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Apr 30

Synopsys Q2 2025 Earnings Report

Synopsys posted strong results for Q2 2025, with earnings and revenue exceeding guidance.

Key Takeaways

Synopsys delivered a solid Q2 2025, driven by continued demand across its core segments and strength in AI and silicon design technologies. Revenue and non-GAAP EPS beat expectations, reinforcing the company's full-year outlook.

Revenue reached $1.604 billion, up from $1.455 billion a year earlier.

GAAP EPS was $2.24, while non-GAAP EPS came in at $3.67.

Net income rose to $349.2 million from $299.1 million in Q2 2024.

The company reaffirmed its full-year revenue and margin guidance.

Total Revenue
$1.6B
Previous year: $1.45B
+10.3%
EPS
$3.67
Previous year: $3
+22.3%
GAAP Gross Profit
$1.29B
Previous year: $1.15B
+11.4%
Gross Profit
$1.29B
Previous year: $1.17B
+10.1%
Cash and Equivalents
$14.1B
Previous year: $1.5B
+839.7%
Free Cash Flow
$1.3B
Previous year: $487M
+167.0%
Total Assets
$23.8B
Previous year: $11B
+115.7%

Synopsys

Synopsys

Synopsys Revenue by Segment

Forward Guidance

Synopsys reaffirmed its full-year FY25 guidance, projecting solid revenue growth and healthy margins despite a dynamic macroeconomic environment.

Positive Outlook

  • Q3 revenue guidance of $1.755B to $1.785B.
  • Full-year revenue guidance reaffirmed at $6.745B to $6.805B.
  • Non-GAAP EPS forecasted between $15.11 and $15.19 for FY25.
  • Operating cash flow expected to be approximately $1.5B.
  • Positive momentum driven by AI and silicon proliferation trends.

Challenges Ahead

  • Macro environment remains dynamic and uncertain.
  • Export control and government restrictions remain a risk.
  • Ten fewer days in first half of FY25 due to fiscal calendar shift.
  • Interest expense increased due to recent financing.
  • Some impact from sale of Software Integrity business.

Revenue & Expenses

Visualization of income flow from segment revenue to net income