The company, which makes software to design and test computer chips, saw revenue rise to $2.25 billion as its acquisition of Ansys boosted sales. ...

Corporate Overview for Investors December 2025 Forward-Looking Statements This presentation contains forward-looking statements, including, but not limited to, statements regarding Synopsys, Inc.'s (Synopsys, we or our) short-term and long-term financial targets, expectations and objectives; our businesses, business segments, strategies, partnerships, initiatives and opportunities, including, among other things, the reallocation of resources in our Design IP segment to higher growth opportunities and planne ...

Core Viewpoint - Synopsys, Inc. reported strong fourth-quarter earnings, surpassing both revenue and earnings expectations, leading to a significant increase in stock price during extended trading hours [1][2]. Financial Performance - Quarterly earnings per share (EPS) were reported at $2.90, exceeding the analyst expectation of $2.78 [2]. - Quarterly revenue reached $2.26 billion, slightly above the analyst estimate of $2.25 billion [2]. Management Commentary - CEO Sassine Ghazi highlighted the company's strong performance and commitment to sustainable growth and margin expansion through innovation and disciplined execution as they enter fiscal year 2026 [3]. Future Outlook - For fiscal year 2026, Synopsys projects adjusted EPS between $14.32 and $14.40, significantly higher than the analyst estimate of $12.85 [4]. - The company anticipates fiscal revenue in the range of $9.56 billion to $9.66 billion, compared to the analyst estimate of $7.04 billion [4]. Stock Performance - Following the earnings report, Synopsys stock increased by 5.68%, reaching a price of $502.88 in extended trading [4].

Revenue Performance - Fourth quarter revenue for fiscal year 2025 was $2.255 billion, a 38% increase from $1.636 billion in the same quarter of fiscal year 2024[2] - Full-year revenue for fiscal year 2025 reached $7.054 billion, reflecting a 15% increase from $6.127 billion in fiscal year 2024[2] - Total revenue for the twelve months ended October 31, 2025, increased to $7,054,178, up from $6,127,436 in the previous year, representing a growth of approximately 15.1%[33] - Revenue from the Design Automation segment for the twelve months ended October 31, 2025, was $5,302.4 million, up 25.6% from $4,221.1 million in 2024[44] - The Design IP segment revenue decreased to $1,751.8 million in 2025, down 8.1% from $1,906.3 million in 2024[44] Income and Earnings - Non-GAAP net income for the fourth quarter of fiscal year 2025 was $543.1 million, or $2.90 per diluted share, compared to $529.9 million, or $3.40 per diluted share, in the fourth quarter of fiscal year 2024[6] - GAAP net income for fiscal year 2025 was $1.336 billion, or $8.07 per diluted share, down from $1.442 billion, or $9.25 per diluted share, in fiscal year 2024[5] - Non-GAAP earnings per diluted share for fiscal year 2025 was $12.91, compared to $13.20 in fiscal year 2024[6] - Net income attributed to Synopsys for the twelve months ended October 31, 2025, was $1,332,220, compared to $2,263,380 in the previous year, indicating a decrease of about 41.2%[34] - Net income for the twelve months ended October 31, 2025, was $1,333,251, a decrease of 40.4% compared to $2,235,810 in 2024[40] Backlog and Future Expectations - The company reported a record backlog of $11.4 billion, indicating strong business resilience[3] - The company expects fiscal year 2026 revenue to be approximately $9.610 billion, including $2.9 billion from Ansys[4] - The anticipated impact of divested businesses is approximately $110 million on revenue for fiscal year 2026[4] Expenses and Costs - Research and development expenses for the twelve months ended October 31, 2025, were $2,479,338, an increase from $2,082,360 in the previous year, reflecting a growth of approximately 19.1%[33] - Total current assets decreased to $6,012,102 as of October 31, 2025, from $6,469,666 a year earlier, a decline of about 7.1%[36] - Total liabilities increased to $19,897,446 as of October 31, 2025, compared to $4,050,355 in the previous year, showing a significant rise[36] - The company reported a gross margin of $5,430,629 for the twelve months ended October 31, 2025, compared to $4,882,147 in the previous year, representing an increase of approximately 11.2%[33] Strategic Initiatives - The company plans to integrate Ansys fully and drive operational efficiency in fiscal year 2026[3] - The company plans to reallocate resources in its Design IP segment to focus on higher growth opportunities, indicating a strategic shift[30] - Synopsys expects to realize synergies from the integration of Ansys, which is anticipated to impact future performance positively[30] - The company has planned stock repurchases as part of its capital allocation strategy, reflecting confidence in its financial position[30] Cash Flow and Financing - Cash flows from operating activities increased to $1,518,608 in 2025 from $1,407,029 in 2024, reflecting a growth of 7.9%[40] - Cash, cash equivalents, and restricted cash at the end of the period were $2,893,721, down from $3,898,729 at the beginning of the year, reflecting a decrease of 25.7%[41] - The company reported a net cash used in investing activities of $(15,881,269) in 2025, compared to a net cash provided of $1,223,013 in 2024[40] - Proceeds from debt in financing activities amounted to $14,329,340 in 2025, with a significant increase compared to no proceeds in 2024[40] Operating Margins - Adjusted operating income for the Design Automation segment increased to $2,213.5 million in 2025, a rise of 35.6% from $1,631.9 million in 2024[44] - Total adjusted segment operating income for the twelve months ended October 31, 2025, was $2,632.9 million, compared to $2,362.1 million in 2024, marking an increase of 11.4%[46] - The adjusted operating margin for the Design Automation segment improved to 41.7% in 2025 from 38.7% in 2024[44] Tax and Restructuring - Synopsys will transition to a three-year normalized non-GAAP tax rate starting in fiscal year 2026, enhancing consistency across reporting periods[60] - The projected annual non-GAAP tax rate is influenced by the acquisition of Ansys in Q3 of fiscal year 2025 and the enactment of the One Big Beautiful Bill Act, affecting taxable income from fiscal year 2026[60] - Restructuring activities are initiated to align costs with operating plans, including severance and facility closures, which are not considered part of core operations[58] Core Business Assessment - Gains and losses from the sale of equity investments in privately held companies are excluded from core business assessments[59] - Changes in the fair value of non-qualified deferred compensation plans are not used to assess core profitability[59] Company Overview - Synopsys is a leader in engineering solutions, focusing on silicon design, IP, simulation, and analysis solutions[62] - The company partners with customers across various industries to enhance R&D capabilities and productivity[62]

Core Insights - Synopsys, Inc. reported a strong financial performance for the fourth quarter and fiscal year 2025, with fourth-quarter revenue reaching $2.255 billion, a significant increase from $1.636 billion in the same quarter of the previous year [2][9] - The company achieved a full-year revenue of $7.054 billion, marking a 15% increase from $6.127 billion in fiscal year 2024 [2][9] - The integration of Ansys is expected to drive further operational efficiency and revenue growth, with a projected revenue of $9.610 billion for fiscal year 2026 [3][9] Financial Performance - For the fourth quarter of fiscal year 2025, GAAP net income was $448.7 million, or $2.39 per diluted share, compared to $279.3 million, or $1.79 per diluted share, in the fourth quarter of fiscal year 2024 [4][5] - Non-GAAP net income for the fourth quarter was $543.1 million, or $2.90 per diluted share, slightly down from $529.9 million, or $3.40 per diluted share, in the same quarter of the previous year [5][4] - Full-year GAAP net income for 2025 was $1.336 billion, or $8.07 per diluted share, compared to $1.442 billion, or $9.25 per diluted share, in fiscal year 2024 [4][5] Business Segments - Synopsys operates in two main segments: Design Automation and Design IP. In the fourth quarter, Design Automation generated $1.847 billion in revenue, while Design IP contributed $407.2 million [7][32] - For the full fiscal year 2025, Design Automation accounted for approximately 75.2% of total revenue, while Design IP represented 24.8% [32] Future Outlook - The company anticipates setting another revenue record in 2026, with a strong backlog of $11.4 billion, indicating robust demand for its products and services [3][9] - Synopsys expects fiscal year 2026 revenue to be in the range of $9.560 billion to $9.660 billion, including $2.9 billion from Ansys [10][11]

Core Viewpoint - Recent dealmaking in the AI sector has intensified concerns regarding an AI bubble, reflecting a growing skepticism among some investors [1] Group 1 - The current wave of dealmaking in the AI industry is characterized as circular, indicating a potential lack of genuine innovation and value creation [1] - The fears surrounding the AI bubble have escalated, suggesting that investors are increasingly wary of overvaluation in the sector [1]

Upgrades - Goldman Sachs upgraded Viking Holdings (VIK) to Buy from Neutral with a price target of $78, increased from $66, citing the company's differentiated geographic exposure and higher-income demographic offsetting broader cruise trends [1] - RBC Capital upgraded RPM (RPM) to Outperform from Sector Perform with a price target of $132, up from $121, believing the shares have hit a bottom [2] - RBC Capital also upgraded Colgate-Palmolive (CL) to Outperform from Sector Perform with an unchanged price target of $88, noting that estimates and expectations are appropriately low despite a difficult environment in 2026 [2] - Wolfe Research upgraded Eaton (ETN) to Outperform from Peer Perform with a price target of $413, expecting benefits from the company's electrical backlog conversion and easing cyclical tailwinds in 2026 [2] - Rosenblatt upgraded Synopsys (SNPS) to Buy from Neutral with a price target of $560, down from $605, anticipating an in-line quarter following a Q3 miss and guidance cut [3] Downgrades - Seaport Research downgraded Warner Bros. Discovery (WBD) to Neutral from Buy without a price target, following news of a new hostile offer from Paramount Skydance at $30 per share [4] - Goldman Sachs downgraded Norwegian Cruise Line (NCLH) to Neutral from Buy with a price target of $21, down from $23, due to a less favorable risk/reward setup for 2026 in the Caribbean market [4] - RBC Capital downgraded Confluent (CFLT) to Sector Perform from Outperform with a price target of $31, up from $30, after the company agreed to be acquired by IBM for $31 per share in cash [4] - Compass Point double downgraded SLM (SLM) to Sell from Buy with a price target of $23, down from $35, after the company presented an updated medium-term outlook reflecting expected growth from the Grad PLUS opportunity [4] - Wolfe Research downgraded Vertiv (VRT) to Peer Perform from Outperform without a price target, citing valuation concerns as shares have increased 14 times since the December 2022 upgrade [4]

SNPS NOTIFICATION: BFA Law Notifies Synopsys, Inc. Investors of the Pending Class Action Lawsuit and Upcoming December 30 Legal DeadlineDecember 10, 2025 7:17 AM EST | Source: Bleichmar Fonti & AuldNew York, New York--(Newsfile Corp. - December 10, 2025) - Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Synopsys, Inc. (NASDAQ: SNPS) and certain of the Company's senior executives for securities fraud after a significant stock d ...

Rosenblatt将新思科技的目标价从605美元下调至560美元，评级则从"中性"上调至"买入"。(格隆汇) ...

Group 1 - Synopsys, Inc. is set to release its fourth-quarter earnings results on December 10, with expected earnings of $2.88 per share, a decrease from $3.40 per share in the same period last year [1] - The consensus estimate for Synopsys' quarterly revenue is $2.24 billion, up from $1.64 billion reported in the previous year [1] - On December 1, NVIDIA and Synopsys announced an expansion of their partnership to enhance modern engineering and product development [2] Group 2 - Recent analyst ratings for Synopsys include upgrades from Neutral to Buy by Rosenblatt, with a revised price target of $560 [4] - B of A Securities upgraded Synopsys from Underperform to Neutral, adjusting the price target to $500 [4] - Citigroup initiated coverage with a Buy rating and a price target of $580 [4] - Mizuho maintained an Outperform rating but reduced the price target from $700 to $600 [4] - Stifel maintained a Buy rating while lowering the price target from $650 to $550 [4]