Synopsys, Inc.
SNPS
Market Cap$71.99B
Close$
Earnings Call Q2 2025
May 28, 2025 - AI Summary
Strong Financial Performance: Synopsys reported second-quarter revenue of $1.6 billion, a 10% increase year-over-year. Non-GAAP EPS was $3.67, exceeding guidance, demonstrating solid execution despite macroeconomic challenges. This growth was primarily driven by the design IP segment, which grew 21% year-over-year, underscoring the demand for Synopsys' IP solutions in the market.
Outlook for FY2025: The company reiterated its full-year revenue guidance of $6.745 to $6.805 billion and non-GAAP operating margin of 40%. While revenue from China is expected to decline year-over-year due to cumulative impacts of restrictions and market volatility, Synopsys remains confident in its overall performance due to strengths in other regions and sectors.
Significant Backlog and Growth Potential: Synopsys maintained a strong backlog of $8.1 billion, which increased by $400 million quarter-over-quarter. The company is optimistic about the third quarter, forecasting revenue between $1.755 billion and $1.785 billion, indicating anticipated growth momentum.
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$325.61
32.5% downside
Current Fair Value
32.5% downsideOvervalued by 32.5% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $71.99 Billion |
|---|---|
| Enterprise Value | $70.57 Billion |
| Dividend Yield | $0 (0%) |
| Earnings per Share | $14.78 |
| Beta | 1.16 |
| Outstanding Shares | 154,408,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 33.95 |
|---|---|
| PEG | -99.39 |
| Price to Sales | 12.36 |
| Price to Book Ratio | 8.04 |
| Enterprise Value to Revenue | 11.62 |
| Enterprise Value to EBIT | 54.04 |
| Enterprise Value to Net Income | 33 |
| Total Debt to Enterprise | 0.03 |
| Debt to Equity | 0.24 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Synopsys, Inc.
13,000 employeesSynopsys, is the Silicon to Software™ partner for innovative companies developing the electronic products and software applications we rely on every day. As an S&P 500 company, Synopsys has a long history of being a global leader in elec...