- Revenue Forecast: Synopsys forecasts 1Q revenue at $2.37 billion to $2.42 billion, surpassing the estimate of $2.36 billion.
- Adjusted EPS Forecast: Expected adjusted EPS for 1Q is between $3.52 and $3.58, above the estimate of $3.46.
- 2026 Revenue Projection: Revenue for 2026 is projected between $9.56 billion and $9.66 billion, slightly below the estimate of $9.63 billion.
- 2026 Adjusted EPS Projection: Expected to range from $14.32 to $14.40, exceeding the estimate of $14.11.
- Fourth Quarter Adjusted EPS: Reported at $2.90, down from $3.40 year over year.
- Fourth Quarter Revenue: Achieved $2.25 billion, marking a 38% increase from the previous year.
- Design Automation Revenue: Stands at $1.85 billion, a 65% increase, surpassing the estimate of $1.54 billion.
- Design IP Revenue: Recorded at $407.2 million, a 21% decline year over year, below the estimate of $433.9 million.
- Adjusted Operating Income: Reported at $822.6 million, a 36% increase, exceeding the estimate of $803.1 million.
- Adjusted Net Income: Totaled $543.1 million, beating the estimate of $523.7 million.
- Cash Reserves: Synopsys holds $2.89 billion in cash and cash equivalents.
- Share Performance: Shares rose 2.6% in post-market, reaching $488.00 on a trade volume of 2,489 shares.
- Analyst Ratings: 22 buys, 4 holds, and 1 sell rating on Synopsys shares.
Synopsys Inc on Smartkarma
Analysts on Smartkarma have provided varied perspectives on Synopsys Inc, a company attracting attention for recent developments. William Keating, known for his bearish stance, delved into NVIDIA’s significant $2 billion investment in Synopsys. Speculations abound on the purpose of this partnership, especially concerning cloud access for GPU-accelerated engineering solutions.
On the contrary, Baptista Research, with a bullish view, highlights Synopsys’ global expansion after acquiring Ansys. This strategic move, amidst a challenging market environment, has positioned Synopsys for new market frontiers. The acquisition is seen as pivotal, expanding Synopsys’ product offerings and customer reach, setting the stage for further growth.
A look at Synopsys Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores for Synopsys Inc, the company has a positive long-term outlook. With a strong score in Growth and Resilience, Synopsys is positioned for potential expansion and the ability to withstand market challenges. The company’s focus on innovation and adapting to changing industry dynamics is reflected in its high Growth score. Additionally, its Resilience score indicates a level of stability and adaptability that can help navigate uncertainties in the market.
Synopsys Inc, a provider of electronic design automation solutions, is well-equipped to drive future success with a solid overall outlook. While the company’s Value and Momentum scores are moderate, its strengths lie in Growth and Resilience, showcasing its potential for sustainable growth and ability to weather economic fluctuations. With its commitment to supporting customers in optimizing the design process, Synopsys is poised to capitalize on opportunities in the evolving electronics market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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