Synopsys Inc.
SNPSFinancial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Financial Snapshot
ticker: SNPS step: 04 generated: 2026-05-12 source: quick-research
Synopsys, Inc. (SNPS) — Financial Snapshot
Note: SNPS fiscal year ends late October. "FY2025" = fiscal year ended Oct 2025.
Income Statement Summary
| Metric | FY2024 | FY2025 | FY2026E | YoY |
|---|---|---|---|---|
| Revenue | $6.13B | $7.05B (record) | $9.56-9.66B | +35-37% (Ansys) |
| Organic Revenue Growth | +15% | +15% | continues | |
| Non-GAAP Operating Margin | 36% | 38% | 38-40% | improving |
| Non-GAAP Net Income | $1.85B | $2.14B | ~$2.5B | +17% |
| Non-GAAP EPS | $11.95 | $12.91 | $14.32-14.40 | +11% |
| FCF | $1.4B | $1.5B | ~$1.9B | +27% |
Q1 FY2026 Highlights (Feb 2026 reporting)
| Metric | Q1 FY26 | YoY |
|---|---|---|
| Revenue | $2.41B | +65.6% (Ansys) |
| Organic Revenue Growth | +15% | (ex-Ansys) |
| GAAP Net Income | declined 78% | (Ansys integration costs + amortization) |
| Buyback Authorization | +$2B added |
Segment Mix (FY2026 expected)
| Segment | Revenue |
|---|---|
| EDA | ~$5B |
| IP | ~$2B |
| Ansys (Multiphysics) | ~$2.9B |
| Software Integrity | ~$0.6B |
Ansys Acquisition Impact
| Metric | Value |
|---|---|
| Deal Value | $35B (closed July 2025) |
| Q4 FY25 Ansys contribution | $667.7M |
| FY26 Ansys contribution | $2.9B (full year) |
| Combined TAM | $31B (vs $19B EDA-only) |
| GAAP amortization (Q1 FY26) | $404M |
Debt Reduction Plan
| Period | Status |
|---|---|
| Post-Ansys debt | $13.5B |
| Q4 FY25 repayment | $850M |
| November 2025 repayment | $900M |
| FY26 plan | Repay remaining $2.55B |
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$2.0B |
| Capital Expenditures | ~$200M |
| Free Cash Flow | $1.5B |
| Cash & Investments | ~$4B |
| Total Debt | ~$10B (post-FY26 paydown plan) |
| Net Debt/EBITDA | ~3x → declining |
Key Ratios (approximate, May 2026)
- P/E (forward FY26): ~36x | EV/Sales: ~14x | FCF Yield: ~1.7%
- ROIC: ~20%
- Recurring Revenue: ~90%+
Growth Profile
FY25 record revenue $7.05B. FY26 guide $9.56-9.66B (includes $2.9B Ansys + 15%+ organic EDA growth). Combined silicon-to-systems platform. Synopsys.ai delivers 10x design turnaround per customer reports. Elliott activist pushing for margin expansion toward Cadence levels (~42% operating margin).
Forward Estimates
- FY2026E Revenue: $9.56-9.66B (mgmt)
- FY2026E Non-GAAP EPS: $14.32-14.40 (mgmt)
- FY2027E Revenue: ~$10.5-11B (+10%)
- FY2027E EPS: ~$16-17 (+12-15%)
- Bull Case Target (1yr): $688 (~42% return)
- Bear Case Target: $519 (~7% return)
Capital Return
- No dividend
- $2B buyback added Q1 FY26
- Buyback runway accelerates as debt declines
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $SNPS.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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