SNPS INVESTOR ALERT: Synopsys, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit

Core Viewpoint - The Synopsys class action lawsuit alleges that the company and its executives violated the Securities Exchange Act of 1934, leading to significant financial losses for investors [1][3]. Company Overview - Synopsys, Inc. provides electronic design automation software products used for designing and testing integrated circuits, operating in two segments: Design Automation and Design IP [2]. Allegations of the Lawsuit - The lawsuit claims that Synopsys failed to disclose the negative impact of its increased focus on artificial intelligence customers on the economics of its Design IP business [3]. - It is alleged that certain decisions regarding road maps and resources were unlikely to yield intended results, which materially affected financial outcomes [3]. Financial Performance - On September 9, 2025, Synopsys reported third quarter 2025 financial results, revealing quarterly revenue of $1.740 billion, which was below the guidance of $1.755 billion to $1.785 billion [4]. - The net income for the quarter was $242.5 million, representing a 43% decline from $425.9 million in the same quarter of 2024 [4]. - The Design IP segment accounted for approximately 25% of revenue, totaling $426.6 million, a 7.7% year-over-year decline, with guidance indicating at least a 5% decline in full-year revenues for fiscal 2025 [4]. - Following the financial results announcement, Synopsys' stock price fell by nearly 36% [4].