Synopsys Reports 42% Revenue Growth to $2.48 Billion, Driven by Ansys Acquisition

Synopsys, Inc. reported significant financial growth in its latest quarterly results, with total revenue reaching $2.48 billion for the three months ended July 31, 2026, marking a 42% increase from $1.74 billion in the same period last year. This growth was largely driven by a full quarter of revenue from Ansys, which contributed $622.2 million, compared to a partial contribution in the prior year. For the nine months ended July 31, 2026, revenue totaled $7.16 billion, up 49% from $4.80 billion in the previous year. The company’s net income from continuing operations was $545.8 million, or $2.84 per diluted share, compared to $242.5 million, or $1.50 per diluted share, in the prior year.

The financial performance reflects a notable increase in costs, with total cost of revenue and operating expenses rising to $2.10 billion, a 35% increase from the previous year. This increase was primarily attributed to a $330 million rise in amortization expenses related to the Ansys acquisition and a $174 million increase in employee-related costs. The company also recorded restructuring charges of $236.3 million during the nine months, as part of a broader restructuring plan initiated in November 2025.

Strategically, Synopsys completed the acquisition of Ansys in July 2025 for approximately $34.9 billion, which has significantly impacted its financials. The integration of Ansys has been a focal point for the company, with efforts to combine their semiconductor electronic design automation expertise with Ansys' simulation and analysis capabilities. Additionally, Synopsys divested its Processor IP Solutions business for $443.3 million, resulting in a pre-tax gain of $425.4 million, which contributed to the other income reported in the quarter.

Operationally, Synopsys has seen a substantial increase in its customer base and engagement metrics. The company reported a backlog of approximately $10.9 billion as of July 31, 2026, with 49% expected to be recognized as revenue over the next 12 months. The company’s employee headcount has also been affected by the restructuring plan, which aims to streamline operations and focus on high-growth opportunities. As of the latest report, Synopsys held $3.61 billion in cash and cash equivalents, reflecting a strong liquidity position.

Looking ahead, Synopsys anticipates continued growth driven by its strategic initiatives and the integration of Ansys. The company remains focused on expanding its market share in the semiconductor and electronics industries, leveraging its advanced technologies and customer relationships. However, it also acknowledges potential challenges posed by macroeconomic conditions and global trade policies, which could impact customer spending and operational performance in the near term.