"After the market closed on September 9th, Synposys ( Nasdaq: SNPS) reported fiscal Q3 earnings that shocked Wall Street. The company reported Q3 adjusted earnings of $3.39, which were below expectations of $3.75 per share. Looking forward, the company's outlook for Q4 was an even bigger miss. The company guided to Q4 earnings of $2.76-$2.80, well below expectations of $4.14."
"Snyposys is a leading Electronic Design Automation (EDA) provider. The company released its fiscal Q3 earnings on September 9th, and shares fell 35% the next day. Results for last quarter were significantly below Wall Street's expectations. Worse yet, the company's guidance points to a significant year-over-year drop in the company's earnings in Q4. We previously added shares of Synposys to 24/7 Wall St.'s $500,000 AI Portfolio."
Synopsys, a leading Electronic Design Automation (EDA) provider, reported adjusted Q3 earnings of $3.39 per share versus $3.75 expected and guided Q4 to $2.76–$2.80 versus $4.14 expected. Shares fell about 35% after the report. Adjusted earnings grew annually from $2.53 in 2014 to $13.20 in 2024, but the company now projects normalized earnings to decline in 2025 despite a broader semiconductor boom. Synopsys operates in a duopoly with Cadence Design Systems. The earnings miss and weak guidance raise concerns about near-term spending trends and the durability of AI-driven demand.
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