Synopsys Inc
0LBP.L
$469.34 0.50%
Exchange: LSE | Sector: Technology | Industry: Software Services
Q3 2025
Published: Sep 9, 2025

Earnings Highlights

  • Revenue of $1.74B up 14.2% year-over-year
  • EPS of $1.50 decreased by 43.2% from previous year
  • Gross margin of 78.1%
  • Net income of 242.51M
  • "N/A" - N/A
0LBP.L
Company 0LBP.L

Executive Summary

Synopsys Inc delivered a solid QQ3 2025 revenue result driven by continued demand for electronic design automation (EDA) software and platforms. Revenue rose 14.23% year-over-year and 8.53% quarter-over-quarter to $1.739 billion, supported by broad platform adoption and a high gross margin near 78%. However, operating profitability moderated significantly as the company continued to invest aggressively in research and development and related SG&A, resulting in a steep year-over-year and quarter-over-quarter decline in operating income (down approximately 54% YoY and 56% QoQ to $165 million) and a net income that, despite a positive quarterly figure of $242.5 million, is down 40% year-over-year and 30% quarter-over-quarter. The EBITDA of $450.3 million remained robust with an EBITDA margin of about 25.9%, highlighting strong underlying cash-generating capability even as near-term earnings are pressured by ongoing investments. Management’s longer-term narrative continues to emphasize platform breadth (Fusion Design Platform and Verification Continuum), IP and security solutions, and an expanding addressable market for SoC design and semiconductor validation. The quarter reinforces the company’s position as a leading multi-product software platform provider, while underscoring the importance of execution on operating leverage as revenue growth sustains.

Key Performance Indicators

Revenue
Increasing
1.74B
QoQ: 8.53% | YoY: 14.23%
Gross Profit
Increasing
1.36B
78.13% margin
QoQ: 5.70% | YoY: 14.16%
Operating Income
Decreasing
165.27M
QoQ: -56.10% | YoY: -53.77%
Net Income
Decreasing
242.51M
QoQ: -29.78% | YoY: -40.57%
EPS
Decreasing
1.51
QoQ: -32.89% | YoY: -43.23%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q3 2025 1,739.74 1.50 +14.2% View
Q2 2025 1,602.98 2.24 +10.1% View
Q1 2025 1,456.32 1.89 -3.8% View
Q4 2024 1,631.30 7.14 +2.0% View
Q3 2024 1,523.06 2.61 +2.4% View