The stock's sharp increase was due primarily to Synopsys' fiscal second-quarter earnings report, which featured better-than-expected revenue and adjusted earnings per share as well as a strong outlook.
Fiscal second-quarter revenue of $1.279 billion was up from $1.024 billion in the year-ago period, beating analysts' average forecast for revenue of $1.260 billion. Adjusted earnings per share of $2.50 improved from $1.70 in the year-ago period. The consensus forecast for this key profitability metric was $2.37.
CEO Aart de Geus explained in the company's earnings release that the quarterly results were helped by strength across all product groups and geographies.
The company's updated outlook was particularly impressive. "Based on strong first-half execution and confidence in our business, we are raising our full-year targets substantially," said de Geus.
Management is now aiming for full-year revenue of $5 billion to $5.05 billion. Analysts on average were modeling for fiscal 2022 revenue of about $4.81 billion. The company's view for full-year adjusted earnings per share of $8.63 to $8.70 is significantly above analysts' consensus forecast for $7.90.
De Geus said the company's technological innovations, robust demand, and operational execution are key factors in its momentum.