01—Abstract
Summary
Summary of the 10-K filed December 22, 2025. Cited figures are marked; the original filing is the authoritative source.
Synopsys, Inc. (SNPS) reported strong revenue growth of 15% to $7.1 billiona 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%b 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 billionc 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.
02—Key points
Key Highlights
- Revenue increased by 15% to $7.1 billion, primarily driven by the Ansys acquisition.
- The Ansys acquisition, completed in July 2025, contributed $756.6 million to revenue.
- The 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.
- The company ended the fiscal year with $3.0 billion in cash, cash equivalents, and short-term investments, indicating a strong liquidity position.
- Synopsys is actively restructuring its IP business to focus on higher-growth opportunities.
- The company has suspended its stock repurchase program due to increased debt levels from the Ansys merger.
- Two shareholder class action complaints were filed alleging material misstatements or omissions related to the performance of the Design IP segment.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Synopsys kept $0.19.
- Revenue$7.05B100.0%
- Cost of revenue−$1.62B23.0%
- Gross profit$5.43B77.0%
- Operating costs−$4.52B64.0%
- Operating income$914.9M13.0%
- Interest, other & tax$417.3M5.9%
- Net income$1.33B18.9%
Where FY2025 revenue went
$7.05B- R&D: $2.48B, 35% of revenue
- Other operating costs: $2.04B, 29% of revenue
- Cost of revenue: $1.62B, 23% of revenue
- Operating income: $914.9M, 13% of revenue
Kept 13% as operating incomeOperating income $914.9M · 13%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed December 22, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $7.05B$6.13B | +15.1% |
| Cost of Revenue | $1.62B$1.25B | +30.4% |
| Gross Profit | $5.43B$4.88B | +11.2% |
| R&D Expenses | $2.48B$2.08B | +19.1% |
| Operating Expenses | $4.52B$3.53B | +28.1% |
| Operating Income | $914.93M$1.36B | −32.5% |
| Net Income | $1.33B$2.26B | −41.1% |
| EPS (Basic) | $8.13$14.78 | −45.0% |
| EPS (Diluted) | $8.04$14.51 | −44.6% |
| Shares Outstanding (Basic) | 163.95M153.14M | +7.1% |
| Shares Outstanding (Diluted) | 165.66M155.94M | +6.2% |
05—Questions
Frequently Asked Questions
What was the primary driver of Synopsys' revenue growth in fiscal year 2025?
The primary driver of Synopsys' revenue growth in fiscal year 2025 was the acquisition of Ansys, Inc., which contributed $756.6 million to the company's total revenue of $7.1 billion.
What challenges did Synopsys face in fiscal year 2025, particularly in its Design IP segment?
Synopsys faced challenges in its Design IP segment, including a 22% revenue decrease in China (excluding Ansys) due to export control restrictions and weakened demand from a major foundry customer. Certain roadmap and resource decisions also did not yield their intended results.
How is Synopsys managing its debt levels after the Ansys acquisition?
Synopsys has suspended its stock repurchase program to focus on reducing debt levels incurred from the Ansys merger. The company has also made significant early repayments on its term loan facilities, demonstrating a commitment to deleveraging.
Are there any significant legal actions against Synopsys mentioned in the filing?
Yes, two shareholder class action complaints were filed alleging material misstatements or omissions related to the performance of Synopsys' Design IP segment. The company believes these claims are without merit and intends to defend itself vigorously.
06—Continue