For the quarter ended July 2025, Synopsys (SNPS) reported revenue of $1.74 billion, up 14% over the same period last year. EPS came in at $3.39, compared to $3.43 in the year-ago quarter.
The reported revenue represents a surprise of -1.61% over the Zacks Consensus Estimate of $1.77 billion. With the consensus EPS estimate being $3.84, the EPS surprise was -11.72%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Synopsys performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Revenue- Maintenance and service: $330.97 million compared to the $290.38 million average estimate based on four analysts. The reported number represents a change of +18.2% year over year.
- Revenue- Total products revenue: $1.41 billion versus $1.48 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +13.1% change.
- Revenue by segment- Design IP: $427.6 million compared to the $539.28 million average estimate based on three analysts. The reported number represents a change of -7.7% year over year.
- Revenue by segment- Design Automation: $1.31 billion versus the three-analyst average estimate of $1.23 billion. The reported number represents a year-over-year change of +23.5%.
- Revenue- Upfront products: $516.4 million compared to the $532.56 million average estimate based on three analysts. The reported number represents a change of +16.7% year over year.
- Revenue- Time-based products: $892.36 million versus $945.56 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.1% change.
View all Key Company Metrics for Synopsys here>>>
Shares of Synopsys have returned -1.1% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Synopsys, Inc. (SNPS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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