"Synopsys (NASDAQ: SNPS) reports fiscal Q3 2025 results after the close. The company has delivered steady beats and is seen as a key AI infrastructure enabler through its electronic design automation (EDA) tools and IP portfolio. With shares trading above $600, investors are looking for sustained double-digit growth and clarity on regulatory developments around the Ansys acquisition. Estimates Snapshot Revenue: $1.77 billion EPS (Normalized): $3.75 FY 2025 Revenue: $7.45 billion"
"Key Areas to Watch AI-enabled design momentum - Synopsys highlighted multiple wins in Q2, including 40+ chiplet heterogeneous designs and customer adoption of DSO.ai/VSO.ai across flagship CPU and GPU cores. Agentic AI workflows - Management previewed "agent engineer" technology to reengineer workflows, potentially reshaping monetization. China headwinds - Sales mix has declined from 12% to 10%, and management reiterated FY25 will see YoY declines in China amid export restrictions."
Synopsys reports fiscal Q3 2025 results with consensus estimates of $1.77 billion revenue and $3.75 normalized EPS, implying 16% revenue growth and 9% EPS growth year-over-year. Full-year 2025 revenue and EPS estimates are $7.45 billion and $14.58, with FY26 forecasts of $10.48 billion revenue and $16.66 EPS. AI-enabled design momentum includes 40+ chiplet heterogeneous designs and adoption of DSO.ai/VSO.ai across flagship CPU and GPU cores, and management previewed "agent engineer" technology to reengineer workflows. China sales mix has declined to 10% and is expected to see year-over-year declines in FY25 due to export restrictions. Design IP revenue rose 21% last quarter; all approvals for the Ansys acquisition except China are secured.
Read at 24/7 Wall St.
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