Ghazi Sassine sold $6.7M of SNPS

Synopsys raised its full-year fiscal 2026 revenue guidance midpoint to $9.665 billion and lifted non-GAAP EPS guidance to $14.76 at the midpoint, driven by strong first-half performance, accelerating Ansys integration synergies, and expanded operating margins. For Q3 fiscal 2026, management guided revenue of $2.41–$2.46 billion and non-GAAP EPS of $3.63–$3.69.

Synopsys' valuation remains difficult to assess on its headline numbers. The forward GAAP price-to-earnings (P/E) makes it look extraordinarily expensive, while the price-to-sales (P/S) ratio does the opposite. The reason is the $35 billion Ansys acquisition. The forward P/E of 138.39x sits 91% above its 5-year average of 72.47x. The Ansys acquisition is holding down the reported earnings, making the stock look inflated.

Synopsys (SNPS) shares rose more than 4% after the company unveiled autonomous AI workflows for chip design at the 2026 DAC Chips to Systems Conference. Synopsys said the workflows, built with Microsoft (MSFT) and evaluated by AMD (AMD), can cut debug cycles by 25% to 40%. SNPS reported fiscal Q2 2026 revenue of $2.27B and raised FY2026 outlook to about $9.665B revenue and $14.76 EPS.

Synopsys said it certified its chip design toolchain for Intel’s (INTC) 14A process node, announced July 27, 2026. The certification covers digital and analog implementation, signoff, multiphysics analysis, and node-tuned interface and foundation IP, plus updates to its 3DIC Compiler for Intel packaging. Intel reported 14A foundry revenue not broken out, with $5.8B foundry revenue and a $2.09B operating loss in Q2 2026.

S&P Global Ratings revised Synopsys Inc. (NASDAQ:SNPS) outlook to positive from stable while affirming its BBB rating. S&P cited leverage falling to about 2.3x after Synopsys repaid $4.3B of $14.3B debt from the Ansys acquisition and used proceeds from Nvidia’s $2B investment for further reduction. S&P forecasts leverage of 1.8x in FY2026 and 1.2x in 2027.

Synopsys (SNPS) is trading at a forward GAAP P/E of 157.39x, 119% above its 5-year average, which the article attributes to earnings pressure and higher costs tied to its Ansys acquisition. It cites Q2 FY2026 revenue of $2.276B, including $652M from Ansys, and GAAP EPS of $0.09. FY2026 guidance: revenue $9.625B-$9.705B, non-GAAP EPS $14.72-$14.80. Piper Sandler raised its target to $550.