Synopsys, Inc. (SNPS)

Synopsys's stock price has been influenced by several significant events, including a 36% decline after Q3 2025 financial results due to weaker-than-expected earnings and revenue, as well as export restrictions to China. The company suspended its quarterly and full-year guidance after receiving notice from the Commerce Department regarding new export restrictions to China. The stock reached a 52-week high of $651.73 on July 30, 2025, and a 52-week low of $365.74 on April 7, 2025. As of October 23, 2025, the share price was $456.09, reflecting a 7.91% decline over the preceding year. The ongoing $35 billion merger with Ansys has also been a key event, with the Federal Trade Commission approving a final divestiture order on October 17, 2025.

Synopsys's business model is characterized by a high percentage of recurring revenue, with 92% of its annual software licensing revenue in fiscal year 2023 coming from its existing customer base. While there isn't explicit information detailing strong seasonal fluctuations in demand for all products, the company's CFO noted a "calendar change" for fiscal year 2025, resulting in eight fewer days in the year and making revenue more "back half weighted" for upfront businesses like IP and hardware. The overall EDA sector benefits from continuous demand driven by new applications and semiconductor processes.

Synopsys, Inc. is a leading company in the electronic design automation (EDA) and semiconductor intellectual property (IP) markets. The company provides advanced technologies for chip design, verification, IP integration, and software security and quality testing. Synopsys specializes in developing and marketing software programs primarily for manufacturers of semiconductors, computers, and electronic equipment. The company's offerings are essential for designing and verifying integrated circuits, particularly for advanced AI chips. Synopsys operates in two main segments: Design Automation and Design IP.

Synopsys maintains a global presence with over 100 offices and research and development centers spanning North America, Europe, Asia, and the Middle East. Its headquarters are strategically located in Silicon Valley.

Synopsys maintains a strong brand reputation as an industry leader due to its embedded customer relationships and high switching costs. The company is recognized for providing essential tools in the design and verification of complex chips. However, its reputation has been impacted by recent events such as the U.S. export restrictions to China and the regulatory scrutiny related to the Ansys merger. The successful integration of Ansys is expected to expand Synopsys's portfolio and market opportunity.

Institutional investors hold a substantial majority of Synopsys's shares, typically ranging from 78% to 89%. Key institutional owners include Vanguard Group Inc., BlackRock Fund Advisors, State Street Corporation, Capital World Investors, FMR LLC, T. Rowe Price Associates Inc., Jennison Associates LLC, Geode Capital Management LLC, and JPMorgan Chase & Co. Retail investors and company insiders collectively own approximately 22% of the company.