Post-earnings recap
Reported
Wed, Aug 26, 2026
EPS actual
$3.91
EPS est.
$2.66
EPS surprise
+46.99%
1-day move
+0.30%
Synopsys' strong earnings report reflects robust demand in the electronic design automation (EDA) market, particularly with the successful integration of Ansys. The stock's slight increase of 0.3% indicates investor optimism following the positive earnings surprise. Management's raised guidance suggests confidence in sustained growth moving forward.
| Metric | Actual | Expected | Surprise |
|---|---|---|---|
| EPS | $3.91 | N/A | +46.99% |
| Revenue | $2.477 billion | N/A | N/A |
| Non-GAAP Operating Margin | 41.6% | N/A | N/A |
Management expressed confidence in the company's performance, highlighting strong revenue growth and successful product launches. They anticipate continued growth in the upcoming quarter.
Management raised full-year revenue, margin, and EPS guidance, anticipating double-digit EDA growth in Q4.
The launch of Multiphysics Fusion marks a significant milestone, expected to drive future EDA growth.
Synopsys, Inc. is a leading company in the Information Technology sector, specializing in application software. They provide essential tools for electronic design automation, which are crucial for developing complex semiconductor chips and software applications, especially in the growing fields of AI and cloud computing.
Last quarter
In Q2-2026, Synopsys reported an impressive EPS of $3.35, significantly surpassing estimates by 49.55%. However, the stock reacted negatively, declining by 1.62% the following day.
Management promises and guidance
EPS beat streak
8Q
EPS beat rate
100%
Avg EPS surprise
+53.72%
Avg 1-day reaction
-0.23%
Overall, expectations are mixed as Synopsys has consistently beaten EPS estimates in the past. However, the market is cautious due to the recent stock price decline despite strong earnings.
Bull case
If Synopsys continues its trend of beating EPS estimates and shows strong revenue growth, it could lead to renewed investor confidence and a significant stock rally.
Bear case
On the other hand, if the company fails to meet expectations or provides weak guidance, it could lead to further declines in stock price, especially given the recent negative market reaction.
The print will turn on these.
Q1
What will be the EPS figure for Q3-2026?
Given the company's strong history of EPS surprises, this figure will be crucial in determining market sentiment and stock movement.
Q2
How does Synopsys plan to address competition in the AI and cloud sectors?
The company's strategy in these rapidly evolving markets will be key to its future growth and investor confidence.
—
Est. EPS
—
Est. Rev
—
Impl. Move
±7.1%
Why consensus could be wrong
The Street may be underestimating Synopsys' ability to leverage its advanced software tools in the booming AI market, which could lead to stronger-than-expected revenue growth.
Supporting evidence
Historical EPS surprises indicate strong operational performance that could continue.
Options pricing suggests a significant move, indicating market expectations are high.
Recent trends in semiconductor demand support potential growth in Synopsys' customer base.
Key risk
If Synopsys reports an EPS above $3.50, it could challenge the current cautious sentiment and drive the stock higher.
Pre-commit to what would confirm each case.
The market is debating whether Synopsys can maintain its strong earnings momentum in a competitive environment.
Bull confirmed if
An EPS of $3.50 or higher would confirm the bull case, indicating strong operational performance.
Bear confirmed if
An EPS below $3.00 would confirm the bear case, raising concerns about profitability and growth.
What the market is pricing for the move.
Implied Move
±7.47%
Historical Avg
±2.8%
The options market is pricing in a relatively large move, suggesting that traders expect significant volatility around the earnings announcement.
Options are pricing ±7.5% while SNPS has averaged ±2.8% over the last 8 prints — setup is pricing rich.
ATM IV
0.5%
30d HV
46.5%
Cross-company pattern from 30 similar setups.
Prior-quarter beat + options rich in Information Technology
Fade rate: 5 of 10 (50%)
This setup has occurred 30 times across Information Technology in the last 2 years. 5 of 10 faded and 5 held — no strong directional bias after the initial reaction. The average absolute 1-day move is 4.4%, with a raw directional average of -0.4% (modestly negative historical bias).
Open-market trades by officers, directors, and 10%+ holders over the trailing 90 days.
Bought
$0.00
0 sh
0 insiders
Sold
$6.6M
13,313.607 sh
2 insiders
Net
$6.6M
Net selling
Most Active Insiders· 4 open-market trades
$6.0M
Net selling
Likely market behavior by outcome. Not investment advice.
Beat & raise
If Synopsys beats expectations, history suggests a potential stock increase of around 2.92%, confirming strong operational health.
In line / cautious
If results are in line but cautious commentary is provided, the stock may experience muted movement as investors reassess future growth.
Miss
If the company misses expectations, history suggests a potential decline of around 0.10%, reflecting investor disappointment.
The lines on the call that would change the story.
$574,685.36
Net selling
Recent Transactions
Oct 6, 2026 · @ $500.00
9,170 sh
$4.6M
Oct 5, 2026 · @ $484.78
3,000 sh
$1.5M
Oct 6, 2026 · @ $502.64
583.607 sh
$293,344.16
Oct 6, 2026 · @ $502.39
560 sh
$281,341.20
Open-market trades only (Form 4 codes P/S). Awards, exercises, and tax-withholding excluded as routine compensation noise.