Synopsys Inc (NASDAQ:SNPS) Reports Mixed Q4 2025 Results, Stock Falls After Hours on Revenue Miss

Synopsys Inc (NASDAQ:SNPS) reported financial results for its fourth quarter and fiscal year 2025 after the market close on December 10, 2025. The company, a leader in electronic design automation (EDA) software, posted revenue and earnings that presented a mixed picture against Wall Street expectations, leading to a notable after-hours market reaction.

Quarterly Results vs. Estimates

The core of the earnings story lies in the comparison between reported figures and analyst consensus estimates.

• Q4 2025 Revenue: Synopsys reported revenue of $2.255 billion. This fell short of the analyst estimate of approximately $2.292 billion.
• Q4 2025 Non-GAAP EPS: The company reported earnings per share of $2.90. This exceeded the analyst estimate of $2.83.

The results highlight a quarter where profitability outperformed expectations, but top-line revenue growth did not meet the high bar set by analysts. The company noted that its recent acquisition of engineering simulation software firm Ansys contributed $667.7 million to the quarter's revenue.

Market Reaction and Performance Context

The immediate market reaction to these results was negative. Following the earnings release, Synopsys stock declined approximately 2.3% in after-hours trading. This suggests investor focus may have settled more heavily on the revenue miss rather than the earnings beat.

This post-earnings dip contrasts with the stock's recent strength. Over the past month, SNPS shares had gained over 20%, indicating that expectations heading into the report were elevated. The after-hours pullback can be interpreted as a market reassessment following the detailed results.

Fiscal Year 2025 and Forward-Looking Commentary

For the full fiscal year 2025, Synopsys reported revenue of $7.054 billion, an increase of 15% from the previous year. The press release summarized the annual results but did not provide a formal financial outlook for the coming quarter or fiscal year 2026 within the provided text. Without explicit company guidance, investor attention will turn to how management's commentary aligns with existing analyst models.

Analysts currently project the following for Synopsys moving forward:

• Q1 2026 Estimates: Revenue of ~$2.43 billion and EPS of ~$3.38.
• Full Year 2026 Estimates: Revenue of ~$9.86 billion and EPS of ~$14.39.

These estimates, particularly for the full year, will be a key benchmark as investors evaluate the company's growth trajectory post-Ansys integration.

Summary of Key Announcements

The earnings release underscored several significant points beyond the quarterly numbers. First, the full-year results demonstrated solid double-digit growth. Second, the financial contribution from Ansys was quantified, providing clarity on the scale of the acquired business. Finally, the report marks the first full quarterly results incorporating Ansys, setting a new baseline for the combined entity's performance.

For a detailed breakdown of historical earnings, future estimates, and analyst revisions, more information is available on the Synopsys earnings estimates page.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.