What Just Happened To Synopsys Stock

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Shares of Synopsys (SNPS) rose 5.6% on Monday, October 26, 2026, outpacing a 0.7% gain for the S&P 500. The company issued no announcements or earnings reports around the move, and filed nothing with the SEC on Monday. Technology stocks advanced less as a group, with the sector fund rising 1.7%. So what else happened on Monday that touches the business Synopsys is in?

Synopsys's Peer Cadence Reported Results That Day

After trading closed on October 26, news reports stated that Cadence Design Systems, a company on Synopsys's peer list, beat estimates for both third-quarter earnings and revenue. This news arrived after the rise in Synopsys shares. Cadence topped its own third-quarter guidance, posting double-digit growth across its core electronic design automation, intellectual property, and system design and analysis businesses. The reports said Cadence also raised its full-year revenue outlook to reflect expected growth of 21%.

Synopsys also sells chip design software and intellectual property through its Design Automation and Design IP segments. During an August 26 call, management said design activity is highest among AI and high-performance compute customers building increasingly specialized chips. Management said on that call that Design IP grew on broad AI infrastructure demand in fiscal Q3 2026.

Did Synopsys Rise With Its Peers?

Synopsys rose with most of its peers, but by much more. Four of the five companies on its peer list climbed during the session, including a 3.6% rise for Keysight Technologies. Cadence gained 1.8%, about a third as much as Synopsys, while Open Text was the only peer to fall. The gain for Synopsys was also more than three times that of the sector fund, meaning the stock moved the same way as its group while going well beyond it.

Where Does Synopsys Stock Stand Now?

A single-day increase of this size is uncommon for Synopsys: the stock recorded four rises at least this large over the prior 365 days. The most recent rise this large was a 12.8% gain on October 1. The most recent move this large in either direction came two sessions earlier, a 6.4% fall on October 22.

Investors who bought shares a year ago are roughly where they started, down 0.4% against a 15.3% gain for the S&P 500. The stock reached its highest close of that year at $534.56 on May 26, and hit its lowest at $367.70 on September 15. The path between those marks has been uneven: the stock is up 18.4% over the past three months but down 8.9% over six.

Investors also pay a lot more for each dollar of Synopsys's sales compared with the broader market. The stock trades at 9.2 times its sales, against 3.2 for the S&P 500.

Synopsys is expected to release its report for fiscal Q4 2026 in December 2026. The figure to watch is revenue, measured against management's guide of $2.53 billion to $2.58 billion.

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