Synopsys (SNPS) reported $2.41 billion in revenue for the quarter ended January 2026, representing a year-over-year increase of 65.5%. EPS of $3.77 for the same period compares to $3.03 a year ago.
The reported revenue represents a surprise of +0.75% over the Zacks Consensus Estimate of $2.39 billion. With the consensus EPS estimate being $3.57, the EPS surprise was +5.71%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Synopsys performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:- Revenue- Maintenance and service: $715.73 million versus the five-analyst average estimate of $660.32 million. The reported number represents a year-over-year change of +176.4%.
- Revenue- Total products revenue: $1.69 billion versus the five-analyst average estimate of $1.73 billion. The reported number represents a year-over-year change of +41.5%.
- Revenue by segment- Design IP: $407 million compared to the $420.17 million average estimate based on four analysts. The reported number represents a change of -6.5% year over year.
- Revenue by segment- Design Automation: $2 billion versus $1.76 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +96.2% change.
- Revenue- Upfront products: $741.53 million compared to the $601 million average estimate based on four analysts. The reported number represents a change of +101.4% year over year.
- Revenue- Time-based products: $951.54 million versus the four-analyst average estimate of $1.1 billion. The reported number represents a year-over-year change of +14.9%.
View all Key Company Metrics for Synopsys here>>>
Shares of Synopsys have returned -12.3% over the past month versus the Zacks S&P 500 composite's -0.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>Synopsys, Inc. (SNPS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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