Synopsys(US:SNPS) TMX Newsfile·2025-12-25 13:40Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Synopsys, Inc. due to allegations of misleading statements and failure to disclose critical information regarding the company's financial performance and business operations [2][4]. Financial Performance - On September 9, 2025, Synopsys reported third quarter 2025 financial results, revealing quarterly revenue of $1.740 billion, which was below the prior guidance of $1.755 billion to $1.785 billion [5]. - The net income for the quarter was $242.5 million, representing a 43% decline year-over-year from $425.9 million reported in the third quarter of 2024 [5]. - The Design IP segment accounted for approximately 25% of total revenue, generating $426.6 million, which is a 7.7% decline year-over-year [5]. - Management guidance indicated that Design IP revenues are expected to decline by at least 5% on a full-year basis for fiscal 2025 [5]. Stock Market Reaction - Following the financial results announcement, Synopsys's stock price fell by $216.59, or 35.8%, closing at $387.78 per share on September 10, 2025, with unusually high trading volume [6]. Legal Context - A federal securities class action has been filed against Synopsys, with a deadline of December 30, 2025, for investors to seek the role of lead plaintiff [2][4]. - The complaint alleges that the company and its executives violated federal securities laws by making false and misleading statements regarding the impact of their focus on artificial intelligence customers on the Design IP business [4].