Synopsys Inc. shares gained 3.0% in afternoon trading Tuesday, extending gains as the chip design software maker’s proximity to its 52-week low of $366 drew buyers.
The advance comes ahead of the company’s fiscal third-quarter 2026 earnings release, scheduled for after market close on August 26. Analysts at Rosenblatt Securities projected quarterly revenue of approximately $2.435 billion, implying roughly 40% year-over-year growth.
Management’s guidance for the period calls for revenue of $2.41 billion to $2.46 billion and non-GAAP earnings per share of $3.63 to $3.69. Synopsys has beaten consensus estimates in each of the past two quarters and raised full-year guidance following both reports. The company entered the quarter with a backlog of $11 billion.
Rosenblatt Securities reiterated a Buy rating on Synopsys with a $575 price target, while the broader analyst community maintains an average target near $560. Elliott Management disclosed a new stake in Synopsys during the second quarter, adding to investor interest in the stock.
The gains occurred as broader technology benchmarks advanced, with the Nasdaq Composite up 0.6% and the S&P 500 gaining 0.3%. Synopsys’s primary electronic design automation peer, Cadence Design Systems, has posted slower growth in recent quarters, contributing to the relative outperformance of Synopsys in the sector.
