Synopsys (SNPS)
NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-09-04
$393.84-5.40%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-09-04
Warn: Primary pillar under pressure — Revenue reaches about $9.665 billion in fiscal 2026: FY26 rev $9.66B vs ~$9.66B target; Q3 YoY +42.0% vs <17% trip.
Synopsys grows revenue to about $9.7 billion in fiscal 2026. Profit per share is expected near $14.8. The company buys back shares with a $2 billion program. It leads in chip design software and security tools.
Sales growth could slow below 17% next year. Profit margins might shrink. Share buybacks may not continue as planned.
The price is about 3% below our fair value near $450. Analysts expect 17% revenue growth. Our fair value is 18% below the Street median.
Breaks if: Buyback program is canceled or significantly reduced
Breaks if: EPS falls below $14.4 next year
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on technology and growth. The current thesis state is intact, supported by strong recent financial performance and ongoing management priorities aimed at revenue and margin growth.
The market currently prices SNPS at a premium compared to peers, reflecting justified expectations based on its recent performance. However, there is a slight gap in expectations, indicating that some fragility in execution is already considered.
Management is on track with its priorities, including driving revenue growth and expanding margins. While recent financial performance has been strong, there is a low probability of missing guidance, although industry peers have faced challenges.
The long-term thesis hinges on management's ability to maintain guidance and deliver on growth targets. Additionally, external factors such as Federal Reserve rate decisions and performance of sector leaders like Microsoft and Oracle could significantly impact SNPS's trajectory.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. The company raised its full-year revenue guidance. This follows a strong Q2 FY2026 with 42% year-over-year revenue growth. However, margins are under pressure from the Ansys acquisition amortization. The stock has dropped sharply, suggesting a potential repricing of the thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Synopsys aims to achieve a revenue target of $9.665 billion for fiscal year 2026.
Breaks if: Revenue growth falls below ~17% next year
Synopsys aims to achieve a revenue target of $9.665 billion for fiscal year 2026.
Over the next 1 to 3 years, SNPS's performance will depend on effective management execution and external market conditions. Not investment advice.