NASDAQ$SNPS

Synopsys Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Synopsys achieved record quarterly revenue and exceeded earnings guidance.

Synopsys reported record quarterly revenue of $1.487 billion, a 19% increase year-over-year. GAAP EPS was $2.17, and non-GAAP EPS was $2.88, exceeding the high end of guidance. The company is raising its full-year 2023 revenue, non-GAAP operating margin improvement, and earnings guidance, and is committed to double-digit annual revenue growth.

  • Record quarterly revenue of $1.487 billion, up 19% year over year.
  • GAAP earnings per diluted share of $2.17; non-GAAP earnings per diluted share of $2.88, exceeded high end of guidance.
  • Raising full-year 2023 revenue, non-GAAP operating margin improvement, and earnings guidance.
  • Committed to long-term model of double-digit annual revenue growth.

Headline financials

Total Revenue

$1.49B

Previous: $1.25B+19.2%
EPS (adj)

$2.88

Previous: $2.10+37.1%
Capital Expenditures

-$137M

Previous: -$103M-32.6%
Free Cash Flow

$1.24B

Previous: $1.24B-0.1%
Net Income

$336M

Previous: $223M+51.0%
Operating Income

$295M

Previous: $234M+26.3%
Gross Profit

$1.18B

Previous: $977M+20.8%
Cash & Equivalents

$1.69B

Previous: $1.38B+21.9%
Total Assets

$9.92B

Previous: $9.33B+6.4%
Stock-Based Comp

$144M

Previous: $128M+13.2%

Revenue & EPS history

Synopsys · Revenue · Quarterly

$1.49B

Q3 2023+19.2%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Synopsys · $1.35B total across 2 segments · Q3 2023

  • Design Automation
    $1B
  • Design IP
    $350M

Forward guidance

Synopsys provided its consolidated financial targets for the fourth 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 between $1.567 billion and $1.597 billion for the three months ending October 31, 2023.
  • Revenue between $5.810 billion and $5.840 billion for the fiscal year ending October 31, 2023.
  • GAAP expenses between $1.184 billion and $1.204 billion for the three months ending October 31, 2023.
  • GAAP EPS between $2.17 and $2.28 for the three months ending October 31, 2023.
  • Non-GAAP EPS between $3.01 and $3.06 for the three months ending October 31, 2023.

Headwinds

  • GAAP expenses between $4.544 billion and $4.564 billion for the fiscal year ending October 31, 2023.
  • Non-GAAP expenses between $1.005 billion and $1.015 billion for the three months ending October 31, 2023.
  • Non-GAAP expenses between $3.780 billion and $3.790 billion for the fiscal year ending October 31, 2023.
  • GAAP EPS between $7.85 and $7.96 for the fiscal year ending October 31, 2023.
  • Non-GAAP EPS between $11.04 and $11.09 for the fiscal year ending October 31, 2023.

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 Q3 2023

Historical avgQ3 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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