Core Viewpoint - Synopsys, Inc. experienced a significant decline in share price, dropping over $216 (-36%) following the release of its Q3 2025 financial results, which revealed major issues with a key foundry customer [1][4]. Financial Performance - In Q3 2025, Synopsys reported a negative guidance for Q4 2025 GAAP EPS, estimating between negative $0.27 to negative $0.16 [4]. - The company's underperformance in its IP business was attributed to challenges with a major foundry customer, which had a considerable impact on the overall year [4]. Customer Relations - Synopsys had previously assured investors that the reduction in R&D spending by its largest customer, Intel, would not significantly affect its EDA software business, citing committed agreements [3][4]. - The recent financial results have raised questions about whether Synopsys misled investors regarding risks associated with its high concentration of business with a single customer [5]. Legal and Investigative Actions - Hagens Berman, a national shareholders rights firm, has initiated an investigation into Synopsys to determine if the company misled investors about customer risks and growth prospects [2][5]. - The firm is encouraging investors who have suffered losses to come forward and assist in the investigation [2][5].