Synopsys, Inc.

Synopsys, Inc.

SNPS

Market Cap$71.99B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Synopsys, Inc.Synopsys, Inc.34-22%12.40.2

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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$562.50

Target Price by Analysts

16.7% upsideSynopsys Target Price DetailsTarget Price
$325.61

Current Fair Value

32.5% downside

Overvalued 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
Beta1.16
Outstanding Shares154,408,000

Return

Return on Equity-
Return on Assets-
Return on Invested Capital-

Valuation & Multiples

P/E Ratio33.95
PEG-99.39
Price to Sales12.36
Price to Book Ratio8.04
Enterprise Value to Revenue11.62
Enterprise Value to EBIT54.04
Enterprise Value to Net Income33
Total Debt to Enterprise0.03
Debt to Equity0.24

Revenue Sources

No data

Insider Trades

ESG Score

No data

About Synopsys, Inc.

13,000 employees

Synopsys, 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...