Core Viewpoint - A securities fraud class action has been filed against Synopsys, Inc. following disappointing Q3 2025 financial results, which were attributed to underperformance in its IP business [1][2]. Group 1: Legal Action and Investigation - The class action lawsuit seeks to represent investors who acquired Synopsys securities between December 4, 2024, and September 9, 2025 [1][3]. - The lawsuit was prompted by a significant drop in Synopsys' share price, which fell by $216.59, or 35%, on September 10, 2025, after the company reported poor financial results [2][5]. - Hagens Berman, a national shareholders rights firm, is investigating claims that Synopsys misled investors regarding customer risks and growth prospects [2][6]. Group 2: Financial Performance - Synopsys reported Q3 2025 earnings per share (EPS) of $1.50, representing a 45% decline year-over-year and a 33% decline sequentially [5]. - The company experienced nearly an 8% decline in Design IP revenues compared to the prior year quarter [5]. - The results led to the largest single-day percentage decline in Synopsys' stock since its IPO in 1992 [5]. Group 3: Business Operations and Strategy - Synopsys operates in two reportable segments: Design IP and Design Automation [3]. - The lawsuit alleges that Synopsys made false statements and failed to disclose critical information about its business, particularly regarding the impact of increased focus on AI customers on the economics of its Design IP business [4][5]. - The company acknowledged the need to pivot its IP resources and roadmap to focus on the highest-growth opportunities [5].

Core Insights - Synopsys, Inc. will report its fourth quarter and fiscal year 2025 results on December 10, 2025, after market close [1] - A conference call to discuss the financial results and business outlook will take place at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on the same day [1] Company Overview - Synopsys, Inc. is a leader in engineering solutions from silicon to systems, focusing on enabling customers to innovate AI-powered products rapidly [2] - The company provides industry-leading silicon design, IP, simulation, analysis solutions, and design services, partnering with customers across various industries to enhance R&D capabilities and productivity [2] Investor Relations - Financial and statistical information for the upcoming conference call will be available on the corporate website prior to the call [1] - A live webcast of the conference call will be accessible, with a replay available starting December 10, 2025, at approximately 5:00 p.m. PT [1]

Group 1 - Synopsys, Inc. will report its third quarter fiscal year 2025 results on September 9, 2025, after market close [1] - A conference call to review financial results and business outlook will be held at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time [1] - Financial information for the conference call will be available on the corporate website prior to the call, with a live webcast accessible for participants [1] Group 2 - Synopsys is a leader in engineering solutions from silicon to systems, focusing on AI-powered product innovation [2] - The company provides industry-leading silicon design, IP, simulation, analysis solutions, and design services [2] - Synopsys collaborates with customers across various industries to enhance R&D capabilities and productivity [2]

Core Insights - Synopsys has completed the acquisition of Ansys, enhancing its capabilities in silicon design, IP, and simulation to foster innovation in AI-powered products [1][2][4] - The combined entity is now positioned to capture an expanded total addressable market (TAM) of $31 billion [1][7] - The integration aims to deliver the first set of combined capabilities in the first half of 2026, focusing on multiphysics across the full EDA stack [3][7] Company Overview - Synopsys is recognized as a leader in engineering solutions, providing industry-leading silicon design, IP, simulation, and analysis solutions [5] - The acquisition aligns with Synopsys' mission to empower innovators across various industries, including semiconductors, automotive, aerospace, and more [2][5] Leadership Changes - Ajei Gopal and Ravi Vijayaraghavan from Ansys will join Synopsys' board of directors, indicating a commitment to a smooth integration process [1][2] Financial Position - The acquisition is expected to strengthen Synopsys' financial position, with projected margin expansion and increased unlevered free cash flow generation, facilitating rapid deleveraging over two years [4]