TLDR
- Synopsys posted Q4 earnings of $2.90 per share, topping the $2.78 analyst consensus
- Revenue hit $2.26 billion in Q4, up 37.8% year-over-year and in line with estimates
- Fiscal 2026 revenue guidance set at $9.6 billion, including $2.9 billion from Ansys
- The company finished fiscal 2025 with record revenue of $7.1 billion, up 15%
- Stock jumped up to 6% after hours following the earnings announcement
Synopsys delivered a quarterly earnings beat Wednesday that sent shares higher in extended trading. The software provider exceeded Wall Street’s profit expectations while matching revenue forecasts.
The company reported adjusted earnings of $2.90 per share for its fiscal fourth quarter. Analysts had expected $2.78 per share. Revenue reached $2.26 billion, matching the consensus estimate and marking a 37.8% jump from last year’s fourth quarter.
Shares rose as much as 6% after the report. They later pared gains to 2.5% in after-hours trading. The stock closed regular trading up 2.1% at $475.83.
CEO Sassine Ghazi said the results capped “a year that redefined our company as the leader in engineering solutions from silicon to systems.” Fiscal 2025 revenue hit a record $7.1 billion. That’s up 15% from $6.1 billion in fiscal 2024.
The fourth quarter earnings of $2.90 per share declined from $3.40 in the year-ago quarter. The comparison reflects changes in business mix and recent acquisition activity.
Strong Backlog Points to Growth
CFO Shelagh Glaser emphasized the company’s $11.4 billion backlog. She said Synopsys expects another revenue record in fiscal 2026 while integrating Ansys and driving operational efficiency.
First quarter fiscal 2026 earnings are projected at $3.41 per share on revenue of $2.4 billion. Full-year guidance calls for $14 per share in earnings on $9.6 billion in revenue.
The outlook incorporates $2.9 billion in revenue from the Ansys acquisition. The engineering simulation software company added $667.7 million in Q4 revenue. For the full fiscal year, Ansys contributed $756.6 million.
Synopsys also factored in $110 million from divested businesses. The company sold its Optical Solutions Group and PowerArtist RTL operations.
Nvidia Partnership Gains Traction
Earlier this month, Synopsys revealed that Nvidia purchased a $2 billion stake in the company. The investment is part of a joint development agreement for design tools.
Nvidia CEO Jensen Huang said the partnership would “expand the market of computing into the world of design and engineering for the very first time.” The collaboration aims to accelerate chip development and product design processes.
Mizuho analysts called the results “better than feared.” They highlighted the $11.4 billion backlog as a positive indicator. When adjusted for divestitures, the fiscal 2026 guidance met or beat expectations.
The stock has struggled this year despite the positive quarter. Shares are down roughly 2% year-to-date and off 7.1% over the past 12 months. The company enters fiscal 2026 with $2.26 billion in quarterly revenue and the previously mentioned $11.4 billion backlog.
The post Synopsys (SNPS) Stock: Q4 Earnings Beat Drives After-Hours Rally appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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