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Earnings transcript
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SNPS
Synopsys, Inc.
$462.88
-3.2
(-0.69%)
| Exchange: | NASDAQ |
| Market Cap: | 88.705B |
| Shares Outstanding: | 44.444M |
Delayed data
About The Company
| Sector: | TechnologyView sector performance | |||||
| Industry: | Software – InfrastructureView industry performance | |||||
| CEO: | Sassine Ghazi | |||||
| Full Time Employees: | 28000 | |||||
| Address: |
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| Website: | https://www.synopsys.com |
Synopsys, Inc. is a leading provider of electronic design automation (EDA) software, instrumental in the creation and validation of integrated circuits. The company offers a robust portfolio of platforms, including the Fusion Design Platform for digital implementation, and the comprehensive Verification Continuum Platform. The latter provides a suite of solutions such as virtual prototyping, static and formal verification, simulation, emulation, and FPGA-based prototyping with integrated debugging tools. Synopsys also develops FPGA design products, which enable programming for specific functions. A significant part of its business involves intellectual property (IP) solutions. This encompasses IP for widely adopted communication standards like USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth Low Energy. They also furnish analog IP, including data converters and audio codecs, alongside system-on-chip (SoC) infrastructure IP, specialized datapath and building block IP, and verification IP products. Furthermore, their offerings include mathematical and floating-point components, as well as Arm AMBA interconnect fabric and peripherals. Beyond core IP, Synopsys supplies logic libraries, embedded memories, and configurable processor cores, complemented by application-specific instruction-set processor tools for embedded applications. They also develop IP subsystems for audio, sensor, and data fusion functionalities, in addition to specialized security IP solutions. For advanced system design and analysis, Synopsys provides Platform Architect solutions for SoC architecture optimization, along with general virtual prototyping tools and HAPS FPGA-based prototyping systems. Their expertise extends to tools designed for optical systems and photonic devices. In addition to software and IP, the company delivers a range of services, including security testing, managed services, professional programs, and training. These services are designed to help customers identify and resolve security vulnerabilities and defects across the software development lifecycle. Manufacturing solutions are also part of their extensive offerings. Synopsys serves a diverse global client base, with applications across electronics, financial services, automotive, medicine, energy, and various industrial sectors. The company was founded in 1986 and is headquartered in Mountain View, California.
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SNPS full analysis
Hey everyone, welcome back to MarketSnap. Synopsys just reported a blowout quarter, raised its full-year guidance, and the stock… slipped. Then it kept sliding. Down about 11% this year while Wall Street analysts are throwing around price targets that imply roughly 50% upside. That kind of gap between what the market is doing and what the sell-side is saying usually means one of them is wrong. Our job today is to figure out which one, and whether the recent sell-off…
EPS
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Earnings Call
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Key takeaways
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Login — it's freeIncome Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 5,318,014 | 6,127,436 | 7,054,178 |
| Gross Profit | 4,287,171 | 4,882,147 | 5,430,629 |
| EBITDA | 1,555,293 | 1,845,752 | 2,500,301 |
| Operating Income | 1,273,239 | 1,355,711 | 914,927 |
| Net Income | 1,229,888 | 2,263,380 | 1,332,220 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Total Assets | 10,333,131 | 13,073,561 | 48,224,461 |
| Total Liabilities | 4,148,830 | 4,050,355 | 19,897,446 |
| Total Stockholders Equity | 6,147,308 | 8,990,702 | 28,327,602 |
| Total Debt | 677,596 | 684,457 | 14,293,418 |
| Cash and Cash Equivalents | 1,433,966 | 3,896,532 | 2,888,030 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash Flow | 1,703,274 | 1,407,029 | 1,518,608 |
| Capital Expenditure | -191,822 | -123,161 | -169,454 |
| Free Cash Flow | 1,511,452 | 1,283,868 | 1,349,154 |
| Net Income | 1,229,888 | 2,235,810 | 1,336,120 |
| Net Change in Cash | 21,323 | 2,457,542 | -1,010,031 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2030 | Research Access | Research Access | Research Access | Research Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 15,623,566.287 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (High) | 16,607,936.514 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (Avg) | 16,295,500 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Low) | 6,039,451.307 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (High) | 6,489,107.347 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Avg) | 6,346,387.822 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Low) | 5,127,536.091 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (High) | 5,553,007.128 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Avg) | 5,417,963.853 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Low) | 3,609,137.366 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (High) | 3,836,532.783 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Avg) | 3,764,358.077 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Avg) | 33.510 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (High) | 34.350 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Low) | 31.710 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated Revenue) | 9 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated EPS) | 4 | Research Access | Research Access | Research Access | Research Access |
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Current Key Metrics
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Login — it's freeSWOT Analysis
Strengths (preview)
- Strong Revenue Growth and Execution: Q1 2025 revenue of $1.46 billion exceeded expectations, demonstrating robust demand and solid execution despite a challenging macro environment.
- High Profitability & Cash Generation: The company exhibits strong financial health with a high gross profit margin and net profit margin. A strong free cash flow yield indicates efficient conversion of earnings into cash, providing capital for R&D and strategic initiatives.
- Dominant Market Position: Synopsys operates in a critical and growing sector (semiconductor design and verification), with a business model that benefits from secular trends like AI and advanced chip design, as reflected in its strong 1-year and 5-year performance metrics.
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At what price to buy it? -
Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MarketSnap estimates SNPS intrinsic value between $464.77 – $501.85 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
Common questions about SNPS valuation
Is Synopsys, Inc. (SNPS) overvalued or undervalued right now?
MarketSnap estimates intrinsic value for Synopsys, Inc. (SNPS) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is SNPS a buy, hold, or sell for long-term investors?
MarketSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether SNPS trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is SNPS’s P/E ratio?
You can see SNPS’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for SNPS?
MarketSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MarketSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is SNPS a good long-term investment?
Whether SNPS fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MarketSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
SNPS
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Daily snapshot
-0.69
Trading Metrics:
| Open: | 460.22 | Previous Close: | 466.08 | |
| Day Low: | 445.56 | Day High: | 464.51 | |
| Year Low: | 362.55 | Year High: | 539.48 | |
| Price Avg 50: | 438.84 | Price Avg 200: | 443.26 | |
| Volume: | 1.542M | Average Volume: | 2.083M |
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