Synopsys today announced financial results for its third quarter of fiscal year 2025, reporting revenue of $1.740 billion, up from $1.526 billion in the same quarter last year.
“Q3 was a transformational quarter. Against a challenging geopolitical backdrop, we closed the Ansys acquisition—expanding our portfolio, customer base, and opportunity,” said Sassine Ghazi, president and CEO of Synopsys. “Now more than ever, Synopsys is the mission-critical partner technology R&D needs to design and deliver AI-powered products. While I’m proud of how our team navigated external challenges, our IP business underperformed expectations. We are taking action to strengthen our competitive position and drive resilient, long-term growth.”
Shelagh Glaser, CFO of Synopsys, added:
“In Q3, strength in Design Automation was offset by weakness in Design IP. We are taking a more conservative view of Q4, while still guiding for another consecutive year of profitable growth.”
GAAP Results
- Net income: $242.5 million, or $1.50 per diluted share, compared to $425.9 million, or $2.73 per diluted share, in Q3 FY2024.
Non-GAAP Results
- Net income: $548.9 million, or $3.39 per diluted share, compared to $535.5 million, or $3.43 per diluted share, in Q3 FY2024.
(See the accompanying tables for a full GAAP to non-GAAP reconciliation.)
Business Segments
Synopsys reports results in two segments:
- Design Automation – advanced silicon design, verification products and services, simulation and analysis solutions (including Ansys), system integration products and services, IC design software, verification tools, manufacturing software, and related offerings.
- Design IP – interface, foundation, security, and embedded processor IP, IP subsystems, and IP implementation services.
Continuing Operations
On September 30, 2024, Synopsys completed the sale of its Software Integrity business. All financial results and targets are presented on a continuing operations basis, unless otherwise noted.
Financial Targets
Synopsys also issued consolidated financial targets for Q4 and full fiscal year 2025. These targets reflect the company’s transition to a fiscal year ending on October 31, resulting in eight fewer days in FY2025 compared to FY2024.
Targets are based on current assumptions, including no further changes to export control restrictions or additions to the U.S. government “Entity List.” These forward-looking statements are subject to risks and uncertainties outlined under “Forward-Looking Statements” below.
