Synopsys jumps on beating FQ2 estimates, raised guidance
Synopsys (SNPS
+12.2%) rallies on beating FQ2 estimates, delivering an outstanding quarter, exceeding its guidance targets with strength across all product groups and geographies.
Adjusted operating margin by segment: Semiconductor & System Design improved by 600 bps to 39.2%, Software Integrity improved by 250 bps to 11.5% and Total also improved by 580 bps 36.8%.

Based on strong H1 execution and confidence in the Co.âs business, it has raised full-year targets substantially, the Co. expects to grow annual revenue ~20% and pass the $5B milestone, drive further operating margin expansion, grow EPS by more than 25%, and generate ~$1.6B in operating cash flow.
For FQ3, Revenue is expected to be between $1.21- $1.24B vs. consensus of $1.14B; GAAP EPS of $1.32-$1.44; and Non-GAAP EPS of $2.01- $2.06 vs. consensus of $1.61.
Previously: Synopsys Non-GAAP EPS of $2.50 beats by $0.13, revenue of $1.27B beats by $10M (May 18)