# Synopsys, Inc. (SNPS)

> Source: Nexqual · https://nexqual.com/SNPS · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Synopsys, Inc. (SNPS), nexqual.com/SNPS" · informational, not investment advice.

**Price:** USD 422.48 (-6.36% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 451.19 · day 422.11–444.05 · 52w 362.55–539.48 · market cap $81.0B · NMS

## Key facts
- Last four reported quarters (through Jul 31, 2026): revenue $9.42B, net income $1.08B (11.4% margin), free cash flow $2.75B (SEC filings).
- Valuation: P/E 75.2x (avg 50.3x at the last 3 fiscal year-ends), EV/EBITDA 33.4x, net debt $6.43B.
- Earnings quality: non-operating income $1.12B vs operating income $802M over the last four quarters; P/E excluding non-operating income ≈545.2x (estimate: non-operating income taxed at the company's 17.2% effective rate).
- 4 of 80 tracked superinvestors hold SNPS (13F, Q2 2026): 0 new, 0 added, 3 reduced, 1 unchanged.
- Insider open-market sales, last ~7 months: 8 Form 4 filings, $59.6M; 2 not under a Rule 10b5-1 plan ($6.6M); 5 by opportunistic insiders (0 outside 10b5-1 plans), 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Buy (mean 1.88 on a 1–5 scale) (25 analysts), mean target USD 586.95 (range 475–700).
- Total return with dividends: 1Y -7.4% vs S&P 500 +14.9%; 5Y +31.6% vs S&P 500 +80.3%.
- Next earnings: 2026-08-26, EPS estimate USD 4.13, revenue estimate $2.56B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $4.20B | $5.08B | $5.32B | $6.13B | $7.05B | $9.42B |
| Gross profit | $3.34B | $3.72B | $4.29B | $4.88B | $5.43B | — |
| Operating income | $735M | $1.15B | $1.27B | $1.36B | $915M | $802M |
| Net income | $758M | $985M | $1.23B | $2.26B | $1.33B | $1.08B |
| EPS (diluted) | $4.81 | $6.29 | $7.92 | $14.51 | $8.04 | — |
| Free cash flow | $1.40B | $1.60B | $1.51B | $1.27B | $1.35B | $2.75B |
| Gross margin | 79.5% | 73.2% | 80.6% | 79.7% | 77.0% | — |
| Operating margin | 17.5% | 22.6% | 23.9% | 22.1% | 13.0% | 8.5% |
| Net margin | 18.0% | 19.4% | 23.1% | 36.9% | 18.9% | 11.4% |
| Revenue growth | +14.1% | +20.9% | +4.7% | +15.2% | +15.1% | — |
| Cash + short-term investments | $1.58B | $1.57B | $1.59B | $4.05B | $2.96B | — |
| Total debt | $100M | $20.8M | $18.1M | $15.6M | $13.5B | — |
Fiscal years end Oct. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jul 31, 2026)
P/E 75.2x · P/E ex non-operating (est.) ≈545.2x · P/S 8.6x · EV/EBITDA 33.4x · EV/Sales 9.3x · P/FCF 29.5x · P/B 2.6x · FCF yield 3.39% · Earnings yield 1.33% · Net debt $6.43B · EV $87.4B
P/E at fiscal year-ends: Oct 2025 56.4x, Oct 2024 35.4x, Oct 2023 59.2x.

## Superinvestors (SEC 13F-HR, Q2 2026)
4 of 80 tracked investors hold SNPS. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Polen Capital | Polen Capital Management | 0.16% | $18.4M | Reduced -93.8% |
| Christopher Davis | Davis Advisors | 0.05% | $11.1M | Reduced -3.7% |
| Duan Yongping | H&H International Investment | 0.02% | $4.5M | Unchanged |
| Dodge & Cox Funds | Dodge & Cox | <0.01% | $4.5M | Reduced -1.0% |

## Insider sales (SEC Form 4, open-market, last ~7 months)
6 of 8 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-10-15 | Ghazi Sassine | PRESIDENT AND CEO | 14,604 | $6.8M | 16% | Yes | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-10-06 | Lee Janet | GC & Corporate Secretary | 1,144 | $575K | 6.5% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-10-05…2026-10-06 | Kankanwadi Sudhindra | Deputy CFO & CAO | 12,170 | $6.0M | 34.9% | No | Too little history (no open-market trades in 2024) |
| 2026-09-15 | Ghazi Sassine | PRESIDENT AND CEO | 14,604 | $5.5M | 16% | Yes | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-08-31…2026-09-01 | De Geus Aart | EXECUTIVE CHAIR | 49,641 | $21.4M | 10.1% | Yes | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-08-28 | De Geus Aart | EXECUTIVE CHAIR | 25,000 | $11.1M | 5.3% | Yes | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-06-15 | Ghazi Sassine | PRESIDENT AND CEO | 14,603 | $6.7M | 16% | Yes | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-06-12 | Glaser Shelagh | CFO | 3,394 | $1.5M | 18.5% | Yes (adopted January 13, 2026) | Too little history (no open-market trades in 2023 or 2024) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Buy (mean 1.88 on a 1–5 scale), 25 analysts; mean target USD 586.95 (low 475, high 700).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-20 | Morgan Stanley | Target raised | Overweight | $500 → $574 |
| 2026-10-12 | Needham | Target raised | Buy | $580 → $620 |
| 2026-10-01 | Wells Fargo | Target raised | Overweight | $475 → $540 |
| 2026-10-01 | Keybanc | Target raised | Overweight | $600 → $605 |
| 2026-10-01 | Rosenblatt | Target raised | Buy | $575 → $620 |
| 2026-09-25 | HSBC | Upgrade | Hold → Buy | $490 → $700 |
| 2026-09-24 | BNP Paribas | Upgrade | Underperform → Neutral | $420 |
| 2026-09-10 | Wells Fargo | Upgrade | Equal-Weight → Overweight | $450 → $475 |
| 2026-09-08 | Morgan Stanley | Upgrade | Equal-Weight → Overweight | $500 |
| 2026-08-27 | Mizuho | Target lowered | Outperform | $600 → $550 |
| 2026-08-27 | Baird | Upgrade | Neutral → Outperform | $558 → $560 |
| 2026-08-27 | Rosenblatt | Maintained | Buy | $575 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | -7.4% | +31.6% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | -7.4% | +5.6% |
| Volatility (annualized) | 44.4% | 40.8% |
| Max drawdown | -31.2% (May 2026→Sep 2026) | -39.9% (Jul 2024→Jul 2026) |

## Peers (Software - Infrastructure)
NET (Cloudflare, Inc.) USD 303.61 -1.18% · FTNT (Fortinet, Inc.) USD 172.98 -0.61% · XYZ (Block, Inc.) USD 79.02 +1.04% · NTAP (NetApp, Inc.) USD 212.51 -2.16% · TWLO (Twilio Inc.) USD 253.63 -4.89% · ZS (Zscaler, Inc.) USD 237.76 +2.78%

## More
Full page: https://nexqual.com/SNPS · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in SNPS's own 10-K filed 2025-12-22 (https://www.sec.gov/Archives/edgar/data/883241/000088324125000028/snps-20251031.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Customer | ANSYS | "With the addition of our Ansys business, we now offer expanded capabilities that help customers model, predict, and improve product performance and sustainability across a broader range of industries." |
| Customer | Keysight Technologies, Inc. (KEYS) | "Our Other product group also includes revenue from Synopsys' Optical Solutions Group through October 17, 2025, the date it was divested to Keysight Technologies, Inc." |
| Customer | Siemens | "He has also held various leadership roles in sales and customer support, starting at Berkeley Design Automation in 2011 and through Mentor Graphics' acquisition by Siemens Digital Industries Software." |
| Partner | Microsoft (MSFT) | "Our Synopsys Cloud offering provides customers additional options for accessing our EDA products in their own cloud environments and in the industry's first EDA Software-as-a-Service solution developed in partnership wit…" |
| Partner | Clearlake Capital Group | "On September 30, 2024, we completed the sale of our former Software Integrity business (the Software Integrity Divestiture) to entities controlled by funds affiliated with Clearlake Capital Group, L.P. and Francisco Part…" |

Other companies that name SNPS in their own reports (relationship from SNPS's side):

| Relationship | Company | Their filing | Sentence |
|---|---|---|---|
| customer | TOWER SEMICONDUCTOR LTD (TSEM) | 20-F 2026-04-30 | "- and license standard cells, I/O, and memory IP from Synopsys, eMemory, and other top suppliers of physical IP." |
| competitor | Silvaco Group, Inc. (SVCO) | 10-K 2026-03-12 | "We compete most frequently with Synopsys, Inc., Siemens EDA, and Cadence, Inc. by providing specialized differentiation that is generally unavailable from larger EDA companies." |
| partner | GLOBALFOUNDRIES Inc. (GFS) | 20-F 2026-02-27 | "Definitive Agreement - On January 13, 2026, the Company entered into a definitive agreement with Synopsys, Inc. ("Synopsys") for the acquisition of Synopsys' ARC Processor IP Solutions business and it…" |
| partner | Atomera Inc (ATOM) | 10-K 2026-02-24 | "we have worked in collaboration with Synopsys, Inc., a provider of the most broadly used TCAD simulation software in the semiconductor" |
| competitor | CADENCE DESIGN SYSTEMS INC (CDNS) | 10-K 2026-02-19 | "Key competitors include Synopsys, Inc., Ansys, Inc. (acquired by Synopsys), Siemens EDA, and a variety of other tool providers, electronics device manufacturers with in-house EDA capabilities, technic…" |
| competitor | RAMBUS INC (RMBS) | 10-K 2026-02-18 | "In the Silicon IP market, Rambus competes with the in-house design teams at our potential customers, as well as with third-party IP suppliers, such as Cadence and Synopsys." |
| competitor | JFrog Ltd (FROG) | 10-K 2026-02-13 | "Some security-focused companies may compete with a subset of JFrog's holistic security offerings or address only developer-level security, such as Aqua Security, Snyk, Checkmarx, Sonatype, and Synopsy…" |
| customer | Arteris, Inc. (AIP) | 10-K 2026-02-12 | "We work with suppliers who provide these blocks, including IP companies such as Arm, SiFive, MIPS, Synopsys, Cadence Design Systems, Semidynamics, Andes, Codasip and other RISC-V IP vendors to support…" |

## Revenue by business segment (quarter ended 2026-07-31)

| Line | Revenue | Share | YoY | Operating income | Op. margin |
|---|---|---|---|---|---|
| Design Automation: | $2.00B | 80.9% | +52.6% | $905.0M | 45.2% |
| Design IP: | $473.9M | 19.1% | +10.8% | $125.4M | 26.5% |
| Total revenue | $2.48B | 100% | — | $357.5M | 14.4% |

## Revenue by product line (quarter ended 2026-07-31)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Products | $1.67B | 67.3% | +18.4% |
| — Time-based products (part of Products) | $1.00B | 40.5% | +12.4% |
| — Upfront products (part of Products) | $665.2M | 26.9% | +28.8% |
| Maintenance and service | $808.8M | 32.7% | +144.4% |
| Total revenue | $2.48B | 100% | — |

## Revenue by region (quarter ended 2026-07-31)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| United States | $1.05B | 42.5% | +28.9% |
| Other | $472.9M | 19.1% | +60.0% |
| Europe | $370.9M | 15.0% | +107.7% |
| Korea | $325.6M | 13.1% | +61.1% |
| China | $255.5M | 10.3% | +3.3% |
| Total revenue | $2.48B | 100% | — |

## Customer concentration

Period ended 2024-10-31: 12.6% of revenue from unnamed direct customers (10-K, filed 2025-12-22).

## Company outlook (8-K filed 2026-08-26)

- "Although these Earnings Materials are expected to remain available on Synopsys' website through the time Synopsys announces its results for the fourth quarter and fiscal year 2026, their continued availability through such time does not mean that Synopsys is reaffirming or confirming their continued validity."
- "This rate is based on our projected annual rate through fiscal year 2028, primarily due to the completion of the acquisition of Ansys in the third quarter of fiscal year 2025 and the enactment of the One Big Beautiful Bill Act (the OBBB), which affects taxable income starting in fiscal year 2026 over the next several years."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-10-31) | $4.13 | $4.00 | +3.4% | $2.56B | 16 |
| Next quarter (ends 2027-01-31) | $4.45 | $4.31 | +3.1% | $2.68B | 12 |
| Current fiscal year (ends 2026-10-31) | $15.14 | $14.77 | +2.5% | $9.72B | 22 |
| Next fiscal year (ends 2027-10-31) | $18.73 | $17.28 | +8.4% | $11.04B | 18 |

## Options: expected move (Cboe, 15-min delayed)

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-10-30 | 7 | 53.3% | ±6.3% |
| 2026-11-06 | 14 | 51.0% | ±8.3% |
| 2026-11-13 | 21 | 45.9% | ±9.0% |
| 2026-11-20 | 28 | 45.7% | ±10.3% |
| 2026-11-27 | 35 | 45.9% | ±11.5% |
| 2026-12-04 | 42 | 45.0% | ±12.4% |
| 2026-12-18 | 56 | 47.5% | ±14.9% |
| 2027-01-15 | 84 | 45.1% | ±17.3% |