Zhi Tong Cai Jing·2025-09-10 14:05Core Viewpoint - Synopsys (SNPS.US) experienced a significant stock drop of over 35%, marking its largest decline since 2004, following disappointing Q3 earnings and guidance [1] Financial Performance - For the third fiscal quarter ending July 31, Synopsys reported a year-over-year revenue increase of 14%, reaching $1.74 billion [1] - Adjusted earnings per share (EPS) were $3.39, falling short of analyst expectations of $3.80 EPS and $1.77 billion in revenue [1] Future Guidance - Synopsys anticipates adjusted EPS for Q4 to be between $2.76 and $2.80, with revenue projected between $2.23 billion and $2.26 billion [1] - Analysts had previously estimated Q4 EPS at $4.50 and revenue at $2.1 billion, indicating a significant downward revision in expectations [1] Management Commentary - CFO Shelagh Glaser indicated a cautious outlook for Q4 due to underperformance in the design intellectual property business, while still expecting continued profit growth for the year [1]