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Investing.com -- Synopsys Inc (NASDAQ:SNPS) reported better-than-expected second-quarter earnings on Tuesday, while reaffirming its full-year 2025 revenue and operating margin guidance. The company’s stock rose 1.4% in after-hours trading following the announcement.
The electronic design automation software maker posted adjusted earnings per share of $3.67 for the quarter ended April 30, surpassing analyst estimates of $3.39. Revenue came in at $1.604 billion, slightly above the consensus estimate of $1.6 billion and up 10.2% YoY from $1.455 billion in the same quarter last year.
Synopsys President and CEO Sassine Ghazi attributed the strong performance to the company’s critical role in addressing design challenges amid ongoing trends in AI, software-defined systems, and silicon proliferation. "We delivered a strong quarter, which demonstrates the mission-critical nature of our products and the resiliency of our business," Ghazi stated.
For the third quarter, Synopsys expects revenue between $1.755 billion and $1.785 billion, with non-GAAP earnings per share projected to be in the range of $3.82 to $3.87. The company reaffirmed its full-year 2025 revenue guidance of $6.745 billion to $6.805 billion.
CFO Shelagh Glaser expressed confidence in the company’s outlook, stating, "We’re poised to deliver a solid second half, and we’re reaffirming our full-year revenue and operating margin guidance, reflecting our confidence in the business and continued healthy demand for our products."
Synopsys completed the sale of its Software (ETR:SOWGn) Integrity business on September 30, 2024, and has presented it as a discontinued operation in its financial statements.