Synopsys (NASDAQ:SNPS) shares tumbled 10.5% in extended trading on Tuesday after the electronic design automation software reported weaker-than-expected fiscal third-quarter results and guidance. For the period ending July 31, Synopsys said it earned an adjusted $3.39 per share as revenue rose 14% year-over-year ...

Financial Performance - Revenue for Q3 FY2025 was $1.740 billion, a 14% increase year-over-year from $1.526 billion in Q3 FY2024[2] - GAAP net income for Q3 FY2025 was $242.5 million, or $1.50 per diluted share, down from $425.9 million, or $2.73 per diluted share in Q3 FY2024[6] - Non-GAAP net income for Q3 FY2025 was $548.9 million, or $3.39 per diluted share, compared to $535.5 million, or $3.43 per diluted share in Q3 FY2024[7] - Full-year 2025 revenue guidance is projected between $7.03 billion and $7.06 billion[5] - Q4 FY2025 revenue target is set between $2.230 billion and $2.260 billion[13] - GAAP EPS for Q4 FY2025 is expected to range from $(0.27) to $(0.16)[26] - Non-GAAP EPS for Q4 FY2025 is projected between $2.76 and $2.80[26] - Net income for the nine months ended July 31, 2025, was $884.8 million, a decrease of 22.4% from $1,140.2 million in the same period of 2024[40] Cash Flow and Assets - Operating cash flow for FY2025 is expected to be approximately $1.130 billion[13] - Cash provided by operating activities increased to $878.9 million, up from $844.2 million year-over-year[40] - Cash and cash equivalents decreased to $2,526,475,000 as of July 31, 2025, from $3,896,532,000 as of October 31, 2024[36] - Total assets increased significantly to $48,230,256,000 as of July 31, 2025, compared to $13,073,561,000 as of October 31, 2024[36] - Total liabilities rose to $20,616,070,000 as of July 31, 2025, from $4,050,355,000 as of October 31, 2024[36] - Cash, cash equivalents, and restricted cash from continuing operations at the end of the period were $2.5 billion, an increase from $1.8 billion in the prior year[40] Segment Performance - Revenue from the Design Automation segment for the three months ended July 31, 2025, was $1,312.1 million, representing a 23.5% increase from $1,062.6 million in 2024[43] - The Design IP segment generated revenue of $427.6 million for the three months ended July 31, 2025, a decrease of 7.7% from $463.1 million in 2024[43] - Adjusted operating income for the Design Automation segment rose to $583.8 million, a 32.3% increase compared to $440.9 million in the prior year[43] - Total adjusted segment operating income for the nine months ended July 31, 2025, was $1,810.3 million, up from $1,758.8 million in 2024[45] - The adjusted operating margin for the Design Automation segment improved to 44.5%, compared to 41.5% in the same quarter of the previous year[43] Strategic Initiatives - The Ansys acquisition, completed on July 17, 2025, is expected to enhance Synopsys' portfolio and customer base[3] - The company is taking a conservative view of Q4 due to underperformance in the Design IP segment[6] - The company plans to reallocate resources in its Design IP segment to focus on higher growth opportunities and harness AI efficiencies[31] - Synopsys is currently undergoing the Ansys Merger, which is expected to impact its operations and market position significantly[31] - Synopsys has adopted a non-GAAP tax rate of 16% for fiscal year 2025, based on an evaluation of historical and projected U.S. and international profit before tax[58] - The company focuses on engineering solutions from silicon to systems, enabling rapid innovation of AI-powered products[59] - Synopsys delivers industry-leading silicon design, IP, simulation, and analysis solutions, enhancing R&D capability and productivity for customers[59] Expenses - Research and development expenses for the three months ended July 31, 2025, were $625,301,000, up from $508,872,000 in the same period of 2024, reflecting a 22.9% increase[34] - Cash used in investing activities significantly increased to $16.4 billion, compared to $220.0 million in the previous year, primarily due to acquisitions[40] - Proceeds from debt in financing activities amounted to $14.3 billion, with net cash provided by financing activities totaling $14.2 billion[40] - Gross margin for the nine months ended July 31, 2025, was $3,830,432,000, compared to $3,621,184,000 for the same period in 2024, indicating a growth of about 5.8%[34]

Accessibility StatementSkip Navigation Results Summary SUNNYVALE, Calif., Sept. 9, 2025 /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today reported results for its third quarter of fiscal year 2025. Revenue for the third quarter of fiscal year 2025 was $1.740 billion, compared to $1.526 billion for the third quarter of fiscal year 2024. Continue Reading Synopsys headquarters in Sunnyvale, Calif. (PRNewsfoto/Synopsys, Inc.) "Q3 was a transformational quarter. Against a challenging geo-political backdrop, ...

Synopsys, Inc. SNPS will release earnings results for the third quarter fiscal year 2025 after the closing bell on Tuesday, Sept. 9.Analysts expect the Sunnyvale, California-based company to report quarterly earnings at $3.75 per share, up from $3.43 per share in the year-ago period. Synopsys is projected to report quarterly revenue of $1.77 billion, compared to $1.53 billion a year earlier, according to data from Benzinga Pro.On Sept. 3, Synopsys announced expanding AI capabilities for its leading EDA solu ...

Synopsys, Inc. SNPS will release earnings results for the third quarter fiscal year 2025 after the closing bell on Tuesday, Sept. 9.Analysts expect the Sunnyvale, California-based company to report quarterly earnings at $3.75 per share, up from $3.43 per share in the year-ago period. Synopsys is projected to report quarterly revenue of $1.77 billion, compared to $1.53 billion a year earlier, according to data from Benzinga Pro.On Sept. 3, Synopsys announced expanding AI capabilities for its leading EDA solu ...

Core Viewpoint - Synopsys, Inc. is a significant player in the electronic design automation industry, providing essential software solutions for integrated circuit design and testing, with a focus on various sectors including electronics, automotive, and medicine [1] Group 1: Company Overview - Synopsys offers a range of solutions including digital design implementation, verification, FPGA design, and intellectual property solutions [1] - The company also provides security testing and professional services across multiple industries [1] Group 2: Market Sentiment and Price Targets - The consensus price target for Synopsys has remained stable at $660, reflecting analysts' confidence in the company's valuation and future prospects, up from $569.88 a year ago [2][5] - Wells Fargo raised its price target for Synopsys from $520 to $630 while maintaining an Equal Weight rating, indicating positive sentiment around the company [2][5] Group 3: Earnings Expectations - Synopsys is expected to report third-quarter earnings between $3.82 and $3.87 per share, driven by strong demand in artificial intelligence and hardware-assisted verification systems [3][5] - Analyst Blair Abernethy from Rosenblatt Securities has set a price target of $360, indicating a positive outlook for the company [3] Group 4: Investor Focus - Forward commentary is crucial for Synopsys' stock, with investors looking for low-double-digit revenue growth [4] - The potential for Synopsys to exceed breakeven earnings per share, especially in conjunction with Ansys, is a key consideration for investors [4]

Synopsys stock price has dropped and is nearing a correction phase after falling by 8.35% from its highest point this year. It has dropped to $598 and formed a highly bullish pattern ahead of its quar... ...

Core Insights - Synopsys is scheduled to release its earnings on September 9, 2025, with historical trends providing a strategic edge for traders [2] - The company has shown a negative one-day return in 53% of occurrences following earnings announcements over the past five years, with a median negative return of -3.1% [3] - Consensus estimates for the upcoming quarter project earnings of $3.75 per share on revenue of $1.77 billion, an increase from $3.43 per share and $1.53 billion in the same quarter last year [3] Financial Performance - Synopsys currently has a market capitalization of $113 billion and reported $6.2 billion in revenue over the last twelve months, with an operating profit of $1.3 billion and a net income of $2.2 billion [4] - The historical data indicates that positive one-day returns occurred approximately 47% of the time, with a median of 5.4% for positive returns and -3.1% for negative returns [5] Correlation and Trading Strategies - Understanding the correlation between short-term and medium-term returns can provide a less risky trading approach, particularly if the correlation is high [6] - The performance of peers can influence the post-earnings reaction of Synopsys stock, with historical data showing the impact of peer earnings on Synopsys' stock performance [7]

Core Insights - Synopsys (SNPS) is set to report its third-quarter fiscal 2025 results on September 9, with expected non-GAAP earnings per share between $3.82 and $3.87, reflecting a year-over-year increase of approximately 12% [1][9] - The anticipated revenues for the fiscal third quarter are between $1.755 billion and $1.785 billion, indicating a 15.9% increase from the previous year's reported figure of $1.53 billion [2][9] Factors Influencing Performance - The fiscal third-quarter performance is likely to benefit from strong demand in AI and high-performance computing markets, with robust momentum in Synopsys' hardware-assisted verification (HAV) portfolio contributing to top-line growth [3][4] - The launch of next-generation HAPS 200 prototyping systems and ZeBu 200 emulation systems, which deliver up to 2x better performance than previous versions, has reinforced Synopsys' leadership in HAV [4] - Significant customer deployments, including those from AMD, ARM, NVIDIA, and SiFive, are expected to positively impact the upcoming quarter's results [4] - Advancements in agent AI, particularly the large-scale adoption of DSO.ai and VSO.ai, are anticipated to unlock productivity gains across the industry, further supporting third-quarter performance [5] - Synopsys' IP development for the global foundry ecosystem, including wins in PCIe 7.0 and UALink, is expected to contribute positively to the third-quarter results [6] Challenges - Ongoing macroeconomic challenges and tightening corporate budgets, along with unfavorable currency exchange rates, are expected to partially offset the positive impacts of growth drivers [7] Earnings Prediction Model - The current model does not conclusively predict an earnings beat for Synopsys this season, as it carries a Zacks Rank 4 (Sell) and an Earnings ESP of 0.00% [8][10]

Group 1 - U.S. added only 22,000 jobs in August, indicating a slowdown in job growth as the third quarter comes to a close [1] - Core & Main (CNM) is highlighted as a company to watch, distributing products for water, wastewater, storm drainage, and fire protection infrastructure [1] - The S&P 500 reached another high following Nvidia's earnings report, with stocks like Rubrik and Micron contributing to this bullish trend [2][4] Group 2 - Rubrik's stock surged by 198%, positioning it near a buy point as it develops a cloud data management platform [4] - Synopsys achieved a relative strength rating benchmark of over 80, attracting investor attention due to its positive performance [4] - Walmart and Elbit are noted as discount retail and defense leaders, respectively, that are in or near buy zones [4]