SNPS

Synopsys's stock has experienced significant movements in the past six months. In fiscal Q2 2026, the company beat earnings estimates, but a 6% year-over-year revenue fall in its high-margin Design IP business contributed to a stock decline into August 2026. Despite this, Synopsys beat estimates in fiscal Q3 2026 with EPS of $3.91 and revenue up 42.4% year-over-year to $2.48 billion, driven by strong EDA demand, AI-related design activity, and contributions from the Ansys acquisition. Following the strong Q3 report, management raised its fiscal 2026 guidance. In October 2026, Synopsys's stock surged by 10.8% on strong FY27 guidance. The company also secured a major multi-year deal with Amazon exceeding $1 billion for custom silicon innovation, combining licenses with production-linked royalties. As of October 2, 2026, Synopsys was trading at approximately 87x trailing GAAP earnings.