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↑Improving
- Consecutive Earnings Misses Signal↑Improving
- Capitulation Risk At Rsi 26↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Synopsys, Inc. (SNPS) Stock Analysis
Recovery setup
Technology · Software - Infrastructure
Hold if already holding. Not a fresh buy at $417.10, but acceptable to hold if already in. Reasons: Sector modifier (Technology): -0.8; Below 200-MA, MA slope -1.1%/30d (confirmed downtrend).
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
Hold if already holding. Not a fresh buy at $417.10, but acceptable to hold if already in. Reasons: Sector modifier (Technology): -0.8; Below 200-MA, MA slope -1.1%/30d (confirmed downtrend). Chart setup: Death cross but MACD improving, RSI 48. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 6.0/10, moderate confidence.
Passes 7/10 gates (positive momentum, favorable risk/reward ratio, clean insider activity, news events none recent, earnings proximity 97d clear, semi cycle peak clear, materials cycle peak clear). Fails on death cross (50MA < 200MA). Suitability: moderate.
Recent developments
updated 2026-09-03Recent 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 2026-09-03T23:37:10Z.
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.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
1 ceiling hit
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $417.10, but acceptable to hold if already in. Reasons: Sector modifier (Technology): -0.8; Below 200-MA, MA slope -1.1%/30d (confirmed downtrend). Chart setup: Death cross but MACD improving, RSI 48. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Target $490.48 (+17.6%), stop $387.17 (−7.7%), A.R:R 2.4:1. Score 6.0/10, moderate confidence.
Take-profit target: $490.48 (+17.8% upside). Target $490.48 (+17.6%), stop $387.17 (−7.7%), A.R:R 2.4:1. Stop-loss: $387.17.
Sector modifier (Technology): -0.8; Below 200-MA, MA slope -1.1%/30d (confirmed downtrend).
Synopsys, Inc. trades at a P/E of 72.5 (forward 23.8). TrendMatrix value score: 4.2/10. Verdict: Hold.
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.