For the quarter ended April 2026, Synopsys (SNPS) reported revenue of $2.28 billion, up 41.9% over the same period last year. EPS came in at $3.35, compared to $3.67 in the year-ago quarter.
The reported revenue represents a surprise of +1.13% over the Zacks Consensus Estimate of $2.25 billion. With the consensus EPS estimate being $3.17, the EPS surprise was +5.76%.
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: $784.11 million compared to the $708.37 million average estimate based on five analysts. The reported number represents a change of +195.6% year over year. Revenue- Total products revenue: $1.49 billion versus the five-analyst average estimate of $1.54 billion. The reported number represents a year-over-year change of +11.4%. Revenue by segment- Design IP: $454.2 million versus the four-analyst average estimate of $439.18 million. The reported number represents a year-over-year change of -5.8%. Revenue by segment- Design Automation: $1.82 billion versus $1.67 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +62.3% change. Revenue- Upfront products: $546.25 million compared to the $455.68 million average estimate based on four analysts. The reported number represents a change of +7% year over year. Revenue- Time-based products: $945.62 million versus $1.08 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +14.2% change.View all Key Company Metrics for Synopsys here>>>
Shares of Synopsys have returned +10.5% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.Beyond Nvidia: AI's Second Wave Is Here
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Synopsys, Inc. (SNPS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).