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Synopsys to Report Q3 Earnings: What's in the Cards for the Stock?
SynopsysSynopsys(US:SNPS) ZACKS·2025-09-05 14:46

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]