Synopsys (SNPS) stock sank on Wednesday following the release of the electronic design automation (EDA) software and services company’s Fiscal Q3 2025 earnings report. That report began with adjusted earnings per share of $3.39, which was well below Wall Street’s estimate of $3.80. The company’s adjusted EPS also dropped 1.17% year-over-year from $3.43.
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Revenue reported by Synopsys in Q3 2025 came in at $1.74 billion, another miss compared to analysts’ estimate of $1.77 billion. That’s despite a 14% increase year-over-year from $1.53 billion. Synopsys Chief Financial Officer Shelagh Glaser noted that “strength in Design Automation was offset by weakness in Design IP.”
Synopsys stock was down 31.71% on Wednesday, extending a 14.97% year-to-date drop. Even so, SNPS stock remains up 25.52% over the past 12 months.
Synopsys Guidance
Synopsys provided guidance for its Fiscal Q4 2025 in its most recent earnings report. It expects adjusted EPS to range from $2.76 to $2.80 alongside revenue of $2.23 billion to $2.26 billion. This would see it miss Wall Street’s adjusted EPS estimate of $3.27 but likely report revenue above analysts’ estimate of $2.23 billion.
Synopsys also included Fiscal 2025 guidance in its latest earnings report. Its outlook includes adjusted EPS of $12.76 to $12.80 on revenue of $7.03 billion to $7.06 billion. For comparison, Wall Street expects adjusted EPS of $12.83 on revenue of $7.05 billion.
Is Synopsys Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Synopsys is Moderate Buy, based on 10 Buy, three Hold, and a single Sell rating over the past three months. With that comes an average SNPS stock price target of $598.71, representing a potential 49.39% upside for the shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings report.
