Synopsys (NASDAQ:SNPS) Updates Q2 2025 Earnings Guidance

Synopsys (NASDAQ:SNPS) issued an update on its second quarter 2025 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 3.370-3.420 for the period, compared to the consensus estimate of 3.370. The company issued revenue guidance of $1.6 billion-$1.6 billion, compared to the consensus revenue estimate of $1.6 billion. Synopsys also updated its FY 2025 guidance to 14.880-14.960 EPS.

Synopsys Stock Up 2.7 %

NASDAQ:SNPS traded up $12.51 during trading hours on Wednesday, reaching $470.46. 1,532,766 shares of the stock were exchanged, compared to its average volume of 1,109,050. Synopsys has a twelve month low of $457.00 and a twelve month high of $624.80. The business has a 50-day moving average of $508.09 and a two-hundred day moving average of $516.89. The company has a market capitalization of $72.72 billion, a price-to-earnings ratio of 32.40, a PEG ratio of 3.23 and a beta of 1.12.

Synopsys (NASDAQ:SNPS) last announced its earnings results on Wednesday, February 26th. The semiconductor company reported $2.25 EPS for the quarter, missing analysts’ consensus estimates of $2.81 by ($0.56). Synopsys had a net margin of 36.12% and a return on equity of 20.48%. On average, research analysts forecast that Synopsys will post 10.64 EPS for the current fiscal year.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the stock. Robert W. Baird cut their target price on shares of Synopsys from $644.00 to $630.00 and set an “outperform” rating on the stock in a research note on Thursday, December 5th. Piper Sandler cut their price objective on Synopsys from $670.00 to $655.00 and set an “overweight” rating on the stock in a research report on Friday, December 6th. Needham & Company LLC reiterated a “buy” rating and issued a $640.00 target price on shares of Synopsys in a report on Thursday, December 5th. Morgan Stanley cut their price target on Synopsys from $625.00 to $590.00 and set an “overweight” rating on the stock in a report on Monday. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $660.00 price objective on shares of Synopsys in a research note on Tuesday. One equities research analyst has rated the stock with a hold rating and twelve have issued a buy rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $639.58.

Insider Activity at Synopsys

In related news, CRO Richard S. Mahoney sold 20,838 shares of the business’s stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $506.01, for a total value of $10,544,236.38. Following the completion of the sale, the executive now directly owns 1,460 shares of the company’s stock, valued at $738,774.60. The trade was a 93.45 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.66% of the stock is currently owned by corporate insiders.

About Synopsys

Synopsys, Inc provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions.