Equity Profile

SNPS

Synopsys, Inc.

Information TechnologyApplication Software$78.9B

May27Wed

Post-Earnings Recap

ReportedQ2-2026After Close4:05 PM EDT

Synopsys Beats on EPS, Stock Down 1.6%

Metric	Actual	Expected	Surprise
EPS	$3.35	$3.15	+49.55%
Revenue	N/A	$2.2B	N/A

management commentary, guidance changes, and full analysis available with Pro.

Synopsys Beats on EPS, Stock Down 1.6%

Key Numbers

Metric	Actual	Expected	Surprise
EPS	$3.35	$3.15	+49.55%
Revenue	N/A	$2.2B	N/A

Management Commentary

Tone: Unknown

No transcript is on record for this earnings call, so the analysis is based solely on the numerical results.

What It Means

Synopsys reported better-than-expected earnings per share, indicating strong performance in that area. However, the stock fell by 1.6% in reaction to the earnings report, which may reflect investor concerns about revenue expectations or other factors not disclosed in the call. The lack of guidance also leaves uncertainty about future performance.

Company Snapshot

Synopsys, Inc. (SNPS) is a leading provider of electronic design automation (EDA) software, which helps companies design and test semiconductor chips....

Key Metrics to Watch

EPS

Earnings per share is a key indicator of profitability and helps gauge the company's financial health.

$3.15

Revenue

Total revenue reflects the company's sales performance and growth potential in a competitive market.

$2.2B

Wall Street expectations, options signals, track record, and call prep available with Pro.

Original Pre-Earnings Preview

Context

Company Snapshot

Synopsys, Inc. (SNPS) is a leading provider of electronic design automation (EDA) software, which helps companies design and test semiconductor chips. As technology advances, especially in areas like AI and cloud computing, Synopsys plays a crucial role in enabling innovation and efficiency in the semiconductor industry.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+53.48%

Avg Stock Reaction

-0.10%

Last Quarter Recap

In Q1-2026, Synopsys reported an impressive EPS of $3.77, significantly beating analyst estimates by 55.4%. This strong performance led to a positive stock reaction, rising 1.92% the following day.

Management Promises & Guidance

Continued focus on innovation in EDA software.
Commitment to expanding partnerships in the semiconductor industry.
Plans to enhance customer support and service offerings.

Expectations

Wall Street Expectations

Analysts are generally optimistic about Synopsys' upcoming earnings, with expectations for strong EPS and revenue growth. The company has consistently beaten earnings estimates in recent quarters, which sets a high bar for this report.

Bull Case

If Synopsys delivers an EPS above the consensus and shows robust revenue growth, it could reinforce confidence in its market position and lead to a significant stock rally.

Bear Case

Conversely, if the company fails to meet expectations or provides weak guidance, it could raise concerns about future growth, leading to a stock decline.

Key Metrics to Watch

EPS

$3.15

Earnings per share is a key indicator of profitability and helps gauge the company's financial health.

Revenue

$2.2B

Total revenue reflects the company's sales performance and growth potential in a competitive market.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will EPS exceed $3.15, and by how much?

Given the company's strong track record of beating EPS estimates, this will be a critical indicator of ongoing profitability and market confidence.

What guidance will management provide for revenue growth?

Future revenue guidance will be crucial for assessing the company's growth trajectory and its ability to capitalize on market opportunities.

Edge

What the Street Is Missing

Why consensus could be wrong

The consensus may underestimate Synopsys' ability to leverage new AI-driven design tools, which could significantly boost demand beyond current expectations.

Supporting Evidence

The company has consistently outperformed EPS estimates, suggesting stronger underlying demand.

Options pricing indicates a larger expected move than historical averages, hinting at potential surprises.

Recent industry trends show increasing investment in semiconductor design, which could benefit Synopsys.

Key Risk

If revenue growth exceeds $2.3B, it could challenge the current cautious sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is debating whether Synopsys can maintain its growth momentum in a competitive landscape, making these thresholds critical.

Bull Confirmed If

An EPS of $3.30 or higher, coupled with revenue exceeding $2.3B, would confirm a strong bull case.

Bear Confirmed If

An EPS below $3.13 or revenue below $2.2B would support a bearish outlook.

Pre-Earnings Positioning

Options Market

Implied Move

±9.07%

Historical Avg

±2.9%

Pricing rich

The options market is pricing in a significant move, suggesting that traders expect volatility around the earnings announcement.

Options are pricing ±8.9% while SNPS has averaged ±2.9% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

1.1%

30d HV

38.2%

Calls (510K)P/C Ratio: 0.84Puts (215K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Information Technology

n=30

Fade rate: 13 of 30 (43%)

This setup has occurred 30 times across Information Technology in the last 2 years. 13 of 30 faded and 17 held — no strong directional bias after the initial reaction. The average absolute 1-day move is 7.2%, with a raw directional average of +0.6% (modestly positive historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Synopsys beats expectations, history suggests a potential stock increase of around 0.14% on the first day post-earnings, confirming strong market confidence.

In-Line / Cautious

If results are in line with expectations, the stock may react more cautiously, reflecting uncertainty about future growth.

Miss

Should the company miss expectations, history indicates a potential decline, with past misses leading to significant negative reactions.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Insights on the impact of AI technologies on product demand.
2Any updates on partnerships with major semiconductor manufacturers.
3Details on customer acquisition and retention strategies.
4Management's perspective on competitive pressures in the EDA market.
5Guidance on future revenue growth and market expansion plans.

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Company Snapshot

Synopsys, Inc. (SNPS) is a leading provider of electronic design automation (EDA) software, which helps companies design and test semiconductor chips....

Key Metrics to Watch

EPS

Earnings per share is a key indicator of profitability and helps gauge the company's financial health.

$3.15

Revenue

Total revenue reflects the company's sales performance and growth potential in a competitive market.

$2.2B

Wall Street expectations, options signals, track record, and call prep available with Pro.

Original Pre-Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+53.48%

Avg Stock Reaction

-0.10%

Last Quarter Recap

In Q1-2026, Synopsys reported an impressive EPS of $3.77, significantly beating analyst estimates by 55.4%. This strong performance led to a positive stock reaction, rising 1.92% the following day.

Management Promises & Guidance

Continued focus on innovation in EDA software.
Commitment to expanding partnerships in the semiconductor industry.
Plans to enhance customer support and service offerings.

Expectations

Wall Street Expectations

Bull Case

If Synopsys delivers an EPS above the consensus and shows robust revenue growth, it could reinforce confidence in its market position and lead to a significant stock rally.

Bear Case

Conversely, if the company fails to meet expectations or provides weak guidance, it could raise concerns about future growth, leading to a stock decline.

Key Metrics to Watch

EPS

$3.15

Earnings per share is a key indicator of profitability and helps gauge the company's financial health.

Revenue

$2.2B

Total revenue reflects the company's sales performance and growth potential in a competitive market.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will EPS exceed $3.15, and by how much?

Given the company's strong track record of beating EPS estimates, this will be a critical indicator of ongoing profitability and market confidence.

What guidance will management provide for revenue growth?

Future revenue guidance will be crucial for assessing the company's growth trajectory and its ability to capitalize on market opportunities.

Edge

What the Street Is Missing

Why consensus could be wrong

The consensus may underestimate Synopsys' ability to leverage new AI-driven design tools, which could significantly boost demand beyond current expectations.

Supporting Evidence

The company has consistently outperformed EPS estimates, suggesting stronger underlying demand.

Options pricing indicates a larger expected move than historical averages, hinting at potential surprises.

Recent industry trends show increasing investment in semiconductor design, which could benefit Synopsys.

Key Risk

If revenue growth exceeds $2.3B, it could challenge the current cautious sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is debating whether Synopsys can maintain its growth momentum in a competitive landscape, making these thresholds critical.

Bull Confirmed If

An EPS of $3.30 or higher, coupled with revenue exceeding $2.3B, would confirm a strong bull case.

Bear Confirmed If

An EPS below $3.13 or revenue below $2.2B would support a bearish outlook.

Pre-Earnings Positioning

Options Market

Implied Move

±9.07%

Historical Avg

±2.9%

Pricing rich

The options market is pricing in a significant move, suggesting that traders expect volatility around the earnings announcement.

Options are pricing ±8.9% while SNPS has averaged ±2.9% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

1.1%

30d HV

38.2%

Calls (510K)P/C Ratio: 0.84Puts (215K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Information Technology

n=30

Fade rate: 13 of 30 (43%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Synopsys beats expectations, history suggests a potential stock increase of around 0.14% on the first day post-earnings, confirming strong market confidence.

In-Line / Cautious

If results are in line with expectations, the stock may react more cautiously, reflecting uncertainty about future growth.

Miss

Should the company miss expectations, history indicates a potential decline, with past misses leading to significant negative reactions.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Insights on the impact of AI technologies on product demand.
2Any updates on partnerships with major semiconductor manufacturers.
3Details on customer acquisition and retention strategies.
4Management's perspective on competitive pressures in the EDA market.
5Guidance on future revenue growth and market expansion plans.