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Valued at more than $95.4 billion by market cap, Sunnyvale, California-based Synopsys, Inc. (SNPS) operates as a vendor of electronic design automation (EDA) software to the semiconductor and electronics industries. The tech giant is expected to announce its third-quarter results on Wednesday, Aug. 20.
Ahead of the event, analysts expect SNPS to report an adjusted EPS of $2.76, marking an 8.7% increase from $2.54 reported in the year-ago quarter. Moreover, the company has a solid earnings surprise history and has surpassed the Street’s bottom-line estimates in each of the past four quarters.
For the full fiscal 2025, Synopsys’ earnings are expected to come in at $10.81, up 5.5% from $10.25 reported in fiscal 2024. In fiscal 2026, its earnings are expected to surge 13.7% year-over-year to $12.29 per share.
SNPS stock has observed a 4.4% uptick over the past 52 weeks, notably underperforming the S&P 500 Index’s ($SPX) 14.5% surge and the Technology Select Sector SPDR Fund’s (XLK) 15.6% returns during the same time frame.
Despite reporting solid financials, Synopsys’ stock price dropped 1.6% in the trading session following the release of its Q2 results on May 28. The company’s overall revenues for the quarter surged 10.3% year-over-year to $1.6 billion, exceeding the guidance midpoint. Further, its non-GAAP net income for the quarter soared 22.7% year-over-year to $572.7 million, exceeding expectations.
Moreover, the company raised its full-year earnings outlook. Following the initial decline, SNPS stock prices rose nearly 2% in the subsequent trading session.
The consensus view on SNPS remains extremely optimistic, with a “Strong Buy” rating overall. Of the 19 analysts covering the stock, opinions include 16 “Strong Buys,” one “Moderate Buy,” and two “Holds.” As of writing, the stock is trading slightly below its mean price target of $620.53.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
