Core Viewpoint - Synopsys is expected to report strong fiscal second-quarter results driven by robust demand in AI and high-performance computing, despite some macroeconomic challenges impacting corporate budgets and currency exchange rates [3][7]. Financial Expectations - Non-GAAP earnings per share are anticipated to be between $3.37 and $3.42, with the Zacks Consensus Estimate at $3.39, indicating a 13% year-over-year increase [1]. - Revenue projections for the fiscal second quarter are between $1.585 billion and $1.615 billion, with the Zacks Consensus Estimate at $1.60 billion, reflecting a 10.10% increase from the previous year [2]. Growth Drivers - The performance is likely to benefit from strong demand in AI and high-performance computing markets, along with the momentum from Synopsys' expanded hardware-assisted verification (HAV) portfolio [3]. - The launch of next-generation HAPS 200 and ZeBu 200 systems, which offer up to 2x better performance, has reinforced Synopsys' leadership in HAV, with major customers like AMD, ARM, NVIDIA, and SiFive adopting these technologies [4]. - Advancements in agent AI are expected to enhance productivity across the industry, with continued adoption of Synopsys.ai driving significant growth [5]. - Development of IP for the global foundry ecosystem, particularly in security and encryption solutions, is also anticipated to positively impact results [6]. Challenges - Ongoing macroeconomic challenges and tightening corporate budgets are expected to partially offset the positive impacts of growth drivers [7]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for Synopsys, as it holds a Zacks Rank 3 and an Earnings ESP of 0.00% [8].

Synopsys, Inc. (NASDAQ:SNPS) Q1 2025 Earnings Conference Call February 26, 2025 5:00 PM ET Company Participants Trey Campbell - SVP, IR Sassine Ghazi - CEO, President & Director Shelagh Glaser - CFO Aart de Geus - Co-Founder & Executive Chairman Conference Call Participants Sitikantha Panigrahi - Mizuho Lee Simpson - Morgan Stanley Joe Quatrochi - Wells Fargo Charles Shi - Needham & Company Joe Vruwink - Baird Jason Celino - KeyBanc Capital Markets Jay Vleeschhouwer - Griffin Securities Nay Soe Naing - Bere ...