Synopsys, Inc. (SNPS) AI Stock Analysis

Synopsys, Inc. provides electronic design automation software products essential for designing and testing integrated circuits. The company offers digital and custom integrated circuit design solutions, along with verification solutions including virtual prototyping, verification intellectual property, simulation, and FPGA-based prototyping. It also delivers FPGA design tools programmed for specific functions. Beyond software, Synopsys supplies semiconductor intellectual property for USB, PCI Express, Ethernet, and Bluetooth low energy applications, as well as logic libraries, embedded memories, processor cores, and security solutions. It provides system-on-chip infrastructure products, optical systems tools, security testing, and managed services across multiple global industries.

Annual revenue increased from $4.20B in FY2021 to $4.62B in FY2022, $5.32B in FY2023, $6.13B in FY2024, and $7.05B in FY2025, recording a 5-year revenue CAGR of 13.9%. Over that period, net income rose from $757.5M in FY2021 to a peak of $2.26B in FY2024 before settling at $1.33B in FY2025. Gross margin shifted from 79.5% in FY2021 to 77.0% in FY2025, while operating margin went from 17.5% to 13.0%. For the trailing twelve months, revenue reached $9.42B with an operating margin of 14.5% and EPS of $5.66. In the latest quarter ended July 31, 2026, quarterly revenue grew 42.4% year-over-year while quarterly earnings expanded 89.3%.

As of July 31, 2026, the company held $3.61B in cash and short-term investments against total debt of $10.84B, resulting in net debt of $7.23B. Total assets stood at $47.73B and shareholders equity was $31.15B. The balance sheet carried a current ratio of 1.34 and a debt-to-equity ratio of 0.35. For FY2025, operating cash flow reached $1.52B and free cash flow was $1.35B. Capital expenditures totaled $169.5M in FY2025, and the 5-year share count change was 22.3%.

At a last close of $454.63, the company had a market cap of $87.12B and an enterprise value of $85.66B. The stock trades at a trailing price-to-earnings ratio of 80.3x, compared to 42.1x for the median of its Nasdaq-100 Technology peers. Its forward price-to-earnings multiple of 23.3x sits below the peer median of 25.7x, while its EV-to-EBITDA ratio of 22.9x is lower than the peer median of 32.8x. Over the past year, the stock returned 3.3%, trailing the S&P 500 return of 16.8%. Over five years, the stock gained 48.4% versus 83.0% for the S&P 500.

Wall Street coverage consists of 20 Strong Buy ratings, 4 Buy ratings, and 1 Hold rating, with 0 Sell and 0 Strong Sell ratings. The mean price target is $583.99, which represents an upside of 28.5% compared to the last close of $454.63. For the fiscal year ending October 31, 2026, consensus estimates project revenue of $9.72B and EPS of $15.14, representing EPS growth of 17.2%. The company beat EPS estimates in each of the last 4 quarters. The next earnings date is December 9, 2026.

This page is an AI-written research summary of Synopsys, Inc. (SNPS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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