Synopsys (SNPS) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - Synopsys reported revenue of $1.46 billion for the quarter ended January 2025, reflecting an 11.8% decline year-over-year, with EPS at $3.03 compared to $3.56 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.45 billion by 0.16%, while the EPS surpassed the consensus estimate of $2.81 by 7.83% [1] Revenue Breakdown - Maintenance and service revenue was $258.95 million, below the average estimate of $264.09 million, marking a year-over-year decline of 12.8% [4] - Total products revenue reached $1.20 billion, slightly above the average estimate of $1.19 billion, with a year-over-year decrease of 11.5% [4] - Design IP revenue was $435.10 million, exceeding the average estimate of $425.91 million, but showing a 17.2% decline year-over-year [4] - Design Automation revenue was $1.02 billion, matching the average estimate, with a year-over-year increase of 3.5% [4] - Upfront products revenue was $368.12 million, below the average estimate of $395.06 million, reflecting a 17.8% year-over-year decline [4] - Time-based products revenue was $828.24 million, surpassing the average estimate of $783.55 million, with an 8.4% decline year-over-year [4] Stock Performance - Synopsys shares have returned -13% over the past month, compared to a -2.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]