
Synopsys (SNPS) Stock Forecast & Price Target
Synopsys (SNPS) Analyst Ratings
Bulls say
Synopsys' strong financial performance is highlighted by a remarkable 101% year-over-year increase in Upfront product revenue, which constitutes approximately 31% of total revenue. The company's electronic design automation (EDA) segment also demonstrated solid health, with revenue growth of around 12% year-over-year and product sales supported by demand for design tool subscriptions and AI products. Looking ahead, Synopsys is projected to achieve significant revenue growth of approximately 36% in FY26, reaching around $9.608 billion, further indicating a robust financial trajectory bolstered by the ongoing digitalization trends across various end markets.
Bears say
The financial outlook for Synopsys appears negative, primarily due to a decline in China revenue and persistent low IP margins, which stood at 16% in Q1, significantly lower than previous levels of 30-40%. The company's revenue projection for FY26 indicates growth in the range of 35.5-36.9%, yet it anticipates muted performance from its IP segment, further compounded by product missteps and the sustained effects of technology sanctions. Additionally, the adjustment of the price target to $430, influenced by a reduced terminal multiple reflecting compression in peer valuations, underscores a broader market concern regarding Synopsys's future revenue and earnings potential.
This aggregate rating is based on analysts' research of Synopsys and is not a guaranteed prediction by Public.com or investment advice.
Synopsys (SNPS) Analyst Forecast & Price Prediction
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