Shares of Synopsys opened the new trading year on a positive note, advancing 2.28% to $480.42. This early momentum was supported by a significant price target increase from Loop Capital. Investor attention this week is also turning to CES 2026 in Las Vegas, where the semiconductor design specialist is set to showcase its latest automotive technologies.
Strong Quarterly Results Underpin Outlook
The optimistic analyst perspective follows the company’s solid financial performance reported in December. For the fourth quarter of fiscal 2025, Synopsys exceeded market expectations. The company posted adjusted earnings per share of $2.90 on revenue of $2.26 billion.
Management’s guidance for the full 2026 fiscal year projects revenue in a range of $9.56 billion to $9.66 billion. Adjusted earnings per share are forecast to be between $14.32 and $14.40. This outlook suggests the ongoing integration of its recent major acquisition is progressing as planned.
Loop Capital Raises Target to $600, Reiterates Buy
In a move that fueled the stock’s recent gain, analysts at Loop Capital lifted their price target for Synopsys on Friday morning. The investment bank increased its target to $600 from $570, reaffirming its Buy rating on the shares. This new target implies an upside potential of approximately 25% from current trading levels.
Should investors sell immediately? Or is it worth buying Synopsys?
The firm’s analysts expressed strong conviction in the company’s growth narrative for fiscal 2026. A central driver of this optimism is the anticipated synergies from the acquisition of Ansys, which was finalized in July 2025. This strategic merger is projected to expand Synopsys’s total addressable market to an estimated $31 billion. It combines Synopsys’s leadership in Electronic Design Automation (EDA) with Ansys’s established simulation capabilities.
CES Showcase and Integrated Product Roadmap
Industry focus now shifts to the Consumer Electronics Show (CES) in Las Vegas. At the event, Synopsys plans to demonstrate how its virtual prototyping solutions—enhanced by Ansys’s physics-based simulation technologies—can accelerate the development of software-defined vehicles.
Furthermore, the market is anticipating the launch of the first fully integrated Synopsys-Ansys solutions, scheduled for the first half of 2026. These offerings are designed to enable multiphysics analysis across the entire EDA platform. This functionality is considered a critical component for advancing multi-die packaging and high-performance computing systems.
Ad
Synopsys Stock: Buy or Sell?! New Synopsys Analysis from February 7 delivers the answer:
The latest Synopsys figures speak for themselves: Urgent action needed for Synopsys investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 7.
Synopsys: Buy or sell? Read more here...
