoption expands as FY27 guidance holds |
Latest beats and misses
Who reports nextBeat on EPS
- FPSFY2026 Q4 · September 15, 2026+4.3% EPS+9.5% move
- TCOMFY2026 Q2 · September 15, 2026+22.3% EPS+3.0% move
- KRFY2026 Q2 · September 11, 2026+2.8% EPS+2.7% move
- ADBEFY2026 Q3 · September 10, 2026+0.8% EPS+1.4% move
- ORCLFY2027 Q1 · September 10, 2026+10.3% EPS-1.7% move
- CASYFY2027 Q1 · September 8, 2026+8.7% EPS-14.2% 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 · 2026-08-27T14:20:38.056621+00:00
- FN2 earnings calendar · 2026-09-21T01:23:13.071796+00:00
- Polygon adjusted daily market bars · 2026-09-21T06:20:52.260638+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-09-21T06:20:52.257971+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.