Baird Downgrades Synopsys to Neutral, PT Lowered to $535
ByAinvest
Wednesday, Sep 10, 2025 7:32 am ET1min read
SNPS--
Synopsys reported adjusted earnings of $3.39 per share for the third quarter of 2025, missing the Street estimate of $3.74. Quarterly revenue came in at $1.73 billion, falling short of the consensus estimate of $1.76 billion [1]. The company also lowered its fiscal 2025 adjusted EPS guidance to a range of $12.76 to $12.80 from a previous range of $15.11 to $15.19 [1].
The downgrade by Baird follows concerns about Synopsys’ IP business underperforming expectations and challenges from major foundry customers. Additionally, the company’s roadmap decisions have not yielded expected results, leading to muted IP growth expectations for fiscal year 2026 [2].
Synopsys shares were down 13.58% to $522.30 in Tuesday's extended trading session [1]. Analysts and investors are closely monitoring any forthcoming updates or guidance from the company following the latest earnings report.
The recent financial landscape for Synopsys highlights the challenges it faces in navigating market expectations. As the company continues to operate in a transformational quarter, investors may be closely watching for any signs of resilience and long-term growth [1].
Baird Downgrades Synopsys to Neutral, PT Lowered to $535
Baird Financial has downgraded Synopsys Inc. (NASDAQ: SNPS) to Neutral from Outperform, reducing its price target to $535 from $670. The downgrade reflects concerns about material changes in Synopsys’ Design IP outlook, including challenges related to China restrictions and customer behavior [2].Synopsys reported adjusted earnings of $3.39 per share for the third quarter of 2025, missing the Street estimate of $3.74. Quarterly revenue came in at $1.73 billion, falling short of the consensus estimate of $1.76 billion [1]. The company also lowered its fiscal 2025 adjusted EPS guidance to a range of $12.76 to $12.80 from a previous range of $15.11 to $15.19 [1].
The downgrade by Baird follows concerns about Synopsys’ IP business underperforming expectations and challenges from major foundry customers. Additionally, the company’s roadmap decisions have not yielded expected results, leading to muted IP growth expectations for fiscal year 2026 [2].
Synopsys shares were down 13.58% to $522.30 in Tuesday's extended trading session [1]. Analysts and investors are closely monitoring any forthcoming updates or guidance from the company following the latest earnings report.
The recent financial landscape for Synopsys highlights the challenges it faces in navigating market expectations. As the company continues to operate in a transformational quarter, investors may be closely watching for any signs of resilience and long-term growth [1].
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