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With a market cap of $29.2 billion, ANSYS, Inc. (ANSS) is a leading provider of engineering simulation software, offering solutions for structural, fluid, electromagnetic, and multiphysics analysis across industries and academia. Its key products include ANSYS Workbench, SCADE, Fluent, and Lumerical, with cloud-based solutions like ANSYS Cloud enhancing simulation capabilities.
Shares of the engineering-simulation software maker have underperformed the broader market over the past 52 weeks. ANSS stock has decreased 2.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 17.6%. Moreover, shares of ANSS are down 1.1% on a YTD basis, compared to SPX's 1.7% gain.
In addition, the Canonsburg, Pennsylvania-based company has lagged behind the Technology Select Sector SPDR Fund's (XLK) 12.8% return over the past 52 weeks.
Shares of ANSS recovered over 1% following its Q4 earnings release on Feb. 19, driven by adjusted earnings of $4.44 per share, beating the consensus estimate and reflecting a 12.7% year-over-year increase. Revenue growth of 9.6% year-over-year, surpassing estimates at $882.2 million, was fueled by solid gains in subscription lease and maintenance revenues. The 14.6% year-over-year ACV growth to $1.1 billion and the company's projection for double-digit ACV growth in 2025 further boosted investor confidence. Additionally, progress on the $35 billion acquisition by Synopsys, including approvals from key regulators, added positive sentiment.
For the current fiscal year, ending in December 2025, analysts expect ANSS' EPS to grow 1.8% year-over-year to $8.41. The company's earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 12 analysts covering the stock, the consensus rating is a “Hold.” That’s based on two “Strong Buy” ratings, nine “Holds,” and one “Strong Sell.”
On Feb. 21, Citi analyst Tyler Radke raised ANSYS' price target to $371 while maintaining a “Neutral” rating, citing strong Q4 performance.
As of writing, ANSS is trading below the mean price target of $354.22. The Street-high price target of $375 implies a potential upside of 12.4% from the current price levels.
