Synopsys Inc. Faces Record Share Decline Amid Q3 2025 Earnings Report

On September 10, 2025, investors in Synopsys, Inc. (NASDAQ: SNPS) experienced an unprecedented drop in their shares, with prices plunging over $216, marking a staggering 36% decrease. This decline followed the company’s release of its Q3 2025 financial results, which unveiled significant issues with a key foundry customer, sparking concerns across the market.

Investigation Launched

The financial fallout has prompted the national shareholder rights law firm, Hagens Berman, to launch an investigation into whether Synopsys misled investors regarding customer risks and its growth prospects. This development has raised serious questions about the company’s transparency and communication with shareholders.

Hagens Berman is encouraging investors who faced substantial losses to report their experiences. They are also calling for anyone with insights that could aid the investigation to reach out to their legal team.

Background of the Situation

Historically, Synopsys has reassured its investors that the reduction in the research and development budget from its largest customer, Intel, wouldn’t significantly affect its Electronic Design Automation (EDA) software business. Despite this, concerns were amplified when Synopsys released its Q3 results, which forecasted a GAAP EPS of between negative $0.27 and negative $0.16 for Q4 2025.

During the accompanying earnings call, management acknowledged underperformance in their Intellectual Property (IP) division. They attributed this downturn largely to difficulties associated with a major foundry customer, which also had a substantial effect on the overall financial year.

The ramifications were immediate and severe. The very next day, Synopsys shares suffered their worst single-day decline since the company went public in 1992, with a shocking 36% drop that sent shockwaves through the investment community.

Investigative Highlights

Reed Kathrein, the Hagens Berman partner overseeing the investigation, expressed concerns that Synopsys may have misled investors regarding the risks associated with their high dependency on a single customer. As the inquiry proceeds, Synopsys investors who have incurred significant losses are urged to consider their options, potentially contacting the law firm for guidance.

Opportunities for Whistleblowers

Furthermore, individuals possessing non-public information about Synopsys are encouraged to participate by aiding the investigation or utilizing the SEC Whistleblower program. Whistleblowers providing original information may be eligible for rewards of up to 30% of any successful recovery made by the SEC.

About Hagens Berman

Hagens Berman is renowned for its role as a plaintiffs' rights litigation firm that prioritizes corporate accountability. They have a substantial practice dedicated to representing investors, whistleblowers, and consumers who seek justice for harms inflicted by corporate negligence and misconduct. Notably, the firm has achieved over $2.9 billion in settlements for their clients across various legal battles.

For further details, those interested can explore Hagens Berman’s commitment to fighting for investor rights and their services at hbsslaw.com.

Conclusion

The drop in Synopsys shares, coupled with the potential legal repercussions, serves as a cautionary tale for investors and underscores the importance of transparency in corporate communications. As the investigation unfolds, its findings could have significant implications for both the company and its investors in the near future.