Synopsys (SNPS): analysis in plain words
Is Synopsys cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
Synopsys (SNPS) is listed on the Nasdaq and we classify it in software and cloud. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against Synopsys according to those figures, and the questions people ask most about the stock. No buy or sell tips.
Synopsys (SNPS) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $462.95 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 81.8x | Price over earnings per share |
| Revenue growth | +42.4% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 11.4% | Profit for every 100 of sales |
| Net debt / EBITDA | 3.5x | Years of operating profit to repay debt |
| Dividend yield | 0.00% | Annual dividend over price |
| Market cap | $88.7 billion | What the stock market values it at |
The Synopsys figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any SNPS figure that is not available shows as N/A: we do not estimate it.
How Synopsys makes money
Synopsys sells electronic design automation software that engineers use to design chips, plus pre-verified building blocks of intellectual property they can drop into their designs. Design Automation is its main segment, alongside Design IP, and the Ansys acquisition added engineering simulation software. Customers are chip designers and electronics companies.
Over the last 12 months, Synopsys brought in revenue of $9.4 billion. For every 100 it sells, Synopsys keeps 82.9 after the direct cost of what it sells (gross margin) and 14.5 after all operating costs (operating margin). With 28,000 full-time employees, that is about $336,000 of revenue per employee.
Synopsys against its sector
To know whether a Synopsys figure is high or low you have to put it next to similar companies. This table compares Synopsys with the median of the 19 software and cloud companies Fintols covers, with data as of November 4, 2026.
| Figure | Synopsys | software and cloud median |
|---|---|---|
| P/E | 81.8x | 29.0x (19) |
| Revenue growth | +42.4% | +20.5% (25) |
| Net margin | 11.4% | 16.0% (25) |
| Dividend yield | 0.00% | 0.00% (25) |
| Net debt / EBITDA | 3.5x | 0.1x (23) |
In short, against the typical software and cloud company, Synopsys trades on a higher P/E, grows faster and earns a thinner margin. By size, Synopsys ranks number 16 of 22 software and cloud companies quoted in USD on Fintols.
The bull case for Synopsys
What works in favour of Synopsys, according to its figures as of November 4, 2026:
- Synopsys grew sales +42.4% in its latest quarter against the same quarter a year earlier, while the median software and cloud company Fintols tracks grew +20.5%.
- Analysts expect Synopsys earnings to rise: its P/E on the next 12 months of estimated earnings is 24.9x, below the current 81.8x.
The main risk for Synopsys
The price already assumes a lot: Synopsys trades at 81.8x its last 12 months of earnings, against 29.0x for the software and cloud median. If growth disappoints, the multiple can shrink and the share price with it.
On top of that: debt is heavy: Synopsys carries net debt equal to 3.5x its annual EBITDA. With high interest rates or a weak year, interest payments eat into what it can invest or pay out.
And, like the rest of software and cloud, Synopsys is exposed to a competitor or AI making what it sells cheaper and forcing price cuts.
Frequently asked questions about Synopsys
Is it a good time to buy Synopsys stock?
Fintols does not tell you whether to buy or sell Synopsys, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, Synopsys stock trades at $462.95, 14% below its 52-week high ($539.48) and 28% above its low ($362.55). Its P/E is 81.8x against a software and cloud median of 29.0x, and 24.9x on the earnings analysts expect over the next 12 months. With Synopsys, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does Synopsys pay a dividend?
No. As of November 4, 2026, Synopsys does not pay a dividend: what it earns stays in the company to grow, invest or, where it does so, buy back shares. Anyone buying Synopsys today is counting on the share price rising, not on income.
Is Synopsys stock expensive?
It depends on what you compare it with. On P/E, Synopsys trades at 81.8x its last 12 months of earnings: more expensive than the software and cloud median (29.0x). Including its debt, Synopsys is valued at 46.2x its EBITDA (EV/EBITDA). A high P/E alone does not make Synopsys expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are Synopsys's competitors?
On Fintols we compare Synopsys with Cadence, Autodesk and Workday, which are also in software and cloud. As of November 4, 2026, Cadence is worth $90.4 billion and trades on a P/E of 65.5; Autodesk is worth $56.4 billion and trades on a P/E of 35.0; Workday is worth $48.6 billion and trades on a P/E of 41.1. Each has a side-by-side comparison with Synopsys below.
Synopsys competitors
- Cadence (CDNS) analysis · Synopsys vs Cadence comparison
- Autodesk (ADSK) analysis · Synopsys vs Autodesk comparison
- Workday (WDAY) analysis · Synopsys vs Workday comparison
To understand Synopsys better
More companies like Synopsys: software and cloud stocks and S&P 500 companies. Open the full SNPS analysis with its valuation and scenarios. Educational content about Synopsys, not investment advice.