Core Insights - Synopsys (SNPS) reported non-GAAP earnings of $3.77 per share for Q1 fiscal 2026, exceeding the Zacks Consensus Estimate by 5.6% and reflecting a year-over-year increase of 24.4% [1][10] - Revenues for the first quarter surged 65.5% year over year to $2.41 billion, also surpassing the Zacks Consensus Estimate by 0.8% [2][10] Financial Performance - Time-Based Product revenues reached $951.5 million, accounting for 39.5% of total revenues, marking a 14.9% increase year over year [3] - Upfront Product revenues rose 101.4% to $741.5 million, representing 30.8% of total revenues [3] - Maintenance and Service revenues increased significantly to $715.7 million, up from $258.9 million in the previous year [3] - Design Automation revenues, which include EDA, Ansys, and Other, totaled $2 billion, up 96.2% from the prior year, constituting 83.1% of total revenues [4] - Design IP revenues were $407 million, down from $435.1 million a year ago, representing 16.9% of total revenues [4] Geographic Breakdown - North America generated $1.12 billion (47% of total revenues), while Europe contributed $467 million (19%) [5] - Revenues from Korea, China, and Other regions were $246.6 million (10%), $211.1 million (9%), and $360.4 million (15%), respectively [5] Margins and Cash Flow - The non-GAAP operating margin for the quarter was 42.1%, an increase of 560 basis points year over year [5] - Design Automation's adjusted operating margin improved to 47.3%, while the Design IP segment's adjusted margin contracted to 16.2% [6] - Synopsys ended Q1 fiscal 2026 with $2.20 billion in cash and short-term investments, down from $2.96 billion in the prior quarter [7] Guidance - For fiscal 2026, Synopsys expects revenues between $9.56 billion and $9.66 billion, including $2.9 billion from Ansys [8] - The Zacks Consensus Estimate for fiscal 2026 revenues is $9.63 billion, indicating a year-over-year growth of 36.5% [8] - Non-GAAP EPS is projected to be between $14.38 and $14.46, reflecting an increase from the previous range [9] - For Q2 fiscal 2026, revenues are expected to be between $2.225 billion and $2.275 billion, with a year-over-year growth of 40.3% [11]

Core Insights - Synopsys reported $2.41 billion in revenue for the quarter ended January 2026, marking a year-over-year increase of 65.5% and exceeding the Zacks Consensus Estimate by 0.75% [1] - The earnings per share (EPS) for the same period was $3.77, up from $3.03 a year ago, representing a surprise of 5.71% over the consensus estimate of $3.57 [1] Revenue Breakdown - Maintenance and service revenue reached $715.73 million, surpassing the average estimate of $660.32 million, with a year-over-year change of +176.4% [4] - Total products revenue was $1.69 billion, slightly below the average estimate of $1.73 billion, reflecting a year-over-year increase of +41.5% [4] - Design IP revenue was $407 million, compared to the average estimate of $420.17 million, showing a year-over-year decline of -6.5% [4] - Design Automation revenue was $2 billion, exceeding the average estimate of $1.76 billion, with a significant year-over-year increase of +96.2% [4] - Upfront products revenue was $741.53 million, above the average estimate of $601 million, representing a year-over-year change of +101.4% [4] - Time-based products revenue was $951.54 million, below the average estimate of $1.1 billion, with a year-over-year increase of +14.9% [4] Stock Performance - Synopsys shares have returned -12.3% over the past month, contrasting with the Zacks S&P 500 composite's -0.3% change, indicating potential underperformance in the near term [3]

Core Insights - Synopsys reported non-GAAP earnings of $2.90 per share for Q4 fiscal 2025, exceeding the Zacks Consensus Estimate by 3.94%, although down 14.7% year-over-year [1] - Revenues for Q4 fiscal 2025 increased by 37.8% year-over-year to $2.25 billion, surpassing the Zacks Consensus Estimate by 0.17% [2] Revenue Breakdown - Time-Based Product revenues reached $940.7 million, accounting for 41.7% of total revenues, up 12.7% year-over-year [3] - Upfront Product revenues rose 18.1% to $615.4 million, representing 27.3% of total revenues [3] - Maintenance and Service revenues surged to $698.8 million, significantly up from $280.1 million in the previous year [3] - Design Automation revenues totaled $1.85 billion, making up 81.9% of total revenues, and increased by 65.2% from the prior year [4] - Design IP revenues decreased to $407.2 million from $517.8 million a year ago [4] Geographic Performance - North America generated $1.05 billion (46% of total revenues), while Europe contributed $361.4 million (16%) [5] - Revenues from Korea, China, and other regions were $236.9 million, $235.6 million, and $373.7 million, respectively [5] Profitability Metrics - The non-GAAP operating margin for Q4 was 36.5%, a slight decrease from the previous year [5] - Design Automation's adjusted operating margin improved to 41.5%, while the Design IP segment's adjusted margin fell to 13.8% [6] Financial Position - Synopsys ended Q4 fiscal 2025 with $2.96 billion in cash and short-term investments, up from $2.59 billion in the prior quarter [7] - Total long-term debt stood at $13.46 billion, with operating cash flow of $640 million generated in Q4 [7] Future Guidance - For fiscal 2026, Synopsys anticipates revenues between $9.56 billion and $9.66 billion, including $2.9 billion from Ansys [8] - Non-GAAP EPS is projected to be between $14.32 and $14.40, with expenses expected in the range of $5.69 billion to $5.75 billion [8] - For Q1 fiscal 2026, revenues are expected to be between $2.365 billion and $2.415 billion, with non-GAAP EPS projected between $3.52 and $3.58 [10]

Core Insights - Synopsys (SNPS) is expected to report quarterly earnings of $2.79 per share, reflecting a decline of 17.9% year-over-year, while revenues are forecasted to reach $2.25 billion, indicating a significant increase of 37.6% compared to the previous year [1] Earnings Projections - Analysts have revised the consensus EPS estimate for the quarter 5.5% higher over the last 30 days, indicating a collective reevaluation of initial estimates by analysts [1][2] - The importance of earnings projection revisions is highlighted as they serve as a critical gauge for predicting investor behavior regarding the stock [2] Revenue Estimates - Revenue from Maintenance and Service is projected to reach $412.49 million, showing a year-over-year increase of 47% [4] - Total Products Revenue is expected to be $1.84 billion, reflecting a change of +35.6% year-over-year [4] - Revenue by segment for Design IP is estimated at $408.35 million, indicating a decline of 21.1% from the prior-year quarter [4] - Revenue by segment for Design Automation is projected to reach $1.84 billion, with a significant increase of 64.5% from the year-ago quarter [5] - Upfront Products Revenue is expected to be $669.89 million, marking a change of +28.6% year-over-year [5] - Time-based Products Revenue is forecasted to reach $1.13 billion, indicating a change of +35.1% from the previous year [5] Stock Performance - Synopsys shares have increased by 17.1% in the past month, outperforming the Zacks S&P 500 composite, which saw a 1.3% increase [6] - With a Zacks Rank of 2 (Buy), Synopsys is expected to outperform the overall market performance in the near term [6]

Core Insights - Synopsys experienced a significant stock decline of 36% following its earnings report on September 9, but rebounded with a 13% increase the next day, indicating market volatility and potential overreaction to the earnings miss [1][2]. Financial Performance - In fiscal Q3 2025, Synopsys reported sales of $1.74 billion, reflecting a 14% growth but falling short of the $1.77 billion estimate [4]. - The adjusted earnings per share (EPS) were $3.43, missing Wall Street's expectations of $3.80, which represents a 1% decline [5]. Guidance and Market Reaction - The company's fiscal Q4 guidance projected an EPS of $2.78, significantly lower than the $4.50 forecasted by analysts, which contributed to the stock's decline [5]. - Despite the lowered forecasts, Wall Street analysts still see potential for recovery, with an average price target of $585.33, suggesting a 37.58% upside from the current price of $425.45 [10]. Market Position and Segments - Synopsys holds a 31% share of the electronic design automation (EDA) market, highlighting its critical role in the semiconductor industry [3]. - The Design Intellectual Property (IP) segment underperformed, with sales dropping 8% due to export restrictions in China and challenges with Intel, a key customer [7]. Future Outlook - Analysts have adjusted their price targets downward, but the average target still indicates substantial upside potential, with the lowest target at $510, implying a 16% upside [12]. - The company has de-risked its Design IP forecasts, which may lead to positive surprises in future quarters [8].

Core Insights - Synopsys reported revenue of $1.74 billion for the quarter ended July 2025, reflecting a 14% increase year-over-year, but fell short of the Zacks Consensus Estimate by 1.61% [1] - The company's EPS was $3.39, down from $3.43 in the same quarter last year, and missed the consensus estimate of $3.84 by 11.72% [1] Revenue Breakdown - Maintenance and service revenue reached $330.97 million, exceeding the average estimate of $290.38 million by analysts, marking an 18.2% year-over-year increase [4] - Total products revenue was $1.41 billion, below the estimated $1.48 billion, but still represented a 13.1% increase compared to the previous year [4] - Design IP revenue was $427.6 million, significantly lower than the average estimate of $539.28 million, indicating a year-over-year decline of 7.7% [4] - Design Automation revenue was $1.31 billion, surpassing the average estimate of $1.23 billion, with a year-over-year growth of 23.5% [4] - Upfront products revenue was $516.4 million, slightly below the estimate of $532.56 million, showing a 16.7% increase year-over-year [4] - Time-based products revenue was $892.36 million, falling short of the estimated $945.56 million, but still reflecting an 11.1% year-over-year growth [4] Stock Performance - Synopsys shares have returned -1.1% over the past month, underperforming the Zacks S&P 500 composite, which increased by 1.9% [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near term [3]

Core Insights - Synopsys reported revenue of $1.6 billion for the quarter ended April 2025, reflecting a year-over-year increase of 10.3% and an EPS of $3.67, up from $3.00 in the same quarter last year [1] - The reported revenue met the Zacks Consensus Estimate, with a slight surprise of +0.16%, while the EPS exceeded expectations by +8.26% [1] Revenue Breakdown - Maintenance and service revenue was $265.26 million, below the estimated $279.24 million, representing a year-over-year decline of -4.1% [4] - Total products revenue reached $1.34 billion, slightly above the $1.32 billion estimate, marking a year-over-year increase of +13.7% [4] - Design IP revenue was $482 million, surpassing the average estimate of $443.37 million, with a year-over-year growth of +20.6% [4] - Design Automation revenue was $1.12 billion, below the estimated $1.16 billion, showing a year-over-year increase of +6.4% [4] - Upfront products revenue was $510.68 million, exceeding the estimate of $415.15 million, with a significant year-over-year increase of +28.8% [4] - Time-based products revenue was $828.33 million, falling short of the $904.12 million estimate, but still reflecting a year-over-year growth of +6% [4] Stock Performance - Synopsys shares have returned +11.1% over the past month, outperforming the Zacks S&P 500 composite's +7.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]