10-KPeriod: FY2025

SYNOPSYS INC Annual Report, Year Ended Oct 31, 2025

Filed December 22, 2025For Securities:SNPS

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
Beta

Revenue

$7.05B

77.0% Gross Margin

Net Income

$1.33B

18.9% Net Margin

EPS (Diluted)

$8.04

Total Assets

$48.22B

Cash & Equivalents

$2.89B

Free Cash Flow

$1.35B

Financial Statements
Beta
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.

Frequently Asked Questions

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.

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.

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.

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.