Synopsys (SNPS) reported $2.41 billion in revenue for the quarter ended January 2026, representing a year-over-year increase of 65.5%. EPS of $3.77 for the same period compares to $3.03 a year ago.
The reported revenue represents a surprise of +0.75% over the Zacks Consensus Estimate of $2.39 billion. With the consensus EPS estimate being $3.57, the EPS surprise was +5.71%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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: $715.73 million versus the five-analyst average estimate of $660.32 million. The reported number represents a year-over-year change of +176.4%.
- Revenue- Total products revenue: $1.69 billion versus the five-analyst average estimate of $1.73 billion. The reported number represents a year-over-year change of +41.5%.
- Revenue by segment- Design IP: $407 million compared to the $420.17 million average estimate based on four analysts. The reported number represents a change of -6.5% year over year.
- Revenue by segment- Design Automation: $2 billion versus $1.76 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +96.2% change.
- Revenue- Upfront products: $741.53 million compared to the $601 million average estimate based on four analysts. The reported number represents a change of +101.4% year over year.
- Revenue- Time-based products: $951.54 million versus the four-analyst average estimate of $1.1 billion. The reported number represents a year-over-year change of +14.9%.
View all Key Company Metrics for Synopsys here>>>
Shares of Synopsys have returned -12.3% over the past month versus the Zacks S&P 500 composite's -0.3% 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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