SNPS
Updated: 23/09/2026, 18:12:16
Synopsys, Inc. is a leading provider of electronic design automation (EDA) software, instrumental in the creation and validation of integrated circuits. The company offers a robust portfolio of platforms, including the Fusion Design Platform for digital implementation, and the comprehensive Verification Continuum Platform. The latter provides a suite of solutions such as virtual prototyping, static and formal verification, simulation, emulation, and FPGA-based prototyping with integrated debugging tools. Synopsys also develops FPGA design products, which enable programming for specific functions. A significant part of its business involves intellectual property (IP) solutions. This encompasses IP for widely adopted communication standards like USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth Low Energy. They also furnish analog IP, including data converters and audio codecs, alongside system-on-chip (SoC) infrastructure IP, specialized datapath and building block IP, and verification IP products. Furthermore, their offerings include mathematical and floating-point components, as well as Arm AMBA interconnect fabric and peripherals. Beyond core IP, Synopsys supplies logic libraries, embedded memories, and configurable processor cores, complemented by application-specific instruction-set processor tools for embedded applications. They also develop IP subsystems for audio, sensor, and data fusion functionalities, in addition to specialized security IP solutions. For advanced system design and analysis, Synopsys provides Platform Architect solutions for SoC architecture optimization, along with general virtual prototyping tools and HAPS FPGA-based prototyping systems. Their expertise extends to tools designed for optical systems and photonic devices. In addition to software and IP, the company delivers a range of services, including security testing, managed services, professional programs, and training. These services are designed to help customers identify and resolve security vulnerabilities and defects across the software development lifecycle. Manufacturing solutions are also part of their extensive offerings. Synopsys serves a diverse global client base, with applications across electronics, financial services, automotive, medicine, energy, and various industrial sectors. The company was founded in 1986 and is headquartered in Mountain View, California.
No summaries found.
Reported and calculated KPIs plus operational exposure disclosed in the FY 2025 filing.
Revenue
$7.1B
FY 2025 · Reported
Net income
$1.3B
FY 2025 · Reported
Gross margin
77.0%
FY 2025 · Calculated
Free cash flow
$1.3B
FY 2025 · Calculated
R&D intensity
35.1%
FY 2025 · Calculated
Share repurchases
$1.2B
FY 2023 · Reported
Other offerings mentioned without separate sales
Area-level product sales are displayed only when the filing reports a product × geography breakdown. Regional totals are not allocated across products by estimation.
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Company overview
Leader in silicon-to-systems engineering solutions: EDA, silicon IP, S&A (Ansys), design services
“Synopsys, Inc. (Synopsys, we, our or us) is the leader in engineering solutions from silicon to systems, enabling customers to rapidly innovate AI-powered products.”
Business overview
Synopsys delivers industry-leading silicon design, simulation and analysis (S&A) and IP solutions as well as design services
“Synopsys delivers industry-leading silicon design, simulation and analysis (S&A) and IP solutions as well as design services”
End-market breadth for S&A (Ansys) products
Ansys S&A used across high-tech, aerospace/defense, automotive, energy, industrial, chemicals, consumer, healthcare, construction
“widely used by engineers, designers, researchers and students across a broad spectrum of industries and academia, including high-tech, aerospace and defense, automotive, energy, industrial equipment, materials and chemicals, consumer products, healthcare and construction”
Reported segments
Design Automation, Design IP, and Ansys S&A segments
“the semiconductor and electronics industries that are the core customers for our Design Automation and Design IP segments”
Design Automation segment includes S&A (Ansys) portfolio
Ansys S&A products and services are part of the Design Automation segment
“S&A products and services are part of our Design Automation segment.”
Segments: Design Automation and Design IP
Design Automation segment showed strength including hardware demand; Design IP segment faced headwinds
“We saw strength in our Design Automation segment, including strong demand for our hardware products. This was offset by weakness in our Design IP segment”
Customer internal-development competition
Customers internally develop competing design tools and IP
“some of our customers internally develop design tools and capabilities that compete with our products”
Hardware products: prototyping and emulation systems
Hardware products primarily consist of prototyping and emulation systems with lower gross margins and upfront revenue recognition
“Our hardware products, which primarily consist of prototyping and emulation systems, subject us to distinct risks.”
AI-driven chip design across full-stack EDA
AI-driven chip design across full-stack EDA suite; cloud-based design flows
“we are pioneering artificial intelligence (AI) driven chip design across the full-stack EDA suite to improve efficiency and accelerate the design, verification testing and manufacturing of advanced digital and analog chips”
Semiconductor IP portfolio
Broad portfolio of pre-designed semiconductor IP building blocks
“We also offer a broad and comprehensive portfolio of semiconductor IP solutions, which are pre-designed circuits that engineers use as components of larger chip designs”
Revenue by geography FY2023-2025
FY2025: US $3,100.1M; Europe $888.5M; China $814.3M; Korea $947.0M; Other $1,304.2M
“United States $3,100,095 $2,739,756 $2,462,009 Europe 888,524 614,584 514,780 China 814,324 989,524 855,023 Korea 946,999 773,018 625,502 Other 1,304,236 1,010,554 860,700”
China revenue declined 22% in fiscal 2025 (ex-Ansys)
China revenue decreased 22% compared to fiscal 2024, excluding Ansys
“weakness in our business in China, which saw revenue decrease 22% compared to fiscal 2024, excluding Ansys”
Segment revenue and adjusted operating results FY2023-2025
FY2025 total revenue $7,054.2M (37% margin); Design Automation $5,302.3M (42%); Design IP $1,751.8M (24%)
“Design Automation: Revenue$5,302,340 $4,221,122 $3,775,288”
Hardware supply chain for hardware products
Supply chain management needed to ensure hardware product availability
“Our ability to manage an efficient supply chain to ensure hardware product availability”
Ansys Merger completed July 17, 2025
Completed acquisition of Ansys on July 17, 2025; contributed $756.6 million revenue in fiscal 2025
“On July 17, 2025 (the Acquisition Date), we completed our acquisition of ANSYS, Inc. (Ansys) ... which contributed $756.6 million in revenue”
Ansys Merger completed; major financial impact in fiscal 2025
Ansys Merger closed in fiscal 2025; contributed $449.0M maintenance revenue; Optical Solutions Group divested with $548.9M gain
“the closing of the Ansys Merger, which contributed $449.0 million in maintenance revenue in fiscal 2025”
ANSYS acquisition
Acquisition of ANSYS, Inc. (the Ansys Merger) with expected integration impact
“our acquisition of ANSYS, Inc. (the Ansys Merger), and its expected impact”
Foundry and IP ecosystem alignment
EDA/IP solutions optimized for major foundry processes and third-party IP
“We work closely with major foundries to ensure that our EDA, IP and manufacturing solutions are compatible with their manufacturing processes”
China government-backed EDA competition
China fostering independent EDA capabilities via state-backed investment funds
“China has implemented national policies favoring Chinese companies and has formed government-backed investment funds as it seeks to build independent EDA capabilities”
Semiconductor and electronics industries drive demand
Growth dependent on semiconductor/electronics industries and design starts
“A substantial portion of our business and revenue depends upon the commencement of new design projects by semiconductor manufacturers, systems companies and their customers”
Strength in AI and high-performance computing sectors; slow recovery in industrial, automotive, consumer electronics
AI and HPC demand strong; industrial, automotive and consumer electronics recovered more slowly from macro uncertainty
“we have seen continued strength in the artificial intelligence and high-performance computing sectors, certain industries such as industrial, automotive and consumer electronics have recovered more slowly”
AI and high-performance computing strength; slower industrial/automotive/consumer recovery
Continued strength in AI and HPC; industrial, automotive and consumer electronics recovered more slowly
“while we have seen continued strength in the artificial intelligence and high-performance computing sectors, certain industries such as industrial, automotive and consumer electronics have recovered more slowly from recent macroeconomic uncertainty, which have affected our business and operating results”
Software Integrity business presented as discontinued operations
Software Integrity segment divested; reported as discontinued operations
“The Software Integrity business constituted its own reportable segment under Topic 280. In accordance with applicable accounting guidance, the results of the Software Integrity business were presented as discontinued operations”
Software Integrity Divestiture
Former Software Integrity business sold and reported as discontinued operations
“this Management’s Discussion and Analysis ... does not include the operations of our former Software Integrity business”
FY2025 gain on divestitures and building sale
FY2025 gain on divestitures $548.9M; sold ~118,000 sq ft office building for $74.3M net cash, $51.4M pre-tax gain
“During the second quarter of fiscal 2025, we completed the sale of an office building for cash consideration of $74.3 million, net of selling costs. We recognized a pre-tax gain on sale of $51.4 million”
Sale of Optical Solutions Group
Gain on divestitures of $548.9M in fiscal 2025 from sale of Optical Solutions Group
“The increase in other income (expense) for fiscal 2025 as compared to fiscal 2024 was primarily due to the gain recognized from the sale of Optical Solutions Group business in connection with the Ansys Merger”
Global leader in EDA and S&A software
Global leader in EDA solutions and in simulation & analysis (Ansys) software
“We are a global leader in supplying the mission-critical EDA solutions that engineers use to design and test integrated circuits (ICs)... Synopsys is also the global leader in engineering S&A software.”
Design IP resource reallocation to higher growth opportunities
Reallocating Design IP resources to higher growth opportunities
“in response to recent market trends and underperformance of our Design IP segment, we are in the process of reallocating resources in our IP business to certain higher growth opportunities”
2026 Plan enables post-Ansys growth investment and efficiencies
Restructuring to fund key growth opportunities and efficiencies post-Ansys Merger
“The 2026 Plan will allow us to invest in key growth opportunities and drive business efficiencies following the completion of the Ansys Merger.”
Fiscal 2025 cost increase from Ansys headcount and intangible amortization
Cost of revenue and opex up 29% to $6.1B, including $664.5M employee costs and $457.8M Ansys intangible amortization
“an increase of $664.5 million in employee-related costs from headcount increases as a result of the Ansys Merger of $432.1 million ... as well as $457.8 million of amortization expense related to intangible assets acquired from the Ansys Merger”
Senior Notes and Term Loan in connection with Ansys Merger
Interest expense rose to $446.7M (6% of revenue) in FY2025 on Ansys-related Senior Notes and Term Loan debt
“The increase in interest expense for fiscal 2025 as compared to fiscal 2024 was primarily due to interest on the Senior Notes and the borrowings under the Term Loan Agreement in fiscal 2025 in connection with the Ansys Merger.”
Muted Design IP growth expected in fiscal 2026
Actions to reallocate resources in Design IP, but expect muted growth in fiscal 2026; challenging near-term China environment
“We have begun taking actions to sharpen our execution and reallocate resources to the highest growth opportunities in our Design IP segment, but expect to see muted growth in fiscal 2026.”
November 2025 restructuring plan (2026 Plan)
2026 Plan: $300-350M expected charges, mostly severance/facility exits, majority of workforce reduction in fiscal 2026
“Total charges under the 2026 Plan are expected to be in the range of $300.0 million and $350.0 million, and will consist primarily of severance costs, other one-time termination benefits and facility exit costs.”
Fiscal year end change effective fiscal 2025
Fiscal year changed to October 31 year-end effective FY2025; FY2024 was a 53-week year
“Fiscal 2024 was a 53-week year ending on November 2, 2024, which impacted our revenue, expenses and operating results.”
Other income (expense), net components FY2023-2025
Other income, net rose to $924.9M in FY2025 driven by $548.9M divestiture gains and $277.7M interest income
“Interest income$277,684 $67,017 $36,674 Gain on divestitures 548,906 — —”
Property and equipment, net by geography
P&E, net: US $327.8M, Other $368.9M, total $696.7M as of October 31, 2025
“United States $327,803 $335,306 Other368,890 227,700 Total$696,693 $563,006”
Q3 2025 BIS Restrictions on EDA exports to China (rescinded July 2, 2025)
BIS 'is-informed' letter May 29, 2025 imposed EDA export license requirement for China (ECCNs 3D991/3E991); rescinded July 2, 2025
“on May 29, 2025, Synopsys received a so-called “is-informed” letter from the BIS imposing a license requirement for the export, reexport, or in-country transfer of EDA software ... The Q3 2025 BIS Restrictions were subsequently rescinded on July 2, 2025.”
US export controls and China exposure
Subject to US export controls; received BIS administrative subpoenas regarding certain Chinese entities
“we have received administrative subpoenas from BIS requesting production of information and documentation relating to transactions with certain Chinese entities”
Design IP headwinds: China export controls, foundry demand, roadmap decisions
Design IP weakness driven by China export controls, weaker demand from a major foundry customer, and roadmap/resource decisions
“due to several headwinds, including China export control restrictions, such as the Q3 2025 BIS Restrictions ... weaker than expected demand from a major foundry customer, and certain roadmap and resource decisions that did not yield their intended results”
Hardware supply chain: sole supplier dependency
Dependence on a sole supplier for certain hardware products reduces control over availability, quality and pricing
“a dependence on a sole supplier for certain hardware products, which may reduce our control over product availability, quality and pricing”
Macroeconomic uncertainty risks
Macroeconomic uncertainty causing customer spending caution and delayed payments
“has led some of our customers to postpone their decision-making, delay their drawdowns under non-cancellable commitments, decrease their spending and/or delay their payments to us”
AI-related risks: competitive, demand unpredictability, evolving regulation
Rapidly evolving AI landscape creates risks: obsolescence, unpredictable demand, and evolving IP/privacy/data protection regulation
“the AI landscape is rapidly evolving and may create risks and challenges for our business ... The technologies underlying AI and its uses are expected to be subject to new laws and regulations”
AI disruption to business models and technology offerings
AI adoption creates potential disruption to business models and technology
“The adoption of AI technologies have brought new demands and also challenges in terms of disruption to both our business models and existing technology offerings”
Banking/counterparty credit risk
Exposure to bank failures/credit downgrades and receivables credit defaults
“result in bank failures or credit downgrades of the banks we rely on for foreign currency forward contracts, credit and banking transactions, and deposit services”
The Ansys Merger materially changed Synopsys's revenue mix, cost structure, intangible amortization, and debt load in fiscal 2025.
“the closing of the Ansys Merger, which contributed $449.0 million in maintenance revenue in fiscal 2025”
Synopsys positions AI-driven chip design across its full-stack EDA suite as core to enabling customers to rapidly innovate AI-powered products.
“enabling customers to rapidly innovate AI-powered products”
China export control restrictions including the Q3 2025 BIS Restrictions disrupted customer design starts in China and negatively impacted revenue, especially in Design IP.
“China export control restrictions, including the Q3 2025 BIS Restrictions, have negatively impacted our business in China, including in our Design IP segment”
Ansys Merger added $756.6 million of fiscal 2025 revenue and $457.8 million intangible amortization plus $432.1 million merger-related employee costs.
“the closing of the Ansys Merger, which contributed $756.6 million in revenue”
Growth of Design Automation and Design IP segments is primarily dependent on semiconductor and electronics industries and design starts.
“The growth of the EDA industry as a whole and our sales in our Design Automation and Design IP segments are primarily dependent on the semiconductor and electronics industries”
US export control restrictions on China and BIS subpoenas regarding Chinese entities can restrict sales and international deployment.
“we have received administrative subpoenas from BIS requesting production of information and documentation relating to transactions with certain Chinese entities”
Continued strength in AI and high-performance computing sectors drives demand; unpredictable AI demand and evolving AI regulation also pose risks.
“we have seen continued strength in the artificial intelligence and high-performance computing sectors”
U.S.-China relations remain fluid regarding export restrictions on dual-use technologies; Entity List additions, ECAD controls, and BIS license requirements create business uncertainty in China.
“U.S.-China relations remain fluid, in particular with respect to trade policy and export restrictions relating to dual-use technologies.”
Continued strength in AI and high-performance computing sectors supports demand for Synopsys products.
“while we have seen continued strength in the artificial intelligence and high-performance computing sectors”
Interest expense jumped to $446.7M (6% of revenue) from Senior Notes and Term Loan borrowings for the Ansys Merger, making Synopsys's profitability sensitive to financing costs.
“$(446.7)$(36.8)$(2.7)$(409.9)1114 %$(34.1)1263 %”
Weaker than expected demand from a major foundry customer was a headwind for the Design IP segment.
“weaker than expected demand from a major foundry customer”
Tariffs enacted in 2025 by the U.S. and other governments contribute to macro uncertainty affecting customer spending.
“changes in U.S. and global trade policy, including the tariffs enacted in 2025 by the U.S. and other governments”
2025 U.S. tariffs and potential retaliatory tariffs create trade policy uncertainty; hardware margins may be subject to trade regulation including tariffs; no material impact to date.
“These changes in global trade policy have not had a material impact on our business, operating results or financial condition to date.”
China state-backed efforts to build independent EDA capabilities create new international competitors.
“China has implemented national policies favoring Chinese companies and has formed government-backed investment funds as it seeks to build independent EDA capabilities”
Employee-related costs from headcount increases were the largest driver of both cost of revenue and R&D expense growth in fiscal 2025.
“increases of $319.7 million in employee-related costs as a result of headcount increases from organic growth of $172.9 million”
China contributed $814.3 million of fiscal 2025 revenue (down from $989.5 million in fiscal 2024), a materially significant geography; also subject to tax examination for fiscal years after 2015.
“China 814,324 989,524 855,023”
A single customer represented 12.6% of consolidated revenue in fiscal 2024 and 13.5% in fiscal 2023, indicating meaningful customer concentration.
“One customer, including its subsidiaries, accounted for 12.6%, and 13.5% of our consolidated revenue in fiscal 2024 and 2023, respectively.”
Macroeconomic environment includes fluctuations in foreign exchange rates contributing to global market volatility affecting the business.
“geopolitical pressures, and fluctuations in foreign exchange rates, have resulted in increased volatility in global markets”
Synopsys delivers design flows and S&A products via the cloud as well as on-premises, supporting customer productivity and deployment flexibility.
“These products enable customers to analyze designs on-premises and/or via the cloud”
Sustained inflationary pressures and elevated interest rates feed macro uncertainty that reduces customer spending.
“sustained global inflationary pressures and elevated interest rates”
Supply chain disruptions cited among macro factors that could affect semiconductor/electronics demand and hardware availability.
“supply chain disruptions, geopolitical pressures and fluctuations in foreign exchange rates”
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