Synopsys (NASDAQ:SNPS) Issues Q2 2025 Earnings Guidance

Synopsys (NASDAQ:SNPS) updated its second quarter 2025 earnings guidance on Wednesday. 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 Performance

Synopsys stock traded up $12.51 during trading on Wednesday, reaching $470.46. The company had a trading volume of 1,532,766 shares, compared to its average volume of 1,109,050. The firm has a market capitalization of $72.72 billion, a PE ratio of 32.40, a price-to-earnings-growth ratio of 3.23 and a beta of 1.12. The firm’s 50-day simple moving average is $508.09 and its 200 day simple moving average is $516.89. Synopsys has a 1-year low of $457.00 and a 1-year high of $624.80.

Synopsys (NASDAQ:SNPS) last announced its earnings results on Wednesday, February 26th. The semiconductor company reported $2.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.81 by ($0.56). Synopsys had a net margin of 36.12% and a return on equity of 20.48%. Analysts anticipate that Synopsys will post 10.64 EPS for the current year.

Wall Street Analyst Weigh In

A number of equities analysts have commented on SNPS shares. Piper Sandler reduced their target price on Synopsys from $670.00 to $655.00 and set an “overweight” rating for the company in a report on Friday, December 6th. Loop Capital started coverage on Synopsys in a research note on Monday, November 11th. They issued a “buy” rating and a $675.00 price objective for the company. Morgan Stanley lowered their target price on shares of Synopsys from $625.00 to $590.00 and set an “overweight” rating on the stock in a research note on Monday. Redburn Atlantic started coverage on shares of Synopsys in a research report on Monday, January 13th. They issued a “buy” rating and a $600.00 target price for the company. Finally, Rosenblatt Securities restated a “buy” rating and set a $660.00 price target on shares of Synopsys in a research report on Tuesday. One research analyst has rated the stock with a hold rating and twelve have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $639.58.

Insider Activity

In other news, CRO Richard S. Mahoney sold 20,838 shares of the company’s stock in a transaction on Wednesday, January 15th. The stock was sold at an average price of $506.01, for a total value of $10,544,236.38. Following the transaction, the executive now owns 1,460 shares of the company’s stock, valued at $738,774.60. This represents a 93.45 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Corporate insiders own 0.66% of the company’s stock.

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.