Market Watch: Synopsys Slows Down, Novo Nordisk Cuts Jobs, Chewy's Q2 Earnings Disappoint

Synopsys warned of a slowdown in China, leading to a decline in its stock price. Novo Nordisk announced workforce cuts and a lower profit forecast. Chewy reported weak Q2 profit despite sales growth.

Synopsys (NASDAQ:SNPS) Faces Slowdown in China, Stock Price Declines

Synopsys Inc. reported its third-quarter earnings on September 10, 2025, revealing a slowdown in its Design IP segment, primarily attributed to cautious behavior from Chinese customers due to Bureau of Industry and Security restrictions. The company's revenue for the quarter was $1.74 billion, falling short of the projected $1.77 billion. Adjusted earnings per share were $3.39, missing the $3.80 consensus estimate. Stifel, a financial services firm, reduced its price target on Synopsys to $550.00 from $650.00, citing weakness in the Design IP segment and lower operating margin assumptions Synopsys stock price target lowered to $550 at Stifel on Design IP weakness^[1].

Novo Nordisk Slashes Workforce and Profit Forecast Amid Market Pressure

Pharmaceutical giant Novo Nordisk announced significant workforce cuts and a lower profit forecast for the year. The company will reduce its workforce by 9,000 positions, equating to around 11% of its global workforce, to save approximately Dkr8bn ($1.25bn) by the end of 2026. The cuts are part of a broader restructuring plan to redirect savings towards growth opportunities in diabetes and obesity. Novo Nordisk's profit forecast for 2025 was cut from 10%-16% to 4%-10%, reflecting the company's struggles in the GLP-1RA market, where it has been overtaken by Eli Lilly Novo Nordisk slashes 11% of workforce as Eli Lilly pressure tightens^[2].

Chewy Reports Weak Q2 Profit Despite Sales Growth

Online pet-supplies retailer Chewy Inc. reported a decline in its fiscal second-quarter profit, despite an increase in sales. The company posted a profit of $62 million, or 14 cents a share, for the quarter ended Aug. 3, down from $299.1 million, or 68 cents a share, in the prior year's comparable quarter. Chewy attributed the decline to a $79.1 million expense tied to share-based compensation and related taxes. However, adjusted earnings were in line with analysts' expectations, and the company added 150,000 net active customers, bringing its total customer base to nearly 21 million. Chewy guided for adjusted earnings per share of 28 cents to 33 cents for the current quarter, with sales expected to be between $3.07 billion and $3.1 billion Chewy's 2Q Profit Slips Despite Higher Sales^[3].

These developments highlight varying analyst perspectives on the current market positions and future prospects of Synopsys, Novo Nordisk, and Chewy. Investors should closely monitor these companies' quarterly earnings and strategic initiatives to gauge their long-term performance.