NASDAQ$SNPS

Synopsys Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Synopsys' Q1 2023 financial results were released, showcasing revenue growth and solid earnings per share.

Synopsys reported a strong start to fiscal year 2023, with revenue reaching $1.361 billion and non-GAAP EPS of $2.62, exceeding guidance targets. The company reaffirmed its FY23 targets, projecting continued revenue growth and non-GAAP operating margin expansion.

  • Revenue for Q1 FY2023 was $1.361 billion, up from $1.270 billion in Q1 FY2022.
  • GAAP earnings per diluted share were reported at $1.75, compared to $1.99 in the previous year.
  • Non-GAAP earnings per diluted share reached $2.62, an increase from $2.40 in the prior year.
  • Synopsys reaffirmed its FY23 targets, expecting 14-15% revenue growth and non-GAAP EPS growth of 18-19%.

Headline financials

Total Revenue

$1.36B

Previous: $1.27B+7.2%
EPS (adj)

$2.62

Previous: $2.40+9.2%
Capital Expenditures

-$43.5M

Previous: -$41.8M-4.2%
Free Cash Flow

$71.3M

Previous: $114M-37.5%
Net Income

$272M

Previous: $314M-13.4%
Operating Income

$256M

Previous: $347M-26.3%
Gross Profit

$1.08B

Previous: $1.01B+6.3%
Cash & Equivalents

$1.15B

Previous: $1.12B+2.7%
Total Assets

$9.57B

Previous: $8.9B+7.5%
Stock-Based Comp

$134M

Previous: $95.8M+40.2%

Revenue & EPS history

Synopsys · Revenue · Quarterly

$1.36B

Q1 2023+7.2%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Synopsys · $1.23B total across 2 segments · Q1 2023

  • Design Automation
    $890M
  • Design IP
    $344M

Forward guidance

Synopsys provided financial targets for the second quarter and full fiscal year 2023, assuming no further changes to export control restrictions or the U.S. government Entity List restrictions.

Tailwinds

  • Second Quarter Revenue target: $1.360 to $1.390 billion
  • Second Quarter GAAP EPS target: $1.62 to $1.72
  • Second Quarter Non-GAAP EPS target: $2.45 to $2.50
  • Full Fiscal Year Revenue target: $5.775 to $5.825 billion
  • Full Fiscal Year Non-GAAP EPS target: $10.53 to $10.60

Headwinds

  • Second Quarter GAAP Expenses target: $1.085 to $1.105 billion
  • Second Quarter Non-GAAP Expenses target: $917 to $927 million
  • Second Quarter Non-GAAP Other Income (Expense) target: $(1) to $1 million
  • Full Fiscal Year GAAP Expenses target: $4.544 to $4.591 billion
  • Full Fiscal Year Non-GAAP Expenses target: $3.810 to $3.840 billion

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.4%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-0.2%

Avg return

30 days after

59%

40 / 68 earnings

Positive

+10.6%

Q4 2022

Best reaction

-24.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026
Q1 2026-1.6%-5.5%-15.3%
Q4 2025-1.8%-2.6%+10.4%
Q3 2025-24.8%-30.6%-27.4%
Q2 2025-1.5%+0.8%+8.7%
Q1 2025-3.3%-5.3%-6.9%
Q4 2024-9.6%-10.8%-13.4%
Q3 2024-1.6%-5.6%-9.0%
Q2 2024+2.6%+2.8%+5.9%
Q1 2024+6.0%+5.1%+8.4%
Q4 2023-0.1%-2.3%-5.3%
Q3 2023-2.9%-0.1%+3.5%
Q2 2023+9.2%+7.1%+17.6%
Q1 2023-4.3%-5.7%-0.9%
Q4 2022+10.6%+2.4%-1.4%
Q3 2022-3.2%-7.1%-18.5%
Q2 2022+6.3%+8.5%+4.7%
Q1 2022-4.2%-6.0%+3.9%
Q4 2021+2.5%+1.3%+8.1%
Q3 2021+8.4%+10.0%+11.6%
Q2 2021+4.1%+5.8%+13.1%
Q1 2021-6.8%-12.4%-21.6%
Q4 2020+1.9%+4.0%+12.7%
Q3 2020+7.5%+6.8%-1.1%
Q2 2020+4.0%+5.6%+13.8%
Q1 2020-4.8%-10.4%-32.5%
Q4 2019-2.5%-2.2%+4.8%
Q3 2019+7.0%+5.1%+4.4%
Q2 2019+1.1%+0.8%+11.3%
Q1 2019-0.4%+1.0%+8.3%
Q4 2018+1.9%-0.4%-6.2%
Q3 2018+7.2%+8.7%+5.6%
Q2 2018-0.8%-1.1%-1.3%
Q1 2018-6.0%-4.8%-8.2%
Q4 2017+0.6%-2.3%-5.1%
Q3 2017-1.9%-0.4%+2.0%
Q2 2017-5.6%-3.8%-1.8%
Q1 2017+7.3%+7.1%+8.0%
Q4 2016-7.1%-6.1%-3.8%
Q3 2016+4.7%+4.8%+3.8%
Q2 2016+2.0%
Q1 2016+2.4%
Q4 2015-7.8%
Q3 2015-6.5%
Q2 2015+1.6%
Q1 2015+4.0%
Q4 2014+3.5%
Q3 2014+6.8%
Q2 2014+1.9%
Q1 2014-2.4%
Q4 2013+2.0%
Q3 2013-0.5%
Q2 2013+0.6%
Q1 2013+3.3%
Q4 2012-0.9%
Q3 2012+4.9%
Q2 2012+6.5%
Q1 2012+0.4%
Q4 2011-0.9%
Q3 2011-3.5%
Q2 2011+1.6%
Q1 2010+1.9%
Q1 2011+3.5%
Q2 2010+0.4%
Q4 2008+0.4%
Q4 2010+0.4%
Q3 2010+1.1%
Q3 2009+1.1%
Q4 2009+1.1%

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