Chip Designer Synopsys Plunges on Catastrophic Earnings and Fraud Probes

Shares of semiconductor design software leader Synopsys experienced their most severe single-day decline in company history following a disastrous quarterly earnings report. The stock collapsed by more than 35 percent, erasing billions in market value and triggering multiple fraud investigations. This historic market rout stems from a perfect storm of financial underperformance and geopolitical pressures.

The crisis unfolded with the release of Synopsys’ third-quarter 2025 fiscal results. The company reported revenue of $1.74 billion, falling substantially short of the $1.77 billion analysts had projected. Even more concerning was the adjusted earnings per share of $3.39, which missed the consensus estimate of $3.74 by a wide margin.

Particularly alarming was the severe contraction in the Design-IP segment, which accounts for nearly one-quarter of total revenue. This business... Read more...