Synopsys Inc. shares advanced 3% in afternoon trading on Tuesday, extending gains as analysts upgraded the stock ahead of its fiscal third-quarter 2026 earnings release scheduled for after market close on Wednesday.
Rosenblatt Securities reiterated a Buy rating and raised its price target to $575, citing expectations of approximately $2.435 billion in quarterly revenue, representing roughly 40% year-over-year growth. The firm’s forecast aligns with Synopsys’ guidance issued last quarter, which projected revenue in the range of $2.41 billion to $2.46 billion and non-GAAP earnings per share between $3.63 and $3.69.
The company entered the quarter with a backlog of $11 billion, providing a foundation for the projected performance. Synopsys’ stock has traded near its 52-week low of $366 in recent sessions, with the current price level reflecting renewed investor interest ahead of the earnings announcement.
Analysts noted an average price target of around $560 across the Street, while activist investor Elliott Management disclosed a new stake in the company during the second quarter. The broader market showed modest gains, with the Nasdaq Composite up 0.6% and the S&P 500 advancing 0.3% during the session.
Synopsys operates in the electronic design automation (EDA) sector, where it competes closely with Cadence Design Systems. The upcoming earnings release will provide further clarity on the company’s trajectory amid heightened demand for semiconductor and software design tools.
