Synopsys Inc. (SNPS) Releases Q4 2025 Earnings: Revenue Up but EPS and Operating Profit Plunge, Misses Estimates

Synopsys Inc. (SNPS) — Q4 2025 highlights

Total revenue was $1.74 billion, up 6.3% year-over-year, below consensus expectations of $2.29 billion (a shortfall of -$552.6 million, about -24.1%).

Gross profit totaled $1.36 billion, a 7.8% increase versus last year.

Operating profit narrowed to $165.3 million, down 46.8% year-over-year.

Net income attributable to common shareholders was $448.7 million, a decline of 60.1% year-over-year.

Diluted earnings per share came in at $2.39, down 66.5% year-over-year and below the estimate of $2.83 (missing by -$0.44, roughly -15.6%).

Cash from operating activities improved to $639.7 million, up 13.7% year-over-year, supporting liquidity despite weaker profitability.

Purchases of property, plant and equipment rose to -$34.5 million, a large percentage increase year-over-year but modest in absolute terms.

Cash and cash equivalents on the balance sheet stood at $2.89 billion, down 25.9% year-over-year.

Total liabilities increased markedly to $19.90 billion, a year-over-year rise of 391.3%.

Cost of sales was $380.6 million, up 1.5% year-over-year.

Summary: Synopsys (SNPS) posted revenue growth but showed substantial compression in operating profit, net income and EPS versus the prior year, and missed both revenue and EPS estimates for the quarter. Cash generation improved, but the balance sheet shows a notable rise in liabilities that will merit monitoring going forward.

Synopsys Inc. Insider Trading Activity

Synopsys Inc. insiders have traded $SNPS stock on the open market 9 times in the past 6 months. Of those trades, 1 have been purchases and 8 have been sales.

Here’s a breakdown of recent trading of $SNPS stock by insiders over the last 6 months:

SUDHINDRA KANKANWADI (Chief Accounting Officer) has made 0 purchases and 2 sales selling 15,873 shares for an estimated $7,837,408.
SASSINE GHAZI (PRESIDENT AND CEO) sold 11,366 shares for an estimated $6,694,725
RICHARD S. MAHONEY (Chief Revenue Officer) has made 0 purchases and 3 sales selling 9,010 shares for an estimated $4,245,645.
SHELAGH GLASER (CFO) has made 0 purchases and 2 sales selling 3,655 shares for an estimated $2,228,709.
ROBERT G PAINTER purchased 350 shares for an estimated $148,903

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

Synopsys Inc. Hedge Fund Activity

We have seen 979 institutional investors add shares of Synopsys Inc. stock to their portfolio, and 569 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

VANGUARD GROUP INC added 3,120,401 shares (+20.7%) to their portfolio in Q3 2025, for an estimated $1,539,574,649
MORGAN STANLEY added 2,600,089 shares (+139.5%) to their portfolio in Q3 2025, for an estimated $1,282,857,911
BLACKROCK, INC. added 2,371,463 shares (+18.5%) to their portfolio in Q3 2025, for an estimated $1,170,056,129
PRICE T ROWE ASSOCIATES INC /MD/ removed 2,001,274 shares (-37.6%) from their portfolio in Q3 2025, for an estimated $987,408,578
VICTORY CAPITAL MANAGEMENT INC added 1,990,608 shares (+238.8%) to their portfolio in Q3 2025, for an estimated $982,146,081
FMR LLC added 1,868,243 shares (+47.5%) to their portfolio in Q3 2025, for an estimated $921,772,413
COATUE MANAGEMENT LLC added 1,809,127 shares (+inf%) to their portfolio in Q3 2025, for an estimated $892,605,170

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Synopsys Inc. Government Contracts

We have seen $495,938 of award payments to $SNPS over the last year.

Here are some of the awards which we have have seen pay out the most over the last year:

SYNOPSYS RENEWAL: $115,732
TO RENEW CODE V/ETD: $112,238
PURCHASE SOFTWARE FOR TCAD FABRICATION PROCESS SIMULATION: $110,100
SYNPLIFY BASE PERPETUAL MAINTENANCE: $43,940
SYNOPSYS SYNPLIFY SOFTWARE LICENSE: $33,800

To track government contracts to publicy traded companies, check out Quiver Quantitative's government contracts dashboard.

Synopsys Inc. Congressional Stock Trading

Members of Congress have traded $SNPS stock 3 times in the past 6 months. Of those trades, 1 have been purchases and 2 have been sales.

Here’s a breakdown of recent trading of $SNPS stock by members of Congress over the last 6 months:

REPRESENTATIVE GILBERT RAY CISNEROS, JR. sold up to $15,000 on 10/09.
REPRESENTATIVE LISA C. MCCLAIN has traded it 2 times. They made 1 purchase worth up to $15,000 on 08/13 and 1 sale worth up to $15,000 on 09/11.

To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard.

Synopsys Inc. Analyst Ratings

Wall Street analysts have issued reports on $SNPS in the last several months. We have seen 10 firms issue buy ratings on the stock, and 2 firms issue sell ratings.

Here are some recent analyst ratings:

Rosenblatt issued a "Buy" rating on 12/09/2025
Citigroup issued a "Buy" rating on 11/24/2025
Exane BNP Paribas issued a "Underperform" rating on 10/02/2025
Mizuho issued a "Outperform" rating on 09/11/2025
Morgan Stanley issued a "Overweight" rating on 09/11/2025
Stifel issued a "Buy" rating on 09/10/2025
JP Morgan issued a "Overweight" rating on 09/10/2025

To track analyst ratings and price targets for Synopsys Inc., check out Quiver Quantitative's $SNPS forecast page.

Synopsys Inc. Price Targets

Multiple analysts have issued price targets for $SNPS recently. We have seen 14 analysts offer price targets for $SNPS in the last 6 months, with a median target of $555.0.

Here are some recent targets:

Blair Abernethy from Rosenblatt set a target price of $560.0 on 12/09/2025
Vivek Arya from B of A Securities set a target price of $500.0 on 12/08/2025
Jason Celino from Keybanc set a target price of $575.0 on 12/03/2025
Joe Quatrochi from Wells Fargo set a target price of $445.0 on 11/25/2025
Kelsey Chia from Citigroup set a target price of $580.0 on 11/24/2025
Andrew DeGasperi from Exane BNP Paribas set a target price of $425.0 on 10/02/2025
Siti Panigrahi from Mizuho set a target price of $600.0 on 09/11/2025