Synopsys (SNPS) Halts Guidance After BIS China Export Notice

On May 29, Synopsys Inc. (NASDAQ:SNPS) announced the suspension of its financial guidance for the third quarter and full fiscal year 2025, following receipt of a letter from the Bureau of Industry and Security (BIS), a part of the U.S. Department of Commerce. The letter outlines new export restrictions concerning China.

The company has not yet disclosed the specific contents of the BIS communication and is currently evaluating how the restrictions might affect its operations, financial performance, and overall business outlook. China represents roughly 12% of Synopsys’ annual revenue.

Notably, the letter arrived one day after Synopsys had reported its second-quarter earnings and reaffirmed its full-year 2025 outlook. During the post-earnings conference call, company management had stated they had not received any communication from the BIS.

Before this development, we published an article outlining related events. That article can be accessed here (U.S. May Tighten China Export Rules on Cadence (CDNS), Synopsys (SNPS)).

Synopsys is a leading provider of silicon-to-systems design solutions, offering electronic design automation (EDA) software, silicon IP, and system-level verification and validation tools.

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Disclosure: None.