Core Insights - Cadence Design Systems, Inc. (CDNS) is enhancing its business through strategic acquisitions in the electronic design automation (EDA) space [1] Inorganic Growth Strategy - Inorganic expansion provides valuable tools, technologies, and market access that accelerate organic growth, allowing companies to increase product offerings without starting from scratch [2] - Acquiring firms with strong R&D capabilities speeds up innovation processes and helps achieve synergies, leading to cost reductions and improved operational efficiency [2] Market Demand and Strategic Response - CDNS's M&A strategy is a response to the growing demand for AI-driven custom chips and the convergence of electronic, mechanical, and physical domains in next-generation designs [3] - The transformation in semiconductor and system design driven by AI is integral to CDNS's strategy, supported by secular growth drivers such as 5G, hyperscale computing, and autonomous vehicles [4] Recent Acquisitions - In September 2025, CDNS agreed to acquire the Design & Engineering division of Hexagon AB for €2.7 billion, which includes the MSC Software business [5] - The Hexagon acquisition will enhance Cadence's System Design & Analysis portfolio and expand its presence in the structural analysis market, building on the earlier acquisition of Beta CAE in 2024 [6] - Hexagon's D&E division generated approximately $280 million in 2024 revenues and employs over 1,100 experts in R&D, sales, and support [6] - The acquisition will allow Cadence to reach top-tier aerospace and automotive clients, including Boeing, Lockheed Martin, and Toyota, as industries shift towards electric vehicles and advanced materials [7] Additional Strategic Acquisitions - In April 2025, Cadence signed an agreement to acquire Arm Holdings' Artisan foundation IP business, and in January 2025, it agreed to acquire Secure-IC, enhancing its security solutions capabilities [8] - The acquisition of BETA CAE has broadened Cadence's multiphysics system analysis offerings, while the purchase of OpenEye Scientific Software opened a new vertical in drug discovery [9][10] - Other significant acquisitions include Future Facilities, Pointwise, and NUMECA, which have increased the system analysis portfolio with more CFD solutions [12] Competitive Landscape - Cadence's acquisition strategy is aimed at solidifying its position in the EDA space amid increasing competition from Siemens EDA, Synopsys, Keysight Technologies, and CEVA Inc [14] - The acquisition of ANSYS by Synopsys is expected to intensify competition in the EDA space [15]

It has been about a month since the last earnings report for Synopsys (SNPS) . Shares have added about 26.2% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Synopsys due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Synopsys, Inc. before we dive into how investors and analysts have reacted a ...

Key Takeaways Cadence revenues rose 20.3% year over year to $1.275B, with margin expansion to 42.8%.Free cash flow hit $334M, backing $175M in Q2 buybacks and $550M in 2024 repurchases.2025 outlook calls for $5.21B-$5.27B revenues and $1.65B-$1.75B in operating cash flow.Cadence Design Systems Inc. (CDNS) is a prominent name in the electronic design automation (“EDA”) space. It is witnessing strong cash flow momentum as the top line expands. Broad-based demand for its solutions, especially the AI-driven por ...

Sep 24, 2025 11:00 AM Eastern Daylight Time When: October 8-11, 2025 Where: Keysight booth: Booth No. C10Yashobhoomi, Sector 25, Dwarka, New Delhi, Delhi, India Keysight will feature the following demonstrations: About Keysight Technologies At Keysight (NYSE: KEYS), we inspire and empower innovators to bring world-changing technologies to life. As an S&P 500 company, we're delivering market-leading design, emulation, and test solutions to help mMIMO Design from FR1 to FR3 / New 6G Frequency - Sub THz and FR ...

Core Insights - Synopsys is one of the two leading companies in the Electronic Design Automation (EDA) sector, alongside Cadence Design Systems, and both have high valuations due to their critical role in assisting semiconductor companies like NVIDIA in chip design [1][3] - The company reported a disappointing Q3 for the 2025 fiscal year, with non-GAAP earnings of $3.39 per share, missing the Zacks Consensus Estimate of $3.84 by nearly 12% and showing a year-over-year decline of 1.2% [2][4] - Q3 revenues increased by 14% year-over-year to $1.74 billion but fell short of the Zacks Consensus Estimate of $1.768 billion, driven by growth in Time-Based Product and Upfront Product businesses [3][4] Financial Performance - Synopsys expects Q4 FY'25 earnings per share to be $2.78, a significant reduction from prior analyst consensus, leading to a full-year EPS outlook decrease of 15% from $15.09 to $12.83, indicating a 2.8% annual profit drop [4][6] - The EPS consensus for FY'26 has been revised down by 15.5% from $16.71 to $14.11, reflecting analyst caution regarding future performance [6] Market Reaction - Following the disappointing earnings report, Synopsys shares plummeted nearly 36% from $600 to $380 but have since rebounded above $500 as analysts reassess their models [3][6] - The stock saw a nearly 20% increase after news of a partnership between NVIDIA and Intel, indicating renewed investor interest [6][8] Strategic Outlook - Synopsys' management cited China export restrictions and weak sales to Intel as key challenges, but there are signs of potential recovery in the Chinese market due to government cooperation [4][5] - The company has de-risked its Design IP forecasts, suggesting potential upside surprises in future quarters [5]

Group 1 - Shares in Synopsys rose by 10.6% following Nvidia's announcement of a $5 billion investment in Intel and a collaboration to develop custom data center and PC products [1] - Intel and Synopsys are long-term partners, and the market anticipates increased demand for EDA solutions as Intel collaborates with Nvidia [2] - Synopsys recently faced challenges, including issues with a major foundry customer, which impacted its third-quarter earnings [3] Group 2 - Synopsys will need time to adjust to recent challenges, particularly due to uncertainties regarding sales restrictions in China [5] - Nvidia's investment in Intel signals a growth industry, supporting a strong long-term case for investing in Synopsys [6] - Despite recent issues, the long-term prospects for Synopsys remain excellent, as its partnership with Intel typically benefits both companies [7]

The electronic design automation company remains a 'compelling growth compounder,' Mizuho says. ...

Synopsys (SNPS) shares crashed more than 35% on Wednesday after the electronic design automation firm reported a disappointing Q3 and lowered its earnings guidance for the full year. The company’s management now sees per-share earnings (EPS) falling between $12.76 and $12.80 this year, sharply below its previous guidance for $15.15 a share. More News from Barchart Following the post-earnings plunge, Synopsys stock is down roughly 40% versus its year-to-date high set in the final week of July. www.barch ...

Core Insights - Synopsys' shares fell 22% after reporting Q3 fiscal 2025 results that missed both revenue and earnings estimates [1][8] - Non-GAAP earnings were $3.39 per share, below the Zacks Consensus Estimate of $3.84 and the guided range of $3.82-$3.87, marking a 1.2% year-over-year decline [1][8] - Revenues for the fiscal third quarter increased 14% year-over-year to $1.74 billion, but fell short of the Zacks Consensus Estimate of $1.768 billion [2][8] Financial Performance - Time-Based Product revenues, accounting for 51.3% of total revenues, rose 11.1% year-over-year to $892.4 million [5] - Upfront Product revenues increased 16.7% to $516.4 million, representing 29.7% of total revenues [5] - Maintenance and Service revenues grew 18.2% to $331 million from $280.1 million in the previous year [5] Segment Analysis - Electronic Design Automation (EDA) revenues, which comprised 68.6% of total revenues, increased 17% year-over-year to $1.19 billion [6] - Design IP revenues decreased to $427.6 million from $463.1 million year-over-year [6] - Revenues from Simulation and Analysis were $77.7 million, representing 4.5% of total revenues [6] Geographic Breakdown - North America generated $824.7 million (47% of total revenues), while Europe contributed $178.6 million (10%) [7] - Revenues from China, Korea, and Other regions were $247.3 million (14%), $202.1 million (12%), and $287 million (16%) respectively [7] Margin and Cash Flow - Non-GAAP operating margin was 38.5%, down 150 basis points year-over-year [7] - EDA's adjusted operating margin improved by 300 basis points to 44.5%, while Design IP segment's margin contracted by 1660 basis points to 20.1% [9] - Operating cash flow for Q3 was $671 million, with a total of $879 million generated in the first three quarters of fiscal 2025 [10] Guidance - For fiscal 2025, Synopsys expects revenues between $7.03 billion and $7.06 billion, up from previous guidance of $6.745 billion to $6.805 billion [11] - Non-GAAP earnings are now projected to be between $12.76 and $12.80, down from $15.11 to $15.19 [11] - For Q4 fiscal 2025, expected revenues are between $2.23 billion and $2.26 billion, with non-GAAP earnings per share estimated between $2.76 and $2.80 [12]

Core Insights - Synopsys, Inc. is a leading provider of electronic design automation (EDA) software and services, crucial for the semiconductor industry, competing with major players like Cadence Design Systems and Mentor Graphics [1] Financial Performance - The earnings per share (EPS) for the upcoming quarter is estimated to be $3.84, reflecting a 12% increase year-over-year [2][6] - Projected revenue is approximately $1.77 billion, indicating a 15.9% rise from the same quarter last year, showcasing strong market demand [3][6] Market Valuation - Synopsys has a price-to-earnings (P/E) ratio of 42.88, suggesting that investors are willing to pay a premium for its earnings [4] - The price-to-sales ratio stands at 17.86, and the enterprise value to sales ratio is 17.32, both indicating positive market valuation [4] Financial Health - The company maintains a debt-to-equity ratio of 1.08, reflecting a balanced financing approach [5] - A current ratio of 7.02 demonstrates a strong ability to cover short-term liabilities, ensuring financial stability [5] - The earnings yield is 2.33%, providing investors with a measure of return on investment [5]