Synopsys, Inc. (Nasdaq: SNPS) is back in the spotlight on December 17, 2025, with investors weighing a fresh round of securities class-action reminders against a much bigger strategic narrative: the company’s post-Ansys transformation, new AI-accelerated engineering partnerships, and a 2026 outlook that management believes can deliver another record year.
As of the latest available trading update on Dec. 17, SNPS traded around $457.90, down about 1.17% on the day, after opening near $465.31 and moving between roughly $455.98 and $474.32 intraday.
Below is what’s driving Synopsys stock right now, what the latest forecasts are signaling, and what investors will likely watch next.
Synopsys stock price check: Where SNPS stands on Dec. 17, 2025
Synopsys shares have been navigating a volatile stretch. The stock is well below its 52-week high (reported at $651.73) and above recent lows cited by tracking services, underscoring the “two-speed” story investors have followed in 2025: strong long-term demand for chip design and simulation tools, but near-term execution and segment-mix turbulence. [1]
Quick numbers investors are referencing today:
- Price (intraday / last update): about $457.90
- Intraday range: roughly $455.98–$474.32
- 52-week high:$651.73 [2]
- Street view (consensus target tracking): about $562 average target with Moderate Buy consensus (methodologies vary by platform). [3]
Today’s headline risk: Securities fraud class-action notices resurface
A notable portion of Dec. 17 coverage around Synopsys stock is tied to law-firm notices publicizing a securities fraud class action and a lead-plaintiff deadline.
Two widely circulated notices this week highlight:
- A pending federal case in the U.S. District Court for the Northern District of California, captioned Kim v. Synopsys, Inc., et al., No. 3:25-cv-09410, with a stated lead plaintiff deadline of December 30, 2025. [4]
- A class definition that, depending on the notice, generally references investors affected between December 4, 2024 and September 9, 2025, and in at least one notice, also includes those who acquired Synopsys shares tied to the Ansys transaction. [5]
What the notices allege — and why they matter to SNPS shareholders
The law-firm releases allege that Synopsys’ Design IP business economics and/or business model were pressured by customers requiring more customization, and that the market reaction intensified after Synopsys disclosed that its “IP business underperformed expectations” in connection with fiscal Q3 reporting. [6]
Importantly:
- These are allegations in litigation, not findings of fact. The immediate market impact for investors is typically uncertainty, potential legal expense, and headline-driven volatility—especially when reminders cluster around a deadline. [7]
The bigger story still shaping SNPS: Nvidia’s $2B stake and AI-accelerated engineering
While lawsuit notices are driving some of today’s search traffic, the most strategic catalyst Synopsys investors are still digesting is the expanded partnership with Nvidia—including an equity investment.
On December 1, 2025, Reuters reported Nvidia invested $2 billion in Synopsys as part of a broader, multi-year effort to develop tools that can shift heavy simulation and design workloads toward GPU acceleration, potentially compressing simulations from “weeks” to “hours.” [8]
Nvidia’s own announcement confirms:
- A strategic partnership spanning CUDA-accelerated computing, agentic/physical AI, and digital twins, and
- Nvidia’s $2B purchase of Synopsys common stock at $414.79 per share (as disclosed by the companies). [9]
Why this matters for Synopsys stock (beyond the headline)
For long-term SNPS bulls, this is more than a one-off investment—it reinforces a thesis that Synopsys is expanding from “EDA software for chips” toward a broader platform for system-level engineering and simulation, including industries like automotive, aerospace, industrial, and beyond. [10]
For skeptics, the key question is execution: How quickly does GPU-accelerated simulation become a revenue driver (and margin story), and how much of it is competitive differentiation versus an industry-wide shift that also benefits rivals and partners?
Q4 FY2025 earnings and FY2026 guidance: What Synopsys just told the market
Another major anchor for today’s Synopsys stock narrative is the company’s Q4 and full-year FY2025 report (released Dec. 10, 2025) and the forward targets for FY2026.
Synopsys reported:
- Full-year FY2025 revenue:$7.054B (record)
- Q4 revenue:$2.255B
- Backlog:$11.4B (as cited by management) [11]
And crucially, the report emphasized how much the company changed in 2025 after closing the Ansys deal:
- Ansys contributed $667.7M of Q4 revenue and $756.6M for the full fiscal year. [12]
FY2026 outlook: Another revenue record—on paper
For fiscal 2026, Synopsys guided to:
- Revenue:$9.56B–$9.66B (midpoint $9.61B)
- Non-GAAP EPS:$14.32–$14.40
- Targets that assume no further changes to export-control restrictions / entity list restrictions, as described in the release. [13]
Synopsys also provided Q1 FY2026 targets:
- Revenue:$2.365B–$2.415B
- Non-GAAP EPS:$3.52–$3.58 [14]
Reuters framed the Q4 print in the context of strong demand for chip design tools as AI and advanced computing investment remains elevated, and noted the competitive landscape that includes Cadence and Siemens. [15]
Inside the numbers: Segment trends investors are debating
A core point of debate is mix—specifically, whether Synopsys can keep its premium valuation while navigating pressure in Design IP and integrating Ansys at scale.
A Zacks/Nasdaq recap of the Q4 report highlighted:
- Design Automation revenue: about $1.85B (up sharply year over year)
- Design IP revenue: about $407M, down from the year-ago quarter
- Ansys contribution: ~29.6% of total revenue in the quarter (per the recap) [16]
The same recap noted balance-sheet and cash-flow datapoints investors often watch after major acquisitions:
- Cash and short-term investments around $2.96B
- Long-term debt around $13.46B (reflecting acquisition financing) [17]
This is why the “Synopsys stock” conversation increasingly sounds like two companies in one:
- Core EDA / Design Automation riding secular tailwinds, and
- Design IP dealing with commercial model questions and customization intensity, which also intersects with the litigation narrative in today’s headlines. [18]
Ansys integration and antitrust remedies: The deal closed, but conditions mattered
Synopsys completed its Ansys acquisition in July 2025, and the integration is now central to both growth expectations and execution risk. [19]
Because regulators scrutinized the merger, remedies included divestitures. The U.S. Federal Trade Commission said its final consent order required:
- Synopsys to divest certain optical/photonics tools, and
- Ansys to divest PowerArtist,
with assets going to Keysight. [20]
Keysight announced on October 17, 2025 that it completed the acquisitions of Synopsys’ Optical Solutions Group and Ansys’ PowerArtist, describing how those assets broaden Keysight’s software portfolio. [21]
For SNPS investors, the practical takeaway is that the main merger is done, the remedy assets have moved, and now the market’s attention is on synergies, cross-selling, and whether “silicon-to-systems” can expand the total addressable market fast enough to justify the combined company’s valuation.
Cost discipline: Synopsys restructuring and layoffs
Another major 2025 headline that still factors into forecasts is Synopsys’ restructuring plan.
Reuters reported Synopsys planned to cut about 10% of its workforce and take $300M–$350M in charges, with most activity expected in fiscal 2026.
The Wall Street Journal similarly described layoffs and site closures following the Ansys acquisition, with restructuring charges up to about $350M. [22]
Investors will likely assess this on two fronts:
- Near-term: charges and potential disruption
- Medium-term: whether spending shifts toward AI-driven design and system-level engineering produce measurable acceleration in bookings, backlog quality, and operating leverage [23]
Wall Street forecasts for SNPS: Price targets rise, but the range is wide
Analyst sentiment (as tracked by major aggregators) is generally constructive, but not uniform.
MarketBeat’s consensus tracking shows:
- Consensus rating: “Moderate Buy”
- Average 12-month price target: about $562.13
- Range:$425 low to $650 high (as captured by the service) [24]
Recent price-target changes
Several firms refreshed views after earnings:
- Morgan Stanley raised its price target to $550 from $510 and kept an Overweight rating, citing multi-year EDA demand and systems simulation opportunity. [25]
- A GuruFocus summary of analyst actions around mid-December also lists multiple target changes (e.g., Needham higher, Piper Sandler lower, KeyBanc higher, BofA upgrade), illustrating that analysts are mostly debating how much upside is left after the reset and how fast the Design IP story stabilizes. [26]
- Another GuruFocus update notes JPMorgan raising a price target to $650 while maintaining an Overweight stance (as reported by that service). [27]
Earnings expectations and the next catalyst date
MarketBeat’s earnings calendar estimates Synopsys’ next report around Feb. 25, 2026 (estimated, not confirmed), a date that could become the next major volatility event if guidance or Design IP commentary surprises either direction. [28]
The bull case for Synopsys stock: Why investors stay constructive on SNPS
Even after a volatile 2025, the optimistic thesis for Synopsys stock typically centers on four pillars:
- Secular chip-design complexity (AI, advanced computing)
Synopsys is positioned in the “tools layer” that many companies rely on to design and verify chips—an area Reuters tied to heightened investment in AI and advanced computing. [29] - Expansion beyond EDA into system simulation
With Ansys now contributing meaningfully to revenue and expected to be a major driver in FY2026 guidance, the combined business can pitch a broader “silicon-to-systems” workflow. [30] - AI-accelerated engineering via Nvidia partnership
Nvidia and Synopsys are explicitly targeting GPU acceleration, agentic AI workflows, and digital twins—areas that could become a multi-year platform shift if adoption is real and sticky. [31] - Visibility from backlog and record-year guidance
Synopsys pointed to $11.4B backlog and guided to a FY2026 revenue midpoint of $9.61B. [32]
The bear case: What could pressure SNPS next
A balanced Synopsys stock analysis also has to include the near-term risks that keep some analysts cautious:
- Design IP business model pressure
The class-action notices emphasize customization intensity and economics in Design IP, tying the issue to the sharp September 2025 drawdown. Regardless of litigation outcomes, investors will want to see operational proof that Design IP is stabilizing. [33] - China/export controls sensitivity
Synopsys explicitly stated its FY2026 targets assume no further changes to export control restrictions / entity list restrictions—an acknowledgement that geopolitics can still affect the model. [34] - Integration and leverage after a mega-deal
With long-term debt figures highlighted in post-earnings recaps, investors will watch deleveraging, synergy realization, and whether margins expand as promised. [35] - Headline risk from litigation
Class actions can take years, but deadline-driven waves of coverage can impact sentiment in the short run. [36]
What to watch next for Synopsys (SNPS) stock
If you’re tracking Synopsys stock into year-end and early 2026, these are the likely “next dominoes”:
- Any management color on Design IP monetization and customization
Investors will be looking for clarity on pricing, delivery model, and whether the segment can recover growth and margins. [37] - Evidence Nvidia partnership translates into product impact
Watch for concrete launches, customer wins, and measurable acceleration claims that show up in pipeline commentary—not just press releases. [38] - Post-merger operating cadence
With the FTC remedy order finalized and Keysight confirming completion of the divestiture purchases, the market can focus on integration execution rather than regulatory suspense. [39] - Next earnings report (expected late February 2026)
Even if the date shifts, the next quarterly print is the next major checkpoint for FY2026 guidance credibility. [40]
References
1. www.marketwatch.com, 2. www.marketwatch.com, 3. www.marketbeat.com, 4. www.globenewswire.com, 5. www.globenewswire.com, 6. www.globenewswire.com, 7. www.globenewswire.com, 8. www.reuters.com, 9. nvidianews.nvidia.com, 10. nvidianews.nvidia.com, 11. investor.synopsys.com, 12. investor.synopsys.com, 13. investor.synopsys.com, 14. investor.synopsys.com, 15. www.reuters.com, 16. www.nasdaq.com, 17. www.nasdaq.com, 18. www.globenewswire.com, 19. www.reuters.com, 20. www.ftc.gov, 21. www.keysight.com, 22. www.wsj.com, 23. investor.synopsys.com, 24. www.marketbeat.com, 25. uk.investing.com, 26. www.gurufocus.com, 27. www.gurufocus.com, 28. www.marketbeat.com, 29. www.reuters.com, 30. investor.synopsys.com, 31. nvidianews.nvidia.com, 32. investor.synopsys.com, 33. www.globenewswire.com, 34. investor.synopsys.com, 35. www.nasdaq.com, 36. www.globenewswire.com, 37. www.globenewswire.com, 38. nvidianews.nvidia.com, 39. www.ftc.gov, 40. www.marketbeat.com
