Why did Synopsys (SNPS) stock move recently?

On 8/27/2026, Synopsys moved +10.5% — Synopsys reported fiscal Q3 revenue just under $2.5bn, up about 42% year on year, with EPS of $3.91 versus $3.67 expected, and raised full-year guidance, citing AI-driven complexity in chip design. This is MarketChacha's decoded reason from filings and credible news; it is education, not buy/sell advice.

Is Synopsys (SNPS) overvalued or fairly valued?

MarketChacha shows Synopsys's valuation in context — a trailing P/E of about 93.8, a forward P/E of about 24.4, a price-to-book of about 2.8 — alongside its revenue and profit growth and whether reported profit converts into operating cash, so you can judge value for yourself. MarketChacha does not issue ratings, price targets, or buy/sell advice.

Does Synopsys's reported profit turn into cash?

Over 3 years, about 96% of reported profit turned into operating cash — most of it, but worth reading alongside the cash-flow statement. MarketChacha computes this cash-conversion check (0.96×) from reported figures — education, not a rating.

What is Synopsys's revenue?

Synopsys reported revenue of $7.1B for FY2025, with net profit of $1.3B, per official filings.

What is the share price of Synopsys (SNPS)?

Synopsys last traded at $447.62 (-1.5% on the day), as of 10/20/2026 — a delayed quote shown for education, not investment advice.

Synopsys

SNPS · NASDAQ · Technology · United States

Snapshot

TickerSNPS

ExchangeNASDAQ

SectorTechnology

IndustrySoftware - Infrastructure

CountryUnited States

Employees28,000

HeadquartersSunnyvale, United States

Websitewww.synopsys.com

Filings tracked20

About Synopsys

Synopsys, Inc. provides design IP solutions in the semiconductor and electronics industries. It operates in two segments, Design Automation and Design IP. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; FPGA design products that are programmed to perform specific functions; synopsys technology computer-aided design (TCAD), mask synthesis, and manufacturing analytic solutions; and AI-driven EDA solutions. It also provides pre-verified and silicon-proven IP solutions, logic libraries and embedded memories, processor and security solutions, IP Offerings for the automotive market, SOC infrastructure IP, data path and building block IP, and mathematical and floating-point components. Synopsys, Inc. has a strategic collaboration with Arm Holdings plc for development of AGI CPU that provides solutions across its full-stack design portfolio including EDA, interface IP, and hardware-assisted verification (HAV). It has a strategic partnership with OpenAI to revolutionize the design of semiconductors. Synopsys, Inc. has a strategic agreement with Amazon to accelerate Amazon's custom silicon innovation and advance the development of complex AI-powered products and cloud infrastructure. The company was incorporated in 1986 and is headquartered in Sunnyvale, California.

Who owns it

Insiders3.0%
Institutions93.2%
Public & other3.8%

2,081 institutional holders

Ownership breakdown from public market data.

Top holders

Blackrock Inc.8.46%
Vanguard Capital Management LLC6.53%
State Street Corporation4.73%
Invesco Ltd.3.15%
FMR, LLC3.13%
Nvidia Corp2.52%
Geode Capital Management, LLC2.35%
Vanguard Portfolio Management LLC2.34%

Largest institutional holders — last updated 6/30/2026.

Forensic scorecard

Over 3 years, about 96% of reported profit turned into operating cash — most of it, but worth reading alongside the cash-flow statement.

Cash conversion0.96×

Over 3 years, about 96% of reported profit turned into operating cash — most of it, but worth reading alongside the cash-flow statement.

Net margin trend23.1% → 18.9%

Margin has compressed by about 4.2 points over the period — profitability is trending down.

Return on equity4.7%

Latest ROE of 4.7% is on the low side — the business earns a modest return on shareholder capital.

Growth qualityrev 15% · PAT 4%

Profit growth is broadly tracking revenue growth — the earnings trend looks operational rather than one-off.

Computed by MarketChacha from reported figures (SEC XBRL). Education, not a rating or recommendation.

What's expected next

Next quarter

Rev $2.7B · EPS 4.45

Est. earnings growth +17.9%

Next fiscal year

Rev $11.0B · EPS 18.67

Est. earnings growth +23.3%

Analyst consensus estimates — not the company's own guidance.

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P/E ROE ROCE Margins Market cap

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Financials at a glance

Source: SEC XBRL

Annual

Quarterly · last 8

Revenue (FY2025)

$7.1B

Net margin

18.9%

ROE

4.7%

Revenue CAGR (2y)

+15.2%

Profit CAGR (2y)

+4.1%

EPS (FY2025)

8.04

Net profit (FY2025)

$1.3B

Ask MarketChacha about SNPS

Get a cited, plain-English answer — the “why”, not just data. Finance research only, never buy/sell advice.

Why it moved

Aug 27, 2026
Synopsys reported fiscal Q3 revenue just under $2.5bn, up about 42% year on year, with EPS of $3.91 versus $3.67 expected, and raised full-year guidance, citing AI-driven complexity in chip design.
source 1 ↗source 2 ↗· confidence: high
Aug 25, 2026
Synopsys rose ahead of its Aug 26 Q3 earnings on positive analyst commentary (Rosenblatt preview) citing ~40% YoY revenue growth driven by AI/EDA demand and the Ansys acquisition contribution, plus reaffirmed Buy rating and $575 target.
source 1 ↗source 2 ↗source 3 ↗· confidence: medium

Daily moves with the verified reason behind them. Education only — not investment advice.

On MarketChacha

Posts about SNPS

Synopsys popped 13% on a 42% revenue jump — most of that 42% isn't growthc/usmarkets · 8/28/2026▲ 0

Financials

Yearly

Period	Revenue	Net profit	EPS	Net margin	ROE
FY2025	$7.1B	$1.3B	8.04	18.9%	4.7%
FY2024	$6.1B	$2.3B	14.51	36.9%	25.2%
FY2023	$5.3B	$1.2B	7.92	23.1%	20.0%

Quarterly

Period	Revenue	Net profit	EPS	Net margin
2026Q3	$2.5B	$545.8M	2.84	22.0%
2026Q2	$2.3B	$17.1M	0.09	0.8%
2026Q1	$2.4B	$65.0M	0.34	2.7%
2025Q3	$1.7B	$242.5M	1.50	13.9%
2025Q2	$1.6B	$345.3M	2.21	21.5%
2025Q1	$1.5B	$295.7M	1.89	20.3%
2024Q3	$1.5B	$408.1M	2.61	26.7%
2024Q2	$1.5B	$292.1M	1.88	20.1%
2024Q1	$1.5B	$449.1M	2.89	29.7%
2023Q3	$1.4B	$336.3M	2.17	24.8%
2023Q2	$1.3B	$272.9M	1.76	21.6%
2023Q1	$1.4B	$271.5M	1.75	19.9%

Figures as reported, in reporting currency. Source: SEC XBRL.

Filings & announcements

2026

8-K — Results of operations, Exhibits
SEC8/26/2026material
8-K/A — Costs from exit/disposal
SEC8/26/2026
10-Q filing
SEC8/26/2026
8-K — Executive/director change
SEC8/12/2026material
8-K — Results of operations, Exhibits
SEC5/27/2026material
8-K — Material agreement, Executive/director change, Reg FD disclosure
SEC5/27/2026material
10-Q filing
SEC5/27/2026
8-K — Executive/director change, Shareholder vote results, Exhibits
SEC4/20/2026material
8-K — Other events, Exhibits
SEC3/2/2026material
8-K — Results of operations, Other events, Exhibits
SEC2/25/2026material
10-Q filing
SEC2/25/2026
8-K — Executive/director change, Reg FD disclosure
SEC2/19/2026material

2025

10-K filing
SEC12/22/2025
8-K — Results of operations, Exhibits
SEC12/10/2025material
8-K — Unregistered equity sale, Reg FD disclosure, Exhibits
SEC12/1/2025material
8-K — Costs from exit/disposal
SEC11/12/2025material
8-K — Executive/director change, Reg FD disclosure
SEC11/4/2025material
8-K/A — Executive/director change
SEC9/18/2025
8-K — Results of operations, Exhibits
SEC9/9/2025material
10-Q filing
SEC9/9/2025

In the news

Education and discussion only — not investment advice. Financials from official filings (SEC/BSE) and reported company statements; market figures (delayed market data) are delayed and shown for reference only. Verify with the linked sources before acting.