Synopsys, Inc.'s Stock Analysis

Synopsys Reports Strong Fourth Quarter and Fiscal Year 2025 Results

Synopsys, Inc. reported revenue of $2.255 billion for the fourth quarter of fiscal year 2025, a significant increase from $1.636 billion in the same quarter of the previous year. The total revenue for the fiscal year 2025 reached $7.054 billion, representing a 15% growth compared to $6.127 billion in fiscal year 2024. Notably, Ansys contributed $667.7 million in revenue for the fourth quarter and $756.6 million for the full fiscal year. The company ended the year with a record backlog of $11.4 billion, indicating strong business resilience and growth potential moving forward.

On a GAAP basis, Synopsys achieved a net income of $448.7 million for the fourth quarter, equating to $2.39 per diluted share, compared to $279.3 million, or $1.79 per diluted share, in the prior year. For the fiscal year, net income was $1.336 billion, or $8.07 per diluted share, down from $1.442 billion, or $9.25 per diluted share, in fiscal year 2024. Non-GAAP results showed fourth-quarter net income of $543.1 million, or $2.90 per diluted share, and fiscal year net income of $2.138 billion, or $12.91 per diluted share, reflecting slight variations from the previous year. Synopsys is focused on integrating Ansys and driving operational efficiency as it moves into fiscal year 2026.

Dec 10, 2025 16:12:33

NVIDIA Invests $2 Billion in Synopsys Shares

On December 1, 2025, Synopsys entered into a Securities Purchase Agreement with NVIDIA, resulting in NVIDIA acquiring 4,821,717 shares of Synopsys’ common stock at a price of $414.79 per share, totaling $2 billion in cash. This transaction is classified as a private placement under Section 4(a)(2) of the Securities Act of 1933, and a joint press release was issued to announce the agreement.

The partnership aims to integrate NVIDIA’s AI and accelerated computing capabilities with Synopsys’ engineering solutions, addressing challenges faced by R&D teams across various industries. This collaboration seeks to enhance design, simulation, and verification processes, enabling the development of intelligent products more efficiently. The companies will continue to work together with the broader semiconductor and electronic design automation ecosystem to create growth opportunities in engineering and design.

Dec 01, 2025 08:49:17

Synopsys Plans Workforce Reduction and Financial Charges Ahead

Synopsys, Inc. has approved a restructuring plan that will result in the termination of approximately 10% of its workforce by the end of fiscal 2025. This decision aims to enable the company to invest in growth opportunities and improve operational efficiencies following its acquisition of ANSYS, Inc. The company estimates pre-tax charges of $300 million to $350 million related to severance, termination benefits, and site closures as part of this strategy.

The majority of the workforce reductions are expected to take place in fiscal year 2026, with plans to complete the restructuring by the end of fiscal year 2027, subject to local laws and consultations. These changes may impact Synopsys' financial results, and the company has outlined various risks and uncertainties associated with the implementation of the restructuring and potential changes in costs and timing.

Nov 12, 2025 09:15:50

Synopsys Announces Departure of Chief Revenue Officer Rick Mahoney

On November 4, 2025, Synopsys, Inc. announced that Rick Mahoney is no longer serving as the Chief Revenue Officer, effective immediately. The company is currently in the advanced stages of searching for a replacement and expects to make an announcement soon.

Synopsys reaffirmed its financial targets for the fourth quarter and the full fiscal year 2025. The company plans to discuss its financial results during an earnings call scheduled for December 10, 2025.

Nov 04, 2025 09:15:40

Synopsys Reports Third Quarter Fiscal 2025 Financial Results

Synopsys, Inc. reported revenue of $1.740 billion for the third quarter of fiscal year 2025, an increase from $1.526 billion in the same period the previous year. The company's net income on a GAAP basis was $242.5 million, or $1.50 per diluted share, down from $425.9 million, or $2.73 per diluted share, in the third quarter of fiscal year 2024. Non-GAAP net income stood at $548.9 million, or $3.39 per diluted share, slightly up from $535.5 million, or $3.43 per diluted share, in the prior year. The company noted a significant acquisition of Ansys, which is expected to enhance its portfolio and customer base, although its IP business underperformed expectations during this quarter.

For the fourth quarter and full fiscal year 2025, Synopsys provided consolidated financial targets, reflecting a change in its fiscal year structure. The company anticipates a conservative outlook for Q4, while still guiding for another year of profitable growth. The results and targets are based on continuing operations following the sale of its Software Integrity business. Investors can access further details through the upcoming earnings call and on the company's corporate website.

Sep 09, 2025 16:15:11

Synopsys Completes Acquisition of Ansys, Expanding Market Reach

Synopsys, Inc. has completed its acquisition of Ansys, Inc., with the transaction officially finalized on July 17, 2025. Under the terms of the merger, Ansys stockholders received a combination of Synopsys stock and cash, with adjustments made to the exchange ratio to comply with regulatory limits. The merger is expected to enhance Synopsys' capabilities in engineering solutions, particularly in silicon design and system simulations, thereby expanding its total addressable market significantly.

Following the merger, Synopsys appointed former Ansys executives Ajei Gopal and Ravi Vijayaraghavan to its board of directors. The acquisition is anticipated to strengthen Synopsys' financial position, with expectations of margin expansion and increased cash flow. Ansys common stock will no longer be traded on NASDAQ, marking a significant shift in Synopsys' operational structure and market strategy.

Jul 17, 2025 09:05:43

Synopsys Receives Approvals for Ansys Acquisition Completion

Synopsys, Inc. has received all necessary approvals to proceed with its acquisition of Ansys, Inc. The transaction, announced on January 16, 2024, is expected to close on or about July 17, 2025, pending the satisfaction of remaining customary closing conditions. This acquisition aims to combine Synopsys' silicon design solutions with Ansys' simulation and analysis capabilities, creating a leader in engineering solutions from silicon to systems.

Investors are advised to review the registration statement and proxy statement/prospectus filed with the SEC for important information regarding the proposed transaction. These documents detail the transaction's terms and any associated risks. Free copies of the relevant filings can be obtained from the SEC's website or directly from Synopsys and Ansys' investor relations pages.

Jul 14, 2025 09:05:17

Synopsys Exports to China Resume After Restrictions Lifted

On July 2, 2025, Synopsys received notification from the U.S. Department of Commerce that export restrictions related to China have been rescinded, effective immediately. The company is now working to restore access to its products that were previously restricted in the Chinese market.

Synopsys is currently assessing the impact of these export restrictions on its business operations and financial results. This development may influence the company's performance and stock price as it navigates the restoration of product access in China.

Jul 03, 2025 09:16:56

Synopsys Rescinds Export Restrictions for Products in China

On July 2, 2025, Synopsys received notification from the U.S. Department of Commerce that export restrictions related to China have been rescinded, effective immediately. The company is now working to restore access to the products that were previously restricted in the Chinese market.

Synopsys is evaluating the implications of the lifted restrictions on its business, operating results, and financial performance. The company aims to assess how these changes may influence its operations moving forward.

Jul 03, 2025 09:16:56

Synopsys Receives Export Restrictions Letter from U.S. Government

On May 29, 2025, Synopsys announced it received a letter from the Bureau of Industry and Security of the U.S. Department of Commerce regarding new export restrictions related to China. The company is currently evaluating the potential effects of these restrictions on its business and financial condition.

This development follows the release of Synopsys' financial results for the second fiscal quarter ending April 30, 2025. The company has indicated that it is assessing the implications of the BIS Letter, which may impact its operating results.

May 29, 2025 16:57:25