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Upturn AI SWOT - About
Synopsys Inc (SNPS)

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Upturn Advisory Summary
10/30/2025: SNPS (2-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $556.4
1 Year Target Price $556.4
| 15 | Strong Buy |
| 4 | Buy |
| 3 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 14.52% | Avg. Invested days 51 | Today’s Advisory PASS |
Upturn Star Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 84.30B USD | Price to earnings Ratio 61.33 | 1Y Target Price 556.4 |
Price to earnings Ratio 61.33 | 1Y Target Price 556.4 | ||
Volume (30-day avg) 22 | Beta 1.1 | 52 Weeks Range 365.74 - 651.73 | Updated Date 10/31/2025 |
52 Weeks Range 365.74 - 651.73 | Updated Date 10/31/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 7.4 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 31.04% | Operating Margin (TTM) 9.5% |
Management Effectiveness
Return on Assets (TTM) 2.31% | Return on Equity (TTM) 6.5% |
Valuation
Trailing PE 61.33 | Forward PE 31.85 | Enterprise Value 100061162540 | Price to Sales(TTM) 13.1 |
Enterprise Value 100061162540 | Price to Sales(TTM) 13.1 | ||
Enterprise Value to Revenue 15.55 | Enterprise Value to EBITDA 55.83 | Shares Outstanding 185748673 | Shares Floating 184671331 |
Shares Outstanding 185748673 | Shares Floating 184671331 | ||
Percent Insiders 0.45 | Percent Institutions 81.63 |
Upturn AI SWOT
Synopsys Inc

Company Overview
History and Background
Synopsys was founded in 1986 by Aart de Geus and David Harrison. Initially focused on synthesis, it expanded into verification, prototyping, and IP. Key milestones include IPO in 1992 and numerous acquisitions strengthening its EDA leadership.
Core Business Areas
- EDA (Electronic Design Automation): Provides software tools for designing and verifying integrated circuits. This includes simulation, verification, and physical design solutions.
- IP (Intellectual Property): Offers pre-designed and pre-verified blocks of functionality that can be integrated into chips, accelerating the design process.
- Software Integrity: Provides software testing tools to help organizations build secure, high-quality software. Also offers application security testing services and training.
Leadership and Structure
Aart de Geus is the Executive Chairman and Sassine Ghazi is the President and CEO. Synopsys operates with a functional organizational structure, with dedicated teams for engineering, sales, marketing, and finance.
Top Products and Market Share
Key Offerings
- VCS (Verification Compiler Simulator): A leading simulation tool used for verifying digital designs. Competitors include Cadence (Xcelium) and Siemens EDA (Questa). Synopsys is a market leader in verification.
- Design Compiler: A widely-used logic synthesis tool for creating gate-level designs. Key Competitors: Cadence Genus Synthesis Solution and Siemens EDAu2019s Nitro-SoC. Synopsys is a market leader in synthesis.
- Polaris Software Integrity Platform: Provides comprehensive software composition analysis (SCA) and static application security testing (SAST). Competitors include Veracode, Checkmarx, and Snyk. Market share data is fragmented across multiple sub-segments of the application security market.
- ARC Processors: Configurable and extensible processors for embedded systems. Competitors include Arm and RISC-V architectures.
Market Dynamics
Industry Overview
The EDA industry is experiencing growth driven by increasing complexity of chips, growing adoption of AI, and the need for faster time-to-market. The application security market is growing due to increased focus on cybersecurity and regulatory compliance.
Positioning
Synopsys is a leading provider in the EDA market, known for its comprehensive portfolio of tools and strong relationships with leading semiconductor companies. In Software Integrity, they offer a portfolio of tools to compete in a fragmented space.
Total Addressable Market (TAM)
The total addressable market for EDA, IP, and Software Integrity is estimated to be over $20 billion. Synopsys is well-positioned to capture a significant share of this market.
Upturn SWOT Analysis
Strengths
- Comprehensive product portfolio
- Strong market share in EDA
- Established relationships with leading semiconductor companies
- Significant R&D investment
- Strong IP portfolio
Weaknesses
- High product complexity
- Dependence on semiconductor industry cycles
- Competition from larger, diversified companies like Siemens
- Integration challenges from acquisitions
- High software cost
Opportunities
- Growth in AI and machine learning
- Expansion into new markets (e.g., automotive, aerospace)
- Increasing demand for cloud-based EDA solutions
- Growing need for cybersecurity solutions
- Adoption of chiplets and heterogeneous integration
Threats
- Intense competition
- Economic slowdowns
- Geopolitical risks
- Rapid technological changes
- Emergence of disruptive technologies
Competitors and Market Share
Key Competitors
- CDNS
- SI
- KEYS
Competitive Landscape
Synopsys competes with Cadence and Siemens EDA in the EDA market. They compete with multiple small vendors in the Software Integrity marketplace. Synopsys has a broad product portfolio and strong market presence.
Major Acquisitions
WhiteHat Security
- Year: 2022
- Acquisition Price (USD millions): 250
- Strategic Rationale: Expanded Synopsys' Software Integrity portfolio with dynamic application security testing (DAST) capabilities.
Black Duck Software
- Year: 2017
- Acquisition Price (USD millions): 565
- Strategic Rationale: Expanded Synopsys' Software Integrity Platform with software composition analysis (SCA) capabilities.
Growth Trajectory and Initiatives
Historical Growth: Synopsys has experienced strong growth over the past decade, driven by both organic growth and strategic acquisitions.
Future Projections: Analysts project continued growth for Synopsys, driven by increasing demand for EDA tools, IP, and cybersecurity solutions. Future Revenue Estimates: [6427.4, 7116.7, 7898.6] (Placeholder values)
Recent Initiatives: Recent initiatives include expanding its AI portfolio, investing in cloud-based solutions, and acquiring companies to strengthen its position in key markets.
Summary
Synopsys is a strong company with a leading position in the EDA market, healthy financials, and a track record of growth. Its comprehensive product portfolio and strategic acquisitions have fueled its success. However, Synopsys faces intense competition and must adapt to rapidly evolving technologies and economic conditions to maintain its market leadership.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company filings (10-K, 10-Q)
- Analyst reports
- Industry publications
- Synopsys Investor Relations
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Data may be subject to change. Market share figures are estimates.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Synopsys Inc
Exchange NASDAQ | Headquaters Sunnyvale, CA, United States | ||
IPO Launch date 1992-02-26 | CEO, President & Director Mr. Sassine Ghazi | ||
Sector Technology | Industry Software - Infrastructure | Full time employees 20000 | Website https://www.synopsys.com |
Full time employees 20000 | Website https://www.synopsys.com | ||
Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. 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 intellectual property (IP) solutions for UCIe, USB, PCI Express, DDR, Ethernet, MIPI, and HDMI; logic libraries and embedded memories; processor cores, software, and application-specific instruction-set processor tools for embedded applications; security IP solutions; IP solutions for automotive market; and system-on-chip (SoC) infrastructure IP, datapath and building block IP, and verification IP products, as well as mathematical and floating-point components, and Arm AMBA interconnect fabric and peripherals. The company was incorporated in 1986 and is headquartered in Sunnyvale, California.

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