New York, May 23, 2026, 11:05 EDT
Synopsys shares got a late-week boost, jumping 4.12% Friday to finish at $524.74. Investors added positions in the chip-design software firm ahead of a holiday week and the company’s upcoming earnings. The stock came back from early losses, ending the week up about 4.4% after falling on Monday and Tuesday.
Nasdaq is closed Monday, May 25, for Memorial Day, so there’s no U.S. cash trading until regular hours resume—9:30 a.m. to 4 p.m. Eastern—on the next trading day. Synopsys plans to post fiscal Q2 numbers after the bell on Wednesday, May 27. The earnings call starts at 5 p.m. Eastern.
Stocks got a boost from the broader market. The S&P 500 finished up 0.4% Friday, its eighth weekly gain in a row. The Nasdaq Composite gained 0.2% for the day and ended the week up 0.5%, according to the Associated Press.
Synopsys provides EDA software, used by engineers for chip design and verification, and licenses semiconductor IP, which are pre-made circuit blocks sold to customers. This year, Synopsys brings in Ansys, the engineering simulation software firm it picked up last year, for its first full fiscal year under the Synopsys umbrella.
Synopsys is looking for revenue of $2.225 billion to $2.275 billion and adjusted earnings of $3.11 to $3.17 a share for the quarter out next week. These adjusted numbers exclude acquisition amortization, stock compensation and restructuring charges. Back in February, CEO Sassine Ghazi said “AI continues to fuel robust system-level and semiconductor R&D.” CFO Shelagh Glaser pointed to “strong execution and financial discipline” in first-quarter numbers. Synopsys Investor Relations
Wall Street sentiment turned positive heading into the results. Goldman Sachs analyst James Schneider kept his Buy rating and held the $600 price target, according to TipRanks. Schneider said Synopsys appeared “relatively shielded from AI-related disruption” and stood to gain from more custom chip design orders. TipRanks
Traders also picked up shares in chip-design software stocks. Cadence Design Systems, the main listed EDA competitor to Synopsys, added 4.22% Friday to end at $373.59. That marked a third gain in a row, MarketWatch reported.
The trade faces some headwinds. In February, Reuters reported Synopsys was still contending with China export curbs, lower demand from a key foundry customer, and its IP business took a hit, with revenue there down over 6% in Q1. On the call, Glaser said China revenue, not counting Ansys, was down a bit from a year ago.
Ansys is another concern. Synopsys closed its about $35 billion deal in July 2025, saying it would let the company go wider in silicon design, IP, simulation and analysis. The company said the first joint features could arrive in the first half of 2026. Ghazi called it a “transformational milestone,” but investors now want to see if integration costs, debt and product overlap cut into earnings growth. Synopsys News Releases
Synopsys ended Friday with a market cap near $100.1 billion and a PE over 80, market data shows. There’s not much room if management turns cautious on China, chip IP demand, or its Ansys synergies in its outlook.
Narrow trading week coming up: markets are shut Monday, Tuesday is the only full session, and Synopsys reports after the close on Wednesday. For Synopsys, the focus has shifted. AI chip spending isn’t the question. Now it’s whether demand is strong and wide enough to back up the rally in the stock.
