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Synopsys (SNPS) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

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For the quarter ended April 2025, Synopsys (SNPS - Free Report) reported revenue of $1.6 billion, up 10.3% over the same period last year. EPS came in at $3.67, compared to $3.00 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $1.6 billion, representing a surprise of +0.16%. The company delivered an EPS surprise of +8.26%, with the consensus EPS estimate being $3.39.

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: $265.26 million versus $279.24 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -4.1% change.
  • Revenue- Total products revenue: $1.34 billion compared to the $1.32 billion average estimate based on four analysts. The reported number represents a change of +13.7% year over year.
  • Revenue by segment- Design IP: $482 million compared to the $443.37 million average estimate based on three analysts. The reported number represents a change of +20.6% year over year.
  • Revenue by segment- Design Automation: $1.12 billion compared to the $1.16 billion average estimate based on three analysts. The reported number represents a change of +6.4% year over year.
  • Revenue- Upfront products: $510.68 million versus the three-analyst average estimate of $415.15 million. The reported number represents a year-over-year change of +28.8%.
  • Revenue- Time-based products: $828.33 million compared to the $904.12 million average estimate based on three analysts. The reported number represents a change of +6% year over year.
View all Key Company Metrics for Synopsys here>>>

Shares of Synopsys have returned +11.1% over the past month versus the Zacks S&P 500 composite's +7.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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