Synopsys, an important cog in the global chipmaking machine, reported its fourth-quarter earnings Wednesday afternoon with mixed results. It delivered adjusted earnings per share of $3.40, up 7% on the year, while analysts expected $3.30. On the top line, revenue came in at $1.64 billion, up 11%, in line with the consensus estimate of $1.63 billion.

But first quarter 2025 guidance was disappointing, with a midpoint of $1.45 billion, down 12% on the year, and 11% below analyst expectations. The coming first quarter will contain eight fewer days than the year-ago quarter, but this still doesn't explain the big miss on guidance. Synopsys' revenue can be lumpy, but this goes beyond that.