What's Going On With Synopsys Shares Thursday?

Synopsys, Inc. (NASDAQ:SNPS) shares are trading lower Thursday despite strong fourth-quarter earnings.

Synopsys shares are experiencing downward pressure. Why is SNPS stock trading lower?

What To Know: Synopsys reported adjusted earnings per share of $2.90, beating the consensus estimate of $2.78. In addition, it reported revenue of $2.25 billion, beating the consensus estimate of $2.24 billion.

Revenue rose from the prior year period, reflecting growth supported in part by contributions from Ansys.

Management highlighted a strong backlog heading into fiscal 2026 and said the quarter marked a solid finish to a year defined by product expansion and integration efforts. Executives emphasized continued focus on innovation, operational efficiency and fully incorporating Ansys as Synopsys advances its engineering solutions platform.

Q1 Outlook: The company sees adjusted earnings per share from $3.52 to $3.58, versus the consensus estimate of $3.31. Furthermore, it sees revenue of $2.36 billion to $2.41 billion, versus the consensus estimate of $2.37 billion.

FY26 Outlook: Synopsys anticipates adjusted earnings per share of $14.32 to $14.40, versus the consensus estimate of $12.85. In addition, it sees revenue of $9.56 billion to $9.66 billion, versus the consensus estimate of $7.04 billion.

Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.

• Piper Sandler analyst Clarke Jeffries maintained an Overweight rating on Synopsys and lowered the price target from $630 to $602.
• Needham analyst Charles Shi maintained a Buy rating on Synopsys and raised the price target from $550 to $580.
• B of A Securities analyst Vivek Arya upgraded Synopsys from a Neutral rating to a Buy rating and raised the price target from $500 to $560.
• Keybanc analyst Jason Celino maintained an Overweight rating on Synopsys and raised the price target from $575 to $600.

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SNPS Price Action: At the time of writing, Synopsys shares are trading 1.09% lower at $470.65, according to data from Benzinga Pro.

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