Synopsys stock forecast
Synopsys's weighted forecast reaches $790.14 by October 2029, a 69% gain. It hinges on turning acquisition-led growth into durable cash per share.
Where could Synopsys's shares go?
The weighted forecast is slightly negative after one year but strongly positive after three. The shares reach $459.78 in October 2027, a 2% loss including dividends. They reach $648.73 in October 2028, a 39% gain. By October 2029, the weighted value is $790.14, a 69% gain.
| Case | Probability | October 2027 | October 2028 | October 2029 |
|---|---|---|---|---|
| Bear | 27 % | 259.87 (-44 %) | 341.48 (-27 %) | 412.42 (-12 %) |
| Base | 53 % | 477.66 (+2 %) | 643.80 (+38 %) | 788.56 (+68 %) |
| Bull | 20 % | 682.26 (+46 %) | 1076.59 (+130 %) | 1304.26 (+179 %) |
| Weighted | 100 % | 459.78 (-2 %) | 648.73 (+39 %) | 790.14 (+69 %) |
What this means. The weighted value combines the bear, base, and bull estimates according to their probabilities, so it is not simply the average of the three prices.
What could make Synopsys's stock forecast work or fail?
The bear case assumes China restrictions disrupt design starts and local tools take share. AI and IP agreements fail to convert into repeat paid activity, while Ansys cross-selling remains slow and integration costs persist. The shares reach $259.87 in October 2027. They reach $412.42 in October 2029, with 27% probability because cash conversion, debt service and dilution could all weaken together.
The bull case requires several conversions at once. Customers repeatedly adopt combined Synopsys–Ansys workflows, AI usage becomes paid capacity, and IP agreements reach production and royalties. Strong cash conversion funds debt reduction and buybacks. The shares reach $682.26 in October 2027. They reach $1,304.26 in October 2029, with 20% probability because the evidence shows technical wins but not yet recurring incremental cash.
How much cash does Synopsys really make?
Stock compensation adds another qualification. Synopsys recorded $712.6 million of it in the first nine months of FY2026. Operating cash flow adds that non-cash expense back, but shareholders may pay through dilution. A specialist therefore asks whether cash grows per share, not merely whether the cash-flow statement looks strong.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Free cash flow after stock pay | 2,130 (1,520 / 2,450) | 2,967 (2,120 / 3,750) | 3,803 (2,800 / 4,700) |
| Shares (millions) | 192 (192 / 192) | 192 (194 / 191) | 192 (196 / 190) |
| Dividends per share | 0.00 (0.00 / 0.00) | 0.00 (0.00 / 0.00) | 0.00 (0.00 / 0.00) |
| Enterprise value to free cash flow after stock pay | 45.00 (36.00 / 55.00) | 42.00 (32.00 / 55.00) | 39.00 (28.00 / 52.00) |
| Net debt | 4,330 (4,930 / 4,030) | 1,263 (1,730 / 730) | -2,770 (-2,270 / -3,670) |
What this means. Negative net debt means the company is expected to have more cash than borrowed money.
What does an investor pay for Synopsys today?
P/E, or price-to-earnings, compares the share price with forecast earnings per share. At 25.1 times, investors pay $25.10 for each dollar of expected earnings. Management’s FY2027 target shows why the definition matters: the GAAP operating margin is 20.7%, while the adjusted margin is 44.0%. The difference includes amortization, which spreads an acquisition’s cost over time, and stock compensation, which pays employees with ownership claims. The first is non-cash in the current year; the second can dilute shareholders.
| Today (Oct 16, 2026) | |
|---|---|
| Share price | 468.11 |
| Market value (calculated) | 89,707,030.359 |
| Enterprise value (calculated) | 96,136,721.359 |
| P/E, next 12 months (calculated) | 25.1x |
| Price to book (calculated) | 2.9x |
| Dividend yield (calculated) | 0.0% |
What this means. The market value may be slightly too high because it uses the number of shares before the company bought back shares on October 5.