Robbins LLP is Investigating Allegations that Synopsys, Inc. (SNPS) Mislead Investors Regarding the Performance of its IP Business

Robbins LLP informs stockholders that a class action was filed on behalf of all investors who purchased or otherwise acquired Synopsys, Inc. (NASDAQ: SNPS) securities between December 4, 2024 and September 9, 2025. Synopsys provides electronic design automation software products used to design and test integrated circuits.

The Allegations:

According to the complaint, during the class period, defendants failed to disclose to investors: (1) the extent to which the Company’s increased focus on artificial intelligence customers, which require additional customization, was deteriorating the economics of its Design IP business; (2) that, as a result, “certain road map and resource decisions” were unlikely to “yield their intended results;” and (3) that the foregoing had a material negative impact on financial results.

Plaintiff alleges that on September 9, 2025, Synopsys released its third quarter 2025 financial results, revealing the Company’s “IP business underperformed expectations.” The Company reported quarterly revenue of $1.740 billion, missing its prior guidance of between $1.755 billion and $1.785 billion, and reported net income of $242.5 million, a 43% year-over-year decline from $425.9 million reported for third quarter 2024. Moreover, the Company reported its Design IP segment accounted for approximately 25% of revenue and came in at $426.6 million, a 7.7% decline year-over-year. Finally, management provided guidance which implied that Design IP revenues will decline by at least 5% on a full-year basis in fiscal 2025.  On this news, Synopsys’s stock price fell $216.59, or 35.8%, to close at $387.78 per share on September 10, 2025.

What Now: You may be eligible to participate in the class action against Synopsys, Inc. Shareholders who wish to serve as lead plaintiff for the class must submit their papers to the court by December 30, 2025. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.