Synopsys 3Q Revenue, Profit Rise Amid Race to AI

By Denny Jacob

Synopsys posted slightly higher-than-expected revenue in its latest quarter as it benefits from companies racing to invest in artificial intelligence.

The provider of electronic-design-automation software reported fiscal third-quarter net income of $408.1 million, or $2.61 a share, up from $336.3 million, or $2.17 a share, a year earlier. Adjusted earnings were $3.43 a share, up from $2.70 and above the $3.28 expected by analysts polled by Factset.

Revenue rose to $1.53 billion from $1.35 billion. Analysts expected $1.52 billion.

"The complexity and pace of technology innovation is accelerating as silicon and systems companies race to capitalize on AI in this era of pervasive intelligence," Chief Executive Sassine Ghazi said.

Synopsys guided for revenue between $1.61 billion and $1.64 billion, and adjusted earnings per share between $3.27 and $3.32 in the fourth quarter ending Oct. 31. Analysts expected $1.62 billion and $3.25 a share in adjusted earnings.

For fiscal 2024, the company guided for revenue between $6.11 billion and $6.14 billion as well as adjusted earnings per-share between $13.07 and $13.12. Analysts polled by FactSet expected $6.13 billion and $12.96 a share in adjusted earnings.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

August 21, 2024 16:53 ET (20:53 GMT)

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