The earnings call highlighted strong performance in the design automation segment and strategic milestones like the ANSYS acquisition. However, significant challenges in the IP business, geopolitical issues in China, and a conservative outlook for the upcoming quarter due to ongoing headwinds balanced the positive news.

Company Guidance

During the Synopsys Earnings Conference Call for the third quarter of fiscal year 2025, the company provided guidance and insights into their financial performance and strategic direction. Synopsys reported Q3 revenue of $1.74 billion and a non-GAAP EPS of $3.39, largely impacted by underperformance in the IP business due to export restrictions in China, challenges with a major foundry customer, and roadmap decisions that did not yield expected results. The company noted strong growth in its design automation segment, with revenue up 23% year-over-year, and highlighted the significant impact of the recently closed ANSYS acquisition, which added to their simulation and product group revenues. Despite headwinds, Synopsys anticipates a record revenue year and updated their full-year 2025 targets, projecting revenue between $7.03 and $7 billion, a non-GAAP operating margin target around 38.5%, and non-GAAP EPS between $12.76 and $12.80. They also outlined plans to reduce global headcount by roughly 10% by the end of fiscal year 2026, aiming to drive greater scale and efficiency and capitalize on high-growth opportunities, particularly by leveraging their expanded portfolio with ANSYS. The company remains committed to maintaining its leadership position and transforming engineering solutions from silicon to systems, while addressing immediate challenges in the IP sector by pivoting resources towards higher growth opportunities.

Revenue Growth and ANSYS Acquisition

Synopsys reported a third-quarter revenue of $1.74 billion, up 14% year-over-year, primarily driven by strong growth in design automation and the successful acquisition of ANSYS, which expands their revenue and customer base.

Design Automation Segment Performance

Design automation revenue, including ANSYS products, increased by 23% year-over-year, led by strength in hardware, multiple competitive wins, and record shipments of Zebu Server 5 and HAPS 200 units.

Strategic Integration and Portfolio Expansion

The ANSYS acquisition is considered a transformational milestone, positioning Synopsys as a leader in engineering solutions from silicon to systems, and expanding their long-term growth opportunity.

AI and Multi-Die Design Momentum

Synopsys' AI capabilities and multi-die design solutions continue to gain traction, with roughly 20 customers piloting Synopsys.ai GenAI-powered capabilities and successful multi-die tape-outs for leading AI semiconductor companies.

Synopsys (SNPS) Earnings, Revenues Date & History

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SNPS Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Dec 03, 2025	2025 (Q4)	2.78 / -	3.4	―	―	―
Sep 09, 2025	2025 (Q3)	3.80 / 3.39	3.43	-1.17% (-0.04)
May 28, 2025	2025 (Q2)	3.40 / 3.67	3	22.33% (+0.67)
Feb 26, 2025	2025 (Q1)	2.79 / 3.03	3.56	-14.89% (-0.53)
Dec 04, 2024	2024 (Q4)	3.30 / 3.40	3.17	7.26% (+0.23)
Aug 21, 2024	2024 (Q3)	3.28 / 3.43	2.88	19.10% (+0.55)
May 22, 2024	2024 (Q2)	2.95 / 3.00	2.54	18.11% (+0.46)
Feb 21, 2024	2024 (Q1)	3.43 / 3.56	2.62	35.88% (+0.94)
Nov 29, 2023	2023 (Q4)	3.04 / 3.17	1.91	65.97% (+1.26)
Aug 16, 2023	2023 (Q3)	2.74 / 2.88	2.1	37.14% (+0.78)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

SNPS Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Sep 09, 2025	$604.37	$387.78	-35.84%
May 28, 2025	$462.43	$454.99	-1.61%
Feb 26, 2025	$470.46	$454.71	-3.35%
Dec 04, 2024	$588.00	$515.29	-12.37%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.