SNPS Earnings Today: Synopsys Stock Climbs as Analysts Project $1.77B Revenue

Synopsys' stock price (NASDAQ:SNPS) is currently trading around $615 into the open, up 42% in the last six months as the company is set to report earnings.

The report, scheduled for release after market close today comes off the back of a strong bull run in SNPS. Analysts project solid growth for Synopsys Inc.'s upcoming earnings, estimating EPS of $3.75 (up 9.3% from $3.43 last year) and revenue of $1.77 billion representing strong 15.81% year-over-year growth, reflecting optimism around the EDA company's AI and automotive semiconductor design business.

The most pressing challenge facing Synopsys is the recent suspension of sales and services in China, a direct consequence of new U.S. export restrictions imposed in late May 2025. The U.S. Department of Commerce's Bureau of Industry and Security now requires licenses for exports of semiconductor design software and certain chemicals, effectively halting Synopsys' operations in the region.

This development forced the company to suspend its annual and quarterly financial forecasts, introducing significant uncertainty. The scale of the impact is uncertain pending the official release.

The Chinese market represents a substantial portion of Synopsys' revenue stream, and this sudden disruption will undoubtedly create a drag on the company's financial performance in the short to medium term. The ability of Synopsys to navigate these restrictions and potentially find alternative pathways to serve its Chinese clients will be critical in determining its future success.

While the China situation presents a headwind, Synopsys' acquisition of Ansys, completed in July 2025 for approximately $35 billion, offers a compelling counter-narrative. This strategic merger combines Synopsys' leadership in electronic design automation (EDA) with Ansys' expertise in multiphysics simulation.

The combined entity is poised to offer a more comprehensive suite of solutions to customers, potentially unlocking new growth opportunities and solidifying its position in the engineering software market.

The acquisition is expected to create significant synergies and cross-selling opportunities. By integrating Ansys' simulation capabilities into Synopsys' design workflows, the company can offer customers a more holistic approach to product development, reducing time-to-market and improving product performance. However, the integration process will be complex and require careful management to realize its full potential.

Synopsys' recent earnings reports paint a mixed picture. In the first quarter of fiscal 2025 (reported in February 2025), the company beat analyst expectations with earnings of $3.03 per share and revenue of $1.46 billion. However, the company's guidance for the following quarter was somewhat cautious.

Guidance is likely to prove pivotal, with plenty of eyes on the print after market close.