Synopsys, Inc. (SNPS) Stock

Synopsys, Inc. (SNPS) is a Technology stock trading at $383.00 (as of 2026-07-17), with a market capitalization of $73.34B and a trailing P/E of 94.8. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Synopsys, Inc. develops electronic design automation software and related IP used to design and test integrated circuits. It offers design and verification platforms, FPGA-related design products, and libraries/processor tools, alongside intellectual property for interfaces, analog and mixed-signal blocks, system-on-chip infrastructure, security, and other components serving semiconductor and electronics companies.

Understand Synopsys, Inc.: how it makes money

Synopsys provides electronic design automation (EDA) software products and design IP used to design and test integrated circuits, selling platform software for design implementation, verification, prototyping and debug, plus intellectual property for common interface standards.

Synopsys appears to earn profits primarily from selling high-value software platforms and design IP, supported by very high gross margin (72.3%), while a comparatively modest operating margin (5.3%) means earnings depend on keeping operating costs controlled as the company scales demand for its software and IP offerings.

Business quality (Mixed): High gross margin supports the software value proposition, but the modest operating margin indicates profitability is sensitive to operating expense levels and revenue durability.

Valuation: Trades at 104× trailing earnings · $87B market cap.

Bull case

  • Broad EDA platform coverage: Its Fusion Design Platform, Verification Continuum Platform, and FPGA design products span digital design implementation, verification (including static and formal verification), simulation, emulation, FPGA-based prototyping, and debug.
  • Wide IP portfolio: It offers intellectual property solutions for multiple interface standards (including USB, PCI Express, DDR, Ethernet, SATA, MIPI, and HDMI), which can support reuse across many customer designs.

Bear case

  • Limited operating margin buffer: With operating margin at 5.3% versus gross margin at 72.3%, earnings have less room to absorb cost increases or revenue softness.
  • Potential concentration in semiconductor design spending cycles: Because the products are used to design and test integrated circuits, results may be sensitive to changes in how semiconductor customers budget for EDA software and design IP.
Valuation — source: SEC EDGAR (first-party)
Price$383.00
Market Cap$73.34B
P/E Ratio94.8
EV / EBITDA32.6
Price / Book2.41
Price / Sales8.45
FCF Yield4.9%
DCF Value (model)$240.90
DCF Upside vs Price-37.1%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$7.05B
Net Margin18.9%
Revenue Growth (YoY)41.9%
EPS Growth (YoY)-96.0%
FCF Growth (YoY)1151.0%
Financial Health — source: SEC EDGAR
Altman Z-Score2.77 (grey)
Piotroski F-Score3/9 (weak)
Valuation vs Sector & Industry
Stock P/E94.8
Sector P/E (Technology)34.7
Industry P/E (Business Services)30.7
vs Sector173.5%
vs Industry208.7%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderVANGUARD GROUP INC ($8.67B)
Institutional Holders Tracked10
Congressional Trades (recent)10
Company
SectorTechnology
IndustryBusiness Services
CEOSassine Ghazi
Employees20,000
CountryUS
IPO Date1992-02-26

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SNPS earnings history · SNPS institutional & insider holders · SNPS KPIs & operating metrics · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-07-17.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.