Synopsys, Inc. SNPS

Information TechnologySoftware & IT ServicesUnited States of America

Last close 467.61 USD on Nov 1, 2026, −0.4% year to date

Quant rating

Quant rating B Rank 142 of 389 in Information Technology

Growth B 84 of 389
Valuation C 209 of 389
Quality C 237 of 389
Revisions A 38 of 389
Momentum C 166 of 389

Wall Street consensus Buy (1.75)Average target 591.08 USD +26.4%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 89.6B
Enterprise value: 96.0B
52-week range: 362.57 – 539.37
3-year range: 362.57 – 645.35
Dividend yield: –
Beta (5 years): 1.18
Shares outstanding: 192M
Next earnings: Dec 8, 2026

About the company

Synopsys, Inc. is engaged in providing engineering solutions from silicon to systems, enabling customers to innovate artificial intelligence (AI)-powered products. It delivers silicon design, intellectual property (IP), simulation and analysis solutions, and design services. It supplies mission-critical electronic design automation (EDA) software that engineers use to design and test integrated circuits (ICs). Its Design Automation segment includes its silicon design, verification products and services, Ansys products, system integration products and services, digital, custom and field programmable gate array integrated circuit design software, verification software and hardware products, manufacturing software products and others. Its Design IP segment's portfolio includes logic libraries, embedded memories, interface IP, security IP, and subsystems that serve companies in the semiconductor and electronics industries.

Growth and profitability fiscal year ends October 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	7,054	6,127	5,318	4,616	4,204	–
Revenue growth	15.1%	15.2%	15.2%	9.8%	14.1%	13.9%
EPS (basic, normalized)	12.91	13.20	11.19	8.90	6.84	–
EPS growth	−2.2%	18.0%	25.7%	30.1%	–	–
Gross margin	77.0%	80.5%	80.6%	80.5%	79.5%	79.6%
Net margin	18.9%	23.5%	22.6%	21.0%	18.0%	20.8%
ROE	7.2%	19.0%	20.6%	17.9%	14.8%	15.9%

Balance sheet, last quarter
Cash & short-term investments (mil)	3,608
Current ratio	1.34x
Long-term debt (mil)	9,017
Net debt (mil)	6,429
Total equity (mil)	31,153
Net debt / equity	0.21x
Net debt / EBITDA	2.31x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	7,054	+15.1%	13.6x	2,789	+9.0%	34.4x	12.91	−2.2%	36.2x
2026	9,724	+37.8%	9.9x	4,202	+50.7%	22.9x	15.14	+17.3%	30.9x
2027	11,015	+13.3%	8.7x	4,990	+18.7%	19.2x	18.64	+23.1%	25.1x
2028	12,505	+13.5%	7.7x	5,383	+7.9%	17.8x	22.84	+22.5%	20.5x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	9,724	0.0%	+0.4%	+1.0%	15.14	0.0%	+2.5%	+4.7%
2027	11,015	+1.2%	+2.6%	+3.4%	18.64	+2.4%	+7.5%	+9.0%
2028	12,505	+1.7%	+4.3%	+5.7%	22.84	+2.8%	+10.6%	+12.0%

Earnings surprises EPS beat in 4 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Apr 2024	Jul 2024	Oct 2024	Jan 2025	Apr 2025	Jul 2025	Oct 2025	Jan 2026	Apr 2026	Jul 2026
Sales reported (mil)	1,455	1,526	1,636	1,455	1,604	1,740	2,255	2,409	2,276	2,477
Sales mean (mil)	1,482	1,519	1,631	1,466	1,599	1,768	2,247	2,390	2,251	2,438
Surprise	−1.9%	+0.5%	+0.3%	−0.7%	+0.3%	−1.6%	+0.3%	+0.8%	+1.1%	+1.6%
EPS reported	3.00	3.43	3.40	3.03	3.67	3.39	2.90	3.77	3.35	3.91
EPS mean	2.95	3.28	3.30	2.84	3.39	3.73	2.78	3.56	3.15	3.67
Surprise	+1.6%	+4.6%	+3.0%	+6.6%	+8.4%	−9.1%	+4.4%	+6.0%	+6.2%	+6.7%

Peer comparison Software & IT Services

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
SNPS Synopsys, Inc.	89.6B	2.31x	18.9%	2.88x	30.9x	25.1x	22.9x	19.2x
IBM International Business Machines Corp	243.7B	2.78x	17.4%	6.86x	20.8x	19.4x	14.6x	13.7x
ACN Accenture PLC	152.6B	−0.07x	11.3%	4.87x	17.6x	16.2x	10.1x	9.6x
SNOW Snowflake Inc.	108.0B	−0.10x	−28.4%	50.18x	139.4x	101.7x	97.1x	70.0x
NET Cloudflare, Inc.	100.0B	−1.86x	−4.7%	61.67x	219.1x	162.9x	140.5x	98.2x
DDOG Datadog Inc	84.5B	−4.89x	3.1%	19.34x	92.1x	78.1x	72.0x	56.7x
Mean		−0.31x	2.9%	24.30x	86.6x	67.2x	59.5x	44.6x
Median		−0.09x	7.2%	13.10x	61.5x	51.6x	47.4x	38.0x

Technical analysis

1M+12.0%
3M+21.8%
1Y+2.4%
3Y+2.3%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Synopsys, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	7,054	6,127	5,318	4,616	4,204	3,685
Cost of revenue	1,624	1,192	1,031	898	862	795
Gross profit	5,431	4,936	4,287	3,718	3,342	2,891
Selling, general & administrative expenses	1,791	1,379	1,050	906	971	941
Research & development	2,479	2,082	1,850	1,590	1,505	1,279
Depreciation/amortization	193	16.2	9.3	11.6	33.9	38.8
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	−549	53.5	53.1	11.2	33.4	11.9
Other operating expenses	53.2	48.5	52.1	49.9	64.7	0
Operating income	1,464	1,356	1,273	1,149	735	620
Net interest income (expense)	−176	91.3	28.1	−4.3	4.4	4.0
Gain (loss) on sale of assets	117	87.4	20.2	−67.5	71.6	21.5
Other non-operating income (expense)	−11.2	−20.5	−16.0	26.6	−5.2	−7.4
Net income before taxes	1,393	1,514	1,305	1,103	806	638
Provision for taxes	56.0	99.7	114	139	49.2	−25.3
Minority interest	−1.0	27.6	11.8	6.2	1.2	0.9
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	1,336	1,442	1,203	970	758	664
Extraordinary items	−3.9	822	26.6	14.4	–	–
Net income	1,332	2,263	1,230	985	758	664
EBIT, normalized	1,182	1,571	1,340	1,169	753	632
EBITDA, normalized	1,858	1,858	1,541	1,332	958	846
Basic EPS, normalized	12.91	13.20	11.19	8.90	6.84	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Synopsys, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	2,961	4,050	1,591	1,566	1,581	1,236
Receivables	2,391	1,692	1,336	1,057	885	1,028
Total inventory	365	362	326	212	229	192
Prepaid expenses	277	364	177	177	111	92.1
Other current assets	18.1	1.5	1.5	1.6	1.6	1.5
Total current assets	6,012	6,470	3,431	3,013	2,808	2,549
Property, plant & equipment	1,399	1,129	1,126	1,042	966	950
Goodwill	26,899	3,449	4,070	3,842	3,576	3,365
Intangibles	12,680	195	374	386	279	254
Long-term investments	–	–	–	–	–	–
Note receivable	336	–	–	–	–	–
Other long-term assets	898	1,831	1,332	1,134	1,123	912
Total assets	48,224	13,074	10,333	9,418	8,752	8,030
Liabilities
Accounts payable	165	207	156	37.6	27.4	30.0
Payable/accrued	–	–	–	–	–	–
Accrued expenses	1,195	904	827	826	747	667
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	22.1	–	–	0	75.0	27.1
Other current liabilities	2,341	1,539	2,003	1,911	1,564	1,416
Total current liabilities	3,722	2,650	2,985	2,774	2,413	2,140
Long-term debt	13,462	15.6	18.1	20.8	25.1	101
Minority interest	−0.6	32.5	37.0	43.5	3.8	5.0
Other liabilities	2,713	1,385	1,145	1,064	1,015	877
Total liabilities	19,897	4,083	4,186	3,902	3,457	3,123
Shareholders' equity
Preferred stock	0	–	0	0	0	0
Common stock	1.9	1.5	1.5	1.5	1.5	1.5
Additional paid-in capital	18,641	1,211	1,276	1,487	1,576	1,653
Retained earnings (accumulated deficit)	10,315	8,984	6,742	5,534	4,550	3,795
Treasury stock	−398	−1,026	−1,676	−1,273	−783	−489
Other equity	−232	−180	−196	−234	−49.6	−54.1
Total equity	28,328	8,991	6,147	5,516	5,295	4,907
Total liabilities & shareholders' equity	48,224	13,074	10,333	9,418	8,752	8,030

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Synopsys, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	1,333	2,236	1,218	978	758	664
Depreciation, depletion & amortization	660	295	247	228	204	210
Deferred taxes	−471	−408	−211	−36.9	−129	−112
Non-cash items	492	−8.6	776	628	530	417
Changes in working capital	−497	−708	−327	−59.3	130	−188
Cash from operations	1,519	1,407	1,703	1,739	1,493	991
Investing activities
Capital expenditures	−16,851	−280	−490	−561	−392	−360
Other investing cash flows	969	1,503	7.4	−11.2	−157	−0.6
Cash from investing	−15,881	1,223	−482	−573	−549	−360
Financing activities
Financing cash flow items	−338	−411	−287	−177	−178	−83.5
Cash dividends paid	–	–	–	–	–	–
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	13,694	230	−910	−939	−570	−57.1
Cash from financing	13,356	−181	−1,197	−1,116	−749	−141
Foreign exchange effects	1.9	8.8	−3.0	−65.3	2.4	17.2
Net change in cash	−1,005	2,458	21.3	−15.3	197	507
Free cash flow	−15,332	1,127	1,214	1,177	1,101	632

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.