For the quarter ended October 2025, Synopsys (SNPS) reported revenue of $2.25 billion, up 37.8% over the same period last year. EPS came in at $2.90, compared to $3.40 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $2.25 billion, representing a surprise of +0.17%. The company delivered an EPS surprise of +3.94%, with the consensus EPS estimate being $2.79.
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: $698.78 million versus $412.49 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +149% change.
- Revenue- Total products revenue: $1.56 billion versus the four-analyst average estimate of $1.84 billion. The reported number represents a year-over-year change of +14.8%.
- Revenue by segment- Design IP: $407.2 million versus $408.35 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -21.4% change.
- Revenue by segment- Design Automation: $1.85 billion versus $1.84 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +65.2% change.
- Revenue- Upfront products: $615.4 million versus $669.89 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +18.1% change.
- Revenue- Time-based products: $940.68 million versus the three-analyst average estimate of $1.13 billion. The reported number represents a year-over-year change of +12.7%.
View all Key Company Metrics for Synopsys here>>>
Shares of Synopsys have returned +17.8% over the past month versus the Zacks S&P 500 composite's +1.8% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform 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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