Synopsys Sees Strong Q4 Guidance Amid Integration Success and Analyst Sentiment Shift

Synopsys has reported a stronger-than-expected quarter, with net revenue up 44.5% YoY following the integration of Ansys. The company has issued stable guidance for Q4 FY2026, ending a series of negative updates. Analysts have shifted gears, lifting price targets and upgrading ratings. The stock is trading at a discount, with a P/E of 33x for the current year and 10x for 2035 consensus forecast. Price action is favorable in December, with support at critical levels. Institutional buying and improving business trends suggest a move above resistance targets is likely.