NASDAQ$SNPS

Synopsys Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Synopsys' Q2 2023 financial results were released, demonstrating revenue growth and exceeding guidance targets.

Synopsys reported a record quarterly revenue of $1.395 billion for Q2 2023, exceeding all guidance targets. The company's GAAP earnings per diluted share was $1.76, and non-GAAP earnings per diluted share was $2.54. Synopsys is raising its full year guidance and expects revenue growth of 14-15%, non-GAAP operating margin accretion of 150 basis points to 34.5%, and non-GAAP earnings per share growth of 21-22%.

  • Synopsys achieved a record quarterly revenue of $1.395 billion.
  • GAAP earnings per diluted share were reported at $1.76.
  • Non-GAAP earnings per diluted share reached $2.54.
  • Full year guidance was raised, projecting significant revenue and earnings growth.

Headline financials

Total Revenue

$1.39B

Previous: $1.28B+9.0%
EPS (adj)

$2.54

Previous: $2.50+1.6%
Capital Expenditures

-$91.4M

Previous: -$67.4M-35.6%
Free Cash Flow

$726M

Previous: $838M-13.4%
Net Income

$273M

Previous: $295M-7.4%
Operating Income

$287M

Previous: $364M-21.0%
Gross Profit

$1.1B

Previous: $1.03B+6.9%
Cash & Equivalents

$1.54B

Previous: $1.57B-1.8%
Total Assets

$9.79B

Previous: $9.21B+6.3%
Stock-Based Comp

$143M

Previous: $110M+30.2%

Revenue & EPS history

Synopsys · Revenue · Quarterly

$1.39B

Q2 2023+9%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Synopsys · $1.26B total across 2 segments · Q2 2023

  • Design Automation
    $928M
  • Design IP
    $335M

Forward guidance

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

Tailwinds

  • Revenue is expected to be between $1.465 billion and $1.495 billion for Q3 2023.
  • Full year revenue is projected to be between $5.790 billion and $5.830 billion.
  • Q3 GAAP EPS is estimated to be between $1.88 and $1.99.
  • Full year GAAP EPS is expected to be between $7.44 and $7.60.
  • Operating cash flow is anticipated to be approximately $1.65 billion for the full year.

Headwinds

  • Q3 GAAP expenses are projected to be between $1.143 billion and $1.163 billion.
  • Full year GAAP expenses are expected to be between $4.520 billion and $4.565 billion.
  • Uncertainty in the global economy
  • The highly competitive industry we operate in
  • Actions by the U.S. or foreign governments, such as the imposition of additional export restrictions or tariffs

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 Q2 2023

Historical avgQ2 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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