Core Viewpoint - Rosen Law Firm is reminding investors who purchased Synopsys, Inc. securities between December 4, 2024, and September 9, 2025, of the December 30, 2025, deadline to become lead plaintiffs in a class action lawsuit [1]. Group 1: Class Action Details - Investors who purchased Synopsys securities during the specified Class Period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [1]. - A class action lawsuit has already been filed, and interested parties must move the Court by December 30, 2025, to serve as lead plaintiff [2]. - The Rosen Law Firm emphasizes the importance of selecting qualified counsel with a successful track record in securities class actions [3]. Group 2: Case Allegations - The lawsuit alleges that defendants made materially false and misleading statements and failed to disclose adverse facts about Synopsys' business and operations [4]. - Specific failures included not disclosing the negative impact of increased focus on artificial intelligence customers on the Design IP business and the likelihood that certain decisions would not yield intended results [4]. - The misleading statements allegedly led to a material negative impact on financial results, causing investor damages when the true information became public [4].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Synopsys, Inc. regarding alleged violations of federal securities laws, with a deadline for investors to seek lead plaintiff status by December 30, 2025 [2][4]. Group 1: Allegations Against Synopsys - The complaint alleges that Synopsys and its executives made false or misleading statements and failed to disclose critical information about the impact of their focus on artificial intelligence customers on the Design IP business [4]. - It is claimed that the increased focus on AI customers was deteriorating the economics of the Design IP business, leading to negative financial impacts [4]. - The complaint also states that positive statements made by the defendants regarding the company's business and prospects were materially misleading [4]. Group 2: Financial Performance - On September 9, 2025, Synopsys reported third quarter 2025 financial results, revealing quarterly revenue of $1.740 billion, which was below the prior guidance of $1.755 billion to $1.785 billion [5]. - The net income for the quarter was reported at $242.5 million, marking a 43% decline year-over-year from $425.9 million in the third quarter of 2024 [5]. - The Design IP segment accounted for approximately 25% of total revenue, reporting $426.6 million, a 7.7% decline year-over-year, with guidance indicating a full-year decline of at least 5% in fiscal 2025 [5]. Group 3: Market Reaction - Following the financial results announcement, Synopsys's stock price fell by $216.59, or 35.8%, closing at $387.78 per share on September 10, 2025, with unusually heavy trading volume [6].

Core Viewpoint - A class action lawsuit has been filed against Synopsys, Inc. and certain senior executives for securities fraud following a significant stock drop due to potential violations of federal securities laws [1][3]. Company Overview - Synopsys, Inc. provides design automation software products used for designing and testing integrated circuits. Its Design IP segment, which supplies pre-designed silicon components to semiconductor companies, has been the fastest-growing segment, increasing from 25% of revenue in 2022 to 31% in 2024 [4]. Financial Performance - In Q3 2025, Synopsys reported a revenue of $425.9 million for its Design IP segment, reflecting a 7.7% year-over-year decline. The net income was $242.5 million, marking a 43% year-over-year decline [6]. - The company indicated that its Design IP customers were requiring more customization, which was negatively impacting the economics of its Design IP business and jeopardizing its business model [5][6]. Stock Market Reaction - Following the release of disappointing Q3 2025 financial results on September 9, 2025, Synopsys's stock price fell from $604.37 per share to $387.78 per share, a decline of nearly 36% [6].

Core Insights - Synopsys has shown significant improvement after a challenging year, with Q4 FY2026 guidance indicating a stabilization and integration of services, leading to positive market reactions [2] - Analysts have begun to raise price targets and upgrade ratings for Synopsys, reflecting a shift in sentiment from bearish to bullish, with a consensus forecast suggesting approximately 20% upside potential [3][5] - Institutional investors have been actively accumulating Synopsys stock, indicating confidence in its long-term growth despite current valuation concerns [4][5] Financial Performance - Synopsys reported a robust 44.5% year-over-year revenue growth in fiscal Q4, attributed to successful Ansys integration and margin expansion [5] - The stock is currently trading at about 33 times its current year earnings, but at only 10 times its 2035 consensus forecast, suggesting potential value for long-term investors [4] Market Sentiment - The consensus rating for Synopsys is now a Moderate Buy, with recent upgrades from analysts, including a notable upgrade from Bank of America [3] - Analyst sentiment is expected to improve further as advancements in AI continue to drive adoption and market interest [4] Stock Performance - The stock has faced challenges in breaking through moving average resistance levels, but positive analyst sentiment and institutional buying may support a potential breakout [7]

Core Viewpoint - A class action securities lawsuit has been filed against Synopsys, Inc. alleging securities fraud that negatively impacted investors between December 4, 2024, and September 9, 2025 [1][2]. Group 1: Allegations of Fraud - The lawsuit claims that the defendants made false statements and concealed information regarding the negative impact of the Company's focus on artificial intelligence customers on its Design IP business [2]. - It is alleged that certain decisions regarding the Company's roadmap and resources were unlikely to achieve their intended results, leading to a material negative impact on financial results [2]. - The lawsuit asserts that the defendants' positive statements about the Company's business and prospects were materially misleading and lacked a reasonable basis [2]. Group 2: Legal Process and Participation - Investors who suffered losses during the specified timeframe have until December 30, 2025, to request to be appointed as lead plaintiff, although participation in any recovery does not require serving as a lead plaintiff [3]. - Class members may be entitled to compensation without any out-of-pocket costs or fees, and there is no obligation to participate [3]. Group 3: Firm Background - Levi & Korsinsky, LLP has a history of securing hundreds of millions of dollars for shareholders and has extensive expertise in complex securities litigation [4]. - The firm has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4].

Core Viewpoint - Synopsys Inc is recognized as a leading player in the electronic design automation industry, providing essential software and intellectual property for semiconductor design, which is critical for creating complex integrated circuits [1] Analyst Upgrades - Morgan Stanley upgraded Synopsys to an "Overweight" rating on December 12, 2025, with a stock price of $477.36, reflecting confidence in the company's future performance and raising the price target from $510 to $550 [2][6] - Bank of America upgraded Synopsys from 'Neutral' to 'Buy', increasing its price target to $560, citing stronger-than-expected fiscal 2026 earnings guidance and reduced risks related to China and Intel [3][6] Financial Projections - Synopsys projects fiscal 2026 revenue to reach $9.6 billion, with an earnings per share (EPS) forecast of $14.27 for fiscal 2026 and $17 for fiscal 2027, indicating robust growth despite a higher tax rate [4][6] - Analysts have revised their EPS estimates to $14.27 for fiscal 2026 and $17 for fiscal 2027, highlighting Synopsys' attractive lower-beta AI-levered exposure supported by recurring revenue from chip design [5]

Core Insights - Synopsys reported non-GAAP earnings of $2.90 per share for Q4 fiscal 2025, exceeding the Zacks Consensus Estimate by 3.94%, although down 14.7% year-over-year [1] - Revenues for Q4 fiscal 2025 increased by 37.8% year-over-year to $2.25 billion, surpassing the Zacks Consensus Estimate by 0.17% [2] Revenue Breakdown - Time-Based Product revenues reached $940.7 million, accounting for 41.7% of total revenues, up 12.7% year-over-year [3] - Upfront Product revenues rose 18.1% to $615.4 million, representing 27.3% of total revenues [3] - Maintenance and Service revenues surged to $698.8 million, significantly up from $280.1 million in the previous year [3] - Design Automation revenues totaled $1.85 billion, making up 81.9% of total revenues, and increased by 65.2% from the prior year [4] - Design IP revenues decreased to $407.2 million from $517.8 million a year ago [4] Geographic Performance - North America generated $1.05 billion (46% of total revenues), while Europe contributed $361.4 million (16%) [5] - Revenues from Korea, China, and other regions were $236.9 million, $235.6 million, and $373.7 million, respectively [5] Profitability Metrics - The non-GAAP operating margin for Q4 was 36.5%, a slight decrease from the previous year [5] - Design Automation's adjusted operating margin improved to 41.5%, while the Design IP segment's adjusted margin fell to 13.8% [6] Financial Position - Synopsys ended Q4 fiscal 2025 with $2.96 billion in cash and short-term investments, up from $2.59 billion in the prior quarter [7] - Total long-term debt stood at $13.46 billion, with operating cash flow of $640 million generated in Q4 [7] Future Guidance - For fiscal 2026, Synopsys anticipates revenues between $9.56 billion and $9.66 billion, including $2.9 billion from Ansys [8] - Non-GAAP EPS is projected to be between $14.32 and $14.40, with expenses expected in the range of $5.69 billion to $5.75 billion [8] - For Q1 fiscal 2026, revenues are expected to be between $2.365 billion and $2.415 billion, with non-GAAP EPS projected between $3.52 and $3.58 [10]

Core Viewpoint - A class action securities lawsuit has been filed against Synopsys, Inc. alleging securities fraud that negatively impacted investors between December 4, 2024, and September 9, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that Synopsys, Inc. made false statements regarding its focus on artificial intelligence customers, which was harming the economics of its Design IP business [2]. - It is alleged that certain decisions regarding the company's roadmap and resources were unlikely to achieve their intended results, leading to a material negative impact on financial results [2]. - The lawsuit contends that the positive statements made by the defendants about the company's business and prospects were materially misleading and lacked a reasonable basis [2]. Group 2: Next Steps for Investors - Investors who suffered losses during the specified timeframe have until December 30, 2025, to request to be appointed as lead plaintiff in the lawsuit [3]. - Participation in the lawsuit does not require serving as a lead plaintiff, and class members may be entitled to compensation without any out-of-pocket costs [3]. Group 3: Firm Background - Levi & Korsinsky, LLP has a history of securing hundreds of millions of dollars for shareholders and has extensive expertise in complex securities litigation [4]. - The firm has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4].

Core Viewpoint - A class action lawsuit has been filed against Synopsys, Inc. and certain senior executives for securities fraud following a significant stock drop due to potential violations of federal securities laws [2][4]. Company Overview - Synopsys, Inc. provides design automation software products used for designing and testing integrated circuits. Its Design IP segment, which supplies pre-designed silicon components to semiconductor companies, has been the fastest-growing segment, increasing from 25% of revenue in 2022 to 31% in 2024 [5]. Allegations and Business Impact - The lawsuit alleges that Synopsys misled investors by claiming that customers relied on its IP to minimize integration risk and that the company was experiencing strength in Europe and South Korea. In reality, customers began requiring more customization for IP components, negatively impacting the economics of the Design IP business and threatening its business model [6]. Financial Performance and Stock Reaction - On September 9, 2025, Synopsys reported Q3 2025 financial results, indicating that its Design IP segment revenue was $425.9 million, a 7.7% year-over-year decline, and net income was $242.5 million, a 43% year-over-year decline. The company acknowledged that increased customization demands from customers were prolonging project timelines and requiring more resources. This revelation led to a stock price drop of $217.59 per share, nearly 36%, from $604.37 to $387.78 on September 10, 2025 [7].

Core Viewpoint - The fear of an artificial intelligence bubble is leading some investors to seek safer investments outside of AI, while Synopsys presents a compelling option as a lower beta, AI-levered stock with strong growth potential [1]. Group 1: Earnings Highlights - Synopsys reported Q4 2025 revenue of $2.255 billion, a significant increase from $1.635 billion in Q4 2024 [3][6]. - The company anticipates fiscal year 2026 revenue of $9.610 billion at the midpoint, which includes $2.9 billion from expected Ansys revenue and accounts for a $110 million impact from divested businesses [2]. Group 2: Analyst Insights - Bank of America upgraded Synopsys stock from neutral to buy, raising the target price from $500 to $560 based on a 32x price-to-earnings ratio for 2027 [7]. - Analysts noted that the non-GAAP EPS guidance for fiscal year 2026 is $14.36 at the midpoint, exceeding the consensus estimate of $14.11, indicating strong growth potential [4]. Group 3: Financial Metrics - Gross margin for Q4 2025 was $1.6 billion, up from $1.26 billion in Q4 2024 [6]. - Net income attributed to Synopsys was $448.696 million, a decrease from $1.114 billion in Q4 2024, with diluted net income per share at $2.39 compared to $7.14 in Q4 2024 [6]. Group 4: Market Position and Strategy - Analysts believe that the derisking of China and Intel sales, along with strong growth at Ansys, positions Synopsys for attractive stock catch-up potential and EPS beats in the coming year [4]. - The stock is viewed as an attractive, lower-beta, AI-levered candidate with recurring sales linked to resilient chip design and R&D spending [5].