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Canonsburg, Pennsylvania-based ANSYS, Inc. (ANSS) develops and markets engineering simulation software and services. With a market cap of $30.1 billion, the company’s software accelerates product time to market, reduces production costs, improves engineering processes, and optimizes product quality and safety for a variety of manufactured products. ANSYS product family features open, flexible architecture for easy integration.
Shares of this global engineering simulation software company have underperformed the broader market over the past year. ANSS has gained 4.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 10.2%. However, in 2025, ANSS’ stock rose 1.4%, surpassing the SPX’s 1.3% dip on a YTD basis.
Narrowing the focus, ANSS’ underperformance is also apparent compared to the SPDR S&P Software & Services ETF (XSW). The exchange-traded fund has gained about 18.2% over the past year. However, ANSS’ returns on a YTD basis outshine the ETF’s 5.8% losses over the same time frame.
ANSS has been facing challenges due to increased operating costs and strong competition in the EDA/AI market. The upcoming acquisition of ANSYS by Synopsys, Inc. (SNPS) is anticipated to further heighten competition in the EDA industry. The deal is projected to be finalized in the first half of 2025.
On Apr. 30, ANSS shares closed up marginally after reporting its Q1 results. Its adjusted EPS of $1.64 did not meet Wall Street expectations of $1.75. The company’s revenue was $504.9 million, missing Wall Street forecasts of $529.4 million.
For the current fiscal year, ending in December, analysts expect ANSS’ EPS to grow 6.1% to $8.76 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 12 analysts covering ANSS stock, the consensus is a “Hold.” That’s based on two “Strong Buy” ratings, nine “Holds,” and one “Strong Sell.”
The configuration is consistent over the past three months.
The mean price target of $352.22 represents a 2.9% premium to ANSS’ current price levels. The Street-high price target of $375 suggests an upside potential of 9.6%.
