Chip design software firm Synopsys' Q4 adjusted EPS beats estimates

Synopsys

10/12/2025 21:24

Removes mention of divestiture impact from Result Drivers

Overview

Engineering solutions provider's Q4 revenue grew yr/yr

Adjusted EPS for Q4 beat analyst expectations

Company expects fiscal 2026 revenue of $9.61 bln at mid-point

Outlook

Synopsys expects fiscal year 2026 revenue of $9.610 bln at midpoint

Synopsys anticipates full-year 2026 non-GAAP EPS between $14.32 and $14.40

Result Drivers

ANSYS CONTRIBUTION - Ansys contributed $667.7 mln to Q4 revenue, significantly boosting overall results

REVENUE GROWTH - Q4 revenue increased to $2.255 bln from $1.636 bln in Q4 2024, driven by Ansys integration and other factors

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Adjusted EPS
Beat
$2.90
$2.78 (14 Analysts)
Q4 EPS
$2.39
Q4 Adjusted Net Income
Beat
$543.10 mln
$520.69 mln (11 Analysts)
Q4 Net Income
$448.70 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Synopsys Inc is $550.00, about 18.1% above its December 9 closing price of $465.85

The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 37 three months ago

Press Release: ID:nPn3vJhmga

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)