A Business at a Glance
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SYNOPSYS INC
SNPS
$61.9B
Mkt Cap
$373.47
-0.01%
SYNOPSYS INC (SNPS) has a current P/E ratio of 57.5, compared to its historical median P/E of 49.0. The stock is currently considered Fair based on its historical valuation range.
SYNOPSYS INC (SNPS) has a 5-year average return on invested capital (ROIC) of 20.2%. This indicates strong capital allocation and a potential competitive advantage.
SYNOPSYS INC (SNPS) has a market capitalization of $71.5B. It is classified as a large-cap stock.
SYNOPSYS INC (SNPS) does not currently pay a regular dividend.
Based on historical P/E analysis, SYNOPSYS INC (SNPS) appears fair. The current P/E of 57.5 is 17% above its historical median of 49.0. The estimated fair value CAGR (P/E method) is 21.1%.
SYNOPSYS INC (SNPS) operates in the Services-Prepackaged Software industry, within the Technology sector.
SYNOPSYS INC (SNPS) reported annual revenue of $7.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
Synopsys is a global leader in engineering solutions spanning silicon design, silicon intellectual property (IP), simulation and analysis (S&A), and design services, enabling customers to rapidly innovate AI-powered products. The company operates through two primary segments: Design Automation, which includes electronic design automation (EDA) software and hardware for chip design and verification, Ansys simulation and analysis products for product development across aerospace, automotive, energy, and other industries, and other solutions; and Design IP, which provides pre-designed semiconductor circuits including logic libraries, embedded memories, interface IP, security IP, and embedded processors that reduce development risk and accelerate time-to-market. Synopsys' business model is primarily subscription and term-license based, with customers paying for access to software tools and IP components used throughout the chip design lifecycle, supported by professional services and technical support. The company serves a global customer base of chip designers, system engineers, and software developers across high-tech, aerospace and defense, automotive, energy, industrial, consumer products, healthcare, and construction sectors, with particular strength in advanced semiconductor design where customers face intense pressure to deliver innovative products faster and at lower cost. The company's competitive moat derives from its comprehensive, integrated portfolio spanning the full design flow from architecture through manufacturing, deep technical expertise in advanced process nodes, and AI-driven capabilities that enhance designer productivity and efficiency.
【AI-driven demand momentum continuing】 Management expects sustained strength in AI-driven chip design demand, with particular confidence in adoption of advanced multi-die and chiplet-based architectures through the 3D IC Compiler platform and over 30 full-flow technical wins at advanced nodes in the recent quarter. The company anticipates sequential quarterly improvements in the Design IP segment throughout the second half of fiscal 2026 following a bottoming in Q1, supported by roadmap execution and pipeline strength, though overall IP growth is expected to remain muted for the full year as the business transitions toward higher-value opportunities aligned with AI and hyperscaler customization. Synopsys is focused on monetizing new capabilities such as GPU-accelerated EDA, which is driving both increased customer value and contract uplift, and expects to begin monetizing joint Synopsys-Ansys integrated solutions in fiscal 2027 after delivering the first wave in the first half of 2026. The company is pursuing a new business model for IP focused on customized subsystems and higher-value engagements with hyperscalers, with expectations to share detailed monetization strategy at an investor day in September 2026.
| Metric | Target | Period |
|---|---|---|
| Revenue | $9.625 billion–$9.705 billion | FY2026 |
| Non-GAAP Operating Margin | 41% at the midpoint | FY2026 |
| Non-GAAP EPS | $14.72–$14.80 per share | FY2026 |
| Free Cash Flow | approximately $2 billion | FY2026 |
| Q3 FY2026 Revenue | $2.41 billion–$2.46 billion | Q3 FY2026 |
Revenue (FY2026): “This results in an updated revenue range of $9.625 billion- $9.705 billion.”
Non-GAAP Operating Margin (FY2026): “non-GAAP operating margin of 41% at the midpoint, a 50 basis point raise to our previous guidance.”
Non-GAAP EPS (FY2026): “We expect non-GAAP earnings of $14.72-$14.80 per share, a $0.34 increase at the midpoint from our prior guidance due to the higher revenue and increased operational efficiency.”
Free Cash Flow (FY2026): “resulting in free cash flow of approximately $2 billion, an increase of $100 million versus our previous guidance.”
Q3 FY2026 Revenue (Q3 FY2026): “Total revenue between $2.41 billion and $2.46 billion.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 8.7B | 7.1B | 6.1B | 5.3B | 5.1B | 4.2B |
| Net Income | 773M | 1.3B | 2.3B | 1.2B | 985M | 758M |
| EPS | $4.15 | $8.04 | $14.51 | $7.92 | $6.29 | $4.81 |
| Free Cash Flow | 2.6B | 1.3B | 1.3B | 1.5B | 1.6B | 1.4B |
| ROIC | 1.5% | 4.0% | 26.1% | 27.3% | 25.5% | 18.2% |
| Gross Margin | 73.5% | 77.0% | 79.7% | 71.1% | 73.2% | 79.5% |
| Debt/Equity | 0.33 | 0.48 | 0.00 | 0.00 | 0.00 | 0.02 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 610M | 915M | 1.4B | 1.3B | 1.1B | 735M |
| Operating Margin | 7.0% | 13.0% | 22.1% | 23.9% | 22.6% | 17.5% |
| ROE | 2.5% | 7.1% | 29.9% | 21.1% | 18.2% | 14.8% |
| Shares Outstanding | 191M | 166M | 156M | 155M | 157M | 157M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 2.1B | 2.2B | 2.4B | 2.7B | 3.1B | 3.4B | 3.7B | 4.2B | 5.1B | 5.3B | 6.1B | 7.1B | 8.7B |
| Gross Margin | 77.8% | 76.9% | 77.6% | 76.0% | 76.4% | 77.6% | 78.4% | 79.5% | 73.2% | 71.1% | 79.7% | 77.0% | 73.5% |
| R&D | 719M | 776M | 857M | 909M | 1.1B | 1.1B | 1.3B | 1.5B | 1.6B | 1.8B | 2.1B | 2.5B | 2.8B |
| SG&A | 155M | 165M | 166M | 197M | 263M | 229M | 285M | 323M | 314M | 377M | 568M | 770M | 821M |
| EBIT | 249M | 266M | 317M | 348M | 360M | 520M | 620M | 735M | 1.1B | 1.3B | 1.4B | 915M | 610M |
| Op. Margin | 12.1% | 11.9% | 13.1% | 12.8% | 11.5% | 15.5% | 16.8% | 17.5% | 22.6% | 23.9% | 22.1% | 13.0% | 7.0% |
| Net Income | 259M | 226M | 267M | 137M | 433M | 532M | 664M | 758M | 985M | 1.2B | 2.3B | 1.3B | 773M |
| Net Margin | 12.6% | 10.1% | 11.0% | 5.0% | 13.9% | 15.8% | 18.0% | 18.0% | 19.4% | 23.1% | 36.9% | 18.9% | 8.9% |
| Non-Recurring | 0 | 15M | 9.6M | 37M | 13M | 47M | 36M | 33M | 11M | 53M | 869M | 508M | 508M |
| Returns on Capital | |||||||||||||
| ROIC | 11.9% | 9.5% | 11.2% | 9.1% | 12.9% | 15.9% | 17.1% | 18.2% | 25.5% | 27.3% | 26.1% | 4.0% | 1.5% |
| ROE | 8.9% | 7.3% | 8.4% | 4.2% | 12.8% | 14.1% | 14.8% | 14.8% | 18.2% | 21.1% | 29.9% | 7.1% | 2.5% |
| ROA | 5.7% | 4.6% | 5.2% | 2.6% | 7.5% | 8.5% | 9.2% | 9.0% | 10.8% | 12.5% | 19.3% | 4.3% | 1.6% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 551M | 495M | 587M | 632M | 424M | 801M | 991M | 1.5B | 1.7B | 1.7B | 1.4B | 1.5B | 2.8B |
| Free Cash Flow | 448M | 408M | 520M | 562M | 325M | 602M | 837M | 1.4B | 1.6B | 1.5B | 1.3B | 1.3B | 2.6B |
| Owner Earnings | 279M | 197M | 282M | 335M | 75M | 444M | 533M | 944M | 1.1B | 893M | 420M | -35M | 340M |
| CapEx | 103M | 87M | 67M | 70M | 99M | 198M | 155M | 94M | 137M | 190M | 140M | 169M | 163M |
| Maint. CapEx | 193M | 212M | 207M | 189M | 209M | 202M | 210M | 204M | 228M | 247M | 295M | 660M | 1.5B |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 193M | 212M | 207M | 189M | 209M | 202M | 210M | 204M | 228M | 247M | 295M | 660M | 1.5B |
| CapEx/OCF | 18.7% | 17.6% | 11.4% | 11.1% | 23.3% | 24.8% | 15.6% | 6.3% | 7.9% | 11.1% | 9.9% | 11.2% | 5.8% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 120M | 260M | 400M | 380M | 400M | 329M | 242M | 753M | 1.1B | 1.2B | 0 | 0 | 0 |
| Buyback Yield | 1.9% | 3.3% | 4.4% | 2.8% | 3.0% | 1.6% | 0.7% | 1.5% | 2.4% | 1.6% | N/A | N/A | 0.0% |
| Stock-Based Comp | 79M | 86M | 98M | 108M | 140M | 155M | 249M | 345M | 459M | 563M | 692M | 893M | 986M |
| Debt Repayment | 231M | 330M | 185M | 381M | 295M | 524M | 289M | 28M | 77M | 2.6M | 2.6M | 864M | 864M |
| Balance Sheet | |||||||||||||
| Net Debt | -911M | -760M | -912M | -904M | -254M | -591M | -1.1B | -1.5B | -1.5B | -1.6B | -4.0B | 10.5B | 7.6B |
| Cash & Equiv. | 986M | 836M | 977M | 1.0B | 723M | 729M | 1.2B | 1.4B | 1.4B | 1.4B | 3.9B | 2.9B | 2.5B |
| Long-Term Debt | 45M | 0 | 0 | 134M | 126M | 120M | 101M | 25M | 21M | 18M | 16M | 13.5B | 10.0B |
| Debt/Equity | 0.02 | 0.07 | 0.06 | 0.04 | 0.13 | 0.03 | 0.03 | 0.02 | 0.00 | 0.00 | 0.00 | 0.48 | 0.33 |
| Interest Coverage | 131.2 | 94.7 | 84.2 | 47.6 | 23.1 | 44.6 | 120.7 | 218.4 | 676.5 | 1080.8 | 36.8 | 2.0 | 3.2 |
| Equity | 3.1B | 3.1B | 3.2B | 3.3B | 3.5B | 4.1B | 4.9B | 5.3B | 5.5B | 6.1B | 9.0B | 28.3B | 30.5B |
| Total Assets | 4.8B | 5.0B | 5.2B | 5.4B | 6.1B | 6.4B | 8.0B | 8.8B | 9.4B | 10.3B | 13.1B | 48.2B | 46.9B |
| Total Liabilities | 1.7B | 1.9B | 2.0B | 2.1B | 2.7B | 2.3B | 3.1B | 3.5B | 3.9B | 4.1B | 4.1B | 19.9B | 16.4B |
| Intangibles | 365M | 364M | 267M | 254M | 360M | 279M | 254M | 279M | 386M | 240M | 195M | 12.7B | 11.9B |
| Retained Earnings | 1.6B | 1.7B | 1.9B | 2.1B | 2.5B | 3.2B | 3.8B | 4.5B | 5.5B | 6.7B | 9.0B | 10.3B | 10.4B |
| Working Capital | 118M | -110M | 2.0M | 68M | -559M | -14M | 409M | 395M | 238M | 445M | 3.8B | 2.3B | 1.6B |
| Current Assets | 1.5B | 1.5B | 1.7B | 1.7B | 1.5B | 1.7B | 2.5B | 2.8B | 3.0B | 3.4B | 6.5B | 6.0B | 5.4B |
| Current Liabilities | 1.4B | 1.6B | 1.7B | 1.6B | 2.1B | 1.8B | 2.1B | 2.4B | 2.8B | 3.0B | 2.7B | 3.7B | 3.8B |
| Per Share Data | |||||||||||||
| EPS | 1.64 | 1.43 | 1.73 | 0.88 | 2.82 | 3.45 | 4.27 | 4.81 | 6.29 | 7.92 | 14.51 | 8.04 | 4.15 |
| Owner EPS | 1.76 | 1.25 | 1.83 | 2.16 | 0.49 | 2.88 | 3.42 | 5.99 | 6.72 | 5.75 | 2.69 | -0.21 | 1.77 |
| Book Value | 19.34 | 19.84 | 20.72 | 21.11 | 22.68 | 26.46 | 31.54 | 33.62 | 35.24 | 39.59 | 57.64 | 170.96 | 159.20 |
| Cash Flow/Share | 3.49 | 3.13 | 3.80 | 4.08 | 2.77 | 5.19 | 6.37 | 9.48 | 11.11 | 10.97 | 9.02 | 9.16 | 11.72 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 158.0M | 158.0M | 154.2M | 155.2M | 153.4M | 154.3M | 155.6M | 157.5M | 156.5M | 155.3M | 156.0M | 165.7M | 191.4M |
| Valuation | |||||||||||||
| P/E Ratio | 24.7 | 35.4 | 33.7 | 99.1 | 31.0 | 39.8 | 51.0 | 67.9 | 47.0 | 57.7 | 34.2 | 56.8 | 90.0 |
| P/FCF | 14.3 | 19.6 | 17.3 | 24.1 | 41.2 | 35.2 | 40.5 | 36.8 | 28.9 | 46.9 | 61.1 | 56.1 | 27.1 |
| EV/EBIT | 22.2 | 27.9 | 26.1 | 33.3 | 35.5 | 38.2 | 52.9 | 68.1 | 38.5 | 54.5 | 54.1 | 94.3 | 129.6 |
| Price/Book | 2.1 | 2.5 | 2.8 | 4.1 | 3.9 | 5.2 | 6.9 | 9.7 | 8.4 | 11.5 | 8.6 | 2.7 | 2.3 |
| Price/Sales | 3.0 | 3.3 | 3.2 | 4.1 | 4.4 | 5.3 | 7.1 | 10.0 | 9.9 | 11.5 | 13.8 | 11.9 | 8.2 |
| FCF Yield | 7.0% | 5.1% | 5.8% | 4.2% | 2.4% | 2.8% | 2.5% | 2.7% | 3.5% | 2.1% | 1.6% | 1.8% | 3.7% |
| Market Cap | 6.4B | 8.0B | 9.0B | 13.5B | 13.4B | 21.2B | 33.9B | 51.5B | 46.3B | 71.0B | 77.4B | 75.7B | 71.5B |
| Avg. Price | 38.93 | 46.74 | 50.80 | 71.29 | 89.76 | 114.72 | 168.94 | 267.06 | 321.87 | 393.95 | 543.60 | 506.83 | 373.47 |
| Year-End Price | 40.47 | 50.58 | 58.37 | 87.19 | 87.51 | 137.29 | 217.82 | 326.78 | 295.84 | 457.00 | 496.18 | 456.83 | 373.47 |
SYNOPSYS INC passes 7 of 9 quality checks, indicating strong fundamentals.
SYNOPSYS INC trades at 57.5x trailing earnings, compared to its 15-year median P/E of 49.0x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 31.4x vs a median of 38.6x. The company's 5-year average ROIC is 20.2% with a gross margin of 76.1%. At current prices, the estimated annualized return to fair value is +15.2%.
SYNOPSYS INC (SNPS) has a net profit margin of 18.9%. This is a healthy margin.
SYNOPSYS INC (SNPS) generated $1.3 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
SYNOPSYS INC (SNPS) has a debt-to-equity ratio of 0.48. This indicates a conservatively financed balance sheet.
SYNOPSYS INC (SNPS) reported earnings per share (EPS) of $8.04 in its most recent fiscal year.
SYNOPSYS INC (SNPS) has a return on equity (ROE) of 7.1%. This indicates moderate shareholder returns.
SYNOPSYS INC (SNPS) has a 5-year average gross margin of 76.1%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 18 years of financial data for SYNOPSYS INC (SNPS), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
SYNOPSYS INC (SNPS) has a book value per share of $170.96, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects sustained strength in AI-driven chip design demand, with particular confidence in adoption of advanced multi-die and chiplet-based architectures through the 3D IC Compiler platform and over 30 full-flow technical wins at advanced nodes in the recent quarter. The company anticipates sequential quarterly improvements in the Design IP segment throughout the second half of fiscal 2026 following a bottoming in Q1, supported by roadmap execution and pipeline strength, though overall IP growth is expected to remain muted for the full year as the business transitions toward higher-value opportunities aligned with AI and hyperscaler customization. Synopsys is focused on monetizing new capabilities such as GPU-accelerated EDA, which is driving both increased customer value and contract uplift, and expects to begin monetizing joint Synopsys-Ansys integrated solutions in fiscal 2027 after delivering the first wave in the first half of 2026. The company is pursuing a new business model for IP focused on customized subsystems and higher-value engagements with hyperscalers, with expectations to share detailed monetization strategy at an investor day in September 2026.
Based on recent SEC filings and earnings calls, SYNOPSYS INC (SNPS) has provided the following forward guidance: Revenue: $9.625 billion–$9.705 billion (FY2026); Non-GAAP Operating Margin: 41% at the midpoint (FY2026); Non-GAAP EPS: $14.72–$14.80 per share (FY2026); Free Cash Flow: approximately $2 billion (FY2026); Q3 FY2026 Revenue: $2.41 billion–$2.46 billion (Q3 FY2026).