Synopsys Shares Plummet Following Disappointing Earnings Report

Synopsys investors faced a devastating single trading session as the company’s stock collapsed by nearly 36 percent. The dramatic sell-off on September 10th was triggered by third-quarter financial results for fiscal 2025 that fell significantly short of market expectations. The disappointing performance has not only shaken shareholder confidence but has also prompted legal investigations into the electronic design automation leader.

The core of the crisis stems from Synopsys’ Q3 2025 financial metrics. The company reported revenue of $1.74 billion, a figure that substantially missed analyst projections. More concerning was the adjusted earnings per share of $3.39, which landed well below the anticipated $3.84.

Company leadership pointed to several contributing factors for the shortfall. The high-margin intellectual property (IP) business underperformed across the board. Furthermore, operational... Read more...