Summary
Synopsys, Inc. (SNPS) reported significant revenue growth of 66% to $2.4 billion for the quarter ended January 31, 2026, largely driven by the acquisition of Ansys, which contributed $885.6 million in revenue. While the Design Automation segment showed overall strength, the Design IP segment experienced weakness, prompting resource reallocation to higher-growth areas. The company's financial position remains solid, with $2.2 billion in cash, cash equivalents, and short-term investments. However, the company incurred substantial restructuring charges of $118.3 million related to a new restructuring plan, and experienced a significant increase in interest expense due to recent debt issuances to fund the Ansys acquisition. Despite robust revenue growth, net income attributed to Synopsys decreased to $65.0 million from $295.7 million in the prior year's comparable quarter. This decline is primarily due to increased costs, including a substantial $242.1 million increase in amortization of acquired intangible assets stemming from the Ansys merger, along with higher employee-related costs and restructuring charges. The company is actively managing its resources and operations in light of ongoing macroeconomic uncertainties and geopolitical factors, particularly in China.
Financial Highlights
56 data points| Revenue | $2.41B |
| Cost of Revenue | $637.38M |
| Gross Profit | $1.77B |
| R&D Expenses | $714.99M |
| Operating Expenses | $1.57B |
| Operating Income | $203.05M |
| Net Income | $64.96M |
| EPS (Basic) | $0.34 |
| EPS (Diluted) | $0.34 |
| Shares Outstanding (Basic) | 189.59M |
| Shares Outstanding (Diluted) | 190.76M |
Key Highlights
- 1Revenue increased by 66% to $2.4 billion, primarily due to the Ansys acquisition contributing $885.6 million.
- 2Net income attributed to Synopsys decreased significantly to $65.0 million from $295.7 million year-over-year, impacted by increased costs from the Ansys acquisition and restructuring.
- 3The Design Automation segment performed strongly, while the Design IP segment showed weakness, leading to resource reallocation.
- 4The company reported $118.3 million in restructuring charges related to a new business reorganization plan.
- 5Total debt stands at approximately $10.0 billion, with significant interest expense increase due to Senior Notes issuance and Term Loan borrowings.
- 6Cash, cash equivalents, and short-term investments totaled $2.2 billion, providing a solid liquidity position.
- 7The company is facing multiple shareholder class-action lawsuits related to its Design IP segment performance and the Ansys acquisition.