Synopsys Inc.
SNPSNASDAQAlpha Score of 34 reflects weak overall profile with moderate momentum, poor value, moderate quality. Based on 3 of 4 signals – score is capped at 90 until remaining data ingests.
Synopsys Faces Valuation Pressures Amidst Significant EPS Contraction
Apr 15, 2026Synopsys Inc. (SNPS) continues to navigate a challenging valuation environment, currently trading near the lower end of its 52-week range of $380.47 to $645.35. The stock reflects a high P/E ratio of 203.3, which contrasts sharply with its recent earnings performance. While the company achieved a robust revenue growth rate of 31.9% year-over-year, this top-line expansion has not translated into bottom-line stability. EPS growth sits at -52.4%, resulting in an EPS of $2.06 and a net margin of 13.8%. These figures contribute to a low Alpha Score of 22.9, driven primarily by a quality sub-score of 50.2 and a momentum sub-score of 26. The lack of a sentiment score further complicates the current outlook as investors weigh the company's significant revenue gains against its compressed profitability and elevated valuation multiples. The disparity between growth metrics and earnings efficiency remains the central theme for market participants evaluating the stock's positioning within the technology sector. Investors should monitor whether upcoming operational adjustments can improve net margins and stabilize EPS growth in the next quarter.
| Fund | Shares Held | Position Value | Action (latest Q) |
|---|---|---|---|
| Citadel Ken Griffin | 1.77M | $831.52M | NEW |
| Coatue Management Philippe Laffont | 1.66M | $778.09M | NEW |
| Marshall Wace | 756K | $355.08M | NEW |
| D.E. Shaw David Shaw | 97K | $45.73M | NEW |
| ARK Invest Cathie Wood | 76K | $30.16M | +22% |
| Point72 Steve Cohen | 24K | $11.46M | NEW |
| Blackstone | 8K | $3.90M | NEW |
| Politician | Date | Type | Amount |
|---|---|---|---|
| Dan Newhouse R-WA | 2025-12-31 | purchase | $1k – $15k |
| Lisa McClain R-MI | 2025-09-11 | sale | $1k – $15k |
| Julie Johnson D-TX | 2025-07-18 | exchange | $1k – $15k |
| Lisa McClain R-MI | 2025-06-09 | sale | $1k – $15k |
| Rob Bresnahan PA | 2025-04-08 | sale | $1k – $15k |
| Jefferson Shreve R-IN | 2025-03-13 | sale | $15k – $50k |
| Rob Bresnahan PA | 2025-01-13 | sale | $1k – $15k |
| Valerie Hoyle D-OR | 2024-10-29 | purchase | $1k – $15k |
Synopsys, Inc. is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) products. These tools enable engineers to design, test, and verify complex integrated circuits (ICs), improving accuracy, productivity, and handling increased design complexity in end-to-end solutions. Founded in 1986 and headquartered in Sunnyvale, California, the company employs approximately 28,000 people worldwide. Synopsys serves the semiconductor industry by supporting chip design processes amid trends like semiconductor firms expanding into systems and systems companies developing in-house chips. Its comprehensive portfolio benefits from digitalization across end markets, including automotive, consumer electronics, and data centers. Operating in the software infrastructure sector, Synopsys plays a pivotal role in advancing technology innovation, particularly in high-performance computing and AI-driven applications, making it essential for the global electronics ecosystem.
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