On May 28, Synopsys declined 3.68% in regular trading, trading at $504.3/share, with trading volume of $119 million. The sell-off followed the company's fiscal Q2 earnings release after the prior session's close.

Synopsys reported Q2 revenue of $2.276 billion, beating the consensus estimate of $2.251 billion and representing 42% year-over-year growth driven by surging AI chip design demand and its Synopsys.ai EDA suite. Adjusted EPS of $3.35 also exceeded the $3.15 estimate. However, EPS declined 8.72% year-over-year, with GAAP profits significantly pressured by Ansys acquisition integration costs. Full-year revenue guidance of $9.63 billion to $9.71 billion was only marginally above the Street estimate of $9.63 billion, lacking meaningful upward revision.

Despite the double beat, the stock exhibited a classic sell-the-news pattern. Shares had already rallied from approximately $485 to $527 ahead of the report, prompting profit-taking as investors weighed the earnings-per-share decline and conservative forward outlook against the strong top-line performance.

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