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Synopsys (SNPS) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
SNPSSynopsys(SNPS) ZACKS·2025-05-28 22:31

Core Insights - Synopsys reported revenue of 1.6billionforthequarterendedApril2025,reflectingayearoveryearincreaseof10.31.6 billion for the quarter ended April 2025, reflecting a year-over-year increase of 10.3% and an EPS of 3.67, up from 3.00inthesamequarterlastyear[1]ThereportedrevenuemettheZacksConsensusEstimate,withaslightsurpriseof+0.163.00 in the same quarter last year [1] - The reported revenue met the Zacks Consensus Estimate, with a slight surprise of +0.16%, while the EPS exceeded expectations by +8.26% [1] Revenue Breakdown - Maintenance and service revenue was 265.26 million, below the estimated 279.24million,representingayearoveryeardeclineof4.1279.24 million, representing a year-over-year decline of -4.1% [4] - Total products revenue reached 1.34 billion, slightly above the 1.32billionestimate,markingayearoveryearincreaseof+13.71.32 billion estimate, marking a year-over-year increase of +13.7% [4] - Design IP revenue was 482 million, surpassing the average estimate of 443.37million,withayearoveryeargrowthof+20.6443.37 million, with a year-over-year growth of +20.6% [4] - Design Automation revenue was 1.12 billion, below the estimated 1.16billion,showingayearoveryearincreaseof+6.41.16 billion, showing a year-over-year increase of +6.4% [4] - Upfront products revenue was 510.68 million, exceeding the estimate of 415.15million,withasignificantyearoveryearincreaseof+28.8415.15 million, with a significant year-over-year increase of +28.8% [4] - Time-based products revenue was 828.33 million, falling short of the $904.12 million estimate, but still reflecting a year-over-year growth of +6% [4] Stock Performance - Synopsys shares have returned +11.1% over the past month, outperforming the Zacks S&P 500 composite's +7.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]