NASDAQ$SNPS

Synopsys Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Synopsys' Q2 2024 financial results were posted, demonstrating year-over-year revenue growth and exceeding earnings guidance.

Synopsys reported a strong Q2 fiscal year 2024, with revenue reaching $1.455 billion, a 15% increase year-over-year. GAAP EPS was $1.92 and non-GAAP EPS was $3.00, a 26% increase year-over-year. The company raised its full-year targets for revenue and non-GAAP EPS due to strong execution and continued business momentum.

  • Revenue reached $1.455 billion, up approximately 15% year over year.
  • GAAP earnings per diluted share was $1.92.
  • Non-GAAP earnings per diluted share was $3.00, up approximately 26% year over year.
  • Full year targets for revenue and non-GAAP EPS were raised.

Headline financials

Total Revenue

$1.45B

Previous: $1.39B+4.3%
EPS (adj)

$3.00

Previous: $2.54+18.1%
Capital Expenditures

-$78.8M

Previous: -$91.4M+13.8%
Free Cash Flow

$310M

Previous: $726M-57.3%
Net Income

$292M

Previous: $273M+7.0%
Operating Income

$332M

Previous: $287M+15.6%
Gross Profit

$1.15B

Previous: $1.1B+5.2%
Cash & Equivalents

$1.5B

Previous: $1.54B-2.7%
Total Assets

$11B

Previous: $9.79B+12.5%
R&D Expense

$493M

No prior period
Stock-Based Comp

$178M

Previous: $143M+24.1%

Revenue & EPS history

Synopsys · Revenue · Quarterly

$1.45B

Q2 2024+4.3%vs Q2 2023
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 provided its consolidated financial targets for continuing operations for the third quarter and full fiscal year 2024. The fiscal year targets include the impact of an extra week in fiscal year 2024, which was included in the first quarter of fiscal year 2024.

Tailwinds

  • Third Quarter Revenue target between $1.505 billion and $1.535 billion
  • Third Quarter GAAP EPS target between $2.22 and $2.35
  • Third Quarter Non-GAAP EPS target between $3.25 and $3.30
  • Full Fiscal Year Revenue target between $6.090 billion and $6.150 billion
  • Full Fiscal Year Non-GAAP EPS target between $12.90 and $12.98

Headwinds

  • GAAP Expenses for Third Quarter between $1.099 billion and $1.119 billion
  • Non-GAAP Expenses for Third Quarter between $920 million and $930 million
  • GAAP Expenses for Full Fiscal Year between $4.559 billion and $4.614 billion
  • Non-GAAP Expenses for Full Fiscal Year between $3.770 billion and $3.810 billion
  • Operating Cash Flow target ~$1.3 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 Q2 2024

Historical avgQ2 2024

+0.3%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-0.2%

Avg return

30 days after

58%

40 / 69 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 2026-6.8%-1.9%
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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