Overview

• Synopsys reported Q3 revenue of $1.74 billion and adjusted EPS of $3.39, both below expectations, and guided Q4 EPS to $2.76–$2.80 on up to $2.26 billion in revenue.
• Shares fell 35.8% the next session to $387.78, marking the company’s worst single-day decline since its 1992 listing.
• Management blamed underperformance in the IP unit, disrupted design starts in China due to earlier U.S. export restrictions, challenges at a major foundry customer, and roadmap decisions that fell short.
• The company disclosed roughly a 10% workforce reduction as it adjusts to weaker near-term demand and project disruptions.
• Morgan Stanley cut its price target to $510 while keeping an Overweight rating, and multiple law firms announced investor investigations following the earnings disappointment.