Synopsys Beats Q3 EPS by $0.11 on 37.8% Revenue Surge, Guides FY26 EPS
APS Management Group established its largest holding by purchasing 61,481 shares of SNPS valued at $30.33M in Q3, representing 21.2% of its portfolio. Synopsys beat Q3 EPS forecasts by $0.11 with $2.90 per share on $2.25B revenue (+37.8% YoY) and set FY26 EPS guidance at 14.32–14.40, while CFO sold 3,657 shares reducing her stake 17.01%.
1. Institutional Investment by APS Management Group
In the third quarter, APS Management Group Inc. initiated a new position in Synopsys by acquiring 61,481 shares valued at approximately $30.33 million, as disclosed in its latest Form 13F filing with the SEC. This holding now represents 21.2% of APS Management’s total portfolio, making Synopsys the firm’s largest single equity stake. The scale of APS’s commitment underscores institutional confidence in Synopsys’s leadership in electronic design automation and semiconductor IP solutions.
2. Activity from Other Hedge Funds and Institutional Investors
Several mid-sized hedge funds modestly increased their Synopsys exposure in the second quarter. Lionshead Wealth Management added 17 shares to reach 914 shares (up 1.9%), YANKCOM Partnership added 17 shares to reach 537 shares (up 3.3%), and Manchester Capital Management added 17 shares to reach 340 shares (up 5.3%). Hemington Wealth Management increased its position by 10.1% to 197 shares, and Concord Asset Management LLC VA added 18 shares, bringing its total to 2,379 shares. Together, institutional and hedge fund ownership accounts for 85.47% of outstanding shares, reflecting broad professional backing.
3. Insider Selling by Chief Financial Officer
On December 19, Synopsys Chief Financial Officer Shelagh Glaser sold 3,657 shares in a single transaction that generated proceeds of approximately $1.69 million. Following this sale, Glaser’s remaining holdings stand at 17,842 shares, valued at just over $8.22 million, marking a 17.01% reduction in her position year to date. The sale was reported in an SEC filing and represents 0.62% of total insider ownership.
4. Solid Quarterly Results and Upward Analyst Revision
Synopsys reported third-quarter non-GAAP earnings per share of $2.90, surpassing consensus expectations by $0.11, on revenue of $2.25 billion, flat with forecasts and up 37.8% year-over-year. Net margin expanded to 18.9%, while return on equity reached 7.89%. Management reiterated full-year 2026 non-GAAP EPS guidance in the range of $14.32–$14.40 and set first-quarter guidance at $3.52–$3.58. Eleven analysts maintain Buy ratings, six maintain Hold, and one holds a Sell, with a consensus price target of $562.13, reflecting expectations for continued growth driven by robust demand for AI-oriented design tools and semiconductor IP.