Synopsys slid 5.1% in after-hours trading to $389 following its fiscal third-quarter 2026 results, which fell short of analyst expectations despite a strong $11 billion backlog. The stock had gained 3% in the prior session.
The company reported non-GAAP earnings per share of $3.65, below the $3.67 forecast, and revenue of $2.43 billion, slightly under the $2.44 billion estimate. Synopsys had posted two consecutive quarters of earnings beats and raised guidance before this report, contributing to elevated expectations.
Analysts at Rosenblatt Securities maintained a Buy rating with a $575 price target, though the stock remains 37% below its 52-week high of $615.79. Options activity showed calls outnumbering puts by a 1.6-to-1 ratio, with implied volatility spiking ahead of the earnings release.
The broader market showed modest gains during the regular session, with the S&P 500 up 0.1% and the Nasdaq gaining 0.2%. NVIDIA, which also reported after the close, faced similar investor scrutiny following its results.
