Synopsys (SNPS) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Synopsys

NasdaqGS•Technology•Software - Infrastructure

$382.67+1.49(<0.01%)Market open

Market Cap

$73.01B

P/E

67.8x

P/S

7.8x

P/B

2.3x

Synopsys, Inc. provides design IP solutions in the semiconductor and electronics industries. It operates in two segments, Design Automation and Design IP. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; FPGA design products that are programmed to perform specific functions; synopsys technology computer-aided design (TCAD), mask synthesis, and manufacturing analytic solutions; and AI-driven EDA solutions. It also provides pre-verified and silicon-proven IP solutions, logic libraries and embedded memories, processor and security solutions, IP Offerings for the automotive market, SOC infrastructure IP, data path and building block IP, and mathematical and floating-point components. Synopsys, Inc. has a strategic collaboration with Arm Holdings plc for development of AGI CPU that provides solutions across its full-stack design portfolio including EDA, interface IP, and hardware-assisted verification (HAV). The company was incorporated in 1986 and is headquartered in Sunnyvale, California.

How this company scores

GoodMetricSide Score: 65/100

Strongest: Cash & Earnings Quality (24/25); weakest: Profitability (9/25).

Profitability9/25

Growth14/25

Balance Sheet & Red Flags18/25

Cash & Earnings Quality24/25

Strengths

Growing revenueRising free cash flowLow leverageCash-backed earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 67.8x5y range 33.0x – 119.2x

Currently near its 20-quarter median.

P/S · 7.8x5y range 7.8x – 16.4x

Currently below its 20-quarter median.

P/B · 2.3x5y range 2.3x – 12.4x

Currently below its 20-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 52.5% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Share Dilution

Red Flag

Shares outstanding increased 24.5% — significant dilution, likely from stock compensation or capital raises.

Price & Volume

Market Cap $73.01B

Metrics at a Glance

as of July 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $9.42B
Q. Revenue: $2.48B
TTM EBITDA: $2.78B
TTM Op. Income: $802.36M
Q. Op. Income: $357.49M
TTM Net Income: $1.08B
Q. Net Income: $545.80M
EPS: $2.85
Shares Out.: $191.54M

$9.42B in TTM revenue grew 49.5% YoY, reaching $2.48B last quarter. TTM EBITDA of $2.78B and TTM operating income of $802.36M show growth is flowing through to the bottom line. TTM net income of $1.08B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 6 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 72.6%
EBITDA Margin: 32.8%
Op. Margin: 14.4%
Net Margin: 22.0%

Op. margin of 14.4% is up 4.9% YoY — cost efficiency is improving. Net margin at 22.0% and gross margin of 72.6% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 52% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 67.8x
P/S Ratio: 7.8x
P/B Ratio: 2.3x

At 67.8x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 7.8x and P/B of 2.3x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is up 31% — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $47.73B
Cash: $3.61B
Long-Term Debt: $9.02B
Book Value: $31.15B
D/E Ratio: 0.3
Debt/EBITDA: 11.1

With $47.73B in assets and $9.02B in long-term debt, D/E is 0.3and book value is $31.15B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is down 44% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $812.84M
TTM Free Cash Flow: $2.75B
FCF Margin: 29.2%
FCF / Net Income: 2.6

TTM FCF of $2.75B on $812.84M in operating cash flow. The FCF / Net Income ratio of 2.6x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 5 consecutive quarters — an improving trend.