# Synopsys Inc. (SNPS) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/SNPS/thesis · /stocks/SNPS/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/SNPS/fundamental

## Navigation

- Overview: /stocks/SNPS
- Financials (this page): /stocks/SNPS/financials
- Thesis: /stocks/SNPS/thesis
- Investment Memo: /stocks/SNPS/memo
- Coverage universe: /stocks