Synopsys, Inc. — Executive summary (from Form 10‑K, fiscal year ended October 31, 2025)

Basic company facts

• Name / ticker: Synopsys, Inc. (SNPS — Nasdaq Global Select Market)
• Headquarters: 675 Almanor Avenue, Sunnyvale, California 94085
• Website: https://www.synopsys.com/
• Number of offices: 189 offices worldwide
• Stockholders of record: 331 (as of December 15, 2025)
• Shares outstanding: 191,318,206 shares (as of December 15, 2025)
• Aggregate market value of non‑affiliate common equity (as of last business day of registrant’s most recently completed second fiscal quarter): approximately $59.3 billion

Employees / human capital

• Total employees: approximately 28,000 (fiscal 2025 year‑end)
  • ~23% located in the United States; ~77% located outside the U.S.
  • ~75% of employees are engineers
  • Over half of employees hold Master’s or PhD degrees
• Voluntary turnover (fiscal 2025): 5.7%
• Major people initiatives: training, leadership development, hybrid work supports, total rewards (cash, equity, benefits)

What the company does (core business & positioning)

Synopsys describes itself as a leader in “engineering solutions from silicon to systems,” supplying tools, IP, simulation & analysis, and services used to design, verify, test and optimize semiconductor chips (ICs) and the electronic systems that incorporate them. The company emphasizes AI‑driven flows and platforms to accelerate chip and system design.

Primary offerings (high level):

• Design Automation (EDA) — digital and custom IC design tools, verification (simulation, formal, emulation, prototyping), manufacturing/TA CAD tools, and AI‑driven EDA (Synopsys.ai). Cloud deployment options (Synopsys Cloud, partnership with Microsoft Azure).
• Ansys simulation & analysis (S&A) products (acquired in 2025) — multiphysics engineering simulation across structures, fluids, electronics, optics/photonic modeling, and semiconductor multiphysics signoff tools.
• Design IP — silicon‑proven IP portfolio (interfaces such as PCIe/USB/DDR/CXL/HBM/UCIe, logic libraries, embedded memories, security IP, configurable processors including ARC, automotive/functional‑safety IP, verification IP, IP subsystems and implementation services).
• Professional services, customer support, training and SoC architecture / integration services (e.g., IP Accelerated).

Market position claims:

• Global leader in EDA and in engineering S&A software (Ansys).
• Broadest portfolio of semiconductor IP (Synopsys IP).

Organization / reportable segments

• Design Automation segment (includes: EDA, Ansys S&A products, system integration)
• Design IP segment (interface, foundation, security, embedded processor IP, IP subsystems, implementation services)

FY2025 financial summary (consolidated; dollars in millions)

• Revenue (FY2025): $7,054.2 million (increase of 15% vs FY2024)
  • Design Automation revenue: $5,302.4 million
  • Design IP revenue: $1,751.8 million
  • Contracted but unsatisfied or partially unsatisfied performance obligations (backlog) as of 10/31/2025: approximately $11.4 billion (includes ~$2.0B in non‑cancellable FSA commitments)
  • Time‑based products revenue (FY2025): $3,489.6 million (49% of total)
  • Upfront products revenue (FY2025): $2,010.6 million (29% of total)
  • Maintenance & service revenue (FY2025): $1,554.0 million (22% of total)
• Operating income (FY2025): $914.9 million
• Net income from continuing operations (attributable to Synopsys, FY2025): $1,336.1 million
• Net income (loss) from discontinued operations (FY2025): $(3.9) million
• Diluted net income per share from continuing operations (FY2025): $8.07
• Adjusted operating income (by segment, FY2025):
  • Design Automation: $2,213.5 million (adjusted operating margin ~42%)
  • Design IP: $419.3 million (adjusted operating margin ~24%)
• Research & development expense (FY2025): $2,479.3 million (≈35% of revenue)
• Sales & marketing expense (FY2025): $1,074.2 million
• General & administrative expense (FY2025): $769.6 million

Selected balance sheet & liquidity items (as of October 31, 2025)

• Cash, cash equivalents and short‑term investments: $3.0 billion
• Restricted cash: $5.7 million (primarily deposits for office leases and employee loan programs)
• Total debt (as of 10/31/2025): approximately $13.5 billion (includes $10.0B principal of fixed‑rate Senior Notes issued in March 2025 and $3.45B outstanding Term Loan borrowings)
• Credit facilities: committed revolving facility $850.0 million (no outstanding balance as of 10/31/2025)
• Management’s statement: existing cash, cash equivalents, short‑term investments and available financing expected to be sufficient to satisfy cash requirements over the next 12 months and beyond (subject to forward‑looking caveats in the filing)

Recent material transaction

• Acquisition: Ansys, Inc. (Ansys Merger) closed July 17, 2025.
  • Ansys contributed $756.6 million in revenue to Synopsys in FY2025.
  • Financing for the acquisition included: $10.0 billion aggregate principal of Senior Notes (issued March 2025) and borrowings under a $4.3 billion Term Loan Agreement (borrowed July 17, 2025).
  • The senior notes and term loan increased leverage materially (see total debt above).

Notable operational / market notes

• Approximately half of Synopsys revenue is generated outside the U.S.
• The company emphasizes Synopsys.ai — an AI‑driven suite of EDA and analytics tools (examples: DSO.ai, VSO.ai, TSO.ai, Silicon.da).
• The company reports increased sales of hardware (emulation/prototyping) in FY2025.
• Fiscal year change: fiscal years now end on October 31 (effective FY2025). FY2024 had an extra week (53‑week year) that contributed roughly $63.2M of additional revenue to FY2024 results.

Risks & legal matters (as disclosed)

• The filing highlights typical industry and geopolitical risks, particularly trade controls (U.S. export controls and related restrictions affecting China and other jurisdictions), possible impacts on China business from export control actions (specific mention of BIS actions in 2025 and related disruptions), competition, and macroeconomic uncertainty.
• The filing discloses two shareholder class action complaints filed in the U.S. District Court for the Northern District of California (filed Oct 31, 2025 and Nov 25, 2025) alleging securities claims related to Synopsys disclosures; the company believes the claims are without merit and intends to defend vigorously.
• Cybersecurity: Synopsys maintains a cybersecurity program; no material cybersecurity incident identified since 2015 and no material associated penalties/settlements reported.

Other notable disclosures

• Employees: growth in headcount (~40%) in FY2025 primarily due to the Ansys Merger.
• Restructuring: in November 2025 the company initiated a restructuring plan (2026 Plan) expected to incur charges in the $300–$350 million range (one‑time severance and related costs) to align post‑Merger operations; majority of reductions expected in FY2026 (disclosed in the 10‑K).
• Sale of Optical Solutions Group to Keysight Technologies, Inc. — October 2025 (referred to in the filing).
• Divestiture: Software Integrity business previously divested (referenced in the filing as discontinued operations; gain recognized in FY2024).

This summary is a factual condensation of the material provided in the Synopsys, Inc. Form 10‑K for the fiscal year ended October 31, 2025. No additional facts, estimates or hypotheticals have been added beyond what appears in that filing.