SNPS Q2 2025 Earnings
Reported May 28, 2025 at 4:39 PM ET · SEC Source
Q2 25 EPS
$3.67
BEAT +8.03%
Est. $3.40
Q2 25 Revenue
$1.60B
BEAT +0.29%
Est. $1.60B
vs S&P Since Q2 25
-20.1%
TRAILING MARKET
SNPS +2.0% vs S&P +22.1%
Market Reaction
Did SNPS Beat Earnings? Q2 2025 Results
Synopsys posted a strong fiscal second quarter, delivering non-GAAP EPS of $3.67 against a consensus estimate of $3.40, an 8.03% beat, while revenue of $1.60 billion edged past expectations by 0.29% and grew 10.2% year-over-year from $1.45 billion in… Read more Synopsys posted a strong fiscal second quarter, delivering non-GAAP EPS of $3.67 against a consensus estimate of $3.40, an 8.03% beat, while revenue of $1.60 billion edged past expectations by 0.29% and grew 10.2% year-over-year from $1.45 billion in the year-ago period. The results were powered by accelerating demand across both business segments, with Design IP revenue climbing to $482 million from $399.80 million, reflecting rising appetite for Synopsys's interface, security, and embedded processor IP as AI complexity and silicon proliferation drive increasingly intricate chip design requirements. Design Automation, the company's larger segment at 70% of revenue, also expanded to $1.12 billion with improving margins. What began as a confident earnings report, however, quickly turned turbulent: within 24 hours of reaffirming full-year revenue guidance of $6.75 billion to $6.80 billion and non-GAAP EPS of $15.11 to $15.19, Synopsys withdrew that outlook entirely after receiving a U.S. Commerce Department letter imposing new export restrictions on chip design software sales to China, which represents roughly 10% of quarterly revenue.
Key Takeaways
- • Mega trends of AI, software-defined systems, and silicon proliferation driving demand
- • Increasing design complexity and costs driving need for Synopsys tools
- • Rising compute performance and energy demands boosting EDA and IP requirements
- • Strong Design IP revenue growth reflecting expanding IP portfolio demand
- • Non-GAAP operating margin improvement
SNPS YoY Financials
Q2 2025 vs Q2 2024, source: SEC Filings
SNPS Revenue by Segment
With YoY comparisons, source: SEC Filings
“We delivered a strong quarter, which demonstrates the mission-critical nature of our products and the resiliency of our business. The mega trends of AI, software-defined systems, and silicon proliferation continue to drive our growth. These trends are increasing design complexity and costs, while also increasing compute performance and energy demands. Synopsys is a trusted partner in addressing these challenges and a leader in applying AI to help customers innovate faster.”
— Sassine Ghazi, Q2 2025 Earnings Press Release
SNPS Earnings Trends
SNPS vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
SNPS EPS Trend
Earnings per share: estimate vs actual
SNPS Revenue Trend
Quarterly revenue: estimate vs actual
SNPS Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $3.56 | $3.77 | +5.98% | $2.41B | +0.74% |
| Q4 25 FY | — | $2.90 | — | $2.25B | — |
| FY Full Year | — | $12.91 | — | $7.05B | — |
| Q3 25 MISS | $3.75 | $3.39 | -9.48% | $1.74B | -1.54% |
| Q2 25 BEAT | $3.40 | $3.67 | +8.03% | $1.60B | +0.29% |