Synopsys Tops Q4 EPS by $0.11 as Revenue Climbs 37.8%, Raises FY26 Outlook

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Synopsys posted $2.90 EPS for the latest quarter, beating the $2.79 consensus by $0.11 on $2.25 billion in revenue, up 37.8% year-on-year. It issued FY2026 EPS guidance of $14.32–14.40 and Q1 guidance of $3.52–$3.58.

1. Congressional Purchase of Synopsys Stock

In a filing disclosed on January 15th, Representative Dan Newhouse (R-Washington) reported acquiring between $1,001 and $15,000 worth of Synopsys shares on December 31st through his Edward Jones IRA account. This marks his first disclosure of Synopsys stock ownership since taking office in 2015 and follows a string of similar mid-five-figure purchases in other technology and financial names within the same period. Given Newhouse’s seat on the House Armed Services Committee, investors will be watching for any potential policy impact on semiconductor design-automation providers like Synopsys.

2. Strong Q4 Results and Forward Guidance

Synopsys reported fourth-quarter earnings of $2.90 per share, exceeding the consensus estimate by $0.11, on revenue of $2.25 billion, in line with analysts’ forecasts. Revenue growth of 37.8% year-over-year was driven by a 42% increase in licensing and a 26% rise in recurring revenue. Return on equity stood at 7.9% and net margin at 18.9%. For fiscal 2026, management reiterated guidance of $14.32 to $14.40 in EPS and projected first-quarter EPS of $3.52 to $3.58, reflecting confidence in continued demand for advanced system-on-chip design tools.

3. Institutional Investors Boost Stakes

During the third quarter, Stanley Laman Group Ltd. expanded its position by 542.9%, adding 10,874 shares to reach a holding valued at $6.35 million. Symphony Financial Ltd. Co. made a similar move in Q2, increasing its stake by 4,780.9%, acquiring 39,395 additional shares for a total of 40,219. Bank of New York Mellon modestly upped its ownership by 0.4% to 1.35 million shares, while Mirae Asset Global Investments and Westbourne Investments also increased or initiated positions. Institutional ownership now stands at approximately 85.5% of outstanding shares.

4. Insider Selling Trends

In December, CFO Shelagh Glaser sold 3,657 shares of Synopsys stock for total proceeds of roughly $1.69 million, reducing her stake by 17.0%. On January 12th, director Janet Lee disposed of 250 shares for proceeds of $132,500, trimming her holding by 2.1%. Over the past 90 days, insiders have sold a combined 4,157 shares worth $1.95 million, representing 0.62% of total shares outstanding, a level that remains within historical norms for the company.

Sources

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