SNPS stock forecast, quote, news & analysis
Synopsys is a provider of electronic design automation software and intellectual property products... Show more
Why Synopsys (SNPS) Is Down -10.5% in the Last 30 Days
Key Takeaways
- SNPS stock declined approximately -10.5% over the last 30 days amid post-earnings selloff and ongoing China headwinds.
- Over the past quarter, the stock fell around -15.8%, reflecting broader sector pressures and export restrictions.
- Q1 earnings beat expectations, but muted guidance due to China slowdown and weaker IP demand drove negative sentiment.
- AI chip design demand supports core EDA business, offset by geopolitical risks and Ansys integration costs.
- Recent volatility shows range-bound trading with downward bias since late February peak.
Synopsys (SNPS) Company Overview and Market Position
Synopsys, Inc. (SNPS) is a leading provider of electronic design automation (EDA) software, semiconductor intellectual property (IP), and software integrity solutions. The company enables the development and testing of complex chips used in AI, 5G, automotive, and high-performance computing applications. Its core business model relies on subscription-based licensing of EDA tools for design, verification, and manufacturing, alongside IP licensing and royalties, generating recurring revenue from major semiconductor firms.
In the highly concentrated EDA market, Synopsys holds a dominant 35-40% share, competing primarily with Cadence Design Systems and Siemens EDA. Strong fundamentals, including high gross margins above 80% and exposure to surging AI infrastructure demand, underpin its position. However, recent stock price movement reflects vulnerabilities to geopolitical tensions and shifts in customer spending, particularly in IP amid AI capacity reallocations.
Synopsys (SNPS) Stock Price Performance: Last 30 Days vs. Quarter
Over the last 30 days, Synopsys (SNPS) stock dropped -10.5%, closing around $402 from approximately $449 at the end of February. The decline followed a volatile path: an initial post-earnings drop from $449 on February 25, a brief recovery to $442 in early March, and steady erosion to recent lows amid high trading volume on down days.
For the past quarter, the stock fell -15.8%, from near $477 in late December 2025 to current levels. Movement was trend-driven downward, with increased volatility around earnings and sector rotation away from software amid macroeconomic uncertainty. Compared to the S&P 500's modest gains, SNPS underperformed, highlighting company-specific pressures.
What Drove SNPS Stock Price in the Last 30 Days
The primary catalyst for SNPS's 30-day decline was the market's reaction to its Q1 fiscal 2026 earnings on February 25. Despite beating estimates with $3.77 non-GAAP EPS (versus $3.57 expected) and $2.41 billion in revenue (up 65.5% year-over-year, aided by Ansys), shares fell over 5% in after-hours due to muted Q2 guidance amid China challenges. Export restrictions halted new chip design projects, causing a slight year-over-year revenue drop in China excluding Ansys, compounded by weaker demand from a major foundry and IP softness from AI chip capacity shifts squeezing consumer device production.
Analyst sentiment shifted, with some like Piper Sandler citing $13.5 billion in Ansys-related debt and ongoing restrictions. Broader market trends, including AI hype cooling and software sector weakness, amplified the selloff, leading to range-bound but downward-biased trading.
What Drove SNPS Stock Performance Over the Last Quarter
The quarterly downturn built on earlier gains from Q4 2025 strength, where revenue rose 37.8% to $2.25 billion on robust EDA demand. However, YTD declines accelerated with AI ecosystem shifts: hyperscalers prioritizing AI chips reduced legacy IP for smartphones and PCs, pressuring Synopsys's IP segment.
Geopolitical factors loomed large, with U.S. export controls to China curbing design starts and entity list impacts. Macro conditions like economic uncertainty and capacity reallocations in semis added headwinds. Despite Ansys integration progress—contributing $886 million in Q1—and AI-driven EDA tailwinds, institutional flows favored cheaper cyclicals, leading to sustained underperformance. Cumulative China exposure and IP weakness had the strongest impact.
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SNPS Stock Forecast Drivers: What Investors Should Watch Next
Investors should monitor Q2 earnings for progress on Ansys synergies, targeting $400 million ahead of schedule, and updates on China revenue amid export controls. Industry trends in AI chip complexity and hyperscaler capex could bolster EDA demand, while IP adaptation to custom ASICs remains key.
The macro environment, including interest rates, semiconductor cycles, and U.S.-China relations, will influence sentiment. Strategic developments like NVIDIA partnerships, new AI design tools, and $2 billion share repurchase execution offer potential offsets. Risks include prolonged restrictions, integration delays, and sector rotation; catalysts may arise from backlog growth nearing $11 billion and automotive simulation expansion.
Disclaimer
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SNPS in upward trend: price expected to rise as it breaks its lower Bollinger Band on March 26, 2026
SNPS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 32 cases where SNPS's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where SNPS's RSI Indicator exited the oversold zone, of 26 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 59 cases where SNPS's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for SNPS just turned positive on April 08, 2026. Looking at past instances where SNPS's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SNPS advanced for three days, in of 346 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on March 18, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on SNPS as a result. In of 74 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SNPS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for SNPS entered a downward trend on April 08, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. SNPS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.459) is normal, around the industry mean (36.448). P/E Ratio (60.207) is within average values for comparable stocks, (138.922). Projected Growth (PEG Ratio) (2.587) is also within normal values, averaging (1.393). SNPS has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.028). P/S Ratio (8.540) is also within normal values, averaging (149.795).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a developer of software based designing solutions for the semiconductor industry
Industry ComputerCommunications