Synopsys (SNPS) Surpasses Q4 Earnings and Revenue Estimates

Core Insights - Synopsys (SNPS) reported quarterly earnings of $2.9 per share, exceeding the Zacks Consensus Estimate of $2.79 per share, but down from $3.4 per share a year ago, resulting in an earnings surprise of +3.94% [1] - The company achieved revenues of $2.25 billion for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 0.17% and up from $1.64 billion year-over-year [2] Earnings Performance - Over the last four quarters, Synopsys has surpassed consensus EPS estimates three times [2] - The company had a previous earnings expectation of $3.84 per share, but reported $3.39, resulting in a surprise of -11.72% [1] Stock Performance - Synopsys shares have declined approximately 4% since the beginning of the year, while the S&P 500 has gained 16.3% [3] - The stock's immediate price movement will depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $3.36 on revenues of $2.38 billion, and for the current fiscal year, it is $14.01 on revenues of $9.73 billion [7] - The estimate revisions trend for Synopsys was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Computer - Software industry, to which Synopsys belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8]