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→Stable
- +1 more pillar — see the Why tab for full reasoning
Synopsys, Inc. (SNPS) Stock Analysis
Falling Knife setup · Catalyst-Driven edge
Technology · Software - Infrastructure
Sell if holding. Momentum 1.9/10 is below the 5.0 floor at $373.36 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Negative momentum; Below 200-MA, MA slope -2.4%/30d (confirmed downtrend).
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
Sell if holding. Momentum 1.9/10 is below the 5.0 floor at $373.36 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Negative momentum; Below 200-MA, MA slope -2.4%/30d (confirmed downtrend). Chart setup: Death cross, below all MAs, RSI 21, MACD bearish. Score 5.4/10, moderate confidence.
Passes 6/9 gates (favorable risk/reward ratio, clean insider activity, news events none recent, earnings proximity 27d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: speculative.
Recent developments
updated 2026-07-31Recent Developments — Synopsys, Inc.
Latest news
- NEWS Synopsys Announces Expanded Collaboration With Intel Foundry With Certification Of AI-Powered EDA Flows On Intel 14A Pro — benzinga Jul 27, 2026 positive
- NEWS Synopsys To Present New Autonomous Workflows For Chip Design In Partnership With Microsoft, AMD — benzinga Jul 27, 2026 positive
- NEWS $1000 Invested In Synopsys 20 Years Ago Would Be Worth This Much Today — benzinga Jul 21, 2026 positive
- NEWS Stock Of The Day: Will Synopsys Reverse? — benzinga Jul 20, 2026 neutral
- NEWS Stock Market Today: S&P 500, Dow, Nasdaq 100 Futures Gain as Trump Says Iran is 'Very, Very Badly Damaged'— Eva Live, RT — benzinga Jul 20, 2026 positive
Generated 2026-07-31T23:32:46Z.
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.
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Rating Breakdown
1 floor-breaker
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 1.9/10 is below the 5.0 floor at $373.36 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Negative momentum; Below 200-MA, MA slope -2.4%/30d (confirmed downtrend). Chart setup: Death cross, below all MAs, RSI 21, MACD bearish. Prior stop was $355.02. Score 5.4/10, moderate confidence.
Take-profit target: $507.99 (+36.4% upside). Prior stop was $355.02. Stop-loss: $355.02.
Negative momentum; Below 200-MA, MA slope -2.4%/30d (confirmed downtrend).
Synopsys, Inc. trades at a P/E of 87.7 (forward 21.6). TrendMatrix value score: 4.6/10. Verdict: Sell.
31 analysts cover SNPS with a consensus score of 4.0/5. Average price target: $564.
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.