Synopsys Reports Q3 Revenue Miss, Stock Plummets 35.8%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Businesswire
- Performance Decline: Synopsys reported Q3 2025 revenue of $1.740 billion, falling short of prior guidance of $1.755 billion to $1.785 billion, indicating underperformance in its IP business that directly impacts investor confidence.
- Significant Net Income Drop: The company’s net income plummeted to $242.5 million, a 43% year-over-year decline from $425.9 million in Q3 2024, reflecting a substantial deterioration in profitability that may lead to reduced future investments.
- Weak Design IP Segment: The Design IP segment generated $426.6 million, accounting for 25% of total revenue, and saw a 7.7% year-over-year decline, suggesting a weakening competitive position in a core business area that could affect market share.
- Pessimistic Future Outlook: Management guidance implies at least a 5% decline in Design IP revenues for fiscal 2025, further undermining market confidence in the company and potentially leading to continued stock price pressure.
SNPS
$463.73+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: 458.130
Low
425.00
Averages
559.38
High
630.00
Current: 458.130
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.
