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Synopsys 8-K Report, Financial Results (Dec 10, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed December 10, 2025
Period End
December 10, 2025
Security
SNPS
In the record · 2016–202610-K1010-Q338-K142

SNPS filed 10 annual reports (10-K), 33 quarterly reports (10-Q) and 142 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Nov ’16Nov ’16
  2. Leadership change8-K · Apr ’22Apr ’22
  3. Leadership change8-K · Apr ’24Apr ’24

01—Abstract

Summary

Summary of the 8-K filed December 10, 2025. Cited figures are marked; the original filing is the authoritative source.

Synopsys reported a fourth quarter and full fiscal year 2025 (ended October 31, 2025) that showed record annual revenue of $7.054 billiona, up roughly 15% from $6.127 billion in fiscal 2024, with Ansys contributing $756.6 million for the year and $667.7 million in the fourth quarter.

Fourth-quarter revenue was $2.255 billionb, above the midpoint of guidance, and management cited a year-end backlog of $11.4 billion. GAAP results were distorted by large acquisition-related and amortization items: GAAP diluted EPS was $2.39 for the quarter and $8.07 for the year, versus non-GAAP EPS of $2.90 and $12.91. Fourth-quarter GAAP operating income fell to $121.4 million from $310.8 million a year earlier, largely because of $405 million of intangible amortization and higher operating expenses tied to the Ansys combination, while interest expense rose sharply to $194.8 million in the quarter from $16.3 million.

The balance sheet changed materially after the Ansys acquisition. Total assets reached $48.2 billion, goodwill rose to $26.9 billionc, and intangible assets to $12.7 billion, while long-term debt stood at $13.5 billion, up from about $16 million a year earlier. Cash and short-term investments were about $3.0 billion.

Full-year operating cash flow was $1.52 billiond, and management is guiding to roughly $2.2 billion of operating cash flow and $1.9 billion of free cash flow for fiscal 2026. For fiscal 2026, Synopsys guided to revenue of $9.56-$9.66 billion (midpoint about $9.61 billion, including about $2.9 billion from Ansys) and non-GAAP EPS of $14.32-$14.40, with GAAP EPS of $2.49-$2.90. The guidance reflects approximately $110 million of divested Optical Solutions Group and PowerArtist RTL revenue, and the company is also moving to a three-year normalized non-GAAP tax rate of 18%.

The filing contains no 10-K-level financial statements for FY2025; the company says final audited statements will appear in its Form 10-K due by December 30, 2025. Investors should note the continued dependence on large customers, export control and tariff exposure, and the integration risk tied to the Ansys deal.

02—Key points

Key Highlights

  1. Record FY2025 revenue of $7.054 billion, up about 15% year over year; Q4 revenue of $2.255 billion exceeded guidance midpoint
  2. Ansys contributed $756.6 million to FY2025 revenue and $667.7 million in Q4, and is expected to contribute about $2.9 billion in FY2026
  3. Q4 GAAP diluted EPS was $2.39 versus non-GAAP EPS of $2.90; FY2025 GAAP EPS was $8.07 versus non-GAAP EPS of $12.91
  4. FY2026 guidance: revenue of $9.56-$9.66 billion and non-GAAP EPS of $14.32-$14.40, with free cash flow of about $1.9 billion
  5. Year-end backlog of $11.4 billion, which management cites as evidence of revenue resilience
  6. Total debt rose to about $13.5 billion long-term following the Ansys acquisition, with goodwill of $26.9 billion and intangibles of $12.7 billion on the balance sheet
  7. Q4 GAAP operating income fell to $121.4 million from $310.8 million, reflecting $405 million of acquired-intangible amortization and higher operating expenses

03—Questions

Frequently Asked Questions

  1. Did Synopsys hit its revenue targets for the fourth quarter and full year 2025?

    Yes. Fourth-quarter revenue of $2.255 billion exceeded the midpoint of guidance, and full-year revenue of $7.054 billion was a record. Non-GAAP EPS for both the quarter and the year also exceeded guidance.

  2. Why is GAAP EPS so much lower than non-GAAP EPS?

    The gap comes mainly from non-GAAP adjustments: amortization of acquired intangibles (about $3.04 per share for FY2025), stock-based compensation ($5.39 per share), and acquisition/divestiture items, partly offset by tax adjustments. Much of the amortization and stock compensation is tied to the Ansys acquisition.

  3. What does the fiscal 2026 outlook look like?

    Management guides to revenue of $9.56-$9.66 billion, including about $2.9 billion from Ansys and about $110 million of revenue lost from divested businesses. Non-GAAP EPS is expected at $14.32-$14.40, GAAP EPS at $2.49-$2.90, and free cash flow at about $1.9 billion.

  4. How has the Ansys acquisition changed Synopsys's balance sheet and risk profile?

    The acquisition greatly expanded the balance sheet: goodwill reached $26.9 billion, intangibles $12.7 billion, and long-term debt $13.5 billion. Investors now face higher amortization, interest expense (Q4 interest expense was $194.8 million versus $16.3 million a year earlier), and integration execution risk.

  5. When will audited full-year financial statements be available?

    This press release contains unaudited figures. Synopsys says the final audited FY2025 financial statements will be included in its Form 10-K, which it expects to file on or before December 30, 2025.

04—Continue

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