Market Cap: 71.5214B; Large Cap
P/E Ratio: 85.28; Fwd: 22.57
EPS (TTM): $4.38
Div. Yield: N/A

SNPSNASDAQ— Synopsys Inc Price & Analysis

Synopsys Inc

TECHNOLOGY — SOFTWARE - INFRASTRUCTURE

$373.47

-$0.05-0.01%

Market Cap: 71.5214B; Large Cap
P/E Ratio: 85.28; Fwd: 22.57
EPS (TTM): $4.38
Div. Yield: N/A

Technical Summary

RSI (14)25.80Oversold

SMA (50)$458.22Bearish

SMA (200)$451.63Bearish

MACD-23.0846Bearish

Bollinger$363.40 – $478.61Mid

Stochastic10.09Oversold

Theo Outlook

Synopsys Inc (SNPS) presents a bullish thesis supported by its $73.58B market cap, trailing P/E of 87.73, forward P/E of 22.27, TTM EPS of $4.38, and robust 41.9% quarterly revenue growth, positioning the electronic design automation leader for continued expansion in semiconductor design despite a -96% YoY earnings dip in the latest quarter. The stock trades near its 50-day moving average of $471.49 with a beta of 1.22, reflecting moderate volatility amid strong institutional ownership at 92.2%. Analysts maintain a consensus target of $563.99 with 16 buy ratings, underscoring confidence in its premium valuation relative to growth prospects. Key catalysts include accelerating demand for AI-optimized chip design tools, silicon IP expansion, and software security solutions, driving 41.9% revenue growth to $8.68B TTM and gross profit of $7.17B. Recent product momentum in logic synthesis, verification, and SystemVerilog simulators, combined with market expansion into automotive and data center semiconductors, supports earnings recovery and operating margin of 10.4%. Institutional inflows and a 2.99% insider stake further signal confidence in multi-year design cycle tailwinds. Risks center on elevated valuation (P/E 87.73), potential regulatory scrutiny in semiconductor IP licensing, intense competition from Cadence and Siemens EDA, and macro headwinds from chip cycle slowdowns or trade restrictions. Mitigations include diversified revenue across EDA, IP, and security segments, high switching costs creating moats, and a forward P/E compression to 22.27 that prices in normalization; the company’s 0.089 profit margin and 3.82% ROE provide buffers against cyclical pressures. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Theo Outlook

Synopsys Inc (SNPS) presents a bullish thesis supported by its $73.58B market cap, trailing P/E of 87.73, forward P/E of 22.27, TTM EPS of $4.38, and robust 41.9% quarterly revenue growth, positioning the electronic design automation leader for continued expansion in semiconductor design despite a -96% YoY earnings dip in the latest quarter. The stock trades near its 50-day moving average of $471.49 with a beta of 1.22, reflecting moderate volatility amid strong institutional ownership at 92.2%. Analysts maintain a consensus target of $563.99 with 16 buy ratings, underscoring confidence in its premium valuation relative to growth prospects. Key catalysts include accelerating demand for AI-optimized chip design tools, silicon IP expansion, and software security solutions, driving 41.9% revenue growth to $8.68B TTM and gross profit of $7.17B. Recent product momentum in logic synthesis, verification, and SystemVerilog simulators, combined with market expansion into automotive and data center semiconductors, supports earnings recovery and operating margin of 10.4%. Institutional inflows and a 2.99% insider stake further signal confidence in multi-year design cycle tailwinds. Risks center on elevated valuation (P/E 87.73), potential regulatory scrutiny in semiconductor IP licensing, intense competition from Cadence and Siemens EDA, and macro headwinds from chip cycle slowdowns or trade restrictions. Mitigations include diversified revenue across EDA, IP, and security segments, high switching costs creating moats, and a forward P/E compression to 22.27 that prices in normalization; the company’s 0.089 profit margin and 3.82% ROE provide buffers against cyclical pressures. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Company Overview

Synopsys is an American electronic design automation company that focuses on silicon design and verification, silicon intellectual property and software security and quality. Products include logic synthesis, behavioral synthesis, place and route, static timing analysis, formal verification, hardware description language (SystemC, SystemVerilog/Verilog, VHDL) simulators, and transistor-level circuit simulation.

Fundamental Snapshot

Revenue: 8.6794B
EBITDA: 1.6963B
Gross Profit: 7.1691B
Operating Margin: 10.4%
Profit Margin: 8.9%
ROE: 3.8%
Book Value: $159.2
Beta: 1.222
52-Wk High: $651.73
52-Wk Low: $366
Avg Volume: 1.5806M
PEG Ratio: 2.088

Frequently Asked Questions

What is Synopsys Inc's business model?

Synopsys operates as a leading provider of electronic design automation (EDA) software, silicon IP, and security solutions for chip designers. It generates revenue primarily through software licenses, maintenance, and professional services, with TTM revenue of $8.68B and gross profit of $7.17B.

What are Synopsys' main revenue sources?

Revenue comes from EDA tools (logic synthesis, verification), silicon IP blocks, and software quality/security products. The latest quarter showed 41.9% YoY revenue growth to support the $8.68B TTM total, with strong contributions from AI and automotive design segments.

What are Synopsys' key competitive advantages?

Trading Data

Open: $378
Previous Close: $373.52
Day Range: $369.02 – $379.84
Volume: 1.5847M
Shares Outstanding: 191.479M
Analyst Target: $563.99

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Company Overview

Synopsys is an American electronic design automation company that focuses on silicon design and verification, silicon intellectual property and software security and quality. Products include logic synthesis, behavioral synthesis, place and route, static timing analysis, formal verification, hardware description language (SystemC, SystemVerilog/Verilog, VHDL) simulators, and transistor-level circuit simulation.

Fundamental Snapshot

Revenue: 8.6794B
EBITDA: 1.6963B
Gross Profit: 7.1691B
Operating Margin: 10.4%
Profit Margin: 8.9%
ROE: 3.8%
Book Value: $159.2
Beta: 1.222
52-Wk High: $651.73
52-Wk Low: $366
Avg Volume: 1.5806M
PEG Ratio: 2.088

Frequently Asked Questions

What is Synopsys Inc's business model?

Synopsys operates as a leading provider of electronic design automation (EDA) software, silicon IP, and security solutions for chip designers. It generates revenue primarily through software licenses, maintenance, and professional services, with TTM revenue of $8.68B and gross profit of $7.17B.

What are Synopsys' main revenue sources?

Revenue comes from EDA tools (logic synthesis, verification), silicon IP blocks, and software quality/security products. The latest quarter showed 41.9% YoY revenue growth to support the $8.68B TTM total, with strong contributions from AI and automotive design segments.

What are Synopsys' key competitive advantages?

Synopsys benefits from high switching costs in complex chip design workflows, a broad portfolio including SystemVerilog simulators, and deep integration with semiconductor foundries. Its 92.2% institutional ownership and 2.99% insider holdings reflect strong market positioning versus competitors.

What are the key risks for SNPS investors?

Primary risks include its high trailing P/E of 87.73, potential IP licensing regulations, competition from Cadence, and semiconductor cycle volatility. The -96% YoY earnings growth in the latest quarter highlights cyclical exposure, though forward P/E of 22.27 offers some valuation support.

What is the growth outlook for Synopsys?

Analysts see continued expansion driven by AI chip demand, with a $563.99 target price and 16 buy ratings. Quarterly revenue growth of 41.9% and operating margin of 10.4% point to recovery, supported by the $73.58B market cap and beta of 1.22.