Synopsys
We deliver trusted and comprehensive solutions spanning silicon design, silicon intellectual property (IP), simulation and analysis (S&A) as well as design services.
10-K, Dec 22, 2025
Source and method
In the company’s words: first descriptive sentence of 10-K Item 1, verbatim (extractive). Item 1 · Business · 10-K · 0000883241-25-000028 · filed Dec 22, 2025
Business
How does Synopsys make money?
Design Automation is 75.2% of revenue.
Source and method
Revenue by segments, FY2025.
annual report FY2025 · 0000883241-25-000028 · shares derived = part / total revenue
Calculated: share = part revenue ÷ total revenue ($7.1B).
- Design Automation: $5.3B · 75.2%
- Design IP: $1.8B · 24.8%
What is left of every $100?
Of every $100 in revenue, $19 is net income.
Source and method
Of every $100 of revenue, FY2025.
Calculated: amount ÷ revenue × 100.
- Revenue: $7.1B
- Gross profit: $5.4B
- Operating income: $915M
- Net income: $1.3B
- Free cash flow: $1.3B
Where do customers sit?
The region figures in the latest annual report overlap (regions and countries mixed) and do not add up to total revenue, so no chart is shown (nothing estimated).
In the company’s words ›
“We partner closely with our customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow.”
“We are a global leader in supplying the mission-critical EDA solutions that engineers use to design and test integrated circuits (ICs), also known as chips or silicon, and we are pioneering artificial intelligence (AI) driven chip design across the full-stack EDA suite to improve efficiency and accelerate the design, verification testing and manufacturing of advanced digital and analog chips.”
“We provide software and hardware used to validate the electronic systems that incorporate chips and the software that runs on them, including cloud-based digital and analog design flow to boost chip-design development productivity.”
Item 1 · Business · 10-K · 0000883241-25-000028 · filed Dec 22, 2025
Where did the growth actually come from?
Segments were redrawn between FY2017 and FY2025.
Source & method
- Counted
- Segment revenue as filed, first and last fiscal year of the range.
- Formulas
- Change = segment revenue (to) − segment revenue (from); share of growth = change / total revenue change (calculated). Not allocated = total revenue − sum of reported segments (calculated, never filled in).
- Guards
- Segment break: if the company redrew its segments inside the range, no share of growth is claimed. No segment break reported for this company. Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Thesis
Why do people invest?
2 reasons in the company’s own words.
Revenue +15%
“Revenues were $7.1 billion, an increase of $926.8 million or 15%, which includes revenues from Ansys of $756.6 million.”
Item 7 · MD&A · 10-K · 0000883241-25-000028 · filed Dec 22, 2025
Number check (revenue): stated $7.1B matches the stored value ($7.1B, ±10%)
Revenue: $7.1B FY2025 · +15.1% vs FY2024 · KPIs
Position (in the company’s words)
“Synopsys, Inc. (Synopsys, we, our or us) is the leader in engineering solutions from silicon to systems, enabling customers to rapidly innovate AI-powered products.”
Item 1 · Business · 10-K · 0000883241-25-000028 · filed Dec 22, 2025
Source and method
Verbatim · selection. Sentences selected by rules from the 10-K and checked word for word against it; no AI summary. Not investment advice, not a recommendation, no forecast.
2 of 2 points met the selection rules (score, subject = the metric, quoted number within ±10% of the stored value).
KPIs
How fast is revenue growing?
Revenue grew 15% to $7.1B.
Revenue grew 42% YoY to $2.5B.
Source & method
- Counted
- Total revenue, as filed in 10-K / 20-F / 10-Q XBRL.
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Did the growth reach the shareholder?
Per share, revenue grew 44.4%.
Source & method
- Counted
- Revenue and weighted-average diluted shares, as filed, first and last fiscal year of the range.
- Formulas
- Revenue per diluted share = revenue / diluted shares; growth = (to / from) − 1. All three changes are calculated.
- Guards
- IPO: if the start year ended more than 365 days before the first SEC filing and diluted shares then rose ≥25%, the range is hidden by default (Options → Include IPO-distorted periods). Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How profitable is it?
13.0% operating margin, down from 22.1%.
77.0% gross margin, down from 79.7%.
Operating income fell 33% to $915M.
Net income fell 41% to $1.3B.
R&D grew 19% to $2.5B.
SG&A grew 29% to $1.8B.
EPS diluted fell 45% to $8.04.
14.4% operating margin, up from 9.5%.
72.6% gross margin, down from 78.1%.
Operating income grew 116% YoY to $357M.
Net income grew 125% YoY to $546M.
R&D grew 15% YoY to $720M.
SG&A grew 4.2% YoY to $563M.
EPS diluted grew 89% YoY to $2.84.
Source & method
- Counted
- Income statement items, as filed.
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated. Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How much cash does it make, and where does it go?
Free cash flow: $1.3B.
Operating cash flow grew 7.9% to $1.5B.
Capex: $169M in FY2025.
Buybacks: $0 in FY2025.
Stock-based compensation grew 29% to $893M.
Free cash flow grew 18% YoY to $746M.
Operating cash flow grew 21% YoY to $813M.
Capex grew 72% YoY to $66.6M.
Buybacks: $37.5M in FY2026 Q3.
Stock-based compensation fell 13% YoY to $232M.
Source & method
- Counted
- Cash flow statement items, as filed; free cash flow = operating cash flow − capex (calculated).
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
- Note
- Prior year restated in a later filing.
How strong is the balance sheet?
$2.9B cash vs $13.5B debt.
Total debt grew 86,334% to $13.5B.
Interest expense: $447M.
Total assets grew 269% to $48.2B.
Equity grew 215% to $28.3B.
Cash grew 43% YoY to $3.6B.
Total debt fell 30% YoY to $10.0B.
Interest expense fell 9.1% YoY to $133M.
Total assets fell 1.0% YoY to $47.7B.
Equity grew 13% YoY to $31.2B.
Source & method
- Counted
- Balance sheet items at fiscal year end, as filed; total debt is derived from reported components (excl. operating leases).
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
- Note
- Prior year restated in a later filing.
Dependencies
How much revenue hangs on one customer?
One customer: 13% of revenue.
Source & method
- Counted
- Largest customers as disclosed in the annual report (share of revenue).
- Formulas
- One customer in dollars = disclosed share × total revenue of the same fiscal year (calculated), only where the filing text confirms the share is of total revenue.
- Guards
- Anonymous customers stay anonymous. Segment-based shares are never multiplied by total revenue.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Customers, suppliers, stakes and mentions ›
Only what filings state. Anonymous customers stay anonymous.
Largest customers (Synopsys annual report)
10-K · 0000883241-25-000028 · filed Dec 22, 2025
Suppliers named by Synopsys
No supplier among the covered companies is named in the filings.
Synopsys holds stakes in
No stake in a covered company found in SEC filings.
Others name Synopsys
2 competitor mentions (e.g. Cadence, GlobalFoundries) · 1 other mention (e.g. NVIDIA) · 1 partner mention (e.g. GlobalFoundries) · 1 supplier mention (e.g. Tower Semiconductor) in covered companies’ filings. Mentions, not confirmed relationships.
Risks
What could go wrong?
4 of 26 risk factors, one per theme.
Customer concentration
“Consolidation among our customers and within the industries in which we operate, as well as our dependence on a relatively small number of large customers, may negatively impact our operating results.”
Item 1A · Risk Factors · 10-K · 0000883241-25-000028 · filed Dec 22, 2025
Competition
“We operate in highly competitive industries, and if we do not continue to meet our customers’ demand for innovative technology at lower costs, our products may not be competitive or may become obsolete.”
Item 1A · Risk Factors · 10-K · 0000883241-25-000028 · filed Dec 22, 2025
Trade, government policy and geopolitics
“We are subject to governmental export and import requirements that could subject us to liability and restrict our ability to sell our products and services, which could impair our ability to compete in international markets.”
Item 1A · Risk Factors · 10-K · 0000883241-25-000028 · filed Dec 22, 2025
Economic conditions
“Uncertainty in the macroeconomic environment, and its potential impact on the semiconductor and electronics industries, may negatively affect our business, operating results and financial condition.”
Item 1A · Risk Factors · 10-K · 0000883241-25-000028 · filed Dec 22, 2025
Source and method
Short verbatim quotes from the risk factors in Item 1A, one per theme (a partial selection). Full list: 10-K.
Who’s invested
Who owns more than 5%?
Vanguard Capital Management LLC holds 7.48%.
Vanguard Capital Management LLC7.48%
13G · as of Mar 31, 2026 · filed Apr 30, 2026
BlackRock Inc.7.8% (then)
13G/A · filed Jan 26, 2024 · older than 18 months, current position unknown
Source and method
Holders above 5% from Schedule 13G/13D, SEC filings only. “(then)”: reported in a filing older than 18 months; the current position is not known from SEC 13G/13D data.
4 filings reporting a stake below 5% (e.g. after selling) not listed.
13F holders and insider trades ›
Largest institutional holders, 13F, quarter ending Jun 30, 2026
BlackRock, Inc.9.0%
16.2M shares · 13F filed Aug 7, 2026 · share of 13F-reported
Vanguard Capital Management LLC7.0%
12.5M shares · 13F filed Aug 13, 2026 · share of 13F-reported
State Street Corp5.1%
9.1M shares · 13F filed Aug 7, 2026 · share of 13F-reported
Invesco Ltd.3.4%
6.0M shares · 13F filed Aug 14, 2026 · share of 13F-reported
Fmr LLC3.3%
6.0M shares · 13F filed Aug 13, 2026 · share of 13F-reported
1,446 13F filers report positions. 13F covers managers with over $100M in US equities; it is not a full shareholder list, and shares are not a percentage of shares outstanding. 1 large filing with inconsistent reported value per share left out.
Insiders, last 12 months (Form 4, open market)
0 purchases · 14 sales · $54.8M sold
Grants, gifts and tax withholding counted separately · window Oct 14, 2025 – Oct 14, 2026
All metrics
All metrics · 38 SEC metrics, FY2016–FY2025
Income statement 13
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue | ||||||||||
| D&A | ||||||||||
| Discontinued operations | not reported | not reported | not reported | not reported | not reported | not reported | ||||
| G&A | ||||||||||
| Gross profit | ||||||||||
| Income taxes | ||||||||||
| Interest expense | ||||||||||
| Net income | ||||||||||
| Operating income | ||||||||||
| Research and development | ||||||||||
| Revenue | ||||||||||
| SG&A calc. | ||||||||||
| Sales & marketing | ||||||||||
Balance sheet 10
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash and equivalents | ||||||||||
| Current liabilities | ||||||||||
| Current portion of long-term debt | not reported | not reported | not reported | not reported | not reported | not reported | not reported | not reported | ||
| Equity | ||||||||||
| Equity incl. NCI | ||||||||||
| Long-term debt | ||||||||||
| Short-term debt (balance sheet line) | not reported | not reported | not reported | |||||||
| Total assets | ||||||||||
| Total debt calc. | ||||||||||
| Total liabilities & equity | ||||||||||
Cash flow 6
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Buybacks | ||||||||||
| Capex | ||||||||||
| Free cash flow calc. | ||||||||||
| Interest paid | ||||||||||
| Operating cash flow | ||||||||||
| Stock-based compensation | ||||||||||
Per share & shares 4
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| EPS basic | ||||||||||
| EPS diluted | ||||||||||
| Wtd. shares basic | ||||||||||
| Wtd. shares diluted | ||||||||||
Other 5
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| NCI income | not reported | not reported | ||||||||
| Other income (incl. interest) | ||||||||||
| Pretax income | ||||||||||
| Short-term borrowings / commercial paper | not reported | not reported | not reported | not reported | not reported | not reported | not reported | |||
| Total liabilities | ||||||||||
Method
extractive: verbatim sentences selected by rules from Item 1, 1A and 7; no AI summary; every sentence matched verbatim against the filing text. Numbers: Hollsteen SEC dataset. Every value opens its SEC source · version history of all values