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↓Deteriorating
- Capitulation Risk At Rsi 26↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Dec 22, 2025· older than 90 days
Synopsys, Inc. (SNPS) Stock Analysis
Range Bound setup
Technology · Software - Infrastructure
Sell if holding. At $462.95, A.R:R 1.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Expensive valuation; 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. At $462.95, A.R:R 1.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Expensive valuation; Sector modifier (Technology): -0.8. Chart setup: RSI 48 mid-range, Bollinger mid-band. Score 5.7/10, moderate confidence.
Passes 5/9 gates (clean insider activity, news events none recent, earnings proximity 34d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: moderate.
Recent developments
updated Oct 28, 2026Recent Developments — Synopsys, Inc.
Latest news
- NEWS SNPS 261030 425.00C (SNPS261030C425000) Stock Options Chain | Quotes & News - Moomoo — Moomoo Oct 28, 2026 neutral
- NEWS Is Trending Stock Synopsys, Inc. (SNPS) a Buy Now? - Yahoo Finance — Yahoo Finance Oct 28, 2026 positive
- NEWS SNPS 261030 680.00C (SNPS261030C680000) Stock Options Chain | Quotes & News - Moomoo — Moomoo Oct 28, 2026 neutral
- NEWS Synopsys (SNPS) Just Overtook the 50-Day Moving Average - Yahoo Finance — Yahoo Finance Oct 27, 2026 positive
- NEWS Synopsys (NASDAQ:SNPS) Stock Gets Price Target Bump from Morgan Stanley - MarketBeat — MarketBeat Oct 20, 2026 positive
Latest item Oct 28, 2026 · Generated 2026-11-05T11:44:09Z.
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. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $462.95, A.R:R 1.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Expensive valuation; Sector modifier (Technology): -0.8. Chart setup: RSI 48 mid-range, Bollinger mid-band. Prior stop was $430.54. Score 5.7/10, moderate confidence.
Analyst target: $528.25 (+14.1% upside). Prior stop was $430.54. Stop-loss: $430.54.
Sector modifier (Technology): -0.8; Expensive valuation; Negative momentum.
Synopsys, Inc. trades at a P/E of 81.8 (forward 24.9). TrendMatrix value score: 3.6/10. Verdict: Sell.
30 analysts rate SNPS, with a consensus score of 4.2/5. 25 analysts publish price targets averaging $587.
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.