Synopsys Q3 Earnings: Revenue Falls Short, Non-GAAP EPS Surges to $3.39

Synopsys Inc reported Q3 revenue of $1.74 bln, slightly below estimates, but exceeded non-GAAP EPS expectations at $3.39. The company's acquisition of Ansys is expected to enhance its competitive advantage and drive long-term growth. Despite challenges in the Design IP segment, Synopsys' strong performance in Design Automation and strategic acquisitions position it well for future growth.

Title: Synopsys Inc Reports Q3 2025 Earnings: Revenue Slightly Below Estimates, Non-GAAP EPS Exceeds Expectations

Synopsys Inc (SNPS) reported its third-quarter 2025 financial results, revealing a mixed performance with revenue slightly below estimates but non-GAAP earnings per share (EPS) exceeding expectations. The company's acquisition of Ansys is expected to bolster its competitive advantage and drive long-term growth, despite challenges in the Design IP segment.

# Key Financial Highlights

- Revenue: Synopsys achieved $1.74 billion in Q3 2025, slightly below the estimated $1.767 billion but marking a 14% year-over-year increase Synopsys Inc (SNPS) Q3 Earnings: Non-GAAP EPS Surges to $3.39, Beating Estimates; Revenue at $1.74 Billion, Slightly Below Expectations^[1].
- GAAP EPS: The company reported $1.50 per diluted share, a decrease from $2.73 in the same quarter last year.
- Non-GAAP EPS: Synopsys surpassed expectations with $3.39 per diluted share, compared to the estimated $2.70.
- Net Income: GAAP net income stood at $242.5 million, a decline from $425.9 million in the previous year’s third quarter.
- Full-Year Revenue Guidance: The company projected full-year 2025 revenue between $7.03 billion and $7.06 billion Synopsys Inc (SNPS) Q3 Earnings: Non-GAAP EPS Surges to $3.39, Beating Estimates; Revenue at $1.74 Billion, Slightly Below Expectations^[1].

# Business Segment Performance

The strength in Design Automation was offset by underperformance in the Design IP segment, prompting strategic adjustments. The acquisition of Ansys, completed on July 17, 2025, is a significant move aimed at expanding Synopsys' portfolio and customer base Synopsys Inc (SNPS) Q3 Earnings: Non-GAAP EPS Surges to $3.39, Beating Estimates; Revenue at $1.74 Billion, Slightly Below Expectations^[1].

# Analyst Reaction

Stifel raised its price target on Synopsys to $650 from $550, maintaining a Buy rating. The firm expects Synopsys to deliver better-than-expected fiscal third-quarter results and believes the Ansys acquisition will become accretive sooner than anticipated Synopsys price target raised to $650 from $550 at Stifel on Ansys acquisition^[2].

# Conclusion

Synopsys Inc continues to demonstrate resilience and strategic foresight in a competitive industry. While the company faces challenges in its Design IP segment, its strong performance in Design Automation and strategic acquisitions position it well for future growth. Investors and stakeholders will be keenly watching how Synopsys navigates these challenges and capitalizes on its expanded portfolio to drive sustained profitability.

# References

Synopsys Inc (SNPS) Q3 Earnings: Non-GAAP EPS Surges to $3.39, Beating Estimates; Revenue at $1.74 Billion, Slightly Below Expectations^[1] https://www.gurufocus.com/news/3101804/synopsys-inc-snps-q3-earnings-nongaap-eps-surges-to-339-beating-estimates-revenue-at-174-billion-slightly-below-expectations
Synopsys price target raised to $650 from $550 at Stifel on Ansys acquisition^[2] https://au.investing.com/news/analyst-ratings/synopsys-price-target-raised-to-650-from-550-at-stifel-on-ansys-acquisition-93CH-4011913