Keysight Technologies' Earnings Look Better Than They Seem: Free Cash Flow Outperforms Statutory Profit
ByAinvest
Wednesday, Sep 10, 2025 7:58 am ET1min read
KEYS--
The quarter's GAAP earnings per diluted share (EPS) were $1.50, while non-GAAP EPS stood at $3.39, reflecting the inclusion of the Ansys acquisition in the consolidated financial statements. The company's operating results for Ansys were not material to its financial performance for the period [1].
Sassine Ghazi, president and CEO of Synopsys, highlighted the transformational impact of the Ansys acquisition, stating, "Q3 was a transformational quarter. Against a challenging geo-political backdrop, we closed the Ansys acquisition – expanding our portfolio, customer base and opportunity. Now more than ever, Synopsys is the mission-critical partner technology R&D needs to design and deliver AI-powered products" [1].
Shelagh Glaser, CFO of Synopsys, noted that while the Design Automation segment performed well, the Design IP segment underperformed expectations. The company is taking action to enhance its competitive advantage and drive resilient, long-term growth [1].
Synopsys expects full-year 2025 revenue to be between $7.03 and $7.06 billion, with GAAP expenses projected between $6,079 and $6,103 million. The company also expects non-GAAP EPS to range between $12.76 and $12.80 [1].
Despite the challenges faced in the Design IP segment, Synopsys' performance remains strong, with a focus on maintaining profitability and driving growth through strategic acquisitions and operational enhancements. Investors should closely monitor the company's progress in the coming quarters to assess its ability to navigate the current challenges and capitalize on future opportunities.
References:
[1] Synopsys, Inc. (2025). Synopsys Posts Financial Results for Third Quarter Fiscal Year 2025. PR Newswire. Retrieved from https://www.prnewswire.com/news-releases/synopsys-posts-financial-results-for-third-quarter-fiscal-year-2025-302551316.html
SNPS--
Keysight Technologies' recent earnings may appear weak, but upon closer inspection, they are actually stronger than they seem. The company's free cash flow is significantly higher than its statutory profit, and its accrual ratio is negative, indicating a positive trend. Despite a decrease in earnings per share, Keysight's performance is considered satisfactory, and its future profitability is expected to improve. However, investors should also consider the risks facing the company.
Synopsys, Inc. (Nasdaq: SNPS) reported robust financial results for the third quarter of fiscal year 2025, marking a significant milestone in the company's transformation journey. The company's revenue for the quarter reached $1.740 billion, a 14% year-over-year (YoY) increase, driven by the successful acquisition of Ansys [1].The quarter's GAAP earnings per diluted share (EPS) were $1.50, while non-GAAP EPS stood at $3.39, reflecting the inclusion of the Ansys acquisition in the consolidated financial statements. The company's operating results for Ansys were not material to its financial performance for the period [1].
Sassine Ghazi, president and CEO of Synopsys, highlighted the transformational impact of the Ansys acquisition, stating, "Q3 was a transformational quarter. Against a challenging geo-political backdrop, we closed the Ansys acquisition – expanding our portfolio, customer base and opportunity. Now more than ever, Synopsys is the mission-critical partner technology R&D needs to design and deliver AI-powered products" [1].
Shelagh Glaser, CFO of Synopsys, noted that while the Design Automation segment performed well, the Design IP segment underperformed expectations. The company is taking action to enhance its competitive advantage and drive resilient, long-term growth [1].
Synopsys expects full-year 2025 revenue to be between $7.03 and $7.06 billion, with GAAP expenses projected between $6,079 and $6,103 million. The company also expects non-GAAP EPS to range between $12.76 and $12.80 [1].
Despite the challenges faced in the Design IP segment, Synopsys' performance remains strong, with a focus on maintaining profitability and driving growth through strategic acquisitions and operational enhancements. Investors should closely monitor the company's progress in the coming quarters to assess its ability to navigate the current challenges and capitalize on future opportunities.
References:
[1] Synopsys, Inc. (2025). Synopsys Posts Financial Results for Third Quarter Fiscal Year 2025. PR Newswire. Retrieved from https://www.prnewswire.com/news-releases/synopsys-posts-financial-results-for-third-quarter-fiscal-year-2025-302551316.html
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet