TORVANTA
Information Technology · S&P 500 · data as of 2026-10-05

SNPS stock analysis: Synopsys

Synopsys (SNPS) is an S&P 500 company in Application Software. It grades weakest on profitability and value.

The model's view of SNPS · subscribers

Where SNPS ranks among the 1,500 U.S. stocks the model scores each trading day, its expected return, the evidence for and against it, and whether the model portfolio holds it. The grades below describe the company's data; they are not the model's view.

See plans
What's happening with SNPS · updated 2026-10-05 · from prices and SEC filings

SNPS price performance

SNPS against the S&P 500, one year
-20%+0%+20%S&P 500 +18%SNPS +1%2025-09-292026-10-05
Year to date+4.0%S&P 500 +14.5% · behind by 10.5 pts
1 year+4.1%S&P 500 +17.0% · behind by 12.9 pts
3 years+6.2%S&P 500 +89.3% · behind by 83.0 pts
5 years+66.5%S&P 500 +91.3% · behind by 24.8 pts

Total returns with dividends reinvested.

SNPS factor grades

Each grade compares SNPS with the rest of its sector (A+ best, F worst); the numbers behind it are shown with the typical figure for its peers.

D+ValueP/E 85.4x (industry 25.5x)FCF yield 2.9% (industry 5.6%)
C+GrowthRevenue growth +46% (industry +14%)EPS growth -55% (industry +35%)
C-ProfitabilityOperating margin 8.5% (industry 26.2%)ROIC 1.8% (industry 19.7%)
C+Momentum12-month change +4%From 52-wk high -9%

SNPS in plain numbers

SNPS key statistics

SectorInformation Technology
IndustryApplication Software
IndexS&P 500
Market value$93.6B
Revenue growth (y/y)+46%
Free-cash-flow yield2.9%
Dividend yieldn/a
Next earnings (expected)2026-12-09
Valuation measures
Market value$93.6B
Enterprise value$100.0B
P/E (trailing)85.4x
Forward P/E (Torvanta estimate)85.5x
Price / sales9.9x
Price / book3.0x
EV / revenue10.6x
EV / EBITDA38.3x
Financial highlights
Revenue, last 12 months$9.4B
Net income, last 12 months$1.1B
EPS, last 12 months (GAAP)$5.72
Gross margin72.4%
Operating margin8.5%
Net margin11.4%
Return on equity3.7%
Return on invested capital1.8%
Cash$3.6B
Total debt$10.0B
Debt / equity0.32x
Free cash flow, last 12 months$2.7B
Interest cover1.3x
Current ratio1.34x

Company figures from its latest SEC filings; market value and returns from end-of-day prices.

SNPS earnings trends

Revenue vs earnings
$0$619.2M$1.2B$1.9B$2.5BOct 2024 Revenue: $1.6BJan 2025 Revenue: $1.5BApr 2025 Revenue: $1.6BJul 2025 Revenue: $1.7BOct 2025 Revenue: $2.3BJan 2026 Revenue: $2.4BApr 2026 Revenue: $2.3BJul 2026 Revenue: $2.5BOct 2024 Net income: $1.1BJan 2025 Net income: $295.7MApr 2025 Net income: $345.3MJul 2025 Net income: $242.5MOct 2025 Net income: $448.7MJan 2026 Net income: $65.0MApr 2026 Net income: $17.1MJul 2026 Net income: $545.8MOct 2024Jan 2025Apr 2025Jul 2025Oct 2025Jan 2026Apr 2026Jul 2026Net margin: 68.1%Net margin: 20.3%Net margin: 21.5%Net margin: 13.9%Net margin: 19.9%Net margin: 2.7%Net margin: 0.8%Net margin: 22.0%0%34%68%■ Revenue ■ Net income ━ Net margin
Earnings per share$0.0$1.8$3.6$5.4$7.1Oct 2024 EPS (GAAP, diluted): $7.1Jan 2025 EPS (GAAP, diluted): $1.9Apr 2025 EPS (GAAP, diluted): $2.2Jul 2025 EPS (GAAP, diluted): $1.5Oct 2025 EPS (GAAP, diluted): $2.5Jan 2026 EPS (GAAP, diluted): $0.3Apr 2026 EPS (GAAP, diluted): $0.1Jul 2026 EPS (GAAP, diluted): $2.8Oct 2024Jan 2025Apr 2025Jul 2025Oct 2025Jan 2026Apr 2026Jul 2026■ EPS (GAAP, diluted) Change from a year earlier: Oct 2025 -66% · Jan 2026 -82% · Apr 2026 -96% · Jul 2026 +89%

From the company's 10-Q and 10-K filings with the SEC.

Synopsys financials (from SEC filings)

Fiscal yearFY2021FY2022FY2023FY2024FY2025
Revenue$4.2B$5.1B$5.8B$6.3B$7.1B
Net income$757.5M$1.0B$1.2B$2.3B$1.3B
EPS (GAAP)$4.81$6.29$7.92$14.52$8.05
Free cash flow$1.4B$1.6B$1.5B$1.3B$1.3B

SNPS earnings history

ReportedEPS (GAAP)EPS y/yRevenue y/yStock vs S&P 500, 2 days
2026-08-26$2.84+89%+42%+13.0%
2026-05-27$0.09-96%+42%-10.6%
2026-02-25$0.34-82%+66%-3.6%
2025-12-10$2.45-66%+38%+1.6%
2025-09-09$1.50-43%+14%-36.9%
2025-05-28$2.21+18%+10%-10.9%

About Synopsys

HeadquartersSunnyvale, CA
Industry (SEC code)Services-Prepackaged Software
Fiscal year endsOctober 31
Incorporated inDE
Listed onNasdaq

From the company's SEC registration record.

Companies similar to SNPS

CompanyMarket valueP/ERevenue growthOperating margin12-month change
SNPS Synopsys$93.6B85.4x+46%8.5%+4%
ADBE Adobe$94.9B13.7x+11%36.1%-31%compare
CDNS Cadence Design$97.5B82.4x+13%28.3%+2%compare
DDOG Datadog$102.6Bn/a+32%0.4%+82%compare
INTU Intuit$76.1B17.2x+14%27.4%-58%
WDAY Workday$46.5B38.3x+13%10.7%-20%
CRM Salesforce$189.1B20.9x+11%19.9%-4%

All Information Technology stock ratings

Frequently asked questions

Is SNPS stock a buy?

Torvanta does not tell individuals what to buy. Its grades for SNPS are shown above. Subscribers see the model's rank, expected return and whether the model portfolio holds it. This is research, not a recommendation.

What is SNPS's P/E ratio?

SNPS trades at about 85.4 times its last 12 months of GAAP earnings reported to the SEC, and about 85.5 times Torvanta's own estimate of the next 12 months.

When does SNPS report earnings next?

Based on its filing history, Torvanta expects Synopsys to report around 2026-12-09.

How has SNPS performed against the S&P 500?

Over the past year SNPS returned +4.1%, against +17.0% for the S&P 500, dividends reinvested.

See the model's view

Subscribers get the model's rank and expected return for every covered company, the reasoning behind each, and the Torvanta model portfolio's trades each trading day, sized and explained, at three risk levels.

See plans Or get the free weekly newsletter

Torvanta is research only - not investment advice and not a recommendation to buy or sell any security. Grades describe a company's reported data against its sector; they are not the model's view, change as data changes and can be wrong. Financial figures come from the company's SEC filings; returns include reinvested dividends. Past performance does not predict future results.

All stock ratings · Stock lists · AI stock research · Model portfolio · Research · Disclaimer