Synopsys

SNPS · Nasdaq · Information Technology · Financials, fiscal 2016 to 2025

SNPS · Last close · October 26, 2026

$454.33

Synopsys' revenue rose 15.1% to $7.1 billion in fiscal 2025. Its operating margin was 13.0%, down from 22.1% a year earlier. Free cash flow was $1.3 billion, up 6.4%. The diluted share count rose 6.2%.

SYNOPSYS INC Latest fiscal year ended October 31, 2025 10-K filed December 22, 2025 · 0000883241-25-000028 Updated October 9, 2026

Revenue

$7.1B

15.1%

Operating margin

13.0%

9.2 pts

Net income

$1.3B

41.1%

Free cash flow

$1.3B

6.4%

Return on capital

4.0%

22.5 pts

Market cap

$87.4B

Oct 26 close

P/E

79.4x

On $5.72 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

What Synopsys does

Synopsys sells software, hardware and services that engineers use to design and test computer chips. This type of software is called electronic design automation, or EDA. Its tools cover the steps from the first chip design to verification and manufacturing, and it also sells hardware used to test systems that include chips, plus technical support and design services. Customers are chip makers and electronics companies, and, through its Ansys products, engineers in fields such as aerospace, automotive, energy and healthcare.

It reports two segments. Design Automation includes EDA, the Ansys simulation and analysis software, and other revenue. Design IP sells pre-designed circuit blocks, such as memory and interface designs, that engineers drop into larger chips to save time. The Ansys merger added simulation software that is used to analyze designs before they are built.

Synopsys says it faces strong competition and relies on the semiconductor and electronics industries for growth. It has 189 offices worldwide, with its headquarters in Sunnyvale, California.

Its biggest risks, as it describes them

Its growth depends mainly on the semiconductor and electronics industries.
Heavy competition, and a need to give customers new technology at lower costs.
A relatively small number of large customers, and consolidation among customers.
Not gaining the expected benefits of the Ansys merger or other deals.
Export and import rules that could limit what it can sell and where.

From Synopsys's annual report on Form 10-K, filed December 22, 2025, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2016 to 2025, earnings per share grew 18.6% a year and net income 19.6% a year, as new shares raised the share count by 7% and diluted each share's earnings.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Synopsys yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

What Synopsys says to expect

Fiscal 2026: revenue and non-GAAP earnings per shareRaising 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

The company's own words, from its earnings release (Form 8-K, Exhibit 99), filed August 26, 2026. They are its expectations, not ours, and not a forecast or price target from The Filing Desk. Replaced when the next release is out.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Synopsys' 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Synopsys' fiscal 2025 free cash flow of $1.3B, net cash of −$10.5B at October 31, 2025 and 166 million diluted shares, from its filings. The scenarios are fitted to Synopsys: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 11.6% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 9% for a business of moderate risk (Application Software); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at October 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Synopsys's own revenue growth, as above. Cautious: growth of 6% then 4% a year, 2% after year 10, a 10% discount rate. Base: growth of 11.5% then 7% a year, 2.5% after year 10, a 9% discount rate. Optimistic: growth of 17.5% then 10% a year, 3% after year 10, a 8% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $454.33
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Synopsys' earnings per share of $5.72 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 33.3×, the middle of Synopsys' own P/E today, its peers' median and its sector's median (the Information Technology median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 10%, 9% and 8%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to July 31, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: Autodesk, SS&C Technologies, Cadence Design Systems.

Earnings growth in the years ahead (% a year) Starts at Synopsys' revenue growth over the last 3 years, 11.6% a year, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $454.33
Value at this multiple, against the last close: —
Synopsys' P/E at the last close: 79.4×

Company	Last close	Earnings per share	P/E today
SynopsysSNPS	$454.33	$5.72	79.4×
Cadence Design SystemsCDNS	$322.17	$4.29	75.1×
AutodeskADSK	$249.45	$7.72	32.3×
SS&C TechnologiesSSNC	$82.01	$3.47	23.6×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	1,581	1,566	1,586	4,050	2,961
Debt incl. finance leases	25	21	18	16	13,484
Net debt (negative means net cash)	−1,556	−1,545	−1,568	−4,035	10,524
Net debt to EBITDA	−1.7x	−1.1x	−1.0x	−2.4x	6.7x
Debt to equity	0.0x	0.0x	0.0x	0.0x	0.5x
Interest coverage	218.4x	676.5x	1,080.8x	36.8x	2.0x
Current ratio	1.2x	1.1x	1.1x	2.4x	1.6x
Quick ratio	1.1x	1.0x	1.0x	2.3x	1.5x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Synopsys shares on the open market, and 5 insiders sold $61.5 million, $54.9 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Oct 15, 2026	Sassine GhaziPresident and CEO, Director	Sold plan	14,604	$462.84	$6.8 million	Form 4
Oct 6, 2026	Sudhindra KankanwadiDeputy CFO & CAO	Sold	9,170	$500.00	$4.6 million	Form 4
Oct 6, 2026	Janet LeeGC & Corporate Secretary	Sold	1,144	$502.52	$574,685	Form 4
Oct 5, 2026	Sudhindra KankanwadiDeputy CFO & CAO	Sold	3,000	$484.78	$1.5 million	Form 4
Sep 15, 2026	Sassine GhaziPresident and CEO, Director	Sold plan	14,604	$374.88	$5.5 million	Form 4
Sep 1, 2026	Geus Aart DeExecutive Chair, Director	Sold plan	24,641	$419.44	$10.3 million	Form 4
Aug 31, 2026	Geus Aart DeExecutive Chair, Director	Sold plan	25,000	$441.76	$11.0 million	Form 4
Aug 28, 2026	Geus Aart DeExecutive Chair, Director	Sold plan	25,000	$445.55	$11.1 million	Form 4
Jun 15, 2026	Sassine GhaziPresident and CEO, Director	Sold plan	14,603	$458.96	$6.7 million	Form 4
Jun 12, 2026	Shelagh GlaserCFO	Sold plan	3,394	$450.02	$1.5 million	Form 4
Jan 12, 2026	Janet LeeGC & Corporate Secretary	Sold plan	250	$530.00	$132,500	Form 4
Jan 7, 2026	Janet LeeGC & Corporate Secretary	Sold plan	250	$510.00	$127,500	Form 4

The latest 12 of 13 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Pass	Fail
Cash from operations exceeds net income	Pass	Fail	Pass
Debt fell relative to assets	Pass	Pass	Fail
Current ratio rose	Pass	Pass	Fail
Share count didn't rise	Pass	Fail	Fail
Gross margin rose	Pass	Fail	Fail
Revenue rose relative to assets	Fail	Pass	Fail
F-score	8 of 9	6 of 9	3 of 9
Accruals ratio	−4.8%	7.3%	−0.6%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Synopsys side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Synopsys	FY25	15.1%	13.0%	19.1%	4.0%	6.7x	3
Autodesk	FY26	17.5%	21.9%	33.4%	37.0%	−0.1x	8	Compare
Atlassian	FY26	26.0%	0.2%	20.1%	—	−1.7x	7	Compare
SS&C Technologies	FY25	6.6%	22.9%	26.5%	8.7%	3.3x	6	Compare
Cadence Design Systems	FY25	14.1%	28.2%	30.0%	23.7%	−0.4x	5	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	2,422	2,725	3,121	3,361	3,685	4,204	5,082	5,318	6,127	7,054
Revenue growth	8.0%	12.5%	14.5%	7.7%	9.7%	14.1%	20.9%	4.7%	15.2%	15.1%
Gross profit	1,880	2,071	2,385	2,608	2,891	3,342	3,718	4,287	4,882	5,431
Research and development	857	909	1,085	1,137	1,279	1,505	1,590	1,850	2,082	2,479
Operating income	317	348	360	520	620	735	1,149	1,273	1,356	915
Net income	267	137	432	532	664	758	985	1,230	2,263	1,332
Diluted EPS (US$)	1.73	0.88	2.82	3.45	4.27	4.81	6.29	7.92	14.51	8.04
Diluted shares (millions)	155	155	153	154	156	157	156	155	156	166
Cash flow
Cash from operations	587	632	424	800	991	1,493	1,739	1,703	1,407	1,519
Capital expenditure	67	70	99	198	155	94	137	190	140	170
Free cash flow	520	562	325	602	837	1,399	1,602	1,514	1,268	1,349
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	400	380	400	329	242	753	1,100	1,161	0	0
Acquisitions	0	0	0	0	0	0	0	0	0	0
Stock-based compensation	98	108	140	155	249	345	459	563	692	893
Balance sheet at fiscal year end
Cash and short-term investments	1,117	1,048	723	729	1,236	1,581	1,566	1,586	4,050	2,961
Debt incl. finance leases	0	134	126	120	101	25	21	18	16	13,484
Total assets	5,240	5,396	6,146	6,405	8,030	8,752	9,418	10,333	13,074	48,224
Total liabilities	2,045	2,117	2,661	2,316	3,118	3,453	3,859	4,149	4,050	19,897
Shareholders' equity	3,195	3,276	3,479	4,083	4,907	5,295	5,516	6,147	8,991	28,328
Margins and ratios
Gross margin	77.6%	76.0%	76.4%	77.6%	78.4%	79.5%	73.2%	80.6%	79.7%	77.0%
Operating margin	13.1%	12.8%	11.5%	15.5%	16.8%	17.5%	22.6%	23.9%	22.1%	13.0%
Net margin	11.0%	5.0%	13.9%	15.8%	18.0%	18.0%	19.4%	23.1%	36.9%	18.9%
Free cash flow margin	21.4%	20.6%	10.4%	17.9%	22.7%	33.3%	31.5%	28.5%	20.7%	19.1%
Return on capital	12.1%	7.8%	13.7%	15.9%	17.1%	18.4%	26.0%	27.7%	26.5%	4.0%
Return on equity	8.4%	4.2%	12.8%	14.1%	14.8%	14.8%	18.2%	21.1%	29.9%	7.1%
Return on assets	5.2%	2.6%	7.5%	8.5%	9.2%	9.0%	10.8%	12.4%	19.3%	4.3%
Net debt to EBITDA	−2.1x	−1.7x	−1.1x	−0.8x	−1.4x	−1.7x	−1.1x	−1.0x	−2.4x	6.7x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Synopsys' Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Synopsys.