Synopsys Faces Securities Lawsuit as Q3 Revenue Misses Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Globenewswire
- Lawsuit Alert: Faruq & Faruq LLP is investigating potential claims against Synopsys due to its Q3 2025 revenue of $1.740 billion, which fell short of the expected $1.755 billion to $1.785 billion, resulting in investor losses.
- Performance Decline: Synopsys reported a net income of $242.5 million, a 43% year-over-year drop, indicating that its Design IP business's focus on AI customers has deteriorated its economic performance, negatively impacting overall financial results.
- Market Reaction: Following the earnings report, Synopsys's stock plummeted by 35.8% to close at $387.78, reflecting strong market concerns about the company's future prospects, which could further erode investor confidence.
- Legal Implications: Investors must apply to be lead plaintiffs in the class action by December 30, 2025, indicating that this case could have significant legal and financial ramifications for the company moving forward.
SNPS
$475.625+Infinity%1D
Analyst Views on SNPS
Wall Street analysts forecast SNPS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SNPS is 559.38 USD with a low forecast of 425.00 USD and a high forecast of 630.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
11 Buy
3 Hold
2 Sell
Moderate Buy
Current: 475.750
Low
425.00
Averages
559.38
High
630.00
Current: 475.750
Low
425.00
Averages
559.38
High
630.00
About SNPS
Synopsys, Inc. is engaged in providing engineering solutions from silicon to systems, enabling customers to innovate artificial intelligence (AI)-powered products. It delivers silicon design, intellectual property (IP), simulation and analysis solutions, and design services. It supplies mission-critical electronic design automation (EDA) software that engineers use to design and test integrated circuits (ICs). Its Design Automation segment includes its advanced silicon design, verification products and services and system integration products. This segment also includes digital, custom and field programmable gate arrays, integrated circuit design software, verification software and hardware products, system integration products and services, and manufacturing software products. Its Design IP segment includes its interface, foundation, security, and embedded processor IP, IP subsystems, and IP implementation services that serve companies in the semiconductor and electronics industries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
