Synopsys, Inc. (SNPS)
Synopsys provides the essential software tools that engineers use to design and test the complex microchips found in everything from smartphones to cars.
Is Synopsys, Inc. a good stock for a UK beginner?
The honest version: There's no rating here and nothing for sale. In its favour: Dominant position in a critical industry. Worth weighing: High current price relative to recent earnings. Below, we lay out what it does, what its numbers mean, and the honest risks, so you can decide for yourself.
Over about 2 years to 2026-07-31. This is the share price only; any dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
How much has Synopsys, Inc. actually fallen?
Over the last 2 years of daily prices, Synopsys, Inc. fell as much as −42% from a high to a later low. Drops of this size are a normal part of owning a share - worth knowing in advance, so a dip doesn't come as a shock.
Worst peak-to-trough fall in the daily closing price over the period we hold. Past falls are not a forecast - it can fall further, or recover.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Becoming the industry standard for all advanced AI chip development.
Technological shifts making their current tools less relevant.
What does Synopsys, Inc. do?
Think of Synopsys as the architect's toolkit for the digital age; they create the software that allows companies to design intricate computer chips before they are physically manufactured. Subscription fees for these design platforms, along with technical support for chipmakers, are what bring in the cash. How well they fold in their recent acquisitions will decide whether they keep their lead in the fast-changing semiconductor industry.
On our factor screen it looks strongest on quality and growth, and weakest on momentum.
- !Pays no dividend - the whole return rides on the share price
- ✓Growing - revenue up about 42% over the year
- !High P/E of 89 - big growth is already priced in
- ✓Low debt - a sturdier balance sheet
- Dominant position in a critical industry
- Very high profit margins on software sales
- Strong revenue growth figures
- Value screens low (26/100)
- Momentum screens low (11/100)
- Income screens low (16/100)
- Heavy reliance on the cyclical semiconductor industry
- Potential for rapid technological obsolescence
What do Synopsys, Inc.'s numbers mean?
How much money does Synopsys, Inc. make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Synopsys, Inc. pay a dividend?
No - Synopsys, Inc. doesn't currently pay a dividend, so the whole return would rest on the share price. Plenty of growing companies reinvest their profits instead of paying them out - neither approach is better or worse, they're just different.
When does Synopsys, Inc. report earnings, and how did recent quarters go?
Synopsys, Inc. is next scheduled to report on about 2026-08-26 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-05-27 | $3.16 | $3.35 | Beat +6% |
| 2026-02-25 | $3.56 | $3.77 | Beat +6% |
| 2025-12-10 | $2.78 | $2.90 | Beat +4% |
| 2025-09-09 | $3.75 | $3.39 | Missed -9% |
| 2025-05-28 | $3.40 | $3.67 | Beat +8% |
| 2025-02-26 | $2.79 | $3.03 | Beat +9% |
Across the last 6 quarters here, Synopsys, Inc. came in ahead of what analysts expected 5 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
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Hewlett Packard EnterpriseWhat are the scenarios for Synopsys, Inc.?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Synopsys, Inc.?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Dominant position in a critical industry
- Very high profit margins on software sales
- Strong revenue growth: How fast the company's sales grew versus a year ago. figures
- High current price relative to recent earnings
- No dividend payments for shareholders
- Recent earnings drop highlights integration costs
- Heavy reliance on the cyclical: A business whose sales and profits rise and fall with the wider economy - booming in good times, sinking in downturns. Miners, carmakers and banks are classic examples. semiconductor industry
- Potential for rapid technological obsolescence
- Integration challenges from large acquisitions
The write-up's own warning lights — if these start happening, the case above changes.
- A sustained decline in global chip manufacturing investment
- A major competitor releasing a superior design platform
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.