Synopsys (NASDAQ:SNPS) Stock Price Down 6.8% – Here’s What Happened

Synopsys, Inc. (NASDAQ:SNPS) fell 6.8% during mid-day trading on Thursday . The company traded as low as $496.00 and last traded at $490.2930. 433,560 shares changed hands during trading, a decline of 78% from the average session volume of 1,982,338 shares. The stock had previously closed at $525.92.

Synopsys News Summary

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys said demand for AI chip design software is driving stronger business momentum, and it raised its annual forecast as a result. Synopsys raises annual forecast on demand for AI chip design software
• Positive Sentiment: The CFO highlighted that AI companies are increasingly using custom computer designs, a trend that could expand demand for Synopsys’ chip-design tools. AI Computer Design Diversity A Boon For Synopsys, Says CFO
• Positive Sentiment: Analysts raised price targets after the earnings report, signaling confidence in Synopsys’ longer-term growth outlook despite the stock’s recent weakness. Shares Fall, Targets Rise—Markets and Analysts Diverge on Synopsys
• Positive Sentiment: Synopsys also showcased new AI and multi-die design capabilities with Samsung Foundry, underscoring its role in advanced chip development. Synopsys Advances Power and Performance for AI and Multi-Die Designs on Latest Samsung Foundry Processes at SAFE Forum 2026
• Neutral Sentiment: The company beat fiscal Q2 estimates, with revenue up 41.9% year over year and EPS above expectations, but the market still sold the stock after the report. Synopsys Was the Worst S&P 500 Stock Thursday Despite Earnings Beat With AI and Merger in Focus
• Negative Sentiment: Investors appear wary about the company’s chip-IP business and the broader impact of integrating Ansys, which may be weighing on sentiment even after strong results. Synopsys slides even as Q2 results, guidance top estimates; adds activist to board

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on SNPS. Robert W. Baird set a $558.00 price objective on shares of Synopsys in a report on Thursday. HSBC cut shares of Synopsys from a “buy” rating to a “hold” rating and set a $455.00 price objective for the company. in a report on Friday, February 20th. Citigroup lifted their price objective on shares of Synopsys from $600.00 to $610.00 and gave the company a “buy” rating in a report on Thursday. Rosenblatt Securities raised their price target on shares of Synopsys from $530.00 to $575.00 and gave the company a “buy” rating in a research report on Tuesday. Finally, BNP Paribas Exane raised their price target on shares of Synopsys from $425.00 to $450.00 and gave the company an “underperform” rating in a research report on Thursday. Nine research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Synopsys has an average rating of “Hold” and an average price target of $563.81.

Synopsys Price Performance

The company has a quick ratio of 1.26, a current ratio of 1.43 and a debt-to-equity ratio of 0.33. The business’s 50-day moving average is $459.53 and its two-hundred day moving average is $454.45. The company has a market capitalization of $91.07 billion, a P/E ratio of 110.10, a price-to-earnings-growth ratio of 3.94 and a beta of 1.25.

Synopsys (NASDAQ:SNPS) last released its quarterly earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share for the quarter, beating analysts’ consensus estimates of $3.15 by $0.20. Synopsys had a net margin of 8.91% and a return on equity of 5.83%. The company had revenue of $2.28 billion for the quarter, compared to analyst estimates of $2.25 billion. During the same period last year, the firm earned $3.67 earnings per share. The firm’s revenue was up 41.9% on a year-over-year basis. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. As a group, analysts predict that Synopsys, Inc. will post 10.28 earnings per share for the current year.

Institutional Trading of Synopsys

Hedge funds have recently added to or reduced their stakes in the stock. Sankala Group LLC bought a new stake in Synopsys in the fourth quarter worth about $25,000. Thurston Springer Miller Herd & Titak Inc. bought a new stake in Synopsys in the fourth quarter worth about $28,000. Caitong International Asset Management Co. Ltd bought a new stake in Synopsys in the fourth quarter worth about $28,000. IMG Wealth Management Inc. bought a new stake in Synopsys in the first quarter worth about $30,000. Finally, Atlas Capital Advisors Inc. bought a new stake in Synopsys in the fourth quarter worth about $32,000. Institutional investors own 85.47% of the company’s stock.

About Synopsys

Synopsys, Inc is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) used to design, verify and manufacture integrated circuits and complex systems-on-chip (SoCs). Its product portfolio spans tools and technologies for front‑end design and synthesis, simulation and verification, physical implementation and signoff, and design-for-manufacturability, enabling chip designers to move from architecture through tape‑out.

In addition to core EDA offerings, Synopsys supplies a broad set of semiconductor IP building blocks — such as interface, memory and analog/mixed-signal cores — that customers integrate into SoCs to accelerate development.