Synopsys Q1 2025 Earnings Report
Key Takeaways
Synopsys delivered solid financial results for Q1 FY25, with revenue of $1.455 billion, reflecting a slight decline from the prior year. GAAP EPS was $1.89, while non-GAAP EPS exceeded expectations at $3.03. The company achieved an operating income of $251.8 million. Free cash flow guidance for the full fiscal year remains strong at approximately $1.6 billion, reaffirming expectations for double-digit revenue growth.
Revenue for Q1 FY25 was $1.455 billion, slightly lower than Q1 FY24.
GAAP EPS came in at $1.89, while non-GAAP EPS exceeded expectations at $3.03.
Operating income was $251.8 million, reflecting continued profitability.
The company reaffirmed its full-year revenue growth guidance.
Synopsys Revenue
Synopsys EPS
Synopsys Revenue by Segment
Synopsys Revenue by Geographic Location
Forward Guidance
Synopsys expects Q2 FY25 revenue between $1.585B and $1.615B, with non-GAAP EPS ranging from $3.37 to $3.42. Full-year guidance remains unchanged with expectations of continued revenue growth and strong free cash flow.
Positive Outlook
- Revenue guidance for Q2 FY25 is $1.585B to $1.615B.
- Non-GAAP EPS guidance for Q2 FY25 is $3.37 to $3.42.
- Full-year free cash flow is projected at $1.6B.
- Company expects double-digit revenue growth in FY25.
- Strong demand for AI and advanced node design solutions.
Challenges Ahead
- Upfront product revenue declined YoY, impacting total revenue.
- Operating expenses increased due to higher R&D investments.
- Macroeconomic uncertainty could affect enterprise software spending.
- Geopolitical risks in key markets may impact revenue growth.
- Potential regulatory changes in export controls could pose challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income