Core Viewpoint - Synopsys plans to lay off approximately 10% of its workforce, around 2,000 employees, to reallocate resources to faster-growing areas following disappointing financial results and a recent acquisition [2][4]. Group 1: Financial Performance - Synopsys reported third-quarter adjusted earnings per share of $3.39, below the market expectation of $3.74, with sales of $1.73 billion, also below the expected $1.76 billion, but showing a year-on-year growth of 14% [2]. - The company anticipates adjusted earnings per share between $2.76 and $2.80, significantly lower than the expected $4.51, while projected sales are between $2.23 billion and $2.26 billion, exceeding the expected $2.09 billion [3]. Group 2: Restructuring and Costs - The restructuring plan approved by Synopsys' board is expected to incur pre-tax costs of $300 million to $350 million, primarily related to severance pay, one-time termination benefits, and costs associated with the closure of specific locations [4]. - Most layoffs are expected to be completed by the end of the 2026 fiscal year, with the restructuring plan anticipated to be largely finalized by the end of the 2027 fiscal year, subject to local laws and consultation requirements [4]. Group 3: Market Challenges - Synopsys has faced challenges due to a decline in sales from its design IP business, concerns surrounding its artificial intelligence strategy, and geopolitical factors, particularly regarding China, which have negatively impacted its stock price [3]. - The company's stock has fallen 18% year-to-date, with at least two of the last three quarters failing to meet revenue and adjusted earnings expectations [2].

Group 1 - The core viewpoint of the article is that Synopsys, a major EDA company in the US, plans to lay off approximately 10% of its workforce, which translates to about 2,000 employees, in order to reallocate investments towards growth opportunities [2][3] - Synopsys completed a $35 billion acquisition of engineering design company Ansys earlier this year and reported third-quarter revenues that fell short of analyst expectations [5] - The company anticipates incurring pre-tax costs of $300 million to $350 million related to the layoffs, including severance and other one-time termination benefits, as well as costs associated with the closure of certain sites [5] Group 2 - Most of the layoffs are expected to be completed by the end of fiscal year 2026, with the restructuring plan largely finalized by the end of fiscal year 2027 [6] - A report from Challenger, Gray & Christmas indicated that over 150,000 layoffs occurred in the US in October, marking the largest monthly layoff total in over 20 years [7] - Technology companies lead the private sector in layoffs, followed by retailers and service industries [8]

Core Viewpoint - New Thinking Technology plans to lay off approximately 10% of its workforce, affecting around 2,000 employees, with an expected pre-tax cost of $300 million to $350 million related to severance and other one-time termination benefits, as well as costs associated with the closure of certain operational sites [1] Summary by Category - **Layoff Details** - The company will reduce its workforce by about 10%, impacting approximately 2,000 employees [1] - **Financial Implications** - The expected pre-tax costs associated with the layoffs are estimated to be between $300 million and $350 million, which includes severance pay and other one-time termination benefits [1] - **Timeline for Restructuring** - Most layoffs are anticipated to be completed by the end of the fiscal year 2026, with the restructuring plan expected to be largely finalized by the end of fiscal year 2027 [1]

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Synopsys, Inc. due to allegations of misleading statements and failure to disclose critical information regarding the company's financial performance and business operations [2][5]. Financial Performance - On September 9, 2025, Synopsys reported third quarter 2025 financial results, revealing quarterly revenue of $1.740 billion, which missed prior guidance of $1.755 billion to $1.785 billion [6]. - The net income for the quarter was $242.5 million, representing a 43% decline year-over-year from $425.9 million reported in the third quarter of 2024 [6]. - The Design IP segment accounted for approximately 25% of total revenue, generating $426.6 million, a 7.7% decline year-over-year [6]. - Management guidance indicated that Design IP revenues are expected to decline by at least 5% on a full-year basis for fiscal 2025 [6]. Stock 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 [7]. Legal Context - Investors who purchased or acquired securities in Synopsys between December 4, 2024, and September 9, 2025, are encouraged to discuss their legal rights and options due to the ongoing investigation and class action lawsuit [1][2]. - The deadline for seeking the role of lead plaintiff in the federal securities class action against Synopsys is December 30, 2025 [2].

Core Viewpoint - A class action securities lawsuit has been filed against Synopsys, Inc. to recover losses incurred by shareholders due to alleged securities fraud between December 4, 2024, and September 9, 2025 [2]. Group 1: Lawsuit Details - The lawsuit alleges that Synopsys, Inc. made false statements and concealed critical information regarding the negative impact of its increased focus on artificial intelligence customers on the economics of its Design IP business [3]. - It is claimed that certain decisions regarding the company's roadmap and resources were unlikely to achieve their intended results, which materially affected financial outcomes [3]. - The lawsuit asserts that the positive statements made by the defendants about the company's business and prospects were misleading and lacked a reasonable basis [3]. Group 2: Next Steps for Affected Shareholders - Shareholders who suffered losses during the specified timeframe are encouraged to seek information about their rights to recovery, with no cost or obligation to participate [4]. Group 3: Legal Representation - Levi & Korsinsky LLP is highlighted as a nationally recognized securities litigation firm with a strong track record in securing recoveries for shareholders, having ranked in the Top 50 Report for seven consecutive years [5].

Core Viewpoint - Synopsys plans to lay off approximately 10% of its workforce to redirect investments towards key growth opportunities [1] Group 1 - The layoffs are part of a strategic move to focus on areas with higher growth potential [1] - The decision was disclosed in a regulatory filing made on Wednesday [1]

Core Insights - Jinglin Asset, a major private equity firm, significantly increased its holdings in Alibaba during the third quarter of 2025, while also initiating positions in domestic autonomous driving leader WenYuan ZhiXing [1][2] - The firm also made notable increases in holdings of other tech giants such as Facebook, Google-A, and Nvidia [1][2] Holdings Summary - As of the end of Q3 2025, Jinglin Asset held nearly 30 companies in the US stock market, with its top ten holdings including Facebook, NetEase, Nvidia, Pinduoduo, Google-A, Manbang, Futu Holdings, Alibaba, Nebius Group, and Qifu Technology [1] - The market value of Jinglin Asset's holdings in Alibaba rose to $151 million, while it slightly reduced its stake in NetEase, maintaining a value of over $400 million [2] - Other significant increases in holdings during Q3 included Facebook, Nvidia, and Google-A, with Pinduoduo also seeing a small increase, maintaining a value exceeding $400 million [2] New Investments - Jinglin Asset initiated new positions in several companies during Q3, including well-known US firms like Apple and Synopsys, as well as leading Chinese companies such as WenYuan ZhiXing and Atour [4] - Specifically, the firm acquired $54 million in Apple shares and $82 million in Synopsys, while its investment in WenYuan ZhiXing was valued at $27 million [4] - Additionally, Jinglin Asset increased its stake in Atour, with a holding value of $86 million, making it the eleventh largest holding [4] Detailed Holdings Breakdown - The top ten holdings of Jinglin Asset in Q3 included: - Atour: $86 million (1.90% of portfolio) - Synopsys: $82 million (1.80% of portfolio) - Sea Ltd ADR: $73 million (1.70% of portfolio) - New Oriental: $70 million (1.60% of portfolio) - Beike: $70 million (1.60% of portfolio) - Intel: $64 million (1.40% of portfolio) - UnitedHealth: $58 million (1.30% of portfolio) - S&P Biotech ETF: $56 million (1.30% of portfolio) - Apple: $54 million (1.20% of portfolio) - TSMC: $37 million (0.80% of portfolio) [6]

Core Viewpoint - A class action lawsuit has been filed against Synopsys, Inc. for securities fraud following a significant stock drop due to alleged violations of federal securities laws [1][3]. Group 1: Lawsuit Details - Investors have until December 30, 2025, to request to lead the case in the U.S. District Court for the Northern District of California [3]. - The lawsuit claims violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [3]. Group 2: Company Performance - Synopsys provides design automation software and has seen its Design IP segment grow from 25% of revenue in 2022 to 31% in 2024 [4]. - The company reported a revenue of $425.9 million for its Design IP segment in Q3 2025, reflecting a 7.7% year-over-year decline, and a net income of $242.5 million, down 43% year-over-year [6]. Group 3: Market Reaction - Following the release of disappointing Q3 2025 results, Synopsys stock fell nearly 36%, from $604.37 per share to $387.78 per share [6]. - The decline was attributed to customers requiring more customization for IP components, which negatively impacted the business model [5][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, deadline to become lead plaintiffs in a class action lawsuit [1]. Group 1: Class Action Details - Investors who acquired Synopsys securities during the specified Class Period may be eligible for compensation without incurring out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties can join by submitting a form or contacting the law firm [3][6]. - The deadline to move the Court to serve as lead plaintiff is December 30, 2025, with the lead plaintiff representing other class members in the litigation [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 in this area [4]. - The firm has secured significant settlements for investors, including over $438 million in 2019 and has been ranked highly for its performance in securities class action settlements [4]. Group 3: Case Allegations - The lawsuit alleges that Synopsys made materially false and misleading statements and failed to disclose adverse facts about its business and operations during the Class Period [5]. - Specific claims include the negative impact of Synopsys' focus on artificial intelligence customers on its Design IP business and the misleading nature of the company's positive statements regarding its prospects [5].

Core Viewpoint - Synopsys is experiencing a decline in stock performance compared to the broader market, with upcoming earnings expected to show a significant drop in EPS while revenue is projected to increase substantially [1][2]. Group 1: Stock Performance - Synopsys shares fell by 1.29% to $395.60, underperforming the S&P 500's gain of 0.21% [1] - Over the past month, Synopsys has lost 10.54%, while the Computer and Technology sector gained 6.68% and the S&P 500 gained 4.36% [1] Group 2: Earnings Expectations - The upcoming earnings report is scheduled for December 10, 2025, with an expected EPS of $2.79, reflecting a 17.94% decrease from the same quarter last year [2] - Revenue is anticipated to be $2.25 billion, indicating a 37.59% increase compared to the same quarter last year [2] Group 3: Full Year Projections - For the full year, earnings are projected at $12.83 per share, representing a -2.8% change from the prior year, while revenue is expected to remain flat at $7.05 billion [3] Group 4: Analyst Estimates and Rankings - Recent changes to analyst estimates for Synopsys are crucial, as positive revisions are seen as a favorable sign for business outlook [3][4] - The Zacks Rank system, which evaluates estimate changes, currently ranks Synopsys at 3 (Hold) [5] Group 5: Valuation Metrics - Synopsys has a Forward P/E ratio of 28.53, which is higher than the industry average of 24.64, suggesting it is trading at a premium [6] - The company has a PEG ratio of 2.51, compared to the industry average of 1.87, indicating a higher valuation relative to expected earnings growth [7] Group 6: Industry Context - The Computer - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 76, placing it in the top 31% of over 250 industries [7] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the importance of industry strength in stock performance [8]