Shares of Synopsys (SNPS 2.56%) are up 7.1% as of 3:45 p.m. ET Thursday after the electronic design automation specialist announced stronger-than-expected quarterly results and impressive guidance.
An "excellent start" to Synopsys' fiscal year
For its fiscal first quarter 2024 (ended Jan. 31, 2024), Synopsys' revenue grew 21.2% year over year to $1.649 billion, translating into adjusted (non-GAAP) net income of $553.7 million, or $3.56 per share. Analysts, on average, were looking for earnings of $3.41 per share on sales of $1.64 billion.
Synopsys CEO Sassine Ghazi called it "an excellent start to the year with strong execution across the company as AI continues to drive our customers' investments in silicon and systems that position them for future growth."
What's next for Synopsys stock?
For the full fiscal 2024 year, Synopsys reiterated its previous outlook for revenue to be in the range of $6.57 billion to $6.63 billion. But the company also raised its guidance for full-year earnings, now expecting between $13.47 and $13.55 on a per-share basis (up from $13.33 to $13.41 previously).
In the end, this was a straightforward beat-and-raise performance from Synopsys, driven by AI tailwinds. The stock is simply rallying in kind.
