FILE PHOTO: Synopsys logo is seen in this illustration taken September 9, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
Dec 10 (Reuters) - Chip design software provider Synopsys beat analysts estimates for fourth-quarter revenue on Wednesday, driven by strong demand for its chip design tools, sending its shares up 5% in extended trading.
Synopsys, whose software is used by semiconductor firms to design and verify chips, has benefited from surging investment in artificial intelligence and advanced computing, which require increasingly complex chip architectures.
It has also been benefiting from its partnership with Nvidia, Intel and Qualcomm.
Last week, Nvidia invested $2 billion in chip design software maker as part of an expanded multi-year tie-up to jointly develop new tools for designing products across industries using its AI technology.
Last month, the Sunnyvale, California-based company announced plans to lay off about 10% of its workforce, saying the move would allow it to reinvest in growth areas such as AI-driven design and system-level solutions.
Synopsys also completed its acquisition of simulation software maker Ansys in July, a deal which contributed $667.7 million in revenue for the fourth quarter. The deal, announced early last year, faced intense antitrust scrutiny in markets including Britain.
The company competes with Cadence Design Systems and Siemens in the electronic design automation market, projected to grow as chipmakers race to build AI and high-performance computing processors.
Synopsys posted quarterly revenue of $2.26 billion, above estimates of $2.25 billion according to data compiled by LSEG.
On an adjusted basis, Synopsys reported a profit of $2.90 per share, above estimates of $2.78.
For the first quarter, company sees revenue in the range of $2.36 billion to $2.42 billion, compared with analyst estimates of $2.38 billion.
(Reporting by Kritika Lamba in Bengaluru; Editing by Krishna Chandra Eluri)
