Record full-year 2025 revenue of $7.054 billion. Fourth-quarter revenue of $2.255 billion, exceeding midpoint of guidance.
Full-year and fourth-quarter non-GAAP earnings per diluted share (EPS) exceeded guidance.
Expecting fiscal year 2026 revenue of $9.610 billion at mid-point, including $2.9 billion of expected Ansys revenue and reflecting the impact of approximately $110 million of divested Optical Solutions Group and PowerArtist RTL businesses.
SUNNYVALE, Calif., Dec. 10, 2025 /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today reported results for its fourth quarter and fiscal year 2025. Revenue for the fourth quarter of fiscal year 2025 was $2.255 billion, compared to $1.636 billion for the fourth quarter of fiscal year 2024. Ansys contributed $667.7 million in revenue for the fourth quarter of fiscal year 2025. Revenue for fiscal year 2025 was $7.054 billion, an increase of approximately 15% from $6.127 billion in fiscal year 2024. Ansys contributed $756.6 million in revenue for fiscal year 2025.
"The Synopsys team delivered a solid finish to a year that redefined our company as the leader in engineering solutions from silicon to systems," said Sassine Ghazi, president and CEO of Synopsys. "We enter fiscal year 2026 with an intense focus on driving sustainable growth and margin expansion through continued innovation and disciplined execution."
"We finished the year with record revenue and strong backlog of $11.4 billion dollars, which underscores the resilience of business," said Shelagh Glaser, CFO of Synopsys. "We expect to set another revenue record in 2026 while fully integrating Ansys, driving further operational efficiency, and capitalizing on our expanded opportunity."
GAAP ResultsOn a U.S. generally accepted accounting principles (GAAP) basis, net income for the fourth quarter of fiscal year 2025 was $448.7 million, or $2.39 per diluted share, compared to $279.3 million, or $1.79 per diluted share, for the fourth quarter of fiscal year 2024. GAAP net income for fiscal year 2025 was $1.336 billion, or $8.07 per diluted share, compared to $1.442 billion, or $9.25 per diluted share, for fiscal year 2024.
Non-GAAP ResultsOn a non-GAAP basis, net income for the fourth quarter of fiscal year 2025 was $543.1 million, or $2.90 per diluted share, compared to non-GAAP net income of $529.9 million, or $3.40 per diluted share, for the fourth quarter of fiscal year 2024. Non-GAAP net income for fiscal year 2025 was $2.138 billion, or $12.91 per diluted share, compared to non-GAAP net income of $2.058 billion, or $13.20 per diluted share, for fiscal year 2024.
For a reconciliation of net income, earnings per diluted share and other measures on a GAAP and non-GAAP basis, see "GAAP to Non-GAAP Reconciliation" in the accompanying tables below.
Business Segments Synopsys reports revenue and operating income in two segments: (1) Design Automation, which includes our advanced silicon design, verification products and services, Ansys products, system integration products and services, digital, custom and field programmable gate array IC design software, verification software and hardware products, manufacturing software products and other; and (2) Design IP, which includes our interface, foundation, security, and embedded processor IP, IP subsystems, and IP implementation services.
Continuing Operations On September 30, 2024, Synopsys completed the sale of its Software Integrity business. Unless otherwise noted, Synopsys' Software Integrity business has been presented as a discontinued operation in the Synopsys' consolidated financial statements for all periods presented herein and all financial results and targets are presented herein on a continuing operations basis.
Financial TargetsSynopsys also provided its consolidated financial targets for the first quarter and full fiscal year 2026. These targets also assume no further changes to export control restrictions or the current U.S. government "Entity List" restrictions. These targets constitute forward-looking statements and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see "Forward-Looking Statements" below.
First Quarter and Full Fiscal Year 2026 Financial Targets
(in millions except per share amounts)
Range for Three Months Ending
Range for Fiscal Year Ending
January 31, 2026
October 31, 2026
Low
High
Low
High
Revenue
$ 2,365
$ 2,415
$ 9,560
$ 9,660
GAAP Expenses
$ 2,165
$ 2,230
$ 8,468
$ 8,608
Non-GAAP Expenses
$ 1,395
$ 1,425
$ 5,690
$ 5,750
Non-GAAP Interest and Other Income
(Expense), net
$ (154)
$ (150)
$ (515)
$ (505)
Non-GAAP Tax Rate
18 %
18 %
18 %
18 %
Outstanding Shares (fully diluted)
190
192
192
194
GAAP EPS
$ 0.22
$ 0.41
$ 2.49
$ 2.90
Non-GAAP EPS
$ 3.52
$ 3.58
$ 14.32
$ 14.40
Operating Cash Flow
~$2,200
Free Cash Flow(1)
~$1,900
Capital Expenditures
~$300
(1) Free cash flow is calculated as cash provided from operating activities less capital expenditures.
For a reconciliation of Synopsys' first quarter and fiscal year 2026 targets, including expenses, earnings per diluted share and other measures on a GAAP and non-GAAP basis and a discussion of the financial targets that we are not able to reconcile without unreasonable efforts, see "GAAP to Non-GAAP Reconciliation" in the accompanying tables below.
Earnings Call Open to InvestorsSynopsys will hold a conference call for financial analysts and investors today at 2:00 p.m. Pacific Time. A live webcast of the call will be available on Synopsys' corporate website at investor.synopsys.com. Synopsys uses its website as a tool to disclose important information about Synopsys and comply with its disclosure obligations under Regulation Fair Disclosure. A webcast replay will also be available on the corporate website from approximately 5:30 p.m. Pacific Time today through the time Synopsys announces its results for the first quarter of fiscal year 2026.
Effectiveness of InformationThe targets included in this press release, the statements made during the earnings conference call, the information contained in the financial supplement and the corporate overview presentation, each of which are available on Synopsys' corporate website at www.synopsys.com (collectively, the "Earnings Materials"), represent Synopsys' expectations and beliefs as of December 10, 2025. Although these Earnings Materials will remain available on Synopsys' website through the date of the earnings call for the first quarter of fiscal year 2026, their continued availability through such date does not mean that Synopsys is reaffirming or confirming their continued validity. Synopsys undertakes no duty and does not intend to update any forward-looking statement, whether as a result of new information or future events, or otherwise update, the targets given in this press release unless required by law.
Availability of Final Financial StatementsSynopsys will include final financial statements for the fiscal year 2025 in its annual report on Form 10-K to be filed on or before December 30, 2025.
Reconciliation of Fourth Quarter and Fiscal Year 2025 ResultsThe following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income, earnings per diluted share, and tax rate for the periods indicated below.
GAAP to Non-GAAP Reconciliation of Fourth Quarter and Fiscal Year 2025 Results(1)
(unaudited and in thousands, except per share amounts)
Three Months Ended
Twelve Months Ended
October 31,
October 31,
2025
2024
2025
2024
GAAP net income from continuing operations
attributed to Synopsys
$ 448,696
$ 279,281
$ 1,336,120
$ 1,441,710
Adjustments:
Amortization of acquired intangible assets
405,190
54,258
504,383
104,220
Stock-based compensation
237,385
165,116
893,110
656,632
Acquisition/divestiture related items
(512,831)
62,428
(248,476)
172,638
(Gain) loss on sale of strategic investments
—
—
3,635
(55,077)
Tax adjustments
(35,332)
(31,158)
(350,885)
(262,322)
Non-GAAP net income from continuing operations
attributed to Synopsys
$ 543,108
$ 529,925
$ 2,137,887
$ 2,057,801
Three Months Ended
Twelve Months Ended
October 31,
October 31,
2025
2024
2025
2024
GAAP net income from continuing operations per diluted share attributed to Synopsys
$ 2.39
$ 1.79
$ 8.07
$ 9.25
Adjustments:
Amortization of acquired intangible assets
2.16
0.35
3.04
0.67
Stock-based compensation
1.27
1.06
5.39
4.21
Acquisition/divestiture related items
(2.74)
0.40
(1.50)
1.11
(Gain) loss on sale of strategic investments
—
—
0.02
(0.35)
Tax adjustments
(0.18)
(0.20)
(2.11)
(1.69)
Non-GAAP net income from continuing operations per diluted share
attributed to Synopsys
$ 2.90
$ 3.40
$ 12.91
$ 13.20
Shares used in computing net income per diluted share amounts:
187,502
155,991
165,656
155,944
(1) Synopsys' fourth quarter of fiscal year 2025 and 2024 ended on October 31, 2025 and November 2, 2024, respectively. For presentation purposes, we refer to the closest calendar month end. Fiscal year 2024 was a
53-week year, which included an extra week in the first quarter.
GAAP TO NON-GAAP TAX RATE RECONCILIATION (1)
(Unaudited)
Twelve Months Ended
October 31, 2025
GAAP effective tax rate
4.0 %
Stock-based compensation
(1.3) %
Income tax adjustments (2)
13.3 %
Non-GAAP effective tax rate
16.0 %
(1) Presented on a continuing operations basis.
(2) The tax adjustments are primarily due to the capital loss on the sale of Synopsys' ownership in OpenLight Photonics, Inc., the tax benefit from the release
of valuation allowance on California research credits due to the Ansys Merger, the differences in the tax rate effect of certain deductions, such as the deduction for
foreign-derived intangible income and credits, and the impact of discrete uncertain
tax positions.
Reconciliation of 2026 TargetsThe following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP targets for the periods indicated below.
GAAP TO NON-GAAP RECONCILIATION OF FIRST QUARTER FISCAL YEAR 2026 TARGETS
(in thousands, except per share amounts)
Range for Three Months Ending
January 31, 2026
Low
High
Target GAAP expenses
$ 2,165,000
$ 2,230,000
Adjustments:
Amortization of acquired intangible assets
(400,000)
(405,000)
Stock-based compensation
(260,000)
(270,000)
Restructuring charges
(110,000)
(130,000)
Target non-GAAP expenses
$ 1,395,000
$ 1,425,000
Range for Three Months Ending
January 31, 2026
Low
High
Target GAAP earnings per diluted share attributed to Synopsys
$ 0.22
$ 0.41
Adjustments:
Amortization of acquired intangible assets
2.12
2.09
Stock-based compensation
1.41
1.36
Restructuring charges
0.68
0.58
Tax adjustments
(0.91)
(0.86)
Target non-GAAP earnings per diluted share attributed to Synopsys
$ 3.52
$ 3.58
Shares used in non-GAAP calculation (midpoint of target range)
191,000
191,000
GAAP TO NON-GAAP RECONCILIATION OF FULL FISCAL YEAR 2026 TARGETS
(in thousands, except per share amounts)
Range for Fiscal Year Ending
October 31, 2026
Low
High
Target GAAP expenses
$ 8,468,000
$ 8,608,000
Adjustments:
Amortization of acquired intangible assets
