Synopsys, Inc. (SNPS) earnings on May 27, 2026
Prior outlook: Pessimistic Outcome: Accurate
Synopsys shares fell sharply after its earnings announcement. This drop occurred despite news of AI collaborations and some analysts increasing their price targets.
SNPS price around the earnings
481.00
Change: -8.5%
2026-05-28, 23:58 UTC
- Price: green if it ends above the starting price; red if it ends below
- Start of the measured window
- End of the measured window
- Market open
- No trading (market closed)
- Starting price
Prior thesis
Prior outlook: Pessimistic Outcome: Accurate
- Thesis published
AI validation strong, but rally priced in; limited upside.
While validation from NVIDIA regarding AI strengthens the company's narrative, the stock has already rallied significantly, likely pricing in most future gains. Analyst price targets offer minimal upside, and future earnings growth is projected to be negative.
Context analyzed before publication
- Summary
- AI validation strong, but rally priced in; limited optimistic scenario.
- Playbook
- With the stock price reflecting much of the expected good news and limited room for further growth, the scenario is cautious. It may be prudent to wait for a pullback or clearer signs of sustained future earnings growth.
- Trend
- Strong rally plateaued; risk of priced-in gains.
Analysts
Drivers
-
Analysts
Negative
Most analysts rate the stock as a buy, but their average price target points to a modestly optimistic scenario. Future earnings growth is also expected to be slightly negative.
Evidence
- Analyst consensus
- Buy
- Consensus average (1-5)
- 1.76
- Analysts covering the stock
- 26
- Average price target
- 541.42
- Lowest price target
- 403.85
- Highest price target
- 650
- Upside to price target
- 2.3%
- Quarterly earnings growth
- -78%
- Revenue growth
- 65.5%
- Forward EPS
- 17.06
- Trailing EPS
- 6.52
- Analyst moves in the last 60 days
- 3
- Strong buy: 2
- Buy: 15
- Hold: 7
- Sell: 0
- Strong sell: 1
- Strong buy
- 2
- Buy
- 15
- Hold
- 7
- Sell
- 0
- Strong sell
- 1
- May 26, 2026 · Rosenblatt: Maintains rating (Buy → Buy)
- May 14, 2026 · Wells Fargo: Maintains rating (Equal-Weight → Equal-Weight)
- May 13, 2026 · Citigroup: Maintains rating (Buy → Buy)
News and sentiment
Drivers
-
News & sentiment
Positive
A significant investment by NVIDIA in AI tools supports the company's growth story. However, the news is not providing a strong enough push to overcome concerns about the stock's high valuation.
Evidence
Sentiment
- Sentiment
- Constructive
- Mention volume
- Low
- Normalized volume
- 33%
News
Sources (5)
- Synopsys Likely To Report Lower Q2 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call — Benzinga
- Synopsys Q2 Preview: Ansys, AI Tool Adoption To Drive Results — Benzinga
- Rosenblatt Maintains Buy on Synopsys, Raises Price Target to $575 — Benzinga
- $100 Invested In Synopsys 10 Years Ago Would Be Worth This Much Today — Benzinga
- NVIDIA Corporation Increases Stake In CoreWeave To 47,213,353 Shares, Maintains Holdings In Intel Corporation (214,776,632 Shares), Nebius Group N.V. (1,190,476 Shares), Nokia Corporation (166,389,351 Shares), Synopsys (4,821,717 Shares), Takes New Stakes In Coherent Corp. (7,788,161 Shares) Generate Biomedicines (833,325 Shares). — Benzinga
Technicals
Drivers
-
Technical
Negative
The stock has experienced strong price increases recently, but it is now market review below its average price for the day. This suggests that recent upward momentum may be fading.
Evidence
- Average true range (ATR)
- 2.9%
- Distance to 52-week high
- -18.8%
- 14-day change (14d)
- +6.3%
- 30-day change (30d)
- +28.0%
- 30-day relative strength
- +28.0%
- Benchmark change (0d)
- +0.0%
- Nearest support
- 523.91
- Nearest resistance
- 539.31
- Volume accumulation ratio (14d / 46d)
- 2.12
Trends
Evidence
- Average earnings surprise
- -6.0%
- February 25, 2026: actual EPS 0.34 vs estimate 0.3 (surprise +11.6%)
- December 10, 2025: actual EPS 2.9 vs estimate 2.88 (surprise +0.7%)
- September 9, 2025: actual EPS 1.5 vs estimate 2.69 (surprise -44.3%)
- May 28, 2025: actual EPS 3.67 vs estimate 3.4 (surprise +8.0%)
Expected move
Drivers
-
Past earnings
Neutral
The company often beats earnings expectations, but the average surprise amount is small. A significant earnings miss in the past also creates uncertainty about future performance.
There is no implied-move data available for this event.
Reactions over its last 19 earnings
- Median move
- 4.5%
- 75th percentile move
- 7.7%
- 90th percentile move
- 10.7%
- Up / down moves
- 8 / 11
- Average up move
- +5.8%
- Average down move
- -6.9%
Monitoring and close
What Synopsys, Inc. reported
There is no monitoring data available for this event.
Pre-market second reading after the results
There is no second reading available for this event.
How the stock reacted
- Outcome
- Accurate
- Consolidated
- -8.6%
- Max favorable move (MFE)
- 10.3%
- Max adverse move (MAE)
- 2.3%