Industry Overview - The Zacks Computer Software industry is poised for solid growth as global businesses accelerate digital transformation efforts, with cloud migration and Software-as-a-Service (SaaS) models providing recurring revenue visibility for vendors [1][2] - The global software market is projected to grow at a CAGR of 11.3% from 2025 to 2030, reaching approximately $1,397.31 billion [2] - The industry is characterized by companies providing software applications related to AI, cloud computing, cybersecurity, and various enterprise solutions [4] Trends Influencing the Industry - Higher spending on AI and cloud computing is expected, with businesses adopting hybrid and multi-cloud environments for flexibility and scalability [5][6] - The demand for AI-powered software tools for automation, personalization, and predictive analytics is increasing, indicating a shift towards generative AI as a defining force in software evolution [6] - Cybersecurity software demand is rising due to the need for securing cloud platforms amid increasing cyberattacks [8] Economic Context - Global macroeconomic conditions and supply-chain dynamics present challenges, with inflation potentially affecting spending across small and medium-sized businesses [9] - Worldwide IT spending is projected to reach $6.08 trillion in 2026, reflecting a 9.8% increase from 2025 levels, with software and services spending expected to rise by 15.2% in 2026 [7] Industry Performance - The Zacks Computer Software industry has underperformed compared to the broader Zacks Computer and Technology sector and the S&P 500 Index over the past year, gaining only 3.3% compared to 16.3% and 26.9% respectively [12] - The industry is currently trading at a forward 12-month P/E ratio of 29.28X, higher than the S&P 500's 23.59X and the sector's 29.03X [15] Company Highlights - **Simulations Plus (SLP)**: Reported a 6% year-over-year revenue decline to $17.5 million in Q4 fiscal 2025, but full-year revenues grew 13% to $79.2 million. Management expects low single-digit revenue growth for fiscal 2026 [19][20][21] - **Synopsys (SNPS)**: Anticipates revenues between $7.03-$7.06 billion for fiscal 2025, up from previous estimates. The company is facing challenges in its Design IP business but benefits from demand for emulation and prototyping solutions [27][28] - **Descartes Systems Group Inc. (DSGX)**: Reported Q3 fiscal 2026 revenues of $187.7 million, an 11% year-over-year increase. The company recently acquired Finale, Inc. for $39.2 million to enhance its cloud-based solutions [29][30][32]

NEW YORK, Dec. 9, 2025 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Synopsys, Inc. ("Synopsys, Inc." or the "Company") (NASDAQ: SNPS) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Synopsys, Inc. investors who were adversely affected by alleged securities fraud between December 4, 2024 and September 9, 2025. Follow the link below to get more information and be contacted by a member of our team: https://zlk.com/pslra-1/synopsys-inc-law ...

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% decline year-over-year. The net income was $242.5 million, marking a 43% year-over-year decline [6]. Customer Dynamics - The lawsuit alleges that while Synopsys claimed its customers relied on its IP to minimize integration risk and speed time to market, the reality was that customers began requiring more customization for IP components, negatively impacting the economics of the Design IP business and threatening its business model [5]. Stock Market Reaction - Following the release of disappointing Q3 2025 financial results, Synopsys's stock price fell from $604.37 per share on September 9, 2025, to $387.78 per share on September 10, 2025, a decline of nearly 36% [6].

Core Viewpoint - Synopsys, Inc. is a leading player in the electronic design automation industry, facing competition and preparing for an important earnings call on December 10, 2025, with analysts estimating an EPS of $2.79 and revenue of $2.25 billion [1] Group 1: Earnings and Financial Outlook - Bank of America has upgraded Synopsys to a "Neutral" rating, highlighting the importance of the upcoming earnings call for restoring investor confidence, despite a reduction in the price target from $525 to $500, reflecting a 4% decrease in earnings estimates for fiscal years 2026 and 2027 [2] - The earnings call on December 10 is expected to provide guidance for fiscal 2026 and address recent sales weaknesses in China and with Intel IP, as well as higher integration costs from the Ansys acquisition [3] - Bank of America projects Synopsys's fiscal year 2026 sales to be around $9.6 billion, with an adjusted EPS of $14.02, supported by Nvidia's $2 billion investment, indicating Synopsys's strategic importance in the chip-design software industry [4] Group 2: Financial Metrics and Position - Synopsys's current ratio of 1.62 indicates its ability to cover short-term liabilities with short-term assets, reflecting financial stability [5] - The company's enterprise value to sales ratio of 15.41 and enterprise value to operating cash flow ratio of 68.76 provide insights into how the market values its total value relative to sales and cash flow, indicating its financial position amidst industry challenges [5]

Core Viewpoint - The article emphasizes the significance of the upcoming earnings season in December for U.S. stocks, highlighting the potential for significant stock price volatility and the effectiveness of options as a tool for investors to amplify returns during this period [1][2]. Earnings Calendar - A detailed schedule of key U.S. companies' earnings releases for December 2025 is provided, including companies like AutoZone, GameStop, Adobe, and Nike, with specific dates and times for earnings announcements [1][2]. Options Strategies - The article outlines five classic options strategies that can be employed during earnings season: - **Buy Call**: A strategy for bullish investors expecting significant price increases [4][6]. - **Bull Call Spread**: A moderate bullish strategy with limited upside potential [7]. - **Buy Put**: A strategy for bearish investors anticipating significant price declines [9]. - **Bear Put Spread**: A moderate bearish strategy with limited downside potential [11]. - **Long Straddle**: A strategy for investors expecting high volatility in either direction [13]. Strategy Details - Each strategy includes specific scenarios for application, initial costs, potential returns, and risk profiles: - **Buy Call**: High potential returns with unlimited upside and maximum loss equal to the premium paid [6]. - **Bull Call Spread**: Limited risk and reward, with a defined maximum profit and loss [7]. - **Buy Put**: Limited maximum profit with a defined risk equal to the premium paid [9]. - **Bear Put Spread**: Similar to the Buy Put but with reduced risk and capped profit [11]. - **Long Straddle**: Captures significant price movements in either direction, with defined risk limited to the total premium paid [13]. Trading Considerations - The article advises investors to focus on the breakeven points of their strategies and to select options with sufficient time until expiration to avoid liquidity issues and time decay [4][6].

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, lead plaintiff deadline for 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 [2]. - A class action lawsuit has already been filed, and interested parties can join by visiting the provided link or contacting the firm directly [3][6]. - To serve as lead plaintiff, individuals must file with the Court by December 30, 2025, acting on behalf of other class members [3]. Group 2: Law Firm Credentials - Rosen Law Firm emphasizes the importance of selecting qualified counsel with a successful track record in securities class actions, highlighting its own achievements, including the largest securities class action settlement against a Chinese company [4]. - The firm has consistently ranked highly in securities class action settlements, recovering hundreds of millions for investors, including over $438 million in 2019 alone [4]. - Founding partner Laurence Rosen was recognized as a Titan of Plaintiffs' Bar by Law360 in 2020, and many attorneys at the firm have received accolades from Lawdragon and Super Lawyers [4]. Group 3: Case Allegations - The lawsuit alleges that Synopsys' management made materially false and misleading statements and failed to disclose adverse facts about the company's business and operations [5]. - Specific claims include the negative impact of Synopsys' focus on artificial intelligence customers on its Design IP business, leading to poor financial results and misleading positive statements from management [5].

Bragar Eagel & Squire, P.C. Litigation Partner Brandon Walker Encourages Investors Who Suffered Losses In Synopsys To Contact Him Directly To Discuss Their Options If you purchased or acquired Synopsys securities between December 4, 2024 and September 9, 2025 and would like to discuss your legal rights, call Bragar Eagel & Squire partner Brandon Walker or Melissa Fortunato directly at (212) 355-4648. Click here to participate in the action. NEW YORK, Dec. 08, 2025 (GLOBE NEWSWIRE) -- What’s Happening? Brag ...

Core Viewpoint - BofA Securities upgraded Synopsys to Neutral from Underperform, lowering the price target to $500 from $525, citing the upcoming earnings call as a potential clarifier for concerns regarding China-related weakness and integration costs from the Ansys acquisition [1] Group 1: Revenue and Earnings Forecasts - Revenue expectations for FY26 and FY27 remain largely intact, but EPS forecasts were trimmed by 4% for both years due to uncertainties surrounding cost synergies from the Ansys acquisition [2] - Sentiment catalysts are building, including Nvidia's proposed $2 billion equity investment and Intel's potential traction at its 18A and 14A nodes [2] Group 2: Valuation and Market Position - Synopsys is highlighted as having a valuation discount relative to peer Cadence, with a current 10-turn PE gap exceeding the historical 6-turn spread [3] - The revised price target of $500 reflects a 34x CY26 earnings multiple, consistent with the historical range of 24x to 46x [3] - Shares of Synopsys show catch-up potential after underperforming year-to-date [3] Group 3: Risks - Risks include heavy exposure to China IP and integration challenges with Ansys [3]

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Synopsys, Inc. regarding a class action lawsuit due to alleged misleading statements and omissions related to the company's business performance during a specified period [1][3]. Group 1: Allegations - The complaint alleges that Synopsys made materially false and/or misleading statements and failed to disclose critical information during the class period from December 4, 2024, to September 9, 2025 [3]. - Specific allegations include that the company's increased focus on artificial intelligence customers was negatively impacting the economics of its Design IP business [3]. - It is claimed that certain road map and resource decisions were unlikely to yield intended results, which had a material negative impact on financial results [3]. Group 2: Class Action Details - Shareholders who purchased shares of Synopsys during the class period are encouraged to register for the class action, with a deadline for lead plaintiff appointment set for December 30, 2025 [4]. - Once registered, shareholders will be enrolled in a portfolio monitoring software to receive updates throughout the case lifecycle [4]. - There is no cost or obligation for shareholders to participate in this case [4]. Group 3: Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting the rights of investors who have suffered due to deceit, fraud, and illegal business practices [5]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors affected by misleading statements that led to stock inflation [5].