Services-Prepackaged Software · SIC 7372

SYNOPSYS INC

SNPS

Watch

Latest revenue

$2.28B

as of 2026-04-30

Latest net income

$17.1M

as of 2026-04-30

Net margin

0.8%

as of 2026-04-30

7.1
of 10

ActaClear Score

Above avg
#42 of 227 in Services-Prepackaged Software
new
Profitability·25%
7.9
Growth·15%
5.3
Value·20%
6.8
Quality·20%
7.3
Momentum·20%
7.7

Computed from 5 years of SEC fundamentals + latest market data, ranked within Services-Prepackaged Software (227 peers). 10 = best in industry, 5 = median, 0 = worst. Refreshed Jun 6, 2026.

2.33
Price / FV

Fair value · DCF

Deeply overvalued
~57% downside at this growth
13.9% / yr
-5%30%
Terminal growthWACC 9.1% · 10y forecast
Current price
$465
DCF fair value
$200
FCF base (last FY)
$1.33B
Net debt
$10.57B

DCF: 10-year forecast of free cash flow, discounted at the company's WACC, with a Gordon-growth terminal at year 10. FCF is proxied by last fiscal-year net income (proper FCF needs CFO − CapEx by year, which we don't store yet). Drag the slider to test your own growth thesis — the dominant assumption in any DCF is what comes next, not what the math does with it. Beta defaults to 1.0 when not reported.

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Price · 5Y

+12.1% / yr 7.6 pts / yr vs S&P 500 76.7% total
Compare:

Live market

delayed ≤15 min
$464.77
6.01%
Market cap
$88.99B
Enterprise value
$96.62B
P/E (trailing)
66.8×
Forward P/E
P/B
2.92×
Dividend yield
0.0%
52-wk high
$651.73
52-wk low
$376.18
Beta
Shares out
191.5M

5-year trend

What this company does

AI

Synopsys sells electronic design automation software, semiconductor IP, and simulation tools that chipmakers and system designers use to develop and verify integrated circuits. The company earns revenue mainly from time-based software licenses and, increasingly, maintenance and services, with total revenue jumping 65% year-over-year to $2.4 billion. Synopsys just absorbed Ansys, transforming its scale and cost base—evidenced by surging amortization, $118 million in restructuring charges, and a $2 billion equity issuance used to pay down $3.5 billion of acquisition debt.

Generated from SNPS's filing dated 2025-12-22

Key risks

AI
  • Massive Ansys-related amortization: $404M of acquired intangible amortization this quarter crushed operating income to $203M from $252M YoY despite revenue rising 65%.
  • Leverage and interest burden: $10.0B long-term debt drove interest expense to $163M (vs $11M YoY); $3.45B debt repayment plus $2B equity placement signal balance-sheet strain.
  • EPS collapse despite revenue surge: diluted EPS fell to $0.34 from $1.89 as share count jumped to 190.8M and $118M restructuring charges hit results.

Generated from SNPS's filing dated 2025-12-22

Profitability

Gross margin

77.0%

3.4%

Operating margin

13.0%

41.4%

Net margin

18.9%

48.9%

Return on equity

4.7%

81.3%

Return on assets

2.8%

84.0%

Leverage

Debt / equity

0.70×

54.7%

Long-term debt / equity

0.48×

27287.6%

Debt / assets

41.3%

32.1%

Earnings tracker

QuarterRevenueYoYNet incomeYoYNet margin

Q2 2026

2026-04-30

$2.28B+41.9%$17.1M-95.0%0.8%

Q1 2026

2026-01-31

$2.41B+65.5%$65.0M-78.0%2.7%

Q4 2025

2025-10-31

$2.25B+37.8%$448.7M-59.7%19.9%

Q3 2025

2025-07-31

$1.74B+14.0%$242.5M-40.6%13.9%

Q2 2025

2025-04-30

$1.60B+10.3%$345.3M+18.2%21.5%

Q1 2025

2025-01-31

$1.46B-3.7%$295.7M-34.2%20.3%

Q4 2024

2024-10-31

$1.64B$1.11B68.1%

Q3 2024

2024-07-31

$1.53B+12.7%$408.1M+21.4%26.7%

Year-over-year change vs the same fiscal quarter one year prior. Revenue + net income sourced from SEC 10-Q / 10-K filings — no analyst-consensus dependency.

Industry trend

Services-Prepackaged Software · SIC 7372

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Insider activity

Insider buying

$148.9K

Insider selling

$23.0M

Net activity

−$22.8M

Distinct insiders

6

Open-market trades over the last 365 days.

Recent transactions

DateInsiderTypeSharesPriceValue
2026-01-12

Janet Lee

GC & Corporate Secretary

Sale250$530.00$132.5K
2026-01-07

Janet Lee

GC & Corporate Secretary

Sale250$510.00$127.5K

Source: SEC Form 4 filings. Officers, directors, and 10%+ owners must disclose share transactions within two business days. RSU grants and tax-withholding rows are excluded by default — compensation activity is not a trading signal.

Who owns SNPS

Institutional value

$21.41B

Total shares held

55.2M

Distinct holders

731

As of

2026-03-31

Filers with $100M+ AUM disclose holdings 45 days after quarter end.

Top institutional holders

#ManagerSharesValueQoQ changeAction
1VANGUARD CAPITAL MANAGEMENT LLC12.4M$4.93BNew
2VANGUARD PORTFOLIO MANAGEMENT LLC4.7M$1.88BNew
3UBS Group AG1.9M$763.3MNew
4Invesco Ltd.1.9M$750.1MNew
5Assenagon Asset Management S.A.1.8M$697.9MNew
6Mitsubishi UFJ Asset Management Co., Ltd.1.7M$658.0MNew
7Bank of New York Mellon Corp1.6M$616.8MNew
8PARNASSUS INVESTMENTS, LLC1.5M$579.0MNew
9Nuveen, LLC1.4M$562.0MNew
10Legal & General Group Plc1.2M$470.8MNew
11VANGUARD FIDUCIARY TRUST CO1.1M$434.9MNew
12Swedbank AB990.9K$392.9MNew
13Sumitomo Mitsui Trust Group, Inc.936.6K$371.3MNew
14DEUTSCHE BANK AG\909.4K$360.6MNew
15Sustainable Growth Advisers, LP901.0K$357.2MNew
16PRIMECAP MANAGEMENT CO/CA/822.4K$326.1MNew
17Vontobel Holding Ltd.676.3K$268.1MNew
18Swiss National Bank561.5K$222.6MNew
19Pictet Asset Management Holding SA494.6K$196.1MNew
20Employees Provident Fund Board494.3K$196.0MNew

Source: SEC Form 13F-HR. Positions aggregated across sub-managers within each firm. Options (puts/calls) excluded — common stock only.

Top questions investors are asking

AI
  1. 1

    Operating margin collapsed to 8.4% from 17.3% YoY despite 65% revenue growth—how much of the $404M acquired-intangible amortization and $118M restructuring is recurring versus one-time?

  2. 2

    You raised $2B equity and repaid $3.45B debt this quarter, yet still carry $10B long-term debt post-Ansys—what's the targeted leverage ratio and timeline given $162M quarterly interest expense?

  3. 3

    Upfront product revenue doubled to $742M while time-based grew only 15%—is this Ansys mix-shift sustainable, or are you pulling forward deals to mask EDA softness?

Refreshed when SNPS files a new report · last from 2025-12-22

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