Synopsys (SNPS) stock
Information Technology · Application Software
Synopsys (SNPS) is an Application Software company in the Information Technology sector, headquartered in Sunnyvale, California. As of October 23, 2026, SNPS closed at $430.14, a market capitalization of $82.43 billion, the 151st largest company in the S&P 500. Over the last twelve months it generated $9.42 billion in revenue (+42% year over year) and $2.75 billion in free cash flow. The stock trades at 76.0x trailing earnings and 23.0x forward earnings.
- 1-year total return: -5.7% (dividends reinvested)
- 5-year return: +6.0% a year
- 52-week range: $362.55 – $539.48
- Gross margin 82.9%, operating margin 14.5%
- FI Handbook report card: C across 10 metrics
- 36th largest of 75 Information Technology stocks in the S&P 500
SNPS price chart
1Y price change: -5.7% (price only; total returns below include dividends)
| Total return | 1M | YTD | 1Y | 3Y | 5Y | 10Y | MAX |
|---|---|---|---|---|---|---|---|
| SNPS | +4.1% | -8.4% | -5.7% | -2.8% | +6.0% | +21.9% | +12.2% |
Dividends reinvested. 3Y and longer are annualized; MAX is annualized since 1992.
SNPS key statistics
- Market cap
- $82.4B
- #151 in S&P 500
- P/E (TTM)
- 76.0x
- Forward P/E
- 23.0x
- EPS (TTM)
- $5.66
- Revenue (TTM)
- $9.4B
- +42%
- Free cash flow
- $2.7B
- Gross margin
- 82.9%
- Operating margin
- 14.5%
- Return on equity
- 3.7%
- Dividend yield
- None
- 52-week range
- $362.55 – $539.48
- Beta
- 1.21
- Price / sales
- 8.8x
- EV / EBITDA
- 43.2x
- Debt / equity
- 0.35x
- Employees
- 28,000
SNPS report card
CTen fundamentals graded A to F against fixed thresholds. Not a buy or sell rating.
- Revenue growth42.4%A
- Gross margin82.9%A
- Operating margin14.5%C
- FCF margin29.2%A
- Return on equity3.7%F
- Net debt / EBITDA3.5xD
- Forward P/E23.0xC
- PEG ratio2.2xD
- Shareholder yield0.0%F
- Share count change / yr1.2%D
Synopsys financials
Revenue went from $2.4B in fiscal 2016 to $7.1B in fiscal 2025, growing 12.6% a year.
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $2.4B | $2.7B | $3.1B | $3.4B | $3.7B | $4.2B | $4.6B | $5.3B | $6.1B | $7.1B |
| Gross profit | $1.9B | $2.1B | $2.4B | $2.6B | $2.9B | $3.3B | $3.7B | $4.3B | $4.9B | $5.4B |
| Operating income | $317.4M | $347.6M | $360.2M | $520.2M | $620.1M | $734.8M | $1.1B | $1.3B | $1.4B | $914.9M |
| Net income | $266.8M | $136.6M | $432.5M | $532.4M | $664.3M | $757.5M | $984.6M | $1.2B | $2.3B | $1.3B |
| EPS (diluted) | $1.73 | $0.88 | $2.82 | $3.45 | $4.27 | $4.81 | $6.29 | $7.92 | $14.51 | $8.04 |
| Free cash flow | — | $562.2M | $325.4M | $602.4M | $836.6M | $1.4B | $1.6B | $1.5B | $1.3B | $1.3B |
| Buybacks | $400.0M | $380.0M | $400.0M | $329.2M | $242.1M | $753.1M | $1.1B | $1.2B | $0 | $0 |
| Diluted shares | 154.7M | 154.9M | 153.4M | 154.2M | 155.7M | 157.3M | 156.5M | 155.2M | 155.9M | 165.7M |
Source: SEC filings (10-K XBRL). EPS and share counts are split-adjusted.
What's priced into SNPS?
A reverse DCF asks what growth the current price requires. With an enterprise value of $89.7B and $2.7B of trailing free cash flow, Synopsys needs to grow free cash flow about 23.1% a year for ten years (fading to 3.0% terminal growth) to earn a 10% annual return. For context, free cash flow grew 10.0% a year over the last five years.
P/E ratio history
Current 53.5x vs. median 37.9x (10th–90th percentile 17.7x–72.7x).
A model, not a forecast or advice. Small changes in assumptions move the answer a lot.
SNPS analyst price targets
25 analysts' average 12-month target is $586.95 (+36% vs. $430.14). Targets range from $475.00 to $700.00. 96% rate it a buy.
SNPS earnings
Next report: December 9, 2026. Synopsys has beaten EPS estimates 4 quarters in a row. Last quarter's revenue was $2.5B (+42% year over year).
| Report date | EPS estimate | EPS actual | Surprise |
|---|---|---|---|
| Aug 26, 2026 | $3.67 | $3.91 | +6.4% |
| May 27, 2026 | $3.16 | $3.35 | +6.0% |
| Feb 25, 2026 | $3.56 | $3.77 | +6.0% |
| Dec 10, 2025 | $2.78 | $2.90 | +4.2% |
| Sep 9, 2025 | $3.75 | $3.39 | -9.5% |
| May 28, 2025 | $3.40 | $3.67 | +8.0% |
| Feb 26, 2025 | $2.79 | $3.03 | +8.6% |
| Dec 4, 2024 | $3.30 | $3.40 | +3.0% |
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SNPS news
- Synopsys (SNPS) Rises As Market Takes a Dip: Key Facts · Oct 23, 2026
- Wall Street Analysts See Synopsys (SNPS) as a Buy: Should You Invest? · Oct 23, 2026
- What Morgan Stanley Sees In Synopsys Stock And Its AI Software Shift · Oct 22, 2026
- Synopsys (SNPS) Sees a More Significant Dip Than Broader Market: Some Facts to Know · Oct 22, 2026
- Synopsys Undervalued as Market Overlooks AI Revenue Opportunity, Morgan Stanley Says · Oct 20, 2026
SNPS stock FAQ
What is SNPS's market cap?
Synopsys's market capitalization is $82.43 billion as of October 23, 2026, ranking 151st in the S&P 500.
What is SNPS's P/E ratio?
SNPS trades at a trailing price-to-earnings ratio of 76.0x and a forward P/E of 23.0x. Its median P/E over the period we track is 37.9x.
Does SNPS pay a dividend?
No. Synopsys does not currently pay a regular cash dividend.
How much has SNPS stock returned?
Including reinvested dividends, SNPS returned -5.7% over one year, +6.0% a year over five years, +21.9% a year over ten years through October 23, 2026.
Is SNPS stock overvalued?
At today's price, a reverse discounted cash flow model (10% discount rate, 3% terminal growth) implies Synopsys must grow free cash flow about 23% a year for the next decade. Its free cash flow grew 10% a year over the last five years. Whether that is achievable decides if the stock is cheap or expensive. This is a model, not advice.
What is the SNPS price target?
25 analysts cover SNPS with an average 12-month price target of $586.95, +36% from the current price. 96% of them rate it a buy.
When does SNPS report earnings?
Synopsys is expected to report earnings on December 9, 2026. It has beaten EPS estimates 4 quarters in a row.
How many employees does Synopsys have?
Synopsys has about 28,000 full-time employees, or $336,302 of revenue per employee.
Sources: SEC EDGAR filings, Yahoo Finance market data (delayed), FI Handbook calculations. Last close October 23, 2026. Methodology