KeyBanc Raises FY26 Estimates, Keeps Synopsys, Inc. (SNPS) at Overweight

Synopsys, Inc. (NASDAQ:SNPS) is among the most profitable software stocks to invest in. On October 10, 2025, KeyBanc reiterated its ‘Overweight’ rating on Synopsys, Inc. (NASDAQ:SNPS) with an unchanged price target of $590, which implies a potential upside of nearly 35% from the current price. This optimism surrounds an in-depth evaluation of the company’s fiscal third-quarter results.

While expressing confidence in the company’s recent quarterly performance, the research firm noted that the IP business segment may not be entirely “broken,” with the road to recovery appearing somewhat uncertain. The firm meaningfully raised its FY26 operating margin and EPS guidance to fully incorporate margin accretion and cost synergies stemming from the Ansys acquisition.

In another development, according to the recent filings with the SEC, many institutional investors are increasing their stake in Synopsys, Inc. (NASDAQ:SNPS), including First American Bank, Sequoia Financial Advisors, and Montrusco Bolton Investments Inc. Polen Focus Growth Strategy has also initiated a new position in the company to benefit from what it calls a “great business.” This highlights increased investor confidence in the company.

Synopsys, Inc. (NASDAQ:SNPS) is a California-based provider of electronic design automation software products for integrated circuits. Incorporated in 1986, the company operates through two segments: Design Automation and Design IP.

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