Synopsys is a provider of electronic design automation software and intellectual property products... Show more
Synopsys is one of the world's leading providers of electronic design automation (EDA) software and semiconductor intellectual property (IP). Its tools and IP are used across the chip-design workflow, from architecture and verification to sign-off, helping engineers manage the growing complexity of advanced semiconductors. Following its acquisition of Ansys, the company has also expanded into simulation and multiphysics analysis, positioning itself across design, verification, and system-level engineering. Its primary EDA rival is Cadence Design Systems (CDNS). Investors follow the stock closely because Synopsys sits at the center of secular trends including artificial intelligence, custom silicon, and advanced packaging, and because its recurring software model supports high margins and durable cash flow.
Over the last 30 days, Synopsys shares advanced approximately 17.8%, rising from a close of about $415.97 on September 2 to $489.90 on October 2. The path was not a straight line. The stock retraced through mid-September, touching a closing low near $367.70 on September 15, before a steady recovery gave way to a sharp, roughly 13% single-day surge on October 1 following the company's investor day presentation.
Measured over roughly the last quarter, the move has been more modest but still positive. From a close of about $437 in early July, the shares finished near $490, a gain of roughly 12%. That quarterly figure masks considerable volatility: a steep pullback in mid-July, a rebound on late-August earnings, a September dip, and finally the early-October rally. The overall trend has been a V-shaped recovery with strong momentum into the end of the period.
The dominant catalyst was Synopsys's September 30 investor day, where management reset expectations higher. The company guided fiscal 2027 revenue to approximately $11.15 billion at the midpoint, up about 15% year over year and above consensus, with non-GAAP earnings per share of $19.04 to $19.12 and a non-GAAP operating margin of roughly 44% at the midpoint. Management also announced plans to repurchase about $1 billion in stock and to return up to 50% of free cash flow to shareholders, while targeting roughly 50% non-GAAP operating margin and mid-teens revenue growth by fiscal 2030.
Two partnerships amplified the reaction. Synopsys and OpenAI agreed to co-develop "GPT-Synopsys," a revenue-sharing AI model for chip design, while a separate multi-year agreement with Amazon Web Services, valued at more than $1 billion, will embed Synopsys silicon IP and engineering software into Amazon's custom Nitro, Graviton, and Trainium chips. Together, these deals were seen as evidence that AI is expanding Synopsys's addressable market rather than displacing its EDA tools. Earlier in the period, sentiment was also supported by strong fiscal third-quarter results reported in late August, when revenue reached $2.477 billion and non-GAAP EPS came in at $3.91, both above guidance.
The quarterly narrative centers on a volatile recovery. In mid-July, the stock fell sharply before finding a base in the high $360s to low $370s, reflecting a period of profit-taking and cautious risk appetite across high-valuation software names. That weakness reversed when Synopsys reported fiscal Q3 results in late August: revenue grew roughly 42% year over year including Ansys, and management raised its full-year outlook, reigniting confidence in the integration of the Ansys business and in resilient design-automation and IP demand.
For the remainder of the quarter, the stock consolidated as investors awaited greater clarity on the company's multi-year growth trajectory. That clarity arrived at the investor day, when above-consensus fiscal 2027 guidance, a defined margin-expansion path, and the OpenAI and AWS agreements converted cautious positioning into renewed buying. The broader theme is that Synopsys is increasingly viewed not only as a stable EDA tollbooth but as a direct beneficiary of the build-out of custom AI silicon.
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Looking ahead, investors will monitor execution against the new fiscal 2027 targets, particularly whether the EDA business sustains double-digit growth and whether the Ansys integration continues to deliver cost synergies ahead of schedule. The OpenAI and AWS agreements are early-stage, so updates on adoption and revenue contributions will be closely scrutinized. Upcoming earnings reports and guidance revisions will test whether the company can maintain its raised margin trajectory. Broader factors, including AI infrastructure spending, custom-silicon demand from hyperscalers, semiconductor cyclicality, and valuation sensitivity to interest rates, also remain relevant. As with any single-day, news-driven move, the sustainability of the rally will depend on consistent fundamental follow-through rather than headline momentum alone.
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The 10-day moving average for SNPS crossed bullishly above the 50-day moving average on September 29, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 85%.
The Momentum Indicator moved above the 0 level on September 21, 2026. You may want to consider a long position or call options on SNPS as a result. In 54 of 79 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 68%.
The Moving Average Convergence Divergence (MACD) for SNPS just turned positive on September 22, 2026. Looking at past instances where SNPS's MACD turned positive, the stock continued to rise in 33 of 45 cases over the following month. The odds of a continued upward trend are 73%.
SNPS moved above its 50-day moving average on September 21, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +18.18% 3-day Advance, the price is estimated to grow further. Considering data from situations where SNPS advanced for three days, in 249 of 339 cases, the price rose further within the following month. The odds of a continued upward trend are 73%.
The Aroon Indicator entered an Uptrend today. In 150 of 239 cases where SNPS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 63%.
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 61%.
SNPS broke above its upper Bollinger Band on October 01, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is 29 (best 1 - 100 worst), pointing to outstanding 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 Price Growth Rating for this company is 39 (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 Profit vs. Risk Rating rating for this company is 63 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock slightly better than average.
The Tickeron Valuation Rating of 70 (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 (2.569) is normal, around the industry mean (17.861). P/E Ratio (72.881) is within average values for comparable stocks, (159.605). Projected Growth (PEG Ratio) (2.237) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.004) among similar stocks. P/S Ratio (7.675) is also within normal values, averaging (104.490).
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued 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 SMR rating for this company is 86 (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.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of software based designing solutions for the semiconductor industry
Industry ComputerCommunications