- Synopsys forecasts Q4 2025 revenue between $2.23 billion and $2.26 billion, topping estimates of $2.1 billion.
- Expected adjusted EPS for Q4 2025 falls between $2.76 and $2.80, below estimates of $4.54.
- For the full year 2025, Synopsys projects revenue of $7.03 billion to $7.06 billion, over the estimated $6.75 billion.
- Annual adjusted EPS for 2025 is anticipated to be $12.76 to $12.80, lower than the expected $15.11.
- In Q3, Synopsys recorded an adjusted EPS of $3.39, slightly down from $3.43 year-over-year.
- Q3 revenue surged by 14% year-over-year to $1.74 billion.
- Design Automation revenue rose by 23% to $1.31 billion, surpassing the $1.18 billion estimate.
- Design IP revenue decreased by 7.7% to $427.6 million, missing the $552.1 million estimate.
- Adjusted operating income reached $669.8 million, a 9.7% increase year-over-year, shy of the $704.5 million estimate.
- Adjusted net income was $548.9 million, below the $602.2 million estimate.
- Synopsys holds $2.53 billion in cash and cash equivalents.
- CFO Shelagh Glaser noted that growth in Design Automation offset weaknesses in Design IP.
- Following this report, Synopsys’ shares fell 5.4% in post-market trading to $572.00.
- Recent trading activities recorded 22 buys, 2 holds, and 0 sells.
Synopsys Inc on Smartkarma
Analysts on Smartkarma are closely monitoring Synopsys Inc., providing valuable insights on the company’s performance. Baptista Research‘s report highlights Synopsys’ strong second-quarter results for fiscal year 2025, with a 10% year-over-year revenue increase to $1.6 billion and exceeding non-GAAP earnings per share expectations. This indicates the company’s robust revenue growth and operational efficiency, even in challenging market conditions.
On the contrary, Nicolas Baratte expresses a bearish sentiment, discussing potential US restrictions on chip software suppliers selling to China, affecting companies like Synopsys. While China’s importance to Synopsys and Cadence revenues is declining, emerging Chinese competitors pose a threat. Meanwhile, MBI Deep Dives‘ bullish report emphasizes Synopsys’ ability to harness complexity in chip design through sophisticated software, highlighting the company’s resilience and innovation in the industry.
A look at Synopsys Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
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, Synopsys Inc seems to have a positive long-term outlook. With a strong momentum score of 5, the company appears to be gaining market traction and investor interest. This could indicate potential for continued growth and performance in the future. Furthermore, Synopsys scores well in resilience and growth, with scores of 4 in both categories. This suggests that the company has a solid foundation and promising prospects for expansion and development.
Although Synopsys scores lower in value and dividend at 2 and 1 respectively, the high scores in growth, resilience, and momentum are positive indicators for investors. As a provider of electronic design automation solutions to the global electronics market, Synopsys plays a crucial role in supporting the development of advanced integrated circuits and electronic systems. With its focus on streamlining design processes and accelerating time to market, Synopsys appears well-positioned for future success and innovation.
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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