Compared to Estimates, Synopsys (SNPS) Q3 Earnings: A Look at Key Metrics

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]