Synopsys, Inc.
- Open
- 437.95
- Day high
- 445.72
- Day low
- 434.45
- Prev close
- 442.61
- Volume
- 1.5M
- Mkt cap
- $84.2B
- P/E (TTM)
- 76.3
- EPS (TTM)
- $5.76
- P/B
- 2.7
- P/S
- 8.9
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$8.2M over the last 3 months (0 open-market buys, 2 sales)
- 🏛Institutions accumulating (13F)
Synopsys, Inc. (SNPS) is a Technology company listed on NASDAQ. The stock is down 25% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 2 sales (SEC Form 4). Drillr has 1 published research article covering SNPS.
Synopsys, Inc. (SNPS) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 5 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
SNPS earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 26, 2026 | $3.66 | $3.91 | +6.7% | $2.5B | +1.6% |
| May 27, 2026 | $3.17 | $3.35 | +5.8% | $2.3B | +1.4% |
| Feb 25, 2026 | $3.55 | $3.77 | +6.3% | $2.4B | +2.4% |
| Dec 10, 2025 | $2.79 | $2.90 | +3.8% | $2.3B | +1.6% |
| Sep 9, 2025 | $3.80 | $3.39 | -10.7% | $1.7B | -1.0% |
| May 28, 2025 | $3.39 | $3.67 | +8.4% | $1.6B | +0.7% |
| Feb 26, 2025 | $2.82 | $3.03 | +7.5% | $1.5B | -0.8% |
| Dec 4, 2024 | $3.32 | $3.40 | +2.5% | $1.6B | -0.2% |
| Aug 21, 2024 | $3.29 | $3.43 | +4.1% | $1.5B | -0.4% |
| May 22, 2024 | $2.96 | $3.00 | +1.4% | $1.5B | +0.3% |
| Feb 21, 2024 | $3.43 | $3.56 | +3.9% | $1.6B | +0.5% |
| Nov 29, 2023 | $3.02 | $3.17 | +4.9% | $1.6B | +1.4% |
SNPS insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 17, 2026 | LEE JANETofficer: GC & Corporate Secretary | Option | 729 | — |
| Aug 17, 2026 | LEE JANETofficer: GC & Corporate Secretary | Tax | 318 | $421.50 |
| Jun 16, 2026 | Kankanwadi Sudhindraofficer: Deputy CFO & CAO | Tax | 249 | $454.38 |
| Jun 16, 2026 | Ellow Michaelofficer: Chief Revenue Officer | Tax | 2,007 | $454.38 |
| Jun 16, 2026 | DE GEUS AARTdirector, officer: EXECUTIVE CHAIR | Option | 449 | — |
| Jun 16, 2026 | Ghazi Sassinedirector, officer: PRESIDENT AND CEO | Sell | 14,603 | $458.96 |
| Jun 16, 2026 | Ghazi Sassinedirector, officer: PRESIDENT AND CEO | Tax | 1,492 | $454.38 |
| Jun 16, 2026 | Ellow Michaelofficer: Chief Revenue Officer | Option | 1,080 | — |
| Jun 16, 2026 | DE GEUS AARTdirector, officer: EXECUTIVE CHAIR | Tax | 156 | $454.38 |
| Jun 16, 2026 | Glaser Shelaghofficer: CFO | Tax | 436 | $454.38 |
| Jun 16, 2026 | Ghazi Sassinedirector, officer: PRESIDENT AND CEO | Option | 14,603 | $135.88 |
| Jun 16, 2026 | LEE JANETofficer: GC & Corporate Secretary | Tax | 235 | $454.38 |
| Jun 16, 2026 | Ghazi Sassinedirector, officer: PRESIDENT AND CEO | Option | 3,310 | — |
| Jun 16, 2026 | Kankanwadi Sudhindraofficer: Deputy CFO & CAO | Option | 720 | — |
| Jun 16, 2026 | LEE JANETofficer: GC & Corporate Secretary | Option | 540 | — |
Source: SNPS SEC Form 4 filings, latest Aug 17, 2026. For informational purposes only — not investment advice.
See the full SNPS insider & 13F page →Synopsys, Inc. company profile
Overview
Synopsys, Inc. (NASDAQ:SNPS) is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) solutions, founded in 1986 and headquartered in Mountain View, California. The company went public in 1992 and has grown to become one of the dominant players in the semiconductor design tools market, serving chip designers and system developers across industries including electronics, automotive, aerospace, and telecommunications. Synopsys crossed the $6 billion annual revenue milestone in fiscal 2024 and is currently pursuing the acquisition of engineering simulation software company ANSYS to expand its capabilities from silicon design to complete system-level solutions.
Business
Synopsys operates in the electronic design automation (EDA) industry, which provides the essential software tools that enable engineers to design, verify, and manufacture semiconductor chips and electronic systems. The semiconductor industry relies heavily on EDA tools because modern chips contain billions of transistors that cannot be designed manually - specialized software is required to handle the complexity, optimization, and verification of these designs. The company operates through two primary business segments. The Design Automation segment generates approximately 69% of total revenue and provides comprehensive EDA software solutions including the Fusion Design Platform for digital design implementation, the Verification Continuum Platform for testing and validation, and FPGA design tools. These tools help engineers design integrated circuits, simulate their behavior, verify functionality, and optimize performance before manufacturing. The Design IP segment accounts for roughly 31% of revenue and offers pre-designed, pre-verified semiconductor intellectual property blocks that can be integrated into chip designs. This includes interface IP for standards like USB, Ethernet, and DDR memory controllers, analog IP such as data converters, processor cores, security IP, and system-on-chip infrastructure components. Rather than designing these common functions from scratch, chip companies license Synopsys IP to accelerate development and reduce risk. The company also provides additional services including security testing, training, and professional services, though these represent a smaller portion of overall revenue. Synopsys previously operated a Software Integrity business focused on application security testing, but announced its sale in 2024 to focus resources on its core semiconductor-focused segments.
Revenue model
Synopsys generates revenue primarily through software licensing and IP licensing models. For its Design Automation business, the company typically sells multi-year time-based licenses for its EDA software tools, creating predictable recurring revenue streams. Customers pay annual license fees to access the software, with pricing often based on the number of users, computational capacity, or specific tool capabilities. The company has built a substantial backlog of non-cancelable committed revenue, providing revenue visibility and stability. The Design IP business operates on a licensing and royalty model. Customers pay upfront licensing fees to access and integrate IP blocks into their designs, followed by per-unit royalties when chips containing the IP are manufactured and sold. This creates a recurring revenue stream that scales with customer success and chip production volumes. Several factors influence Synopsys' margins and profitability. Positive margin drivers include the company's strong market position allowing premium pricing, the scalable nature of software with high incremental margins, growing adoption of AI-powered design optimization tools that command price premiums, and increasing chip complexity driving demand for more sophisticated tools. The shift toward multi-die chip architectures and advanced process nodes also creates opportunities for higher-value solutions. Margin pressures can arise from intense competition with other EDA vendors like Cadence Design Systems, customer consolidation in the semiconductor industry providing more negotiating leverage, economic downturns that pressure customer R&D budgets, and the need for continuous heavy R&D investment to maintain technological leadership. Export restrictions and geopolitical tensions, particularly affecting the China market, also present challenges for revenue growth and geographic diversification.
Competitive moat
Synopsys possesses a strong competitive moat built on several interconnected factors. The company benefits from extremely high customer switching costs, as EDA tools are deeply integrated into chip design workflows and changing vendors requires significant retraining, workflow redesign, and validation efforts that can take years. The mission-critical nature of these tools - where design errors can cost millions of dollars and months of delays - makes customers highly risk-averse to switching providers. The company's network effects and ecosystem lock-in further strengthen its position. Synopsys tools are designed to work together seamlessly, and many customers use multiple products across their design flow, creating powerful cross-selling opportunities and making it difficult to replace individual tools. The company's extensive IP portfolio also creates additional stickiness, as customers often standardize on IP from their EDA vendor to ensure compatibility and support. Technological leadership and R&D scale represent another key moat element. Synopsys invests heavily in R&D (approximately 30% of revenue) and has pioneered AI-driven design optimization with its Synopsys.ai platform. The company's scale allows it to invest in cutting-edge technologies that smaller competitors cannot match, while its large customer base provides extensive real-world feedback to guide product development. However, the moat faces some challenges. The EDA market is essentially a duopoly with Cadence Design Systems, creating intense competition for major deals. Open-source EDA tools, while still limited, could potentially disrupt certain market segments over time. Additionally, large semiconductor companies like Intel and Samsung have significant internal EDA capabilities and could theoretically reduce dependence on external vendors, though this remains unlikely given the specialized expertise required.
Risks & safety
Synopsys demonstrates a strong financial position with solid margins of safety across multiple metrics. **Liquidity and Solvency:** - Cash and short-term investments of $3.7 billion provide substantial liquidity buffer - Current ratio of 2.68 indicates strong ability to meet short-term obligations - Very low debt-to-equity ratio of 0.07 shows conservative capital structure - Positive free cash flow generation of $1.3 billion annually demonstrates strong cash generation capability **Valuation Metrics:** - Trading at 68.6x P/E ratio, which appears elevated but reflects growth expectations and market leadership - EV/EBITDA of 55.9x suggests premium valuation typical of dominant software companies - Price-to-book ratio of 8.7x reflects asset-light business model and intangible value **Other Considerations:** - $7+ billion in non-cancelable backlog provides significant revenue visibility - Recurring revenue model creates predictable cash flows - Strong market position in essential industry infrastructure reduces business risk - Pending ANSYS acquisition adds execution risk but expands addressable market significantly
Recent development
Over the past few years, Synopsys has undergone significant strategic evolution focused on AI-powered design automation and market expansion. The company pioneered the integration of artificial intelligence into semiconductor design with its Synopsys.ai platform, launching AI optimization tools including DSO.ai for design implementation, VSO.ai for verification, and ASO.ai for analog design. These tools have achieved meaningful commercial adoption, with over 200 production designs using AI optimization and customers reporting up to 30% power reduction and 25% faster design cycles. The company has made a major strategic pivot toward system-level solutions with the announced acquisition of ANSYS, a leading engineering simulation software company, for approximately $35 billion. This acquisition, expected to close in the first half of 2025, will expand Synopsys' addressable market from semiconductor design tools to complete system-level design and simulation across multiple industries including automotive, aerospace, and electronics. Portfolio optimization has been another key focus, with Synopsys announcing the sale of its Software Integrity business for up to $2.1 billion in 2024. This divestiture allows the company to concentrate resources on its higher-growth, higher-margin Design Automation and Design IP segments while reducing exposure to the more competitive enterprise software security market. The company has also invested heavily in next-generation design challenges, particularly multi-die chip architectures and advanced packaging solutions. With an estimated 90% of AI/HPC designs expected to use multi-die approaches by 2027, Synopsys has expanded its tools and IP portfolio to address the unique challenges of designing and verifying complex multi-chip systems. Additionally, the company continues to advance its hardware verification platforms with new HAPS prototyping and ZeBu emulation systems.
SNPS company profile · for informational purposes only — not investment advice.
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