Is Synopsys Stock Outperforming the Dow?
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Valued at approximately $91.9 billion by market cap, Sunnyvale, California-based Synopsys, Inc. (SNPS) provides electronic design automation software products used to design and test integrated circuits. It operates through Design Automation and Design IP segments.
Companies worth $10 billion or more are generally described as “large-cap stocks.” Synopsys fits this bill perfectly. Given the company’s extensive customer base spanning various industries and its influence in the IC designing and testing market, its valuation above this mark is not surprising.
Synopsys touched its all-time high of $651.73 on Jul. 30 and is currently trading 9.1% below that peak. Meanwhile, its stock prices have soared nearly 27% over the past three months, notably outperforming the Dow Jones Industrial Average’s ($DOWI) 6.5% gains during the same time frame.
Synopsys’ performance has remained impressive over the longer term as well. The SNPS stock is up 22% on a YTD basis and soared 23.1% over the past year, outpacing the Dow’s 6.4% uptick in 2025 and 10.6% gains over the past 52 weeks.
To confirm the uptrend, SNPS stock has traded above its 50-day moving average since late April and above its 200-day moving average since late June.
Despite reporting solid financials, Synopsys’ stock price dropped 1.6% in the trading session following the release of its Q2 results on May 28. The company’s overall revenues for the quarter surged 10.3% year-over-year to $1.6 billion, exceeding the guidance midpoint. Further, its non-GAAP net income for the quarter soared 22.7% year-over-year to $572.7 million, exceeding expectations.
Moreover, the company raised its full-year earnings outlook. Following the initial decline, SNPS stock prices rose nearly 2% in the subsequent trading session.
Meanwhile, Synopsys has notably outperformed its peer, Cadence Design Systems, Inc.’s (CDNS) 15.6% gains in 2025, but lagged behind CDNS’ 35.5% surge over the past 52 weeks.
SNPS has a consensus “Strong Buy” rating among the 20 analysts covering the stock. Its mean price target of $652.63 suggests a 10.2% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
