SNPS

Company Overview — What Does SYNOPSYS INC Do?

Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. The company offers Fusion Design Platform that provides digital design implementation solutions; Verification Continuum Platform that provides virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions. It also provides intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth low energy applications; analog IP, including data converters and audio codecs; and system-on-chip (SoC) infrastructure IP, datapath and building block IP, and verification IP products, as well as mathematical and floating-point components, and Arm AMBA interconnect fabric and peripherals. In addition, the company offers logic libraries and embedded memories; configurable processor cores and application-specific instruction-set processor tools for embedded applications; IP subsystems for audio, sensor, and data fusion functionality; and security IP solutions. Further, it provides Platform Architect solutions for SoC architecture analysis and optimization; virtual prototyping solutions; and HAPS FPGA-based prototyping systems, as well as a series of tools used in the design of optical systems and photonic devices. Additionally, the company offers security testing, managed services, programs and professional services, and training that enable its customers to detect and remediate security vulnerabilities, and defects in the software development lifecycle, as well as manufacturing solutions. It serves electronics, financial services, automotive, medicine, energy, and industrial areas. The company was incorporated in 1986 and is headquartered in Mountain View, California. SYNOPSYS INC (SNPS) is classified as a large-cap stock in the Technology sector, specifically within the Computer Software industry. The company is led by CEO Aart J. de Geus and employs approximately 19,000 people, headquartered in Mountain View, California. With a market capitalization of $76.0B, SNPS is one of the prominent companies in the Technology sector.

SYNOPSYS INC (SNPS) Stock Rating — Reduce (April 2026)

As of April 2026, SYNOPSYS INC receives a Reduce rating with a composite score of 38.6/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.SNPS ranks #2,869 out of 4,446 stocks in our coverage universe. Within the Technology sector, SYNOPSYS INC ranks #322 of 584 stocks, placing it in the lower half of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

SNPS Stock Price and 52-Week Range

SYNOPSYS INC (SNPS) currently trades at $393.44. The stock lost $11.48 (2.8%) in the most recent trading session. The 52-week high for SNPS is $651.73, which means the stock is currently trading -39.6% from its annual peak. The 52-week low is $365.74, putting the stock 7.6% above its annual trough. Recent trading volume was 1.6M shares, reflecting moderate market activity.

Is SNPS Overvalued or Undervalued? — Valuation Analysis

SYNOPSYS INC (SNPS) carries a value factor score of 38/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The trailing price-to-earnings ratio is 80.28x, compared to the Technology sector average of 45.27x — a premium of 77%. The price-to-book ratio stands at 2.50x, versus the sector average of 3.16x. The price-to-sales ratio is 10.57x, compared to 1.06x for the average Technology stock. On an enterprise value basis, SNPS trades at 86.56x EV/EBITDA, versus 12.79x for the sector.

At current multiples, SYNOPSYS INC trades at a premium to most Technology peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.

SYNOPSYS INC Profitability — ROE, Margins, and Quality Score

SYNOPSYS INC (SNPS) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 3.1%, compared to the Technology sector average of -1.4%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 2.0% versus the sector average of -1.0%.

On a margin basis, SYNOPSYS INC reports gross margins of 78.3%, compared to 50.9% for the sector. The operating margin is 14.7% (sector: -0.5%). Net profit margin stands at 14.6%, versus -1.5% for the average Technology stock. Revenue growth is running at 57.9% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.

SNPS Debt, Balance Sheet, and Financial Health

SYNOPSYS INC has a debt-to-equity ratio of 33.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.36x, suggesting adequate working capital coverage. Total debt on the balance sheet is $10.04B. Cash and equivalents stand at $2.89B.

SNPS has a beta of 1.37, meaning it is more volatile than the broader market — a $10,000 investment in SNPS would be expected to move 37.5% more than the S&P 500 on any given day. The stability factor score for SYNOPSYS INC is 44/100, reflecting average volatility within the normal range for its sector.

SYNOPSYS INC Revenue and Earnings History — Quarterly Trend

In TTM 2026, SYNOPSYS INC reported revenue of $7.21B and earnings per share (EPS) of $0.34. Net income for the quarter was $950M. Gross margin was 78.3%. Operating income came in at $997M.

In Q1 2026, SYNOPSYS INC reported revenue of $2.41B and earnings per share (EPS) of $0.34. Net income for the quarter was $65M. Gross margin was 73.5%. Revenue grew 65.5% year-over-year compared to Q1 2025. Operating income came in at $203M.

In FY 2025, SYNOPSYS INC reported revenue of $7.05B and earnings per share (EPS) of $8.13. Net income for the quarter was $1.33B. Gross margin was 77.0%. Revenue grew 15.1% year-over-year compared to FY 2024. Operating income came in at $915M.

In Q3 2025, SYNOPSYS INC reported revenue of $1.74B and earnings per share (EPS) of $1.51. Net income for the quarter was $242M. Gross margin was 78.1%. Revenue grew 14.0% year-over-year compared to Q3 2024. Operating income came in at $165M.

Over the past 8 quarters, SYNOPSYS INC has demonstrated a growth trajectory, with revenue expanding from $1.53B to $7.21B. Investors analyzing SNPS stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

SNPS Dividend Yield and Income Analysis

SYNOPSYS INC (SNPS) does not currently pay a dividend. This is common among growth-oriented companies in the Computer Software industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.

SNPS Momentum and Technical Analysis Profile

SYNOPSYS INC (SNPS) has a momentum factor score of 33/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 22/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 30/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

SNPS vs Competitors — Technology Sector Ranking and Peer Comparison

Within the Technology sector, SYNOPSYS INC (SNPS) ranks #322 out of 584 stocks based on the Blank Capital composite score. This places SNPS in the lower half of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.

Comparing SNPS against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full SNPS vs S&P 500 (SPY) comparison to assess how SYNOPSYS INC stacks up against the broader market across all factor dimensions.

SNPS Next Earnings Date

No upcoming earnings date has been announced for SYNOPSYS INC (SNPS) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy SNPS? — Investment Thesis Summary

The quantitative profile for SYNOPSYS INC suggests caution. The value score of 38/100 indicates premium valuation. Momentum is weak at 33/100, a headwind for near-term performance.

In summary, SYNOPSYS INC (SNPS) earns a Reduce rating with a composite score of 38.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on SNPS stock.

Related Resources for SNPS Investors

Explore more research and tools: SNPS vs S&P 500 comparison, top Technology stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare SNPS head-to-head with peers: SNPS vs IHS, SNPS vs VRSN, SNPS vs ESE.