Synopsys Q3 Earnings Miss: Shares Down Amid Lower FY22 EPS Guidance

Synopsys shares are down pre-bell after the company reported a fiscal Q3 miss and cut its full-year EPS guidance. The company's revenue of $1.26 billion fell short of estimates, and its EPS of $2.44 also missed expectations. Synopsys' full-year EPS guidance was cut to $10.65-$10.75, down from $10.85-$11.05.

Synopsys Inc. reported its financial results for the third quarter of 2025, revealing earnings per share (EPS) of $3.39, which fell short of analyst expectations of $3.80. Revenue for the quarter was $1.74 billion, also below the forecast of $1.77 billion. In response, Synopsys shares saw a decline of 0.77% during regular trading hours, closing at $609.08. However, in aftermarket trading, the stock slightly recovered, gaining 0.48% to reach $612.01 Earnings call transcript: Synopsys Q3 2025 earnings miss forecasts^[1].

The company's EPS and revenue both missed analyst expectations, with EPS down by 10.79%. The company's stock experienced a slight recovery in aftermarket trading despite the earnings miss. Synopsys continues to expand its engineering solutions portfolio with strategic acquisitions and innovations. The company is undergoing a strategic review, including a 10% global headcount reduction by the end of fiscal 2026.

Synopsys reported a 14% year-over-year increase in total revenue for the third quarter of 2025, reaching $1.74 billion. The company’s Design Automation segment grew by 23%, while its Design IP revenue declined by 8%. Despite the mixed performance across segments, Synopsys remains a leader in engineering solutions, bolstered by its recent acquisition of Ansys.

Following the earnings announcement, Synopsys’ stock declined by 0.77% during regular trading hours, closing at $609.08. In aftermarket trading, the stock saw a modest increase of 0.48%, reaching $612.01. This movement reflects a cautious investor sentiment, likely influenced by the earnings miss and broader market trends.

Synopsys provided revenue guidance for Q4 2025, projecting between $2.23 billion and $2.26 billion. The company also set a fiscal year 2025 revenue target of $7.03 billion to $7.06 billion. Synopsys is focusing on higher-value IP solutions and subsystem delivery, aiming to capitalize on the evolving semiconductor IP landscape.

Earnings call transcript: Synopsys Q3 2025 earnings miss forecasts^[1]: Investing.com, "Synopsys Inc. Q3 2025 Earnings Call Transcript," accessed September 10, 2025.