Synopsys Q3 2025 Earnings Preview: EPS at $3.75, Revenue at $1.77B

Synopsys is set to announce Q3 2025 earnings on September 9th. The consensus EPS estimate is $3.75 (+9.3% Y/Y), and the consensus revenue estimate is $1.77B (+15.7% Y/Y). Over the past two years, Synopsys has consistently exceeded EPS estimates and has seen revenue growth.

Synopsys Inc. (SNPS) is set to announce its third-quarter fiscal 2025 earnings on September 9th, following the market close. The consensus estimate for earnings per share (EPS) stands at $3.75, representing a year-over-year increase of 9.3% [2]. Revenue is expected to reach $1.77 billion, a 15.7% growth from the year-ago quarter [2].

Synopsys' performance has been robust, with the company consistently exceeding EPS estimates and demonstrating strong revenue growth over the past two years. Analysts attribute this performance to several factors, including strong demand in the AI and high-performance computing (HPC) markets, as well as the launch of new products and technologies [1].

Key metrics to watch include revenue from maintenance and service, total products revenue, and revenue by segment. Analysts predict revenue from maintenance and service to be $290.38 million, up 3.7% year-over-year [2]. Total products revenue is expected to reach $1.48 billion, a 19% increase from the prior year [2]. Revenue from design IP is forecasted to be $539.28 million, representing a 16.5% growth [2]. Design automation revenue is projected to reach $1.23 billion, up 16.2% [2]. Upfront products revenue is expected to be $532.56 million, a 20.4% increase [2]. Time-based products revenue is forecasted to be $945.56 million, a 17.7% growth [2].

While Synopsys' earnings are expected to beat estimates, the company faces some headwinds. Tightening budgets among corporations due to macroeconomic challenges and unfavorable currency exchange rates may partially offset the positive impacts of the growth drivers [1]. Additionally, the stock has underperformed the broader market over the past month, with shares returning -5.4% compared to the Zacks S&P 500 composite's +3.6% change [2].

Investors should closely monitor Synopsys' earnings report and any revisions made to the earnings projections by analysts. These revisions can serve as a critical gauge for predicting potential investor behaviors with respect to the stock [2].

References:
[1] https://www.tradingview.com/news/zacks:d9aa46fc8094b:0-synopsys-to-report-q3-earnings-what-s-in-the-cards-for-the-stock/
[2] https://www.nasdaq.com/articles/synopsys-snps-q3-earnings-preview-what-you-should-know-beyond-headline-estimates