Synopsys Price Prediction: The AI Play With Big Upside This Year

Vandita JadejaFri, May 15, 2026 at 3:46 PM UTC

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24/7 WallStQuick Read -

Synopsys (SNPS) reported Q1 FY26 revenue of $2.41B, up 65.4% YoY with non-GAAP EPS of $3.77 beating consensus by 5.98%, while operating cash flow swung to $856.83M positive and the company paid down $3.45B in debt.

The Ansys acquisition expanded the addressable market by 63% to $31B and contributed roughly $2.9B to FY26 guidance of $9.56B-$9.66B in revenue.

AI-driven chip design demand and successful Ansys integration execution are fueling a 21.78% monthly rebound after a late-2025 selloff, with 24/7 Wall St. setting a $608.97 price target implying 19.4% upside.

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Synopsys (NASDAQ:SNPS) has staged one of the more dramatic comebacks in semiconductor software, climbing 21.78% in the past month after a brutal stretch through late 2025. With the Ansys integration now showing up in the numbers and AI-driven chip design demand intact, our model points to further upside.

Our 24/7 Wall St. price target for Synopsys is $608.97, implying 19.4% upside from the current $510.02. We rate it a buy with 90% confidence, a high conviction call grounded in forward EPS visibility and a clear deleveraging path.

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24/7 Wall St. Price Target Summary

Metric

Value

Current Price

$510.02

24/7 Wall St. Price Target

$608.97

Upside

19.4%

Recommendation

Confidence Level

90%

From Q3 Selloff to a 22% One-Month Rally

Synopsys has whipsawed investors. The stock collapsed to $389.83 by November 2025 after a brutal Q3 FY25 miss, then clawed back to $510.02. Year to date, shares are up 8.58%, with the one-month surge of 21.78% reflecting renewed confidence in the Ansys story. The 52-week range runs from $376.18 to $651.73.

Q1 FY26, reported February 25, delivered revenue of $2.41 billion (up 65.4% YoY) and non-GAAP EPS of $3.77 against a $3.55 consensus, a 5.98% beat. Operating cash flow swung to $856.83 million from negative $67 million a year earlier, and management paid down $3.45 billion in long-term debt during the quarter.

Why Bulls See a Breakout Ahead

The bull case rests on FY26 guidance of revenue between $9.56 billion and $9.66 billion and non-GAAP EPS of $14.38 to $14.46, including roughly $2.9 billion in Ansys revenue.

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CEO Sassine Ghazi said Synopsys has "the most compelling roadmap in our history" as AI fuels chip design R&D. The Ansys deal expanded the addressable market by 63% to $31 billion. Wells Fargo raised its target to $505 from $450 on May 14. Our bull scenario points to $682.36, a 33.79% total return.

The Risks Worth Watching

The bear case starts with valuation. Trailing P/E sits at 78, with forward P/E at 36. China accounts for roughly 10% of revenue and remains exposed to U.S. export controls. Morgan Stanley flagged growth deceleration, and Piper Sandler holds a Neutral rating with a $430 target.

GAAP net income fell 78.03% YoY in Q1, though bulls would argue this reflects $404 million in acquired intangible amortization and $118 million in restructuring, non-cash and non-recurring items that obscure underlying cash generation. The bear scenario lands at $527.85.

Synopsys Price Prediction 2026-2030

The 24/7 Wall St. price target of $608.97 reflects a buy rating at 90% confidence. The factor tipping the scale is cash flow visibility: $2.2 billion in expected FY26 operating cash flow plus a $2 billion repurchase replenishment.

The thesis strengthens if Q2 results land within the $2.225 to $2.275 billion revenue guide. It weakens if China export restrictions tighten further or Design IP margins fail to recover.

Year

24/7 Wall St. Price Target

2026

$608.97

2027

$687.48

2028

$745.00

2029

$801.45

2030

$880.97

These projections assume Synopsys continues executing on Ansys integration and AI-led EDA demand holds. Significant upside or downside could result from China export policy shifts or accelerated margin expansion through cost synergies.

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Source: “AOL Money”