Synopsys Exceeds Q1 Profit Expectations and Projects Growth in AI-Driven Chip Design

The company forecasts strong Q2 revenue and earnings, fueled by increasing demand for its software in AI chip design and partnerships with major tech firms.

• Synopsys reported Q1 adjusted earnings per share of $3.03, surpassing Wall Street estimates of $2.84, despite revenue slightly missing projections at $1.455 billion.
• The company forecasts Q2 revenue between $1.59 billion and $1.62 billion, with adjusted EPS expected to range between $3.37 and $3.42, both slightly above analyst expectations.
• Growing demand for AI-driven chip design software, particularly for inference chips used in applications like chatbots, is driving Synopsys' growth.
• Synopsys' design automation unit, its largest segment, generated $1.02 billion in revenue during Q1, highlighting its importance in the company's portfolio.
• The company is progressing toward completing its $35 billion acquisition of engineering software firm Ansys, with ongoing discussions with Chinese regulators expected to conclude in the first half of 2025.

3 Articles

Benzinga CNA