Synopsys, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Synopsys, Inc. (SNPS).

If you purchased or acquired Synopsys securities and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About Synopsys

Synopsys, Inc. is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP). Headquartered in California, Synopsys serves clients worldwide, including major foundries and technology companies.

In recent years, Synopsys has also engaged in significant acquisitions, including a $35 billion deal to acquire Ansys, which closed in July 2025.

Potential Concerns Under Investigation

Lawyers are investigating whether Synopsys may have made misleading statements or omitted key information that could have impacted investors’ decisions. Several events and disclosures have raised questions about the accuracy and completeness of Synopsys’s public statements between Feb. 26, 2025 and Sept. 9, 2025.

One major focus is the company’s Q3 2025 earnings announcement on Sept. 9, 2025. Synopsys reported revenue of $1.740 billion, which was below the approximately $1.77 billion expected by analysts, and non-GAAP earnings per share (EPS) of $3.39 compared to an estimated $3.84.

Following this news, Synopsys stock dropped sharply, falling about 18.5% after the market closed on Sept. 9 and plunging roughly 35% by Sept. 10, erasing nearly all of the stock’s 2025 gains. This two-day drop suggests a significant per-share loss, with tens of billions of dollars in market value lost.

Attorneys may examine whether Synopsys’s leadership adequately disclosed the risks that led to these results.

For example, in its May 28, 2025 earnings release and call, CFO Shelagh Glaser stated Synopsys was “reaffirming our full year 2025 targets for revenue and non-GAAP operating margin and updating our EPS and free cash flow guidance to account for our Q2 results and bond issuance.”

Earlier, on Feb. 26, 2025, the company similarly reaffirmed its full-year 2025 guidance and cited strong demand. However, by Q3 2025, Synopsys missed expectations by a wide margin and attributed the shortfall to export restrictions affecting China deals and a major foundry customer pulling orders.

Lawyers may investigate whether these adverse trends were already underway when management made optimistic statements and whether shareholders were adequately informed.

Another area of potential concern is how Synopsys addressed the impact of U.S. export controls on its business. On May 29, 2025, the U.S. Commerce Department imposed new export controls on EDA software to China, prompting Synopsys to suspend its annual and quarterly forecasts due to the uncertainty.

Legal professionals may review whether shareholders were informed about the looming regulatory risks.

Attorneys could also investigate whether Synopsys adequately disclosed issues with key customer relationships. While management had previously touted growth driven by AI and design IP, by Q3 2025 the company admitted its Design IP segment “underperformed expectations."

Lawyers may examine whether investors were warned about these developments before the Q3 disclosure. The investigation might also look into Synopsys’s use of its stock to finance the Ansys acquisition, which could have provided a motive for keeping share prices elevated.

After the Q3 2025 earnings miss, Synopsys announced a strategic review and a workforce reduction of about 10% by fiscal year 2026. Legal professionals may review whether management was aware of these issues earlier and whether they were adequately disclosed.

Finally, the magnitude and timing of the stock’s decline (about 35% over two days) appear to be directly tied to company-specific news, rather than broader market trends.

This sharp drop resulted in billions of dollars in investor losses, and the stock did not recover quickly, suggesting that the losses may be linked to the information revealed by Synopsys.

Your Rights and Next Steps

Investors who purchased Synopsys securities and suffered losses may have important rights. This is currently an investigation, not a filed lawsuit, but it could lead to a securities class action if enough investors come forward and the evidence supports claims of potential misconduct.

Lawyers are ready to help investors understand their options. If you held Synopsys shares during the class period and experienced losses, you may be able to participate in a future class action to recover a portion of your losses.

It is important to keep detailed records of your transactions, including the dates, number of shares, and amounts involved.

Submitting your information early can be critical, as securities investigations are often time-sensitive. Legal professionals will review the facts and may contact you for additional details to determine if you qualify for any potential recovery.

You May Be Entitled to Compensation

If you purchased or acquired Synopsys securities and suffered financial losses during the class period, you may be eligible to join any potential class action and seek compensation for your damages. Securities investigations move quickly, and there are often deadlines to take action.

To protect your rights and join the investigation, complete the form below.