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↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Synopsys, Inc. (SNPS) Stock Analysis
Technology · Software - Infrastructure
Sell if holding. Momentum 3.0/10 is below the 5.0 floor at $393.95 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Negative momentum; Sector modifier (Technology): -0.8.
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 3.0/10 is below the 5.0 floor at $393.95 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Negative momentum; Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.9/10, moderate confidence.
Passes 6/9 gates (favorable risk/reward ratio, clean insider activity, news events none recent, earnings proximity 95d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: moderate.
Recent developments
updated 2026-09-06Recent Developments — Synopsys, Inc.
Latest news
- NEWS Synopsys (SNPS) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates - Yahoo Finance — Yahoo Finance neutral
- NEWS Synopsys (SNPS) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates - finance.yahoo.com — finance.yahoo.com positive
- NEWS Synopsys (SNPS) Q3 Earnings and Revenues Top Estimates - Yahoo Finance — Yahoo Finance positive
- NEWS Synopsys (SNPS) Q3 Earnings and Revenues Top Estimates - finance.yahoo.com — finance.yahoo.com positive
- NEWS Synopsys slides even as it boosts full-year guidance on back of strong Q3 results (SNPS:NASDAQ) - Seeking Alpha — Seeking Alpha neutral
Generated 2026-09-06T04:11:56Z.
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·1 ceiling hit
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 3.0/10 is below the 5.0 floor at $393.95 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Negative momentum; Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $368.91. Score 5.9/10, moderate confidence.
Take-profit target: $490.48 (+24.5% upside). Prior stop was $368.91. Stop-loss: $368.91.
Sector modifier (Technology): -0.8; Negative momentum; Below 200-day MA.
Synopsys, Inc. trades at a P/E of 68.5 (forward 22.5). TrendMatrix value score: 4.4/10. Verdict: Sell.
32 analysts cover SNPS with a consensus score of 4.1/5. Average price target: $545.
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.