Zheng Quan Shi Bao·2025-09-10 12:49Core Viewpoint - Synopsys reported disappointing Q3 earnings, attributing the decline to a slowdown in its design IP business and challenges faced by major foundry clients [1][2] Financial Performance - For Q3, Synopsys achieved a revenue of $1.74 billion, a 14% year-over-year increase, but below the expected $1.77 billion; adjusted EPS was $3.39, down from $3.43 a year ago [1] - The design automation business revenue grew by 23% year-over-year to $1.31 billion, exceeding market expectations of $1.18 billion; however, the design IP business revenue fell by 7.7% to $427.6 million, below the expected $552.1 million [1] - The adjusted operating profit for the quarter was $669.8 million [1] Future Guidance - For Q4, Synopsys expects adjusted EPS between $2.76 and $2.80, significantly lower than the market expectation of $4.50; revenue is projected to be between $2.23 billion and $2.26 billion, compared to the market expectation of $2.1 billion [2] - For the full year, the company anticipates EPS between $12.76 and $12.80, and revenue between $7.03 billion and $7.06 billion, while analysts had expected EPS of $15.13 and revenue of $6.74 billion [2] Industry Context - Synopsys, along with Cadence and Siemens EDA, constitutes the "big three" in the EDA market, collectively holding over 70% market share [2] - In May, the U.S. Department of Commerce imposed export restrictions on the big three, requiring licenses for sales to customers in mainland China, which has impacted business operations [2] - By July, the companies announced the lifting of temporary bans, allowing full access for Chinese customers to their software and technology [2]