Synopsys delivers 42% revenue growth and an elite Rule-of-40 score of 83, but the stock is in deep technical distress with RSI at 26 near capitulation levels, consecutive earnings misses, and a forward P/E of 26.3x that prices in a recovery the fundamentals have yet to validate.
Thesis pillars
- 42pct Revenue Growth Elite Rule Of 40→Stable
- Consecutive Earnings Misses Signal→Stable
- Capitulation Risk At Rsi 26↑Improving
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Dec 22, 2025
Synopsys, Inc. (SNPS) Stock Analysis
Range Bound setup
Technology · Software - Infrastructure
Hold if already holding. Not a fresh buy at $481.89, but acceptable to hold if already in. Reasons: Thin upside margin: 9.6%; Sector modifier (Technology): -0.8.
Synopsys sells EDA tools, simulation and analysis software (via the Ansys portfolio), and semiconductor IP across Design Automation and Design IP segments to chip designers and engineering companies globally. Time-based licenses and upfront hardware/IP sales drive revenue; the... Read more
Hold if already holding. Not a fresh buy at $481.89, but acceptable to hold if already in. Reasons: Thin upside margin: 9.6%; Sector modifier (Technology): -0.8. Chart setup: RSI 45 mid-range, Bollinger mid-band. Multiple concerning factors. Consider reducing position. | News modifier +1 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 6.0/10, moderate confidence.
Passes 6/10 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 41d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated 2026-10-29Recent Developments — Synopsys, Inc.
Latest news
- NEWS Why Synopsys Stock Soared Nearly 5% Higher Today - The Motley Fool — The Motley Fool positive
- NEWS Why Synopsys Stock Soared Nearly 5% Higher Today - fool.com — fool.com positive
- NEWS Synopsys, Inc. (SNPS) Analyst/Investor Day - Slideshow (NASDAQ:SNPS) 2026-09-30 - Seeking Alpha — Seeking Alpha positive
- NEWS Synopsys (SNPS) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates - Yahoo Finance — Yahoo Finance neutral
- NEWS Synopsys (SNPS) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates - finance.yahoo.com — finance.yahoo.com positive
Generated 2026-10-29T11:08:52Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMGeographicsales outside the United States10-K Item 1A: 'We derive roughly half of our revenue from sales outside the United States'
- MEDIUMCustomersmall number of large customers10-K Item 1A: 'we depend on a relatively small number of large customers for a large portion of our revenues'
Material Events(8-K, last 90d)
- 2026-05-27Item 1.01MEDIUMSynopsys entered Cooperation Agreement with Elliott Investment Management L.P. on May 26, 2026. Board agreed to appoint Jesse Cohn (Elliott representative) as independent director effective June 1, 2026, with initial term through 2027 Annual Meeting.SEC filing →
- 2026-05-27Item 5.02LOWJesse Cohn appointed to Synopsys Board as independent director effective June 1, 2026, also joining Corporate Governance and Nominating Committee. Appointment made pursuant to Cooperation Agreement with Elliott. No departure.SEC filing →
- 2026-04-20Item 5.02LOWSynopsys stockholders approved Amended and Restated Equity Incentive Plan at April 16, 2026 Annual Meeting, adding non-employee directors as eligible recipients. Board and Compensation Committee had previously approved subject to stockholder vote.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
1 floor-breaker·1 ceiling hit
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $481.89, but acceptable to hold if already in. Reasons: Thin upside margin: 9.6%; Sector modifier (Technology): -0.8. Chart setup: RSI 45 mid-range, Bollinger mid-band. Multiple concerning factors. Consider reducing position. | News modifier +1 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Analyst target $528.25 (+9.6%), stop $448.16 (−7.5%), A.R:R 0.7:1. Score 6.0/10, moderate confidence.
Analyst target: $528.25 (+9.6% upside). Analyst target $528.25 (+9.6%), stop $448.16 (−7.5%), A.R:R 0.7:1. Stop-loss: $448.16.
Thin upside margin: 9.6%; Sector modifier (Technology): -0.8; Expensive valuation.
Synopsys, Inc. trades at a P/E of 85.1 (forward 25.9). TrendMatrix value score: 3.5/10. Verdict: Hold.
30 analysts cover SNPS with a consensus score of 4.2/5. Average price target: $587.
What does Synopsys, Inc. do?Synopsys sells EDA tools, simulation and analysis software (via the Ansys portfolio), and semiconductor IP across...
Synopsys sells EDA tools, simulation and analysis software (via the Ansys portfolio), and semiconductor IP across Design Automation and Design IP segments to chip designers and engineering companies globally. Time-based licenses and upfront hardware/IP sales drive revenue; the July 2025 Ansys merger expanded capabilities into multiphysics simulation for aerospace, automotive, and healthcare. Roughly half of revenue is from outside the United States.