These Analysts Slash Their Forecasts On Synopsys Following Downbeat Q3 Results

Synopsys, Inc. (NASDAQ:SNPS) posted weaker-than-expected results for its third quarter after Tuesday’s closing bell.

Synopsys reported adjusted earnings of $3.39 per share, which missed the Street estimate of $3.74. Quarterly revenue came in at $1.73 billion, which missed the consensus estimate of $1.76 billion and is up from revenue of $1.52 billion for the third quarter of fiscal year 2024.

“Q3 was a transformational quarter. Against a challenging geo-political backdrop, we closed the Ansys acquisition – expanding our portfolio, customer base and opportunity. Now more than ever, Synopsys is the mission-critical partner technology R&D needs to design and deliver AI-powered products,” said Sassine Ghazi, president and CEO of Synopsys. “While I’m proud of how our team navigated external challenges in the quarter, our IP business underperformed expectations. We are taking action to enhance our competitive advantage and drive resilient, long-term growth.”

The company also lowered its fiscal 2025 adjusted EPS guidance from a range of $15.11 to $15.19 to a new range of $12.76 to $12.80, versus the $15 estimate.

Synopsys shares tumbled 21.4% to $474.64 in the pre-market trading session.

These analysts made changes to their price targets on Synopsys following earnings announcement.

• Piper Sandler analyst Clarke Jeffries maintained Synopsys with an Overweight rating and lowered the price target from $660 to $630.
• Needham analyst Charles Shi maintained the stock with a Buy and lowered the price target from $660 to $550.
• Rosenblatt analyst Blair Abernethy downgraded Synopsys from Buy to Neutral and cut the price target from $650 to $605.
• Baird analyst Joe Vruwink downgraded the stock from Outperform to Neutral and slashed the price target from $670 to $535.
• JP Morgan analyst Harlan Sur maintained the stock with an Overweight rating and lowered the price target from $685 to $600.

Considering buying SNPS stock? Here’s what analysts think:

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