Synopsys beats Q3 estimates, shares rise on raised outlook

MOUNTAIN VIEW, California - Synopsys Inc . (NASDAQ:SNPS ) reported better-than-expected third-quarter results and provided an upbeat full-year forecast, sending its shares up 2% in after-hours trading.

The electronic design automation software maker posted adjusted earnings per share of $3.43 for the quarter ended July 31, surpassing the analyst estimate of $3.28. Revenue climbed 13% YoY to a record $1.53 billion, slightly above the consensus expectation of $1.52 billion.

Synopsys now anticipates full-year revenue growth of approximately 15%, driven by "continued, strong execution and business momentum." The company also expects non-GAAP EPS growth of about 24% while expanding non-GAAP operating margin by two percentage points.

"The complexity and pace of technology innovation is accelerating as silicon and systems companies race to capitalize on AI in this era of pervasive intelligence," said Sassine Ghazi, president and CEO of Synopsys.

"Synopsys is mission-critical to technology innovation and our customer set is expanding as more companies in more industries define and optimize system performance at the silicon level."

CFO Shelagh Glaser attributed the strong performance to "leadership products and relentless execution." The company's Design Automation segment, which includes advanced silicon design and verification products, and its Design IP segment both contributed to the quarterly results.

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Source: Investing.com