Synopsys, Inc.'s Stock Analysis

Synopsys Reports Third Quarter Fiscal 2025 Financial Results

Synopsys, Inc. reported revenue of $1.740 billion for the third quarter of fiscal year 2025, an increase from $1.526 billion in the same period the previous year. The company's net income on a GAAP basis was $242.5 million, or $1.50 per diluted share, down from $425.9 million, or $2.73 per diluted share, in the third quarter of fiscal year 2024. Non-GAAP net income stood at $548.9 million, or $3.39 per diluted share, slightly up from $535.5 million, or $3.43 per diluted share, in the prior year. The company noted a significant acquisition of Ansys, which is expected to enhance its portfolio and customer base, although its IP business underperformed expectations during this quarter.

For the fourth quarter and full fiscal year 2025, Synopsys provided consolidated financial targets, reflecting a change in its fiscal year structure. The company anticipates a conservative outlook for Q4, while still guiding for another year of profitable growth. The results and targets are based on continuing operations following the sale of its Software Integrity business. Investors can access further details through the upcoming earnings call and on the company's corporate website.

Sep 09, 2025 16:15:11

Synopsys Completes Acquisition of Ansys, Expanding Market Reach

Synopsys, Inc. has completed its acquisition of Ansys, Inc., with the transaction officially finalized on July 17, 2025. Under the terms of the merger, Ansys stockholders received a combination of Synopsys stock and cash, with adjustments made to the exchange ratio to comply with regulatory limits. The merger is expected to enhance Synopsys' capabilities in engineering solutions, particularly in silicon design and system simulations, thereby expanding its total addressable market significantly.

Following the merger, Synopsys appointed former Ansys executives Ajei Gopal and Ravi Vijayaraghavan to its board of directors. The acquisition is anticipated to strengthen Synopsys' financial position, with expectations of margin expansion and increased cash flow. Ansys common stock will no longer be traded on NASDAQ, marking a significant shift in Synopsys' operational structure and market strategy.

Jul 17, 2025 09:05:43

Synopsys Receives Approvals for Ansys Acquisition Completion

Synopsys, Inc. has received all necessary approvals to proceed with its acquisition of Ansys, Inc. The transaction, announced on January 16, 2024, is expected to close on or about July 17, 2025, pending the satisfaction of remaining customary closing conditions. This acquisition aims to combine Synopsys' silicon design solutions with Ansys' simulation and analysis capabilities, creating a leader in engineering solutions from silicon to systems.

Investors are advised to review the registration statement and proxy statement/prospectus filed with the SEC for important information regarding the proposed transaction. These documents detail the transaction's terms and any associated risks. Free copies of the relevant filings can be obtained from the SEC's website or directly from Synopsys and Ansys' investor relations pages.

Jul 14, 2025 09:05:17

Synopsys Exports to China Resume After Restrictions Lifted

On July 2, 2025, Synopsys received notification from the U.S. Department of Commerce that export restrictions related to China have been rescinded, effective immediately. The company is now working to restore access to its products that were previously restricted in the Chinese market.

Synopsys is currently assessing the impact of these export restrictions on its business operations and financial results. This development may influence the company's performance and stock price as it navigates the restoration of product access in China.

Jul 03, 2025 09:16:56

Synopsys Rescinds Export Restrictions for Products in China

On July 2, 2025, Synopsys received notification from the U.S. Department of Commerce that export restrictions related to China have been rescinded, effective immediately. The company is now working to restore access to the products that were previously restricted in the Chinese market.

Synopsys is evaluating the implications of the lifted restrictions on its business, operating results, and financial performance. The company aims to assess how these changes may influence its operations moving forward.

Jul 03, 2025 09:16:56

Synopsys Receives Export Restrictions Letter from U.S. Government

On May 29, 2025, Synopsys announced it received a letter from the Bureau of Industry and Security of the U.S. Department of Commerce regarding new export restrictions related to China. The company is currently evaluating the potential effects of these restrictions on its business and financial condition.

This development follows the release of Synopsys' financial results for the second fiscal quarter ending April 30, 2025. The company has indicated that it is assessing the implications of the BIS Letter, which may impact its operating results.

May 29, 2025 16:57:25

Synopsys Reports Q2 2025 Revenue and Earnings Exceeding Guidance

Synopsys, Inc. announced its financial results for the second quarter of fiscal year 2025, reporting revenue of $1.604 billion, which surpassed the midpoint of its guidance. The company also reported GAAP earnings per diluted share of $2.24 and non-GAAP earnings per diluted share of $3.67, both of which exceeded guidance compared to the same quarter in the previous year. The revenue increased from $1.455 billion in Q2 2024, indicating growth driven by trends in AI and software-defined systems.

The company reaffirmed its full-year 2025 revenue guidance and non-GAAP operating margin guidance. Following the sale of its Software Integrity business, Synopsys presented its financial results based on continuing operations. The net income for the second quarter was $349.2 million on a GAAP basis, compared to $299.1 million in the same quarter last year. Non-GAAP net income was reported at $572.7 million, up from $466.9 million year-over-year.

May 28, 2025 16:39:49

Financial Metrics Show Changes in Income and Debt Levels

The press release highlights improvements in various financial metrics, including an increase in total income, which rose to $8,051,431 from $7,322,875. Additionally, there was a notable rise in stock-based compensation, reflecting a growing investment in employee incentives. The company also reported a reduction in total borrowings under its revolving loan facility, indicating a stronger liquidity position. Furthermore, improvements in segment reporting and income tax disclosures were noted, suggesting enhanced transparency in financial reporting.

On the negative side, there were significant losses reported, with net losses amounting to $(1,416,655) compared to $(147,580) in the previous period. The company experienced a decline in cash equivalents and short-term investments, which decreased to $410,515. Additionally, the stock repurchase program and other financial commitments may raise concerns about future cash flow management. Overall, while there are positive developments, the losses and reductions in cash resources present challenges.

Feb 27, 2025 17:11:00

Synopsys Q1 2025 Revenue Declines, Earnings Exceed Guidance

Synopsys, Inc. reported a quarterly revenue of $1.455 billion for the first quarter of fiscal year 2025, which is a decrease from $1.511 billion in the same quarter of the previous year. However, the company achieved GAAP earnings of $1.89 per diluted share and non-GAAP earnings of $3.03 per diluted share, both exceeding their guidance. The results reflect the company's strong operational execution and innovation, particularly in areas such as advanced silicon design and generative AI capabilities.

On the downside, the net income for the quarter was $295.7 million, significantly lower than the $437.5 million reported in Q1 of fiscal year 2024. Non-GAAP net income also declined from $525.5 million to $473.2 million year-over-year. Additionally, Synopsys completed the sale of its Software Integrity business on September 30, 2024, which has been reported as a discontinued operation, impacting the year-over-year comparisons. Despite these challenges, the company reaffirmed its full-year guidance, expecting double-digit revenue growth.

Feb 26, 2025 16:31:40

Synopsys Reports $1.636 Billion Revenue for Q4 2024

Synopsys, Inc. announced record quarterly revenue of $1.636 billion for Q4 2024, marking an 11% increase from the previous year. The company also reported non-GAAP earnings per diluted share of $3.40, up 13% year over year, and a full-year revenue of $6.127 billion, which reflects a 15% growth compared to fiscal year 2023. The successful sale of its Software Integrity business and the pending acquisition of Ansys were highlighted as strategic moves for future growth.

On the downside, the GAAP net income for Q4 2024 was reported at $279.3 million, a decrease from $346.1 million in Q4 2023, resulting in a diluted EPS drop from $2.23 to $1.79. The company is also navigating macroeconomic uncertainties and the implications of a fiscal year calendar change, which could impact its financial targets for 2025. Despite these challenges, Synopsys remains focused on executing its strategy and adapting to the evolving technology landscape.

Dec 04, 2024 16:30:54