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Earnings transcript
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SNPS
Synopsys, Inc.
$395.95
-0.79
(-0.2%)
| Exchange: | NASDAQ |
| Market Cap: | 75.849B |
| Shares Outstanding: | 44.444M |
About The Company
| Sector: | Technology | |||||
| Industry: | Software – Infrastructure | |||||
| CEO: | Sassine Ghazi | |||||
| Full Time Employees: | 28000 | |||||
| Address: |
| |||||
| Website: | https://www.synopsys.com |
Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. The company offers Fusion Design Platform that provides digital design implementation solutions; Verification Continuum Platform that provides virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions. It also provides intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth low energy applications; analog IP, including data converters and audio codecs; and system-on-chip (SoC) infrastructure IP, datapath and building block IP, and verification IP products, as well as mathematical and floating-point components, and Arm AMBA interconnect fabric and peripherals. In addition, the company offers logic libraries and embedded memories; configurable processor cores and application-specific instruction-set processor tools for embedded applications; IP subsystems for audio, sensor, and data fusion functionality; and security IP solutions. Further, it provides Platform Architect solutions for SoC architecture analysis and optimization; virtual prototyping solutions; and HAPS FPGA-based prototyping systems, as well as a series of tools used in the design of optical systems and photonic devices. Additionally, the company offers security testing, managed services, programs and professional services, and training that enable its customers to detect and remediate security vulnerabilities, and defects in the software development lifecycle, as well as manufacturing solutions. It serves electronics, financial services, automotive, medicine, energy, and industrial areas. The company was incorporated in 1986 and is headquartered in Mountain View, California.
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Revenue Segmentation
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 | 2029 | Full Access | Full Access | Full Access | Full Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 13,170,308.754 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (High) | 13,509,701.037 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (Avg) | 13,349,291.253 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Low) | 3,892,847.988 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (High) | 3,993,164.738 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Avg) | 3,945,751.202 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Low) | 0 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (High) | 0 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Avg) | 0 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Low) | 3,042,420.186 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (High) | 3,120,821.835 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Avg) | 3,083,766.215 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Avg) | 0 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (High) | 0 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Low) | 0 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated Revenue) | 7 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated EPS) | 2 | Full Access | Full Access | Full Access | Full Access |
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Current Key Metrics
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Login — it's freeForward P/E Ratios
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Login — it's freeSWOT Analysis
Strengths (preview)
- Robust Financial Performance: Synopsys reported Q1 2025 revenue of $1.46 billion, surpassing analyst expectations, as highlighted in the latest earnings call transcript. This performance reflects strong demand for its products and services, particularly in key segments, contributing to consistent revenue growth.
- Technological Leadership: The company emphasized advancements in AI-driven design tools during the Q1 2025 earnings call, positioning Synopsys as an innovator in the semiconductor and software design industry. This focus on cutting-edge technology enhances its competitive edge.
- Solid Profitability Metrics: Based on key metrics (TTM), Synopsys demonstrates strong gross profit margin and net profit margin, indicating efficient cost management and profitability relative to revenue. This financial health supports sustained growth and investor confidence.
- Strong Cash Flow Generation: Historical cash flow statements show consistent net cash provided by operating activities and positive free cash flow, providing the company with liquidity to fund innovation and capital expenditures without excessive reliance on debt.
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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 $121.14 – $469.47 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
1-day price chart preview. Log in for 1W through 5Y ranges and period tabs.
-0.2
Trading Metrics:
| Open: | 389.65 | Previous Close: | 396.74 | |
| Day Low: | 386.59 | Day High: | 401.07 | |
| Year Low: | 365.74 | Year High: | 651.73 | |
| Price Avg 50: | 434.36 | Price Avg 200: | 486.73 | |
| Volume: | 1.077M | Average Volume: | 2.159M |
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Login — it's freeSNPS full analysis
Welcome to MARKETSNAP’s SWOT analysis for Synopsys, a heavyweight in the semiconductor and software industry. If you’re a long-term investor looking to build wealth, you’ve likely come across Synopsys (ticker SNPS) as a key player in electronic design automation and IP solutions. Today, we’re diving deep into what makes this company tick, breaking down its strengths, weaknesses, opportunities, and threats, while sprinkling in some recent developments and financial insights to keep things spicy. Let’s get started with a quick overview…
