#United States #Sunnyvale #Synopsys #Ansys #Fiscal Year 2025

Synopsys Achieves Record Revenue in Q3 of Fiscal Year 2025

On September 9, 2025, Synopsys, Inc. (Nasdaq: SNPS) announced impressive financial results for the third quarter of fiscal year 2025. The company reported a revenue of $1.740 billion, a remarkable 14% increase from $1.526 billion in the same quarter of the previous year. This growth underscores Synopsys's robust performance in a challenging geopolitical environment, marked by their recent acquisition of Ansys, which closed on July 17, 2025.

Key Financial Highlights

• - Quarterly Revenue: $1.740 billion, up from $1.526 billion YoY.
• - GAAP Earnings Per Share (EPS): $1.50, down from $2.73 YoY.
• - Non-GAAP EPS: $3.39, slightly lower than $3.43 YoY.

The president and CEO of Synopsys, Sassine Ghazi, reflected on the quarter's challenges and triumphs. "Q3 was a transformative quarter. With the Ansys acquisition, we expanded our portfolio and customer base, solidifying our position as a mission-critical partner in the realm of technology research and development," he stated. Ghazi noted the importance of adapting to external pressures while taking steps to ensure long-term competitive advantage and growth.

Challenges and Strategic Adaptations

Despite the positive revenue outcome, the performance of Synopsys’s Intellectual Property (IP) business fell short of expectations. This highlighted the need for the company to reevaluate its strategies and focus on areas that promise higher growth potential. CFO Shelagh Glaser explained, "Strength in Design Automation was offset by weakness in Design IP. We are adopting a conservative outlook for Q4 while ensuring ANSYS contributes positively to our operations moving forward."

To combat weaker segments, Synopsys plans to allocate resources strategically within its Design IP segment to enhance development and innovation in line with market demands. The company emphasizes a commitment to delivering AI-powered products that respond to contemporary challenges in technology development.

Looking Ahead

As Synopsys moves into the final quarter of 2025, it projects a full year revenue estimate between $7.03 billion and $7.06 billion, reflecting their ongoing transformation and commitment to operational efficiency. Synopsys remains focused on leveraging AI advancements to enhance its product offerings and bolster its competitive edge.

The company has set ambitious financial targets for Q4, anticipating revenue between $2.230 billion and $2.260 billion, alongside a targeted GAAP earnings forecast of approximately $5.03 to $5.16 per diluted share. Executives remain optimistic about the future despite current economic headwinds.

Conclusion

In conclusion, Synopsys's ability to navigate a complex landscape while maintaining robust quarterly earnings exemplifies its resilience and adaptability. As it implements its strategic initiatives taken post-Ansys acquisition, stakeholders are advised to monitor the company's evolving dynamics closely in the forthcoming quarters. The upcoming earnings call will further highlight Synopsys's financial strategies and operational developments, revealing insights into how the enterprise plans to maneuver through prevailing market uncertainties.