Core Insights - Synopsys, Inc. reported weaker-than-expected results for Q3, with adjusted earnings of $3.39 per share, missing the Street estimate of $3.74, and quarterly revenue of $1.73 billion, below the consensus estimate of $1.76 billion, but up from $1.52 billion in the same quarter of the previous fiscal year [1][2] Financial Performance - Adjusted earnings per share (EPS) for Q3 were $3.39, missing expectations [1] - Quarterly revenue was $1.73 billion, which is an increase from $1.52 billion year-over-year but still below the consensus estimate [1] - The company lowered its fiscal 2025 adjusted EPS guidance from a range of $15.11 to $15.19 to a new range of $12.76 to $12.80, significantly below the previous estimate of $15 [2] Market Reaction - Following the earnings announcement, Synopsys shares fell by 21.4% to $474.64 in pre-market trading [3] Analyst Ratings and Price Targets - Piper Sandler maintained an Overweight rating but lowered the price target from $660 to $630 [9] - Needham maintained a Buy rating and reduced the price target from $660 to $550 [9] - Rosenblatt downgraded the stock from Buy to Neutral, cutting the price target from $650 to $605 [9] - Baird downgraded from Outperform to Neutral, slashing the price target from $670 to $535 [9] - JP Morgan maintained an Overweight rating and lowered the price target from $685 to $600 [9]

Core Insights - Synopsys, Inc. reported weaker-than-expected results for Q3, with adjusted earnings of $3.39 per share, missing the Street estimate of $3.74, and quarterly revenue of $1.73 billion, below the consensus estimate of $1.76 billion, but up from $1.52 billion in the same quarter last year [1][2] Financial Performance - Adjusted earnings per share (EPS) for Q3 were $3.39, missing expectations [1] - Quarterly revenue was $1.73 billion, which is an increase from $1.52 billion year-over-year but still below the consensus estimate [1] - The company lowered its fiscal 2025 adjusted EPS guidance from a range of $15.11 to $15.19 to a new range of $12.76 to $12.80, significantly below the previous estimate of $15 [2] Market Reaction - Following the earnings announcement, Synopsys shares fell by 21.4% to $474.64 in pre-market trading [3] Analyst Ratings and Price Targets - Piper Sandler maintained an Overweight rating but lowered the price target from $660 to $630 [9] - Needham maintained a Buy rating and reduced the price target from $660 to $550 [9] - Rosenblatt downgraded the stock from Buy to Neutral, cutting the price target from $650 to $605 [9] - Baird downgraded from Outperform to Neutral, slashing the price target from $670 to $535 [9] - JP Morgan maintained an Overweight rating and lowered the price target from $685 to $600 [9]

U.S. stock futures were mixed this morning, with the Dow futures falling around 100 points on Wednesday.Shares of Synopsys, Inc. SNPS fell sharply in pre-market trading after the company posted weaker-than-expected results for its third quarter after Tuesday's closing bell.Synopsys reported adjusted earnings of $3.39 per share, which missed the Street estimate of $3.74. Quarterly revenue came in at $1.73 billion, which missed the consensus estimate of $1.76 billion and is up from revenue of $1.52 billion fo ...

Group 1 - The second quarter earnings season is concluding with mostly positive results, as nearly all S&P 500 companies have reported [1] - As of September 5, 99% of S&P 500 index companies have reported results, with analysts expecting a 12% increase in earnings per share for the second quarter [1] - Analysts had initially projected a 5% rise in S&P 500 earnings for Q2, marking the slowest growth pace since Q4 2023, influenced by factors such as tariffs and economic uncertainty [2] Group 2 - Recent earnings reports are coming in from notable companies including Oracle, Synopsys, Rubrik, SailPoint, GameStop, Chewy, Adobe, and Kroger [2]

Market Overview - U.S. stock futures showed mixed signals, with Dow Jones futures down 0.2%, S&P 500 contracts up 0.2%, and Nasdaq futures slightly above flat, indicating a cautious start after a record-setting rally driven by optimism about Federal Reserve rate cuts [1][7] - The next 48 hours are critical, with the Producer Price Index (PPI) and Consumer Price Index (CPI) releases expected to influence Federal Reserve policy decisions regarding potential rate cuts [3][8] Company Movements - Oracle's stock surged over 30% after forecasting its cloud backlog could exceed $500 billion due to significant deals with OpenAI, Meta, and xAI [10] - Synopsys experienced a significant decline, dropping more than 21% following disappointing guidance [14] - Other tech stocks, including AMD, Arista Networks, and NVIDIA, showed gains, reflecting ongoing demand in the AI and digital infrastructure sectors [11][12] Sector Performance - Defensive sectors, such as utilities and energy, demonstrated strength, with companies like Constellation Energy and GE Vernova benefiting from energy infrastructure demand [13] - The tech sector remained robust, with several chipmakers and infrastructure companies seeing positive movements, indicating sustained interest in AI-driven demand [11][12] Commodity Insights - Gold prices continued to rise, trading around $3,642.93 per ounce, supported by a weaker dollar and safe-haven demand amid inflation concerns and geopolitical uncertainty [15][21] - Analysts predict a near-term trading range for gold between $3,600 and $3,900, with potential for prices to reach $5,000 if concerns over Federal Reserve independence grow [16] Economic Context - The S&P 500 has increased nearly 30% year-to-date, driven by strong earnings, the AI boom, and expectations of monetary easing, although risks related to inflation and geopolitical tensions remain [18][22]

Core Viewpoint - Synopsys (SNPS.US) experienced a significant pre-market drop of nearly 20% to $485.75 following the release of its Q3 earnings report, which showed revenue growth but fell short of market expectations [1] Financial Performance - For the third fiscal quarter ending July 31, Synopsys reported a revenue increase of 14% year-over-year, reaching $1.74 billion, but this was below the expected $1.77 billion [1] - The adjusted earnings per share (EPS) for the quarter were $3.39, which also fell short of market expectations of $3.80 [1] Future Guidance - For the fourth fiscal quarter, Synopsys projected an adjusted EPS of $2.76 to $2.80, significantly lower than the market expectation of $4.50 [1] - The company anticipates revenue for the fourth quarter to be between $2.23 billion and $2.26 billion, compared to the market expectation of $2.1 billion [1]

Group 1 - Chewy Inc. is expected to report quarterly earnings of 14 cents per share on revenue of $3.08 billion, with shares gaining 3.8% to $43.70 in after-hours trading [2] - Rubrik Inc. reported second-quarter results that exceeded expectations and raised its full-year fiscal 2026 revenue outlook to a range of $1.227 billion to $1.237 billion, up from a previous range of $1.179 billion to $1.189 billion, while shares fell 3.6% to $94.91 [2] - Daktronics Inc. is anticipated to post quarterly earnings of 25 cents per share on revenue of $213.41 million, with shares gaining 0.6% to $17.53 in after-hours trading [2] - Synopsys Inc. reported weaker-than-expected third-quarter results and lowered its fiscal 2025 adjusted EPS guidance from a range of $15.11 to $15.19 to a new range of $12.76 to $12.80, leading to a 19.3% dip in shares to $487.99 [2] - Oxford Industries Inc. is expected to report quarterly earnings of $1.18 per share on revenue of $410.85 million, with shares rising 0.3% to $40.88 in after-hours trading [2]

Core Insights - The article discusses the limitations of AI-generated earnings call insights and emphasizes the lack of editorial review, which may affect the accuracy and completeness of the information provided [1] Group 1 - The earnings call insights are compilations of transcripts and content available on the Seeking Alpha website [1] - The insights are generated by an AI tool, which has inherent limitations [1] - There is no guarantee regarding the accuracy, completeness, or timeliness of the earnings call insights [1]

Group 1 - Synopsys, a chip design software provider, missed Wall Street estimates for third-quarter revenue [1] - The shortfall was primarily due to weakness in its Design IP business [1] - Following the earnings report, Synopsys shares dropped nearly 18.5% after market close [1]

Core Insights - Synopsys reported revenue of $1.74 billion for the quarter ended July 2025, reflecting a 14% increase year-over-year, but fell short of the Zacks Consensus Estimate by 1.61% [1] - The company's EPS was $3.39, down from $3.43 in the same quarter last year, and missed the consensus estimate of $3.84 by 11.72% [1] Revenue Breakdown - Maintenance and service revenue reached $330.97 million, exceeding the average estimate of $290.38 million by analysts, marking an 18.2% year-over-year increase [4] - Total products revenue was $1.41 billion, below the estimated $1.48 billion, but still represented a 13.1% increase compared to the previous year [4] - Design IP revenue was $427.6 million, significantly lower than the average estimate of $539.28 million, indicating a year-over-year decline of 7.7% [4] - Design Automation revenue was $1.31 billion, surpassing the average estimate of $1.23 billion, with a year-over-year growth of 23.5% [4] - Upfront products revenue was $516.4 million, slightly below the estimate of $532.56 million, showing a 16.7% increase year-over-year [4] - Time-based products revenue was $892.36 million, falling short of the estimated $945.56 million, but still reflecting an 11.1% year-over-year growth [4] Stock Performance - Synopsys shares have returned -1.1% over the past month, underperforming the Zacks S&P 500 composite, which increased by 1.9% [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near term [3]