Summary
Synopsys, Inc. (SNPS) reported strong revenue growth of 15% to $7.1 billion for the fiscal year ending October 30, 2025, significantly boosted by the acquisition of Ansys, Inc. which contributed $756.6 million in revenue. Despite overall growth, the company experienced a revenue decrease of 22% in China (excluding Ansys) due to export control restrictions and weaker demand from a key foundry customer, impacting its Design IP segment. The company is strategically navigating these challenges, including reallocating resources within its IP business to higher-growth opportunities. Synopsys' core Design Automation segment showed strength. The company ended the fiscal year with a robust cash position of $3.0 billion and significant liquidity. Despite the impact of the Ansys merger, which increased debt levels, Synopsys remains focused on innovation, particularly in AI-driven chip design, and managing its market position in the competitive semiconductor industry.
Financial Highlights
57 data points| Revenue | $7.05B |
| Cost of Revenue | $1.62B |
| Gross Profit | $5.43B |
| R&D Expenses | $2.48B |
| Operating Expenses | $4.52B |
| Operating Income | $914.93M |
| Net Income | $1.33B |
| EPS (Basic) | $8.13 |
| EPS (Diluted) | $8.04 |
| Shares Outstanding (Basic) | 163.95M |
| Shares Outstanding (Diluted) | 165.66M |
Key Highlights
- 1Revenue increased by 15% to $7.1 billion, primarily driven by the Ansys acquisition.
- 2The Ansys acquisition, completed in July 2025, contributed $756.6 million to revenue.
- 3The Design Automation segment showed strong performance, while the Design IP segment faced headwinds, including China export control restrictions and reduced demand from a major foundry customer.
- 4The company ended the fiscal year with $3.0 billion in cash, cash equivalents, and short-term investments, indicating a strong liquidity position.
- 5Synopsys is actively restructuring its IP business to focus on higher-growth opportunities.
- 6The company has suspended its stock repurchase program due to increased debt levels from the Ansys merger.
- 7Two shareholder class action complaints were filed alleging material misstatements or omissions related to the performance of the Design IP segment.