Synopsys (SNPS) Q4 2025 Financial Results Summary
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Synopsys, Inc. (SNPS) Q4 2025 Financial Results Summary
Synopsys, Inc. (Nasdaq: SNPS) released its financial results for the fourth quarter and fiscal year 2025 on December 10, 2025.
Financial Highlights
- Fourth Quarter Revenue:
- $2.255 billion, up 38% from $1.636 billion in Q4 2024.
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Contributed $667.7 million from Ansys.
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Fiscal Year Revenue:
- $7.054 billion, a 15% increase from $6.127 billion in fiscal year 2024.
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Contributed $756.6 million from Ansys.
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GAAP Net Income:
- Q4 2025: $448.7 million, or $2.39 per diluted share, compared to $279.3 million, or $1.79 per diluted share in Q4 2024 (up 33.8% in net income and 33.5% in EPS).
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FY 2025: $1.336 billion, or $8.07 per diluted share, down 7.4% from $1.442 billion, or $9.25 per diluted share in FY 2024.
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Non-GAAP Net Income:
- Q4 2025: $543.1 million, or $2.90 per diluted share, compared to $529.9 million, or $3.40 per diluted share in Q4 2024 (up 2.2% in net income, down 14.7% in EPS).
- FY 2025: $2.138 billion, or $12.91 per diluted share, up 3.9% from $2.058 billion, or $13.20 per diluted share in FY 2024.
Major Metrics
- Operating Income:
- Q4 2025: $121.4 million, down 61% from $310.8 million in Q4 2024.
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FY 2025: $914.9 million, down 32.5% from $1.355 billion in FY 2024.
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Gross Margin for Q4 2025 was $1.600 billion with a corresponding gross margin percentage of 71%, which represents an increase from Q4 2024.
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Operating Expenses:
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Increased for Q4 2025 to $1.479 billion from $950.2 million in Q4 2024.
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Backlog: At year-end, Synopsys reported a strong backlog of $11.4 billion, indicating robust demand.
Business Segments
- Design Automation Segment:
- Revenue: $1.848 billion in Q4 2025, up 65.5% from $1.118 billion in Q4 2024.
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This segment constitutes 81.9% of total revenue in Q4 2025, compared to 68.3% in Q4 2024.
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Design IP Segment:
- Revenue: $407.2 million in Q4 2025, down 21.4% from $517.8 million in Q4 2024.
- This segment accounts for 18.1% of total revenue in Q4 2025, down from 31.7% in Q4 2024.
Financial Targets
For fiscal year 2026:
– Expected revenue midpoint: $9.610 billion, inclusive of $2.9 billion from Ansys.
– Anticipated GAAP EPS range for FY 2026: $2.49 – $2.90.
– Forecasted non-GAAP EPS range for FY 2026: $14.32 – $14.40.
Shareholder Returns
- Synopsys did not declare a quarterly dividend for this period.
- There were no announcements regarding share repurchase programs.
Summary
Synopsys, Inc. concluded fiscal year 2025 with robust revenue growth and solid contributions from its recent acquisition of Ansys. While experiencing challenges in operating income and substantial increases in expenses, the company remains optimistic about its backlog and revenue targets for fiscal year 2026.
This summary encapsulates the significant financial results and projections as of December 10, 2025, showcasing Synopsys’ continued position as a leader in engineering solutions and technology.
Here are the extracted tables from the press release:
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts)
| Three Months Ended | Twelve Months Ended | |||
|---|---|---|---|---|
| October 31, 2025 | October 31, 2024 | October 31, 2025 | October 31, 2024 | |
| TIME-BASED PRODUCTS | $940,681 | $834,375 | $3,489,609 | $3,224,299 |
| UPFRONT PRODUCTS | $615,398 | $520,939 | $2,010,602 | $1,802,222 |
| TOTAL PRODUCTS REVENUE | $1,556,079 | $1,355,314 | $5,500,211 | $5,026,521 |
| MAINTENANCE AND SERVICE | $698,781 | $280,672 | $1,553,967 | $1,100,915 |
| TOTAL REVENUE | $2,254,860 | $1,635,986 | $7,054,178 | $6,127,436 |
| COST OF REVENUE: PRODUCTS | $251,212 | $216,485 | $867,165 | $770,238 |
| MAINTENANCE AND SERVICE | $154,217 | $91,707 | $444,526 | $367,055 |
| AMORTIZATION OF ACQUIRED INTANGIBLE ASSETS | $249,234 | $66,831 | $311,858 | $107,996 |
| TOTAL COST OF REVENUE | $654,663 | $375,023 | $1,623,549 | $1,245,289 |
| GROSS MARGIN | $1,600,197 | $1,260,963 | $5,430,629 | $4,882,147 |
| OPERATING EXPENSES: RESEARCH AND DEVELOPMENT | $746,842 | $554,818 | $2,479,338 | $2,082,360 |
| SALES AND MARKETING | $390,491 | $219,225 | $1,074,191 | $859,342 |
| GENERAL AND ADMINISTRATIVE | $185,515 | $172,032 | $769,648 | $568,496 |
| AMORTIZATION OF ACQUIRED INTANGIBLE ASSETS | $155,956 | $4,086 | $192,525 | $16,238 |
| TOTAL OPERATING EXPENSES | $1,478,804 | $950,161 | $4,515,702 | $3,526,436 |
| OPERATING INCOME | $121,393 | $310,802 | $914,927 | $1,355,711 |
| INTEREST EXPENSE | $(194,752) | $(16,282) | $(446,729) | $(36,829) |
| OTHER INCOME (EXPENSE), NET | $589,883 | $28,359 | $924,944 | $194,976 |
| INCOME BEFORE INCOME TAXES | $516,524 | $322,879 | $1,393,142 | $1,513,858 |
| PROVISION FOR INCOME TAXES | $68,071 | $62,084 | $55,991 | $99,718 |
| NET INCOME FROM CONTINUING OPERATIONS | $448,453 | $260,795 | $1,337,151 | $1,414,140 |
| NET INCOME (LOSS) ATTRIBUTED TO SYNOPSYS | $(448,696) | $1,114,106 | $1,332,220 | $2,263,380 |
| NET INCOME (LOSS) PER SHARE ATTRIBUTED TO SYNOPSYS—BASIC: CONTINUING OPERATIONS | $2.42 | $1.81 | $8.15 | $9.41 |
| DILUTED | $2.39 | $1.79 | $8.07 | $9.25 |
| DISCONTINUED OPERATIONS | — | $5.43 | $(0.02) | $5.37 |
UNAUDITED CONSOLIDATED BALANCE SHEETS (in thousands, except par value amounts)
| October 31, 2025 | October 31, 2024 | |
|---|---|---|
| ASSETS: CURRENT ASSETS: CASH AND CASH EQUIVALENTS | $2,888,030 | $3,896,532 |
| SHORT-TERM INVESTMENTS | $72,929 | $153,869 |
| TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | $2,960,959 | $4,050,401 |
| ACCOUNTS RECEIVABLE, NET | $1,505,427 | $934,470 |
| INVENTORIES | $365,190 | $361,849 |
| PREPAID AND OTHER CURRENT ASSETS | $1,180,526 | $1,122,946 |
| TOTAL CURRENT ASSETS | $6,012,102 | $6,469,666 |
| PROPERTY AND EQUIPMENT, NET | $696,693 | $563,006 |
| OPERATING LEASE RIGHT-OF-USE ASSETS, NET | $702,008 | $565,917 |
| GOODWILL | $26,899,215 | $3,448,850 |
| INTANGIBLE ASSETS, NET | $12,679,591 | $195,164 |
| DEFERRED INCOME TAXES | $112,159 | $1,247,258 |
| OTHER LONG-TERM ASSETS | $1,122,693 | $583,700 |
| TOTAL ASSETS | $48,224,461 | $13,073,561 |
| LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY: CURRENT LIABILITIES: ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | $1,326,211 | $1,163,592 |
| OPERATING LEASE LIABILITIES | $128,205 | $94,791 |
| DEFERRED REVENUE | $2,245,961 | $1,391,737 |
| SHORT-TERM DEBT | $22,117 | $0 |
| TOTAL CURRENT LIABILITIES | $3,722,494 | $2,650,120 |
| LONG-TERM OPERATING LEASE LIABILITIES | $680,698 | $574,065 |
| LONG-TERM DEFERRED REVENUE | $382,557 | $340,831 |
| LONG-TERM DEBT | $13,462,398 | $15,601 |
| OTHER LONG-TERM LIABILITIES | $1,649,299 | $469,738 |
| TOTAL LIABILITIES | $19,897,446 | $4,050,355 |
| REDEEMABLE NON-CONTROLLING INTEREST | $0 | $30,000 |
| STOCKHOLDERS’ EQUITY: PREFERRED STOCK, $0.01 PAR VALUE: | $0 | $0 |
| COMMON STOCK, $0.01 PAR VALUE: | $1,860 | $1,541 |
| CAPITAL IN EXCESS OF PAR VALUE | $18,640,947 | $1,211,206 |
| RETAINED EARNINGS | $10,315,487 | $8,984,105 |
| TREASURY STOCK, AT COST: | $(398,278) | $(1,025,770) |
| ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | $(232,414) | $(180,380) |
| TOTAL SYNOPSYS STOCKHOLDERS’ EQUITY | $28,327,602 | $8,990,702 |
| NON-CONTROLLING INTEREST | $(587) | $2,504 |
| TOTAL STOCKHOLDERS’ EQUITY | $28,327,015 | $8,993,206 |
| TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY | $48,224,461 | $13,073,561 |