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Synopsys released Q3 FY2025 earnings call, highlighting $1.74 billion revenue and $3.39 non-GAAP EPS. High IP underperformance due to geopolitical factors, aiming for cautious Q4 outlook but expecting record revenue year. Acquisition of ANSYS aims to expand revenue and customer base. Conducting strategic portfolio review, taking actions to focus on growth opportunities. 10% global headcount reduction expected by end of fiscal 2026. Operating margin at 38.5%, backlogs at $10.1 billion. High IP headwinds offset by strong performances in design automation segment. Q3 revenue up 14% with notable growth in Europe and North America regions, underperforming in China. Design Automation segment revenue at $1.31 billion (23% growth) and adjusted operating margin at 44.5%, while Design IP segment revenue at $428 million (down 8%). Cash flow at $632 million, cash-short term investments of $2.6 billion, and debt at $14.3 billion. Updated FY2025 targets include revenue of $7.03-$7.06 billion, non-GAAP EPS of $12.76-$12.80. Q4 revenue targets at $2.23-$2.26 billion with adjusted EPS at $2.76-$2.80. Strategic steps are being taken to align the company for long-term growth and leadership in engineering solutions from silicon to systems.
Synopsys, Inc. (NASDAQ: SNPS) released its third-quarter results, reporting revenue of $1.74 billion and non-GAAP EPS of $3.39. Despite challenges in the IP business and the impact of new export restrictions and challenges at a major foundry customer, the company remains optimistic. The recent Ansys acquisition has expanded growth opportunities, making Synopsys a global leader in engineering solutions. The company is focusing on AI-driven infrastructure and R&D, with notable achievements in design automation, multi-die tape outs, and simulation and analysis products. The CFO reported a non-GAAP operating margin of 38.5% and updated full-year revenue targets to $7.03-$7.06 billion. Synopsys is taking steps to reduce global headcount by 10% by the end of fiscal year 2026 to optimize cost structure and drive efficiency, aiming to maintain its leadership position and deliver resilient long-term growth.