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Synopsys (SNPS) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Synopsys (SNPS) reported $2.48 billion in revenue for the quarter ended July 2026, representing a year-over-year increase of 42.4%. EPS of $3.91 for the same period compares to $3.39 a year ago.

The reported revenue represents a surprise of +1.68% over the Zacks Consensus Estimate of $2.44 billion. With the consensus EPS estimate being $3.67, the EPS surprise was +6.54%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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: $808.81 million versus the four-analyst average estimate of $564.01 million. The reported number represents a year-over-year change of +144.4%.
Revenue- Total products revenue: $1.67 billion versus $1.88 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +18.4% change.
Revenue by segment- Design IP: $473.8 million compared to the $487.38 million average estimate based on three analysts. The reported number represents a change of +10.8% year over year.
Revenue by segment- Design Automation: $2 billion compared to the $1.97 billion average estimate based on three analysts. The reported number represents a change of +52.7% year over year.
Revenue- Upfront products: $665.22 million compared to the $598.23 million average estimate based on three analysts. The reported number represents a change of +28.8% year over year.
Revenue- Time-based products: $1 billion compared to the $1.34 billion average estimate based on three analysts. The reported number represents a change of +12.4% year over year.

View all Key Company Metrics for Synopsys here>>>

Shares of Synopsys have returned +6.5% over the past month versus the Zacks S&P 500 composite's +3.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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Synopsys, Inc. (SNPS): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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