Synopsys

SNPS on Nasdaq. Synopsys sells chip design software and services to engineers. Market value $93.6bn.

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Price checks use the past 12 months to July 2026. Some use the latest annual report instead, as marked. Quality checks use five annual reports, the latest for the year to October 2025.

Should I look at this?

Good business, but not cheap right now

See cheaper Technology stocks on the list

This is not advice. Check the numbers below.

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Cash yield
annual report to October 2025
1.4%low

For every $100 of what the whole company costs, it produced $1.39 of spare cash last year. A savings account pays about $4.

Price to profit
past 12 months to July 2026
128.7×full

You pay 128.7 years of operating profit for the business. The average large US company costs around 18.

Return on capital
five annual reports to October 2025
21.0%five-year median

Each dollar kept in the business earns 21 cents a year. Above 10 is good.

Quality score: 100 of 100. Price score: 13 of 100. Our list needs 70 on quality and 60 on price.

$505.17 a share, 39% above its 1-year low

Over the past year the price has ranged from $362.55 to $539.48.

Pays no dividend

Prices from Tuesday’s close (6 October).

Five years of cash, in billions

1.4
1.6
1.5
1.3
1.3
20212022202320242025
Revenue
$4.2bn$5.1bn$5.3bn$6.1bn$7.1bn
Operating margin
17.5%22.6%23.9%22.1%13.0%
Debt to equity
0.020.000.000.000.48
Shares outstanding
0.15bn0.15bn0.15bn0.19bn0.19bn

Health checks

  • Free cash flow positive5 of 5 years
  • Accounting looks honest (Beneish)Watch
  • Financial strength (Piotroski)4 of 9
  • Profit backed by cash (accruals)Yes
  • Debt0.48× equity
  • Revenue growth, five yearsStrong, 13.9% a year
  • Buying back its own sharesNo, 25% more shares since 2021

The quarter to July 2026

How the business did, compared with the same quarter a year earlier.

  • Sales: $2.5 billion last quarter, up 42% on a year ago.
  • Profit: $546 million, up 125% on a year ago.
  • It keeps 9 cents of each $1 of sales as operating profit, down from 17 cents a year earlier.
  • 19% more shares than a year ago. Each share owns a bit less of the company.
  • Debt is $6.4 billion more than cash, down from $11.8 billion a year ago.
Sales by quarter
Sales by quarter
Quarter toAmount
October 2024Not reported
January 2025$1.5bn
April 2025$1.6bn
July 2025$1.7bn
October 2025$2.3bn
January 2026$2.4bn
April 2026$2.3bn
July 2026$2.5bn
Profit by quarter
Profit by quarter
Quarter toAmount
October 2024$1.1bn
January 2025$296m
April 2025$345m
July 2025$243m
October 2025$449m
January 2026$65m
April 2026$17m
July 2026$546m

From the company's quarterly reports to the SEC.

Dates

Next results (estimated)
9 December 2026
Last annual report (10-K)
22 December 2025
Next quarterly (estimated, 10-Q)
25 November 2026

Who owns it

10 long-term investors we follow own it, up from 9 last quarter. 1,445 funds in all.

Jun '25
Dec '25
Jun '26
Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

1 investor owns more than 5%.

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

No insider bought shares on the open market in the last 12 months. 4 sold $48m, $48m of it under preset trading plans.

  • Ghazi Sassine
    PRESIDENT AND CEO, Director
    Sold
    under a preset trading plan
    Date
    15 September 2026
    Shares
    14,604
    Price
    $374.88
    Value
    $5m
  • DE GEUS AART
    EXECUTIVE CHAIR, Director
    Sold
    under a preset trading plan
    Date
    1 September 2026
    Shares
    24,641
    Price
    $419.44
    Value
    $10m
  • DE GEUS AART
    EXECUTIVE CHAIR, Director
    Sold
    under a preset trading plan
    Date
    31 August 2026
    Shares
    25,000
    Price
    $441.76
    Value
    $11m
  • DE GEUS AART
    EXECUTIVE CHAIR, Director
    Sold
    under a preset trading plan
    Date
    28 August 2026
    Shares
    25,000
    Price
    $445.55
    Value
    $11m
  • Ghazi Sassine
    PRESIDENT AND CEO, Director
    Sold
    under a preset trading plan
    Date
    15 June 2026
    Shares
    14,603
    Price
    $458.96
    Value
    $7m
  • Glaser Shelagh
    CFO
    Sold
    under a preset trading plan
    Date
    12 June 2026
    Shares
    3,394
    Price
    $450.02
    Value
    $2m
  • LEE JANET
    GC & Corporate Secretary
    Sold
    under a preset trading plan
    Date
    12 January 2026
    Shares
    250
    Price
    $530.00
    Value
    $132,500
  • LEE JANET
    GC & Corporate Secretary
    Sold
    under a preset trading plan
    Date
    7 January 2026
    Shares
    250
    Price
    $510.00
    Value
    $127,500
  • Glaser Shelagh
    CFO
    Sold
    under a preset trading plan
    Date
    19 December 2025
    Shares
    3,657
    Price
    $460.77
    Value
    $2m

From Form 4 filings: insiders must report trades in their own company's shares within two days.

Warning signs in its filings

Problems the company itself reported to the SEC, in its own words.

Not checked yet. We haven’t read Synopsys’ annual report.

A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.

What could go wrong

  • It isn't cheap on profits: 128.7× operating profit.

Whether the price already reflects the risks is what the deep dive is for.

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
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What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.