CluenexSynopsys SNPS
Synopsys scores average on business quality (5.3 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Synopsys does
Synopsys sells electronic design automation software and semiconductor IP to chipmakers and systems companies who build advanced processors. Customers rely on these tools to design and verify complex silicon before sending chips to manufacturing.
- What it does best
Synopsys dominates chip design software, locking in engineers with deeply embedded workflows. Its gross margin sits at 72.4%, trailing peer CDNS at 85.9% but reflecting immense technical stickiness that prevents customer churn.
- The main risk
A massive net debt load of $10.5 billion creates substantial balance sheet pressure. If earnings stall, debt servicing costs will consume a larger share of operating cash flow.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin rests at 11.0% with a net margin of 11.4%. Profitability is currently compressed due to heavy debt burdens and integration costs, muting the benefits of scale.
Switching costs form a tight moat locking in enterprise chip developers. An operating margin sector percentile of 37 shows moderate pricing power relative to peers.
Revenue growth prints at 15.1%, pushing total revenue to $9.4 billion. This top-line expansion accelerates compared to historical periods, driven by strong demand for core chip design products.
Total debt reaches $13.5 billion against an interest coverage ratio of just 1.7x, leaving debt costs dangerously exposed. Free cash flow bounced to $2.7 billion, but overall financial footing is softening.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
2 sold $6.6M outside pre-planned sales.
Our sealed record on SNPS
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Synopsys scores average on the Cluenex quality check (5.3 of 10), measured against its own industry. Profitability is weak, moat fair, growth fast and financial health weak.
In the last 90 days of SEC Form 4 filings: 2 sold $6.6M outside pre-planned sales.
Dec 8, 2026, after the close.
See SNPS today
- Today's verdict on SNPS, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Synopsys (SNPS)”, https://cluenex.com/stocks/snps/, data as of Oct 10, 2026.