Synopsys, Inc. reported a significant financial performance for the fiscal year ending October 31, 2025, with total revenues reaching $7.1 billion, marking a 15% increase from $6.1 billion in the previous fiscal year. This growth was largely driven by the acquisition of Ansys, which contributed $756.6 million to the revenue. However, the company faced challenges in its Design IP segment, which saw a revenue decline of 8% to $1.75 billion, attributed to export control restrictions in China and weaker demand from a major foundry customer. Overall, the company’s net income from continuing operations was $1.34 billion, down from $1.44 billion in the prior year.
The acquisition of Ansys, completed on July 17, 2025, was a pivotal strategic move for Synopsys, aimed at enhancing its capabilities in engineering simulation and analysis software. The merger was valued at approximately $34.9 billion, funded through a combination of cash and stock. This acquisition is expected to bolster Synopsys' position in the semiconductor and electronics industries, particularly in the growing demand for integrated design and simulation tools. The company has also initiated a restructuring plan to optimize operations post-merger, with expected charges between $300 million and $350 million.
Operationally, Synopsys reported a total employee headcount of approximately 28,000, a 40% increase primarily due to the Ansys merger. The company has also seen a significant increase in its customer base, with a backlog of contracted but unsatisfied performance obligations amounting to $11.4 billion as of October 31, 2025. This backlog includes $2 billion in non-cancellable Flexible Spending Account commitments, indicating strong future revenue potential. However, the company anticipates muted growth in fiscal 2026 due to ongoing macroeconomic challenges and specific headwinds in its Design IP segment.
In terms of geographic performance, Synopsys experienced a 22% revenue decline in China, which was a significant factor in the overall performance of the Design IP segment. Conversely, the Design Automation segment reported robust growth, with revenues increasing by 26% to $5.3 billion. The company’s strategic focus on reallocating resources to higher growth opportunities within its Design IP segment is expected to address these challenges moving forward.
Looking ahead, Synopsys remains cautiously optimistic about its growth trajectory, despite the anticipated challenges in the macroeconomic environment and specific market conditions. The company plans to leverage its expanded capabilities from the Ansys merger to enhance its product offerings and drive innovation in AI-powered engineering solutions.
About SYNOPSYS INC
Synopsys, Inc. provides electronic design automation (EDA) software, intellectual property (IP), and related services for semiconductor and systems companies. Its core offerings include tools for chip design, verification, manufacturing, and AI-driven innovation, serving markets in AI, 5G, automotive, and cloud computing. The company enables faster, more efficient chip development, supporting complex integrated circuits and system-on-chip designs worldwide.
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