NASDAQ$SNPS

Synopsys Inc · Q1 2025 earnings

Q1 2025 earnings · · After market close · Investor relations

Briefing

Synopsys reported Q1 FY25 earnings with revenue in the upper guidance range and strong operational execution.

Synopsys delivered solid financial results for Q1 FY25, with revenue of $1.455 billion, reflecting a slight decline from the prior year. GAAP EPS was $1.89, while non-GAAP EPS exceeded expectations at $3.03. The company achieved an operating income of $251.8 million. Free cash flow guidance for the full fiscal year remains strong at approximately $1.6 billion, reaffirming expectations for double-digit revenue growth.

  • Revenue for Q1 FY25 was $1.455 billion, slightly lower than Q1 FY24.
  • GAAP EPS came in at $1.89, while non-GAAP EPS exceeded expectations at $3.03.
  • Operating income was $251.8 million, reflecting continued profitability.
  • The company reaffirmed its full-year revenue growth guidance.

Headline financials

Total Revenue

$1.46B

Previous: $1.65B-11.8%
EPS (adj)

$3.03

Previous: $2.89+4.8%
Operating Cash Flow

-$67.5M

No prior period
DA Operating Margin

39.7%

No prior period
Design IP Operating Margin

29.1%

No prior period
Capital Expenditures

-$40.7M

Previous: -$40.4M-0.8%
Net Income

$296M

Previous: $449M-34.2%
Operating Income

$252M

Previous: $360M-30.0%
Gross Profit

$1.19B

Previous: $1.32B-10.2%

Revenue & EPS history

Synopsys · Revenue · Quarterly

$1.46B

Q1 2025-11.8%vs Q1 2024
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Synopsys · $1.47B total across 2 segments · Q4 2023

  • Design Automation
    $954M
  • Design IP
    $514M

Forward guidance

Synopsys expects Q2 FY25 revenue between $1.585B and $1.615B, with non-GAAP EPS ranging from $3.37 to $3.42. Full-year guidance remains unchanged with expectations of continued revenue growth and strong free cash flow.

Tailwinds

  • Revenue guidance for Q2 FY25 is $1.585B to $1.615B.
  • Non-GAAP EPS guidance for Q2 FY25 is $3.37 to $3.42.
  • Full-year free cash flow is projected at $1.6B.
  • Company expects double-digit revenue growth in FY25.
  • Strong demand for AI and advanced node design solutions.

Headwinds

  • Upfront product revenue declined YoY, impacting total revenue.
  • Operating expenses increased due to higher R&D investments.
  • Macroeconomic uncertainty could affect enterprise software spending.
  • Geopolitical risks in key markets may impact revenue growth.
  • Potential regulatory changes in export controls could pose challenges.

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 2025

Historical avgQ1 2025

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro