NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-08-31
Reading SNPS? Create a free portfolio, then add this holding for ongoing Reports and tracking. Track it in a free portfolio. No credit card.
Create your account →Warn: Primary pillar under pressure — Revenue reaches about $9.665 billion in fiscal 2026: FY26 rev $9.66B vs $9.66B target; Q3 YoY +42.0% vs 17% trip.
Synopsys grows revenue to about $9.7 billion in fiscal 2026. Profit per share is expected near $14.8. The company buys back shares with a $2 billion program. It leads in chip design software and security tools.
Sales growth could slow below 17% next year. Profit margins might shrink. Share buybacks may not continue as planned.
The price is about 3% below our fair value near $450. Analysts expect 17% revenue growth. Our fair value is 18% below the Street median.
Breaks if: Buyback program is canceled or significantly reduced
Breaks if: EPS falls below $14.4 next year
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on technology and AI-driven demand. The current thesis state is intact, supported by strong recent financial performance despite some volatility in management execution.
The market currently prices SNPS at a premium compared to its peers, reflecting expectations of continued growth. However, there is a slight expectations gap, indicating that the market is not fully factoring in potential execution risks.
Management is on track to achieve double-digit revenue growth and improve operating margins through cost discipline. However, the fragility of earnings quality and recent history of misses in the industry present a near-term risk.
The long-term thesis hinges on the performance of sector bellwethers like Microsoft, Oracle, and Palantir. If these companies continue to beat earnings and guide higher, it could positively impact SNPS. Conversely, any negative guidance from these peers could pose a risk to SNPS's momentum.
The most important moves since the prior daily snapshot.
Signal changed from 'mixed' to 'mild_favorable'.
Yes, our read has strengthened. Synopsys beat earnings expectations and raised revenue guidance. The company reported 42% year-over-year revenue growth in Q2 FY2026. This growth supports a positive outlook for fiscal 2026. There are no new threats identified that weaken this view.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Synopsys aims to achieve a revenue target of $9.665 billion for fiscal year 2026.
Breaks if: Revenue growth falls below ~17% next year
Synopsys aims to achieve a revenue target of $9.665 billion for fiscal year 2026.
Overall, SNPS is navigating a complex landscape with strong fundamentals but elevated risks. Not investment advice.
