SNPS changes
Pick any two versions below to diff them.
- Price
- $464.16 → $462.12(−0.4%)
- Next earnings
- Dec 9, 2026 → Dec 8, 2026
- Next earnings is estimate
- Yes → No
- Thesis
- The market prices Synopsys at a discount because of the debt from the $35 billion Ansys purchase and because of US export rules for China. The purchase added about $10 billion of debt, and the combination of two large engineering software companies takes years. In May 2025, a US export rule stopped sales of chip design software to China for about five weeks, and a rule like it can come back with little warning. The design IP business also missed badly in 2025 and is still the weakest part of the company. For the gap to close, Synopsys must keep its debt falling while it buys back stock. It must also deliver the margin gains from Ansys that it promised: a non-GAAP operating margin of about 44% in fiscal 2027 and about 50% in fiscal 2030. And it must avoid a new China export shock. At its Investor Day on September 30, 2026, Synopsys gave added: its fiscal 2027 removed: guidance above what analysts expected, added: guidance, and the stock rose about 13% the next day. The next tests are the fiscal Q4 2026 removed: report, expected in early to mid added: report on December removed: 2026 added: 8, 2026, with the first formal fiscal 2027 guidance, the fiscal Q1 2027 report around February 2027, and the repayment of the first $1.0 billion of notes on April 1, 2027. If the margin plan holds and no new export shock hits, the discount can close over the next three to five quarters. A new China trade restriction would delay that.
- Checkpoints
- Dec removed: 9, 2026 (estimate): added: 8, 2026: Fiscal Q4 2026 earnings: full-year result and Ansys integration. Pending. Watch: Q4 revenue inside the $2.53 to $2.58 billion guidance, so the year lands in the $9.69 to $9.74 billion range, and fiscal 2027 guidance kept near $11.15 billion pass; a miss or a lower 2027 outlook fails. Feb 2027 (estimate): Fiscal Q1 2027 earnings: margin progress and buyback pace. Pending. Watch: Non-GAAP operating margin moving toward the 44% fiscal 2027 target and buybacks on plan pass; margin pressure from Ansys costs fails. Apr 1, 2027: First $1.0 billion of Ansys deal notes fall due. Pending. Watch: Repayment from cash without new borrowing passes; refinancing that keeps gross debt at $10 billion fails the debt reduction test.
- Recent events
- added: Nov 5, 2026: Synopsys said that it will report fiscal Q4 and fiscal 2026 results on December 8, 2026, after the market closes, with a call at 2:00 p.m. Pacific time. Oct 8, 2026: Nikkei Asia reported that Synopsys wants to work with Chinese AI model makers to build AI versions of its chip design tools for Chinese customers. Synopsys said that it will work within US export controls on AI and chips. Synopsys named no partner and gave no dates or terms. Oct 5, 2026: Synopsys signed a $1 billion accelerated share repurchase agreement with JPMorgan Chase Bank. Synopsys receives about 1,735,000 shares at the start. Any remaining shares settle on or before January 5, 2027. This is the buyback of about $1 billion that Synopsys announced at its Investor Day. Oct 1, 2026: Synopsys stock rose about 13%, to $490.54, after the Investor Day. The fiscal 2027 guidance was removed: above the consensus of Wall Street analysts: revenue of $11.10 to $11.20 billion removed: against $10.81 billion, and non-GAAP earnings per share of $19.04 to removed: $19.12 against $17.81. BofA raised its price target to $600 from $500, and KeyBanc raised its target to $605 from $600. added: $19.12. Sep 30, 2026: At its Investor Day, Synopsys gave a fiscal 2027 outlook: revenue of $11.10 to $11.20 billion, up about 15%, a non-GAAP operating margin of about 44%, and free cash flow of about $3.1 billion. Its long-term model targets revenue growth of about 15% each year and a non-GAAP operating margin of about 50% in fiscal 2030. Synopsys also plans to buy back about $1 billion of its shares and to return up to 50% of free cash flow. Sep 30, 2026: Synopsys announced a multi-year deal worth over $1 billion with Amazon Web Services. AWS will license Synopsys design IP and software for its custom chips. Synopsys also announced a partnership with OpenAI to build an AI model for chip design, called GPT-Synopsys. Sep 23, 2026: Synopsys and TSMC expanded their partnership. It adds agentic AI design workflows, certification of Synopsys tools for TSMC's A14 process, and support for multi-die systems. removed: Sep 10, 2026: Wells Fargo upgraded Synopsys to Overweight from Equalweight and raised its price target to $475 from $450. It named the valuation gap to Cadence and the coming Investor Day. Morgan Stanley had upgraded Synopsys to Overweight on September 8 and kept its $500 price target. It named the Ansys integration and the recent fall in the stock price. Aug 26, 2026: Synopsys reported Q3 fiscal 2026 revenue of $2.48 billion, up about 42% from last year. Most of this growth came from Ansys, which was part of Synopsys for only part of Q3 fiscal 2025. Synopsys raised its full-year revenue guidance to $9.69 to $9.74 billion. On the same day, it raised its estimate of restructuring charges to $425 to $500 million. Dec 1, 2025: Nvidia bought about 4.8 million new Synopsys shares at $414.79 each, for $2 billion, as part of an expanded partnership to bring AI into chip design and engineering simulation tools.