Synopsys, Inc. (NASDAQ: SNPS) is back in the spotlight on Friday, December 12, 2025, as investors digest a fresh wave of analyst updates, management’s newly issued fiscal 2026 outlook, and headlines tied to earlier 2025 volatility. SNPS stock was trading around $477 in the latest available data, reflecting a market that’s weighing strong demand for advanced chip-design tools against integration and geopolitical risks.
Below is a detailed roundup of the most current Synopsys stock news, forecasts, and analyses as of 12/12/2025, including what’s moving the stock, what Wall Street is modeling next, and the catalysts (and risks) that could shape SNPS through 2026.
What’s happening with Synopsys stock on Dec. 12, 2025
SNPS is trading in a market environment where AI-linked tech names remain sensitive to guidance and margin narratives. For Synopsys specifically, the near-term conversation is being driven by:
- A strong fiscal Q4 print and upbeat Q1 outlook
- A forecast for a larger fiscal 2026 (with Ansys now inside the numbers)
- A cluster of analyst upgrades and price-target changes
- Ongoing scrutiny tied to earlier-year execution issues in the Design IP business and China exposure
Synopsys shares jumped in reaction to its earnings release earlier this week, with Reuters reporting the stock was up about 5% in extended trading after the company beat expectations for Q4 revenue and posted adjusted EPS ahead of consensus. [1]
Q4 earnings recap: record year, Ansys contribution, and a bigger 2026 setup
Synopsys’ latest earnings update (released Dec. 10, 2025) positioned the company as a key beneficiary of the “complexity cycle” in semiconductors—where AI and advanced computing designs require deeper verification, more simulation, and more software tooling.
Key fiscal 2025 results Synopsys reported
- Record fiscal 2025 revenue:$7.054B
- Fiscal Q4 revenue:$2.255B
- Ansys revenue contribution in Q4:$667.7M
- Backlog:$11.4B (highlighted by management as evidence of resilience) [2]
On profitability:
- Non-GAAP EPS (Q4): $2.90
- Non-GAAP EPS (FY2025): $12.91 [3]
Reuters also framed the quarter in the context of AI spending and advanced chip architectures, noting Synopsys’ “strong demand for chip design tools” as a key driver of the revenue beat. [4]
Synopsys’ 2026 guidance: revenue, EPS, cash flow, and assumptions investors should read carefully
The most market-moving element for SNPS right now is management’s initial fiscal 2026 outlook, which bakes in the company’s post-Ansys profile.
Synopsys’ official targets (issued Dec. 10, 2025)
Fiscal Q1 2026 (ending Jan. 31, 2026)
- Revenue:$2.365B to $2.415B
- Non-GAAP EPS:$3.52 to $3.58 [5]
Full fiscal year 2026 (ending Oct. 31, 2026)
- Revenue:$9.56B to $9.66B
- Non-GAAP EPS:$14.32 to $14.40
- Synopsys also provided targets for operating cash flow (~$2.2B), free cash flow (~$1.9B), and capex (~$300M). [6]
The guidance “fine print” that matters
Synopsys explicitly stated that these targets assume no further changes to export-control restrictions and related U.S. government entity list constraints—an important reminder that geopolitics remains a real swing factor for the EDA and semiconductor design ecosystem. [7]
The Ansys acquisition: why it changes the Synopsys investment narrative
A defining factor in the SNPS stock story is Synopsys’ transformation from a “pure-play EDA + IP” leader into a broader “silicon-to-systems” engineering software platform.
China’s market regulator had conditionally approved the deal earlier in 2025, with Reuters describing the approval as clearing a “last significant regulatory obstacle,” while also requiring commitments around fair access, honoring contracts, and maintaining interoperability arrangements for Chinese customers. [8]
Synopsys has also taken steps linked to regulatory remedies. One of the more concrete examples: Keysight announced it completed the acquisition of Synopsys’ Optical Solutions Group and Ansys’ PowerArtist on Oct. 17, 2025, describing the assets and how they expand Keysight’s design engineering software portfolio. [9]
Nvidia’s $2 billion Synopsys investment: strategic tailwind or valuation complication?
One of the biggest “sentiment drivers” for Synopsys into year-end 2025 has been Nvidia’s decision to buy equity in the company.
Reuters reported on Dec. 1, 2025 that Nvidia invested $2 billion in Synopsys as part of an expanded multi-year partnership to develop AI-powered tools to speed simulation and design workflows across industries. Reuters also emphasized:
- The deal is non-exclusive, according to Synopsys CEO Sassine Ghazi.
- Nvidia bought Synopsys stock at $414.79 per share, described as a small discount to the prior close.
- The companies described accelerating simulations from “weeks to hours” using Nvidia chips. [10]
For SNPS investors, this matters for two reasons:
- It reinforces the idea that Synopsys’ software is becoming more central to the AI-era engineering workflow (not just chip layout).
- It ties the stock’s narrative more tightly to broader AI-capex cycles and market sentiment around “AI trades.”
Analyst forecasts and price targets: what Wall Street is saying as of Dec. 12, 2025
A major reason Synopsys stock is trending in financial news feeds today is a surge of analyst notes following earnings and guidance.
Notable price-target actions in the past 24–48 hours
- Berenberg raised its price target to $540 from $500 (Buy) in a note dated Dec. 12, 2025 (headline report). [11]
- BofA Securities upgraded Synopsys from Neutral to Buy (headline report dated Dec. 11) and referenced an average one-year price target near $559 (as-of Dec. 5 dataset in the report). [12]
- Morgan Stanley raised its target to $550 from $510 (Overweight), while also modeling FY2026 sales and EPS (as described in an analyst write-up). [13]
- JPMorgan lifted its price target to $650 from $600 (as reflected in compiled analyst updates). [14]
- Wells Fargo raised its target to $500 from $445 (Equal-Weight/Hold), as shown in compiled analyst updates. [15]
- Piper Sandler lowered its target to $602 from $630, maintaining Overweight, and flagged organic EDA growth and free cash flow margins as key “nagging items” after the quarter. [16]
Consensus view: moderate-to-strong buy, with mid-to-high teens upside
Depending on the data provider and methodology, consensus price targets are clustering in the mid-$550s:
- StockAnalysis shows a consensus “Strong Buy” with an average target around $563, and a range spanning roughly $425 to $650. [17]
- MarketBeat’s compilation shows an average target around $559, describing the consensus rating as “Moderate Buy,” with similar high/low bounds. [18]
How to read this for Dec. 12: the sell-side is broadly constructive, but the dispersion of targets (roughly low-$400s to $650) signals that investors still disagree on how smoothly Synopsys can scale margins and organic growth while integrating Ansys and navigating regional constraints.
The restructuring story: job cuts, costs, and what it signals about priorities
Synopsys is also in a restructuring phase, which is relevant for both margin outlook and execution risk.
Reuters reported on Nov. 12, 2025 that Synopsys would cut about 10% of its workforce (roughly 2,000 employees), and expected pretax charges of $300M to $350M, primarily for severance and some site closures. Reuters added that Synopsys expected most workforce reductions in fiscal 2026, with the plan substantially completed by the end of fiscal 2027. [19]
Investors typically interpret moves like this in two ways:
- Bull case: faster integration and margin discipline post-Ansys
- Bear case: execution complexity is rising; management is rebalancing because some areas underperformed earlier in 2025
Legal headlines today: class-action alerts tied to the September 2025 drawdown
Another reason SNPS is appearing in “today’s” feeds is the circulation of securities class-action reminders.
A law firm announcement distributed via GlobeNewswire recounts that after Synopsys’ Sept. 9, 2025 results, the company disclosed its “IP business underperformed expectations,” and the stock fell sharply the next day—citing a close of $387.78 on Sept. 10, 2025 after a one-day drop of roughly 36%. [20]
A separate syndicated notice (via MarketScreener/Newsfile) similarly describes a class action and lists a Dec. 30, 2025 deadline for investors to seek lead-plaintiff status (as stated in the notice). [21]
For long-term investors, the key takeaway isn’t the legal language—it’s that the September drawdown remains a visible reference point for the market’s “trust and execution” debate around the Design IP segment.
China and export controls: why this remains a valuation swing factor for SNPS
Synopsys’ China exposure has been a recurring source of uncertainty in 2025.
- Reuters reported in May 2025 that Synopsys halted certain China sales/fulfillment actions in response to U.S. export restrictions, calling out the significance of EDA tools for Chinese chip design and the market share concentration among Synopsys, Cadence, and Siemens EDA. [22]
- Synopsys later issued a statement (July 2, 2025) saying the export restrictions referenced in a May 29 letter had been rescinded effective immediately, and that the company was working to restore access in China. [23]
- Synopsys’ latest financial targets also explicitly assume no further changes in export control restrictions, underscoring that the issue is not “fully gone” as a modeled risk. [24]
In plain English: even if access is restored, the rules can tighten again—making China a continuing source of multiple volatility for SNPS.
Technical and trading analysis circulating today
Beyond fundamentals and analyst targets, some market commentary today is focused on SNPS trading behavior after a dramatic 2025 swing.
One technical-analysis write-up dated Dec. 12, 2025 described SNPS as having seen a sharp rally earlier in 2025 followed by a large correction, with traders watching specific support/resistance zones and moving-average signals. (This is technical rather than fundamental analysis.) [25]
If you’re a long-term investor, this type of analysis is usually most useful as a volatility map—not a thesis on intrinsic value.
What to watch next for Synopsys stock
Here are the most concrete calendar items and catalysts as of Dec. 12:
- Form 10-K timing: Synopsys said it expects to file its fiscal 2025 annual report on or before Dec. 30, 2025. [26]
- Next earnings window: Q1 fiscal 2026 covers the quarter ending Jan. 31, 2026, with guidance already issued. [27]
- Integration and margin execution: the market will keep pressing for clarity on:
- organic growth rates (EDA vs. IP vs. Ansys contribution),
- free cash flow conversion,
- and how restructuring actions translate into sustainable margins. [28]
Bottom line: Synopsys stock outlook as of Dec. 12, 2025
As of 12/12/2025, the SNPS stock narrative is mostly constructive:
- Management is projecting a much larger fiscal 2026 on the top line (helped by Ansys), with firm EPS guidance and explicit cash flow targets. [29]
- Wall Street is largely positive, with multiple target increases and an upgrade cycle following earnings, and consensus targets in the mid-$550s (though the range is wide). [30]
- Strategic positioning is strengthened by Nvidia’s $2B investment and deeper partnership narrative around AI-accelerated simulation and design. [31]
At the same time, investors still have to underwrite real risks:
- legal overhangs tied to the September 2025 drawdown and IP segment concerns, [32]
- export-control uncertainty affecting China exposure, [33]
- and integration + restructuring execution (including the workforce reduction plan). [34]
References
1. www.reuters.com, 2. investor.synopsys.com, 3. investor.synopsys.com, 4. www.reuters.com, 5. investor.synopsys.com, 6. investor.synopsys.com, 7. investor.synopsys.com, 8. www.reuters.com, 9. investor.keysight.com, 10. www.reuters.com, 11. www.marketscreener.com, 12. www.nasdaq.com, 13. www.investing.com, 14. stockanalysis.com, 15. stockanalysis.com, 16. www.tipranks.com, 17. stockanalysis.com, 18. www.marketbeat.com, 19. www.reuters.com, 20. www.globenewswire.com, 21. www.marketscreener.com, 22. www.reuters.com, 23. news.synopsys.com, 24. investor.synopsys.com, 25. www.fxleaders.com, 26. investor.synopsys.com, 27. investor.synopsys.com, 28. www.tipranks.com, 29. investor.synopsys.com, 30. stockanalysis.com, 31. www.reuters.com, 32. www.globenewswire.com, 33. www.reuters.com, 34. www.reuters.com
