Synopsys stock plunges 36% after weak earnings and guidance, triggering securities probes.

Synopsys, Inc. (SNPS) faces multiple investigations by law firms including Levi & Korsinsky, Edelson Lechtzin LLP, and Hagens Berman following its announcement of weak third-quarter 2025 results and lowered full-year guidance. The company cited challenges including export restrictions in China, disruptions with a major foundry customer, and underperformance in its IT business, leading to a 35.8% to 36% drop in its stock price—the worst single-day decline since its 1992 debut. While Synopsys reported strong second-quarter results driven by AI-related demand, the recent downturn has prompted scrutiny over potential misleading disclosures to investors. Firms are investigating possible violations of federal securities laws and are encouraging affected investors to contact them.