Synopsys shares retreat near key support ahead of Q3 earnings

Synopsys shares are trading back toward a technical support zone between $377.98 and $417.76 as the company prepares to report fiscal third-quarter results. Investors are weighing whether prior rebounds from this level can repeat while Synopsys continues integrating Ansys. The stock was $401.25 at the time of publication on Tuesday, according to Benzinga.

Trefis said the shares have declined about 21% over the last three months, and that this price band has acted as technical support on five earlier occasions, where buying interest halted pullbacks.

In April 2025, Trefis reported that defending the level helped trigger a rally with a 69% gain over the next 114 days. In June 2023, Trefis said the stock later reached a 49% peak gain, while a rebound in April 2026 produced a 28% gain within 43 days.

Trefis also listed other rebounds, including a 23% peak gain after holding the level starting 3/23/2023 over 68 days and a 39% peak gain starting 11/18/2025 over 55 days.

Synopsys is scheduled to report fiscal 2026 third-quarter results on Aug. 26, 2026, after market close, according to finance.yahoo.com.

finance.yahoo.com reported that Synopsys expects non-GAAP earnings per share between $3.63 and $3.69. The Zacks Consensus Estimate for the quarter is $3.67 per share, implying 8.3% year-over-year growth, according to the same source.

For revenue, finance.yahoo.com said Synopsys anticipates a range of $2.41 billion to $2.46 billion. It cited a Zacks Consensus Estimate of $2.44 billion, representing an increase of about 40% from the year-ago period.

Benzinga reported analyst Blair Abernethy expects the quarter to show broad performance in line, with 40% year-on-year revenue growth largely driven by the Ansys acquisition. Benzinga added that Abernethy reiterated a Buy rating and a price target of $575.

Benzinga said Abernethy expects total revenue of $2.435 billion, versus consensus of $2.438 billion, and non-GAAP operating margin of 40% in line with consensus. It also projected non-GAAP earnings of $3.66 per share, versus consensus of $3.67 per share.

In addition, Benzinga stated that Abernethy pointed to adoption of Synopsys.ai as an increasing tailwind to growth, with 20 customers evaluating agentic EDA in the second quarter. Benzinga also said Synopsys will provide details of the next phase of the Ansys integration at its Investor Day on September 30.