NASDAQ: SNPS · Application Software
Synopsys
Synopsys, based in Sunnyvale, California, supplies electronic design automation software, silicon IP and, since buying Ansys in July 2025, simulation and analysis software. FY2025 revenue was $7,054M, with Design Automation $5,302M and Design IP $1,752M. The Ansys deal raised debt to $13,485M. Revenue for the first nine months of FY2026 rose 49% to $7,162M. It approved cutting about 10% of its workforce in November 2025 and signed a cooperation agreement with Elliott in May 2026.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: November 4, 2026 15:22 (SEC EDGAR) · Source 10-K filed: December 22, 2025
Built on10-K FY2025 · filed 2025-12-2210-Q (quarter ended 2026-07-31) · filed 2026-08-26Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 13.9%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 13.0%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- -7.8 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 6.7x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.14x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- —
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 80.3x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 1.36
Higher than 76% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 33% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 8% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 95% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 18% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-07-31
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$465.05close on 2026-11-04
Market cap$86.5B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 80.3x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 3.1x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 61.6x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 1.6%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- —
At FY2025 year-end: 56.5x
Earnings: trailing 12 months to 2026-07-31
At FY2025 year-end: 3.0x
Book value at FY2025 year-end
At FY2025 year-end: 60.3x
EBITDA for FY2025
At FY2025 year-end: 1.6%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Jul 31, 2026.
- Revenue$1.74B → $2.48B (vs. a year earlier)↑ +42.4%$1.74B → $2.48B (vs. a year earlier)
- Operating margin9.5% → 14.4% (vs. a year earlier)↑ +4.9 pts9.5% → 14.4% (vs. a year earlier)
- Net income$243M → $546M (vs. a year earlier)↑ +125.1%$243M → $546M (vs. a year earlier)
- Diluted EPS$1.50 → $2.84 (vs. a year earlier)↑ +89.3%$1.50 → $2.84 (vs. a year earlier)
- Cash$2.41B → $3.61B (vs. previous quarter-end)↑ +49.5%$2.41B → $3.61B (vs. previous quarter-end)
- Long-term debt$10.04B → $10.04B (vs. previous quarter-end)→ +0.0%$10.04B → $10.04B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Aug 26, 2026.
Management outlook ↑ Raised
Raised full-year revenue expectation to $9.715B at the midpoint. Source sentence
Raising expectations for full-year total revenue to $9.715 billion at the midpoint and full-year non-GAAP EPS guidance to $15.07 at the midpoint on continued AI-driven demand strength
Key changes
EPS $3.91, above the high end of prior guidance. Source sentence
EPS of $3.91, exceeding high-end of prior guidance
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- SYNOPSYS INC
- Headquarters
- SUNNYVALE, CA
- Incorporated in
- Delaware
- Fiscal year end
- 10/31
- Exchange & ticker
- NASDAQ: SNPS
- Industry
- Application Software
- CIK
- 883241
- Website
- https://www.synopsys.com/ ↗
Workforce (as of FY2025 year-end)
Employees
28,000
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: October 2026. In past years, Q4 results were released 29–40 days after quarter end (Dec 10, 2025; Dec 4, 2024; Nov 29, 2023). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around October 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 21–40 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Jul 31, 2026 | Aug 26, 2026 (+26 days) | Aug 26, 2026 10-Q (+26 days) |
| Q2 FY2026 | Apr 30, 2026 | May 27, 2026 (+27 days) | May 27, 2026 10-Q (+27 days) |
| Q1 FY2026 | Jan 31, 2026 | Feb 25, 2026 (+25 days) | Feb 25, 2026 10-Q (+25 days) |
| Q4 FY2025 | Oct 31, 2025 | Dec 10, 2025 (+40 days) | Dec 22, 2025 10-K (+52 days) |
| Q3 FY2025 | Jul 31, 2025 | Sep 9, 2025 (+40 days) | Sep 9, 2025 10-Q (+40 days) |
| Q2 FY2025 | Apr 30, 2025 | May 28, 2025 (+28 days) | May 28, 2025 10-Q (+28 days) |
| Q1 FY2025 | Jan 31, 2025 | Feb 26, 2025 (+26 days) | Feb 26, 2025 10-Q (+26 days) |
| Q4 FY2024 | Oct 31, 2024 | Dec 4, 2024 (+34 days) | Dec 19, 2024 10-K (+49 days) |
| Q3 FY2024 | Jul 31, 2024 | Aug 21, 2024 (+21 days) | Aug 23, 2024 10-Q (+23 days) |
| Q2 FY2024 | Apr 30, 2024 | May 22, 2024 (+22 days) | May 24, 2024 10-Q (+24 days) |
| Q1 FY2024 | Jan 31, 2024 | Feb 21, 2024 (+21 days) | Feb 23, 2024 10-Q (+23 days) |
| Q4 FY2023 | Oct 31, 2023 | Nov 29, 2023 (+29 days) | Dec 12, 2023 10-K (+42 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Design Automation
EDA solutions
Digital, custom and FPGA IC design, verification software and hardware.
Design Automation
Ansys simulation and analysis
Engineering simulation and analysis software.
Design IP
Silicon IP
Silicon-proven IP solutions for system-on-chips.
From the Form 10-K, FY2025, year ended 2025-10-31.
U.S., worldwide and country/regional share of flagship products/services
Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.
EDA and engineering simulation software
Engineering software
U.S. share
—
Not disclosedWorldwide share
Global leader
Company-disclosed“Following the completion of the Ansys Merger… we are the global leader in engineering S&A software.”
07
Recent strategic focusSite analysis
Recent developments.
Q3 FY2026 results
Q3 revenue $2,477M (vs $1,740M); net income $546M (vs $243M).
Source: Form 10-Q (quarter ended 2026-07-31)
Restructuring
Approved in November 2025; about 10% of the workforce.
Source: Form 8-K (2025-11-12) — Item 2.05 restructuring
Elliott
May 2026 cooperation agreement added Jesse Cohn to the board.
Source: Form 8-K (2026-05-27) — Item 1.01 Elliott cooperation agreement
Buybacks
$1 billion accelerated repurchase announced October 5, 2026.
Source: Form 8-K (2026-10-05) — Item 8.01 accelerated share repurchase
Capex ÷ D&A (FY2025)
0.26x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$169M ÷ $660M = 0.26x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
35.1%
formularesearch & development expense ÷ revenue × 100
e.g.$2,479M ÷ $7,054M × 100 = 35.1%
Where the money goes, over time
Unit: $M. Capex went from $155M in FY2020 to $169M in FY2025
- Capex
- R&D
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-12-22
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$7.05B
As reported in the 10-K
Revenue CAGR (5 years)
+13.9%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($7,054M ÷ $3,685M) ^ (1÷5) − 1 = 13.9%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
13.0%▼caution
-3.9pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$915M ÷ $7,054M × 100 = 13.0%
ROE (FY2025)
7.1%
6-year average: 17.5%
As reported in the 10-K
P/B (FY2025 end)
2.98x
formulafiscal year-end closing price ÷ book value per share
e.g.$453.82 ÷ $152.30 = 2.98x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
60.3x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($84,408M + $13,485M − $2,888M) ÷ ($915M + $660M) = 60.3x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +13.9% a year over 5 years (strong growth)
From $3.69B in FY2020 to $7.05B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 16.8% → 13.0%
How much operating profit is left per $100 of revenue. It moved -3.9 points over 5 years — pricing power, cost control, and product mix all show up here.
- ▲
Equity ratio is 58.7% (a high level of financial stability)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 17.5% over 6 years (latest: 7.1%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
No partners or suppliers named in the filings.
07 · what it does
Key activities
- EDA software for IC design and verification
- Silicon-proven IP for system-on-chips
- Simulation and analysis; design services
06 · what it draws on
Key resources
- About 28,000 employees (23% in the U.S.) at FY2025 year-end
- Research and development
- Ansys simulation software
02 · why customers buy
Value propositions
- Trusted solutions from silicon design and IP to simulation and analysis, helping customers innovate AI-powered products.
04 · how it keeps them
Customer relationships
- Time-based licenses and maintenance renewed by customers; close partnerships with customers on design.
03 · how it reaches them
Channels
- Direct sales in the U.S. and principal foreign markets; independent channel partners for certain products, including simulation software.
01 · who it serves
Customer segments
- Semiconductor companies
- Systems companies
- Engineering users of simulation software
09 · where money goes
Cost structure
FY2025, share of revenue ($7.05B)
- Cost of revenue23.0%
- Research & development35.1%
- Selling, general & administrative10.9%
- Other operating costs18.0%
Operating profit left: 13.0% of revenue. Depreciation & amortization (inside the costs above): $660M. Capital spending: $169M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Revenue $7,054M (FY2025)
- Design Automation $5,302M; Design IP $1,752M
- Time-based products 49% of revenue
Value propositions, channels and customer relationships: Form 10-K (FY2025, year ended 2025-10-31)
Licenses design software and IP, with time-based products about half of revenue, to companies designing chips and systems, plus simulation and analysis software from Ansys.
01 what it draws on
Inputs & resources
- About 28,000 employees (23% in the U.S.) at FY2025 year-end
- Research and development
- Ansys simulation software
02 what it does
Activities
- EDA software for IC design and verification
- Silicon-proven IP for system-on-chips
- Simulation and analysis; design services
03 who it serves
Customers
- Semiconductor companies
- Systems companies
- Engineering users of simulation software
04 how money comes in
How it earns
- Revenue $7,054M (FY2025)
- Design Automation $5,302M; Design IP $1,752M
- Time-based products 49% of revenue
How the business makes money
- Ansys contributed $86.5M of time-based revenue in FY2025.
- Design IP fell 8% in FY2025.
- No customer above 10% of receivables.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Export controls on chip design software directly affect Synopsys’s China business.
Trade & export rules
Export rules on EDA
BIS restricts ECAD software for certain ICs and adds Chinese firms to the Entity List; restrictions in Q3 2025 were later rescinded.
Constrains the businessTouches: Customers · How it earns
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Design Automation
5,302.4 (75%)Design IP
1,751.8 (25%)
Source: Form 10-K (FY2025, year ended 2025-10-31) Two reportable segments.
10
Where it earnsSite analysis
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
United States — 44% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
3,100.1 (44%)Korea
947 (13%)Europe
888.5 (13%)China
814.3 (12%)Other
1,304.2 (18%)
Source: Form 10-K (FY2025, year ended 2025-10-31) China fell from $989.5M in FY2024.
11
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
12
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Semiconductor and systems companies.
Named by the company
What the filings disclose
Suppliers
Not a material disclosure in the 10-K.
Named by the company
13
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
The 10-K describes EDA vendors, in-house customer tools, and simulation competitors without naming them.
Competitors named in the 10-K
Peer group the company chose
Peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Compensation peer group from the 2026 proxy statement.
- Adobesite ↗
- Keysight Technologiessite ↗
- Akamai Technologiessite ↗
- KLA Corporationsite ↗
- Analog Devicessite ↗
- Marvell Technologysite ↗
- Autodesksite ↗
- Microchip Technologysite ↗
- Cadence Design Systemssite ↗
- NetAppsite ↗
- CrowdStrikesite ↗
- Electronic Artssite ↗
- Palo Alto Networkssite ↗
- Fortinetsite ↗
- ServiceNowsite ↗
- Intuitsite ↗
- Workdaysite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
14
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-12-22
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-12-22
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-12-22
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-12-22
| Line item | FY202010-K on EDGAR ↗ | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 3,685 | 4,204 | 5,082 | 5,318 | 6,127 | 7,054 |
| Operating income | 620 | 735 | 1,149 | 1,273 | 1,356 | 915 |
| Pretax income | 638 | 806 | 1,103 | 1,305 | 1,514 | 1,393 |
| Net income (attributable) | 664 | 758 | 985 | 1,230 | 2,263 | 1,332 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 14.1% | 20.9% | 4.7% | 15.2% | 15.1% |
| Operating margincalcoperating income ÷ revenue × 100 | 16.8% | 17.5% | 22.6% | 23.9% | 22.1% | 13.0% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 18.0% | 18.0% | 19.4% | 23.1% | 36.9% | 18.9% |
| Balance sheet ($M) | ||||||
| Total assets | 8,030 | 8,752 | 9,418 | 10,333 | 13,074 | 48,224 |
| Total equity | 4,912 | 5,299 | 5,521 | 6,153 | 8,993 | 28,328 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 101 | 25 | 21 | 18 | 16 | 13,485 |
| Equity ratio | 61.1% | 60.5% | 58.6% | 59.5% | 68.8% | 58.7% |
| ROE | 13.5% | 14.8% | 18.2% | 21.1% | 29.9% | 7.1% |
| Cash flow ($M) | ||||||
| Operating CF | 991 | 1,493 | 1,739 | 1,703 | 1,407 | 1,519 |
| Investing CF | -360 | -549 | -573 | -482 | 1,223 | -15,881 |
| Financing CF | -141 | -749 | -1,116 | -1,197 | -181 | 13,356 |
| Free cash flowcalccash flow from operations − capital expenditures | 837 | 1,399 | 1,602 | 1,514 | 1,268 | 1,349 |
| Cash and equivalents | 1,236 | 1,433 | 1,418 | 1,434 | 3,897 | 2,888 |
| Per share & other | ||||||
| EPS ($) | 4.27 | 4.81 | 6.29 | 7.92 | 14.51 | 8.04 |
| BVPS ($) | 32.15 | 34.59 | 36.20 | 40.43 | 58.34 | 152.30 |
| P/E (x) | 50.1 | 69.3 | 46.5 | 59.3 | 35.4 | 56.5 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 38.0 | 52.8 | 31.4 | 46.0 | 45.6 | 60.3 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 6.65 | 9.63 | 8.08 | 11.61 | 8.80 | 2.98 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-07-31 | $2.48B+42.4% | $357M+116.3% | $546M+125.1% | $2.84 |
| 2026-04-30 | $2.28B+41.9% | $120M-68.0% | $17M-95.0% | $0.09 |
| 2026-01-31 | $2.41B+65.5% | $203M-19.4% | $65M-78.0% | $0.34 |
| 2025-10-31 † | $2.25B+37.8% | $121M-60.9% | $449M-59.7% | — |
| 2025-07-31 | $1.74B | $165M | $243M | $1.50 |
| 2025-04-30 | $1.6B | $376M | $345M | $2.21 |
| 2025-01-31 | $1.46B | $252M | $296M | $1.89 |
| 2024-10-31 † | $1.64B | $311M | $1.11B | — |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
15
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
3.4%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$915M × (1 − 6%) ÷ $25,410M × 100 = 3.4%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
11.15%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $84.41B ÷ ($84.41B + $13.48B) = 86.2%
e.g.Debt weight: $13.48B ÷ ($84.41B + $13.48B) = 13.8%
e.g.WACC: 12.4% × 86.2% + 3.3% × (1 − 6%) × 13.8% = 11.15%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 9.2%–13.4% and ROIC − WACC runs −10.1 to −5.8 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 11.15% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 1.36 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 12.43%
- Cost of debt
- 3.31%
- Tax rate
- 6% (effective rate, FY2023–FY2025)
- Capital structure (equity : debt)
- 86% : 14%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 11.15%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 1.36 (price-derived adjusted beta. Raw β 1.54, R² 0.24, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 1.541 + 0.33 = 1.362
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 1.36 × 5.5% = 12.4%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
16
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
9.8%
Perpetual FCF growth: g = r − FCF ÷ EV = 11.1% − 1.4%
Past FCF growth (FY2020–FY2025)
+10.0%
Compound annual rate, 5 years
Past revenue growth (FY2020–FY2025)
+13.9%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $1.35B (operating CF − capex); enterprise value $97.02B = market cap $86.5B (latest close, 2026-11-04) + debt $13.48B − cash and short-term investments $2.96B; r = WACC of 11.1% using this page’s default assumptions (β 1.36, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$103.78B
FCF $1.35B ÷ (11.1% − 9.8%)
Theoretical ÷ actual enterprise value
1.07x
Above 1x: these assumptions value the business above the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 9.1% | 10.1% | 11.1% | 12.1% | 13.1% |
|---|---|---|---|---|---|
| 0% | 0.15x | 0.14x | 0.13x | 0.11x | 0.11x |
| 2% | 0.20x | 0.17x | 0.15x | 0.14x | 0.13x |
| 4% | 0.27x | 0.23x | 0.20x | 0.17x | 0.15x |
| 6% | 0.45x | 0.34x | 0.27x | 0.23x | 0.20x |
| 8% | 1.26x | 0.66x | 0.45x | 0.34x | 0.27x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
17
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.40x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -0.6%
A small share of profit rests on accounting estimates.
- !
Core-earnings share (operating income ÷ pretax income): 66%
Non-operating items (interest income, equity-method gains, other income/expense) are having a bigger effect.
- ✓
Days sales outstanding: 77 → 63 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-12-22
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-12-22
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$1,519M ÷ $1,332M = 1.14x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$915M ÷ $1,393M × 100 = 66%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($934M + $1,505M) ÷ 2 ÷ $7,054M × 365 = 63 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
e.g.($362M + $365M) ÷ 2 ÷ $1,624M × 365 = 82 days
termsInventory · Cost of revenue (COGS)
18
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 93.6%
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- 6.4%
- Directors & officers (voting power)
- <1%
- Institutional-ownership rank
- 141 of 416
- Beta (adjusted)
- 1.36
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 34% of covered companies have more
above 1 = swings more than the market
- 179.2M shares reported by 1,446 13F filers ÷ 191.5M shares outstanding on 2026-05-22. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-02-19 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-05-22)
19
Strengths & weaknessesSite analysis
Strengths
1. Revenue growth
Revenue rose from $3,685M (FY2020) to $7,054M (FY2025).
Evidence: Form 10-K (FY2025, year ended 2025-10-31)
2. Stated leadership
Calls itself a global leader in EDA and, after Ansys, in engineering simulation and analysis software.
Evidence: Form 10-K (FY2025, year ended 2025-10-31)
3. Nine-month growth
First nine months of FY2026 revenue rose 49%.
Evidence: Form 10-Q (quarter ended 2026-07-31)
Weaknesses
1. Merger debt
Debt rose from $16M to $13,485M in FY2025.
Evidence: Form 10-K (FY2025, year ended 2025-10-31)
2. Lower profit
Operating income fell to $915M in FY2025 from $1,356M.
Evidence: Form 10-K (FY2025, year ended 2025-10-31)
3. Design IP decline
Design IP revenue fell 8% in FY2025.
Evidence: Form 10-K (FY2025, year ended 2025-10-31)
20
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
56.5x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
—
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
—
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
1.6%
(Operating CF − capex) ÷ market cap
1. Silicon to systems
Combines EDA, IP and simulation after Ansys.
- What has to hold
- Integration delivers.
- The other side
- Debt and integration risk.
Evidence: Form 10-K (FY2025, year ended 2025-10-31)
2. Recurring licensing
Time-based products were 49% of FY2025 revenue.
- What has to hold
- Renewals continue.
- The other side
- Export limits on China.
Evidence: Form 10-K (FY2025, year ended 2025-10-31)
Pays no dividend.
21
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
100x+
$2.96B vs. $22M
Interest coverage (operating income ÷ interest expense)
2.0x
$915M vs. $447M
Free cash flow ÷ dividends paid
—
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | -32.5% in FY2025 ($1.36B → $915M) | Not yet, as of FY2025 |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Profitable through 2020
Net income of $664M in FY2020.
Source: Form 10-K (FY2025, year ended 2025-10-31)
22
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Synopsys faces securities and derivative suits and BIS subpoenas; no loss has been accrued for these.
3 open matters (2 flagged as major)
In re Synopsys, Inc. Securities Litigation
PendingClass actionMajorShareholders; Synopsys and officers
Shareholder complaints filed October 31 and November 25, 2025 were consolidated; lead plaintiffs were appointed July 21, 2026.
- Next step
- Defendants’ response was due by November 4, 2026.
BIS subpoenas
PendingGovernment investigationMajorBIS; Synopsys
Administrative subpoenas from the Bureau of Industry and Security seek information on transactions with certain Chinese entities.
Ansys Korea tax appeals
PendingTax disputeKorea NTS; Ansys Korea
Appeals of Korean withholding tax assessments for 2017–2023.
Company statement: Other proceedings are described as ordinary-course and not expected to be material.
Based on Form 10-Q (quarter ended 2026-07-31) — Legal Proceedings, reviewed 2026-11-05. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
23
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Geopolitics & supply chain
China export controls
- Company disclosure (summarized from the 10-K)
- BIS restrictions imposed in Q3 2025 and later rescinded hurt China business, and BIS subpoenas concern certain Chinese entities.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood High
- 2M&A & integration
Ansys integration
- Company disclosure (summarized from the 10-K)
- Ansys acquisition, completed July 17, 2025.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood Med
- 3Funding & liquidity
Debt load
- Company disclosure (summarized from the 10-K)
- About $13.5B of debt after the merger.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 4Competition & technology shift
EDA competition
- Company disclosure (summarized from the 10-K)
- Competes with EDA vendors and customers’ in-house tools.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 5Law & regulation
Securities litigation
- Company disclosure (summarized from the 10-K)
- Securities class action and derivative suits filed in 2025–2026.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
24
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (7)
decrease and our business, operating results and financial condition could be adversely affected. Read more
For example, while we have seen continued strength in the artificial intelligence and high-performance computing sectors, certain industries such as industrial, automotive and consumer electronics have recovered more slowly from recent macroeconomic uncertainty, which have affected our business and operating results.
Our Ansys business distributes its products through a global network of independent channel partners. Read more
Difficulties in ongoing relationships with channel partners, such as failure to meet performance criteria, differences in handling customer relationships or the loss of a major channel partner, could adversely affect the performance of our Ansys business. Channel partners may also result in additional compliance burdens for us and any failure by them to comply with various U.S. and foreign laws could subject us to, among other things, investigations, fines, enforcement actions, civil or criminal penalties or injunctions.
We have incurred a substantial amount of debt in connection with the Ansys Merger, including the Senior Notes and the $4.3 billion term loan. Read more
Accordingly, as of October 31, 2025, we had approximately $13.5 billion of total debt.
We or our directors or officers are subject to litigation proceedings, which are expensive, could divert management attention and harm our business.
For example, we are currently named as a defendant in recently filed securities class action complaints. Read more
The stock market in general, and Nasdaq and technological companies in particular, have experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of companies. The market price of our common stock is or may be volatile. In the past, companies that have experienced volatility in the market price of their stock have been subject to securities class action litigation.
In addition, certain of our directors and officers may be involved in ongoing securities or other lawsuits, including in the context of their roles with other public companies, and our directors or officers may in the future become
involved in such litigation. Securities litigation, including the cost to defend against, and any potential adverse outcome resulting from any such proceeding, can be expensive, time-consuming, damage our reputation and divert our management’s and board of directors’ attention from other business concerns, which could seriously harm our business. As noted above, on October 31, 2025 and November 25, 2025, respectively, two shareholder class action complaints were filed in the United States District Court for the Northern District of California against Synopsys and certain of our current directors and officers. Both complaints allege that certain material misstatements or omissions related to the performance of our Design IP segment were made in violation of federal securities laws. There is no guarantee that we will be successful in our efforts to defend against these complaints. Further…
No longer in the text (4)
Our business is subject to numerous risks and uncertainties. These risks include, but are not limited to, the following:
• As a result of the Ansys Merger, we anticipate that the scope and size of our operations and business will substantially change and will result in certain incremental risks to us, including increased competition. Read more
We may not realize the full expected benefits of the Ansys Merger.
• Changes in demand for our products due to customers reducing their expenditures, which may be a result of customer cost-cutting measures or insolvency or bankruptcy, sustained global inflationary pressures and elevated interest rates or other reasons;
• General economic and political conditions that affect the semiconductor and electronics industries, such as disruptions to international trade relationships, including tariffs, changes in Export Regulations, or other trade barriers affecting our or our suppliers’ products; and
18 more paragraphs differ; the filings below have the full text.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Dec 22, 2025 ↗ with the 10-K filed Dec 19, 2024 ↗.
25
What to watch going forwardSite analysis
- Consolidated securities complaint.
- China revenue and export rules.
- Integration savings from the restructuring.
26
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Other sources referenced in the analysis
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: November 4, 2026 15:22 (SEC EDGAR) · Source 10-K filed: December 22, 2025
Built on10-K FY2025 · filed 2025-12-22Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Synopsys’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.