
Synopsys (SNPS) Stock Forecast & Price Target
Synopsys (SNPS) Analyst Ratings
Bulls say
The financial outlook for Synopsys is bolstered by a projected revenue increase of approximately 36.6% for FY26, reaching $9.637 billion, alongside a consistent growth trajectory expected to continue into FY27 at 10.7%. Significant contributions from the integration of Ansys, which is anticipated to grow in double digits, particularly driven by demand in aerospace and related industries, further strengthen revenue prospects. Additionally, favorable trends in the semiconductor industry's shift toward in-house chip design and the anticipated resurgence of the IP business to mid-teens growth rate, supported by advancements in chiplet development and generative AI, contribute positively to Synopsys's overall market position.
Bears say
The financial analysis indicates a pessimistic outlook for Synopsys, primarily driven by projected slowdowns in the Electronic Design Automation (EDA) market, with forecasts suggesting a high single-digit compound annual growth rate (CAGR) for the next few years. In the latest quarter, total revenues showed a year-over-year decline of approximately 3% organically, primarily due to weaknesses in intellectual property (IP) sales, which are expected to continue to face headwinds as the semiconductor industry reallocates resources toward artificial intelligence and high-performance data center chips. Future revenue estimates for fiscal years 2026 and 2027 are being revised downwards, reflecting lower anticipated growth in EDA and ongoing challenges in IP repositioning, alongside organizational adjustments that may lead to the exit of underperforming product lines.
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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