Revenue growth accelerated to 41.9% in 2026Q2, yet gross margins have contracted from historical highs above 80% to 72.3%, suggesting significant pressure from product mix shifts and integration costs.
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 | Oct'07 | Oct'06 | Oct'05 | Oct'04 | Oct'03 | Oct'02 | Oct'01 | Oct'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Sales/Revenue | 8.68B | 7.05B | 6.13B | 5.32B | 4.62B | 4.2B | 3.69B | 3.36B | 3.12B | 2.72B | 2.42B | 2.24B | 2.06B | 1.96B | 1.76B | 1.54B | 1.38B | 1.36B | 1.34B | 1.21B | 1.1B | 991.93M | 1.09B | 1.18B | 906.53M | 680.35M | 783.78M | 806.1M | 717.9M | 647M | 525.6M |
| Revenue Growth % | 39.51% | 15.12% | 15.22% | 15.22% | 9.79% | 14.08% | 9.66% | 7.68% | 14.54% | 12.48% | 8.04% | 8.98% | 4.85% | 11.74% | 14.35% | 11.23% | 1.52% | 1.73% | 10.27% | 10.67% | 10.45% | -9.17% | -7.21% | 29.83% | 33.25% | -13.2% | -2.77% | 12.29% | 10.96% | 23.1% | 97.97% |
| Cost of Goods Sold | 2.3B | 1.62B | 1.25B | 1.03B | 898.01M | 861.78M | 794.69M | 752.95M | 735.9M | 654.18M | 542.96M | 518.92M | 456.88M | 453.55M | 392.67M | 340.45M | 281.09M | 273.65M | 258.9M | 234.26M | 223.53M | 254.64M | 154.49M | 147.46M | 173.16M | 130.12M | 75.83M | 62.7M | 49.6M | 47.1M | 36.6M |
| COGS % of Revenue | - | 23.02% | 20.32% | 19.38% | 19.46% | 20.5% | 21.56% | 22.4% | 23.58% | 24.01% | 22.41% | 23.14% | 22.21% | 23.11% | 22.36% | 22.17% | 20.36% | 20.12% | 19.36% | 19.32% | 20.4% | 25.67% | 14.15% | 12.53% | 19.1% | 19.13% | 9.68% | 7.78% | 6.91% | 7.28% | 6.96% |
| Gross Profit | 6.38B | 5.43B | 4.88B | 4.29B | 3.72B | 3.34B | 2.89B | 2.61B | 2.39B | 2.07B | 1.88B | 1.72B | 1.6B | 1.51B | 1.36B | 1.2B | 1.1B | 1.09B | 1.08B | 978.2M | 872.03M | 737.29M | 937.62M | 1.03B | 733.38M | 550.23M | 707.95M | 743.4M | 668.3M | 599.9M | 489M |
| Gross Margin % | 73.47% | 76.98% | 79.68% | 80.62% | 80.54% | 79.5% | 78.44% | 77.6% | 76.42% | 75.99% | 77.59% | 76.86% | 77.79% | 76.89% | 77.64% | 77.83% | 79.64% | 79.88% | 80.64% | 80.68% | 79.6% | 74.33% | 85.85% | 87.47% | 80.9% | 80.87% | 90.32% | 92.22% | 93.09% | 92.72% | 93.04% |
| Gross Profit Growth % | - | 11.23% | 13.88% | 15.32% | 11.23% | 15.63% | 10.85% | 9.33% | 15.19% | 10.17% | 9.07% | 7.67% | 6.09% | 10.66% | 14.07% | 8.7% | 1.21% | 0.77% | 10.21% | 12.18% | 18.27% | -21.37% | -8.93% | 40.38% | 33.29% | -22.28% | -4.77% | 11.24% | 11.4% | 22.68% | 95.29% |
| Operating Expenses | 5.65B | 4.52B | 3.53B | 3.01B | 2.57B | 2.61B | 2.27B | 2.09B | 2.02B | 1.72B | 1.56B | 1.46B | 1.35B | 1.26B | 1.17B | 982.35M | 915.46M | 878.14M | 858.94M | 860.16M | 842.6M | 797.14M | 848.3M | 834.62M | 813.69M | 550.48M | 601.06M | 507.8M | 491.2M | 474.3M | 395.8M |
| OpEx % of Revenue | - | 64.01% | 57.55% | 56.67% | 55.66% | 62.02% | 61.61% | 62.12% | 64.88% | 63.24% | 64.49% | 64.97% | 65.71% | 64.32% | 66.82% | 63.97% | 66.31% | 64.57% | 64.25% | 70.94% | 76.91% | 80.36% | 77.68% | 70.91% | 89.76% | 80.91% | 76.69% | 62.99% | 68.42% | 73.31% | 75.3% |
| Selling, General & Admin | 2.25B | 1.84B | 1.43B | 1.1B | 956.28M | 1.04B | 915.94M | 862.11M | 885.54M | 746.09M | 668.33M | 639.5M | 609.84M | 568.88M | 573.09M | 475.88M | 454.65M | 443.22M | 438.63M | 451.13M | 443.23M | 434.34M | 423.92M | 400.71M | 471.8M | 343.64M | 348.01M | 288.7M | 292.6M | 215.2M | 161.8M |
| SG&A % of Revenue | - | 26.14% | 23.3% | 20.71% | 20.72% | 24.63% | 24.85% | 25.65% | 28.37% | 27.38% | 27.59% | 28.52% | 29.64% | 28.99% | 32.64% | 30.99% | 32.93% | 32.59% | 32.81% | 37.21% | 40.46% | 43.79% | 38.82% | 34.05% | 52.04% | 50.51% | 44.4% | 35.81% | 40.76% | 33.26% | 30.78% |
| Research & Development | 2.79B | 2.48B | 2.08B | 1.85B | 1.59B | 1.5B | 1.28B | 1.14B | 1.08B | 908.84M | 856.71M | 776.23M | 718.77M | 669.2M | 581.63M | 491.87M | 449.23M | 419.91M | 394.75M | 379.22M | 370.63M | 316.99M | 284.06M | 285.88M | 225.54M | 189.83M | 189.28M | 167.1M | 154.4M | 115M | 84.2M |
| R&D % of Revenue | - | 35.15% | 33.98% | 34.79% | 34.44% | 35.79% | 34.71% | 33.83% | 34.76% | 33.35% | 35.36% | 34.62% | 34.93% | 34.1% | 33.12% | 32.03% | 32.54% | 30.87% | 29.53% | 31.28% | 33.83% | 31.96% | 26.01% | 24.29% | 24.88% | 27.9% | 24.15% | 20.73% | 21.51% | 17.77% | 16.02% |
| Other Operating Expenses | 4M | 192.53M | 16.24M | 62.39M | 22.86M | 67.32M | 74.89M | 88.48M | 54.58M | 68.2M | 37.14M | 41.09M | 24.81M | 23.2M | 18.6M | 14.6M | 11.58M | 15.01M | 20.77M | 29.81M | 28.74M | 37.57M | 139.1M | 148.02M | 116.35M | 17.01M | 63.77M | 52M | 44.2M | 39.8M | 28.9M |
| Operating Income | 726.03M | 914.93M | 1.36B | 1.27B | 1.15B | 734.79M | 620.14M | 520.23M | 360.23M | 347.56M | 317.39M | 266.47M | 248.72M | 246.49M | 190.02M | 212.84M | 184.11M | 208.25M | 219.11M | 118.04M | 29.43M | -59.84M | 89.32M | 194.91M | -80.32M | -251K | 106.89M | 235.6M | 177.1M | 125.6M | 93.2M |
| Operating Margin % | 8.37% | 12.97% | 22.13% | 23.94% | 24.89% | 17.48% | 16.83% | 15.48% | 11.54% | 12.76% | 13.1% | 11.88% | 12.09% | 12.56% | 10.82% | 13.86% | 13.33% | 15.31% | 16.39% | 9.74% | 2.69% | -6.03% | 8.18% | 16.56% | -8.86% | -0.04% | 13.64% | 29.23% | 24.67% | 19.41% | 17.73% |
| Operating Income Growth % | - | -32.51% | 6.48% | 10.84% | 56.33% | 18.49% | 19.2% | 44.42% | 3.64% | 9.5% | 19.11% | 7.14% | 0.9% | 29.72% | -10.72% | 15.61% | -11.59% | -4.96% | 85.62% | 301.07% | 149.18% | -167% | -54.17% | 342.67% | -31898.8% | -100.23% | -54.63% | 33.03% | 41% | 34.76% | 79.23% |
| EBITDA | 1.99B | 1.58B | 1.65B | 1.52B | 1.38B | 938.47M | 830.13M | 721.91M | 569.43M | 537M | 524.43M | 478.29M | 441.54M | 433.9M | 346.86M | 341.39M | 285.31M | 309.7M | 316.25M | 223.41M | 143.92M | 109.04M | 282.09M | 379.01M | 35.78M | 64.91M | 170.66M | 287.6M | 221.3M | 165.4M | 122.1M |
| EBITDA Margin % | 22.98% | 22.33% | 26.94% | 28.59% | 29.84% | 22.32% | 22.53% | 21.48% | 18.24% | 19.71% | 21.65% | 21.33% | 21.46% | 22.11% | 19.75% | 22.23% | 20.66% | 22.77% | 23.65% | 18.43% | 13.14% | 10.99% | 25.83% | 32.2% | 3.95% | 9.54% | 21.77% | 35.68% | 30.83% | 25.56% | 23.23% |
| EBITDA Growth % | 27.25% | -4.57% | 8.58% | 10.4% | 46.74% | 13.05% | 14.99% | 26.78% | 6.04% | 2.4% | 9.65% | 8.32% | 1.76% | 25.09% | 1.6% | 19.66% | -7.88% | -2.07% | 41.56% | 55.23% | 31.99% | -61.35% | -25.57% | 959.2% | -44.87% | -61.96% | -40.66% | 29.96% | 33.8% | 35.46% | 80.89% |
| D&A (Non-Cash Add-back) | 1.27B | 660.43M | 295.06M | 247.12M | 228.41M | 203.68M | 209.99M | 201.68M | 209.21M | 189.44M | 207.03M | 211.82M | 192.83M | 187.4M | 156.84M | 128.55M | 101.2M | 101.45M | 97.14M | 105.37M | 114.49M | 168.88M | 192.77M | 184.11M | 116.1M | 65.16M | 63.77M | 52M | 44.2M | 39.8M | 28.9M |
| EBIT | 1.44B | 1.84B | 1.55B | 1.31B | 1.11B | 808.88M | 643.3M | 557.16M | 379.15M | 390.4M | 333.32M | 284.42M | 274.04M | 277.36M | 203.13M | 219.21M | 184.11M | 210.45M | 219.11M | 121.24M | 30.23M | -54.15M | 193.53M | 307.61M | 7.38M | -251K | 106.89M | 235.6M | 177.1M | 125.6M | 93.2M |
| Net Interest Income | -454.94M | -169.04M | 30.19M | 33.97M | -1.7M | 70.68M | -1.58M | -4.8M | -10.28M | -62K | -56K | -29K | -593K | 195K | -424K | 2.02M | 5.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 182.39M | 277.68M | 67.02M | 36.67M | 0 | 74.05M | 3.56M | 6.86M | 5.32M | 7.24M | 3.71M | 2.79M | 1.3M | 1.89M | 1.57M | 2.12M | 5.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 637.33M | 446.73M | 36.83M | 2.7M | 1.7M | 3.37M | 5.14M | 11.66M | 15.61M | 7.3M | 3.77M | 2.81M | 1.9M | 1.7M | 1.99M | 101K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 78.14M | 478.21M | 158.15M | 32.23M | -45.26M | 70.72M | 18.02M | 25.27M | 3.32M | 35.53M | 12.15M | 15.14M | 23.43M | 29.17M | 11.11M | 6.27M | 14.55M | 24.82M | -156K | 47.76M | 14.29M | 52.06M | 2.28M | 24.08M | -208.62M | 83.78M | 39.05M | 15.8M | -58M | 7.4M | -53M |
| Pretax Income | 804.16M | 1.39B | 1.51B | 1.31B | 1.1B | 805.51M | 638.16M | 545.51M | 363.54M | 383.1M | 329.55M | 281.61M | 272.14M | 275.67M | 201.13M | 219.11M | 198.66M | 233.07M | 218.96M | 165.8M | 43.72M | -7.79M | 91.59M | 218.99M | -288.94M | 83.53M | 145.94M | 251.4M | 119.1M | 133M | 40.2M |
| Pretax Margin % | 9.27% | 19.75% | 24.71% | 24.55% | 23.91% | 19.16% | 17.32% | 16.23% | 11.65% | 14.06% | 13.6% | 12.56% | 13.23% | 14.05% | 11.45% | 14.27% | 14.39% | 17.14% | 16.38% | 13.67% | 3.99% | -0.79% | 8.39% | 18.61% | -31.87% | 12.28% | 18.62% | 31.19% | 16.59% | 20.56% | 7.65% |
| Income Tax | 31.85M | 55.99M | 99.72M | 90.19M | 139.38M | 49.16M | -25.29M | 13.14M | -68.97M | 246.53M | 62.72M | 55.68M | 13.02M | 27.87M | 18.73M | -2.25M | -38.41M | 65.39M | 28.98M | 35.31M | 18.98M | 9.32M | 17.25M | 69.27M | -88.95M | 26.73M | 48.16M | 90M | 55.8M | 51M | 23.4M |
| Effective Tax Rate % | 3.96% | 4.02% | 6.59% | 6.91% | 12.63% | 6.1% | -3.96% | 2.41% | -18.97% | 64.35% | 19.03% | 19.77% | 4.78% | 10.11% | 9.31% | -1.03% | -19.33% | 28.06% | 13.23% | 21.3% | 43.41% | -119.72% | 18.84% | 31.63% | 30.78% | 32% | 33% | 35.8% | 46.85% | 38.35% | 58.21% |
| Net Income | 773.03M | 1.33B | 2.26B | 1.23B | 984.59M | 757.52M | 664.35M | 532.37M | 432.52M | 136.56M | 266.83M | 225.93M | 259.12M | 247.8M | 182.4M | 221.36M | 237.06M | 167.68M | 189.98M | 130.49M | 24.74M | -15.48M | 74.34M | 149.72M | -199.99M | 56.8M | 97.78M | 161.4M | 91.7M | 72.4M | 23.7M |
| Net Margin % | 8.91% | 18.89% | 36.94% | 23.13% | 21.33% | 18.02% | 18.03% | 15.84% | 13.86% | 5.01% | 11.01% | 10.08% | 12.59% | 12.63% | 10.39% | 14.42% | 17.17% | 12.33% | 14.21% | 10.76% | 2.26% | -1.56% | 6.81% | 12.72% | -22.06% | 8.35% | 12.48% | 20.02% | 12.77% | 11.19% | 4.51% |
| Net Income Growth % | -64.26% | -41.14% | 84.03% | 24.91% | 29.98% | 14.02% | 24.79% | 23.09% | 216.72% | -48.82% | 18.1% | -12.81% | 4.57% | 35.85% | -17.6% | -6.62% | 41.38% | -11.74% | 45.59% | 427.41% | 259.85% | -120.82% | -50.35% | 174.86% | -452.09% | -41.91% | -39.42% | 76.01% | 26.66% | 205.49% | -21.78% |
| Net Income (Continuing) | 772.31M | 1.34B | 1.41B | 1.22B | 964.07M | 756.36M | 663.45M | 532.37M | 432.52M | 136.56M | 266.83M | 225.93M | 259.12M | 247.8M | 182.4M | 221.36M | 237.06M | 167.68M | 189.98M | 130.49M | 24.74M | -17.11M | 74.34M | 149.72M | -199.99M | 56.8M | 97.78M | 161.4M | 63.3M | 82M | 16.8M |
| Discontinued Operations | 0 | -3.9M | 821.67M | 2.84M | 14.37M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -1.07M | -587K | 32.5M | 36.99M | 43.47M | 3.81M | 4.96M | 5.86M | 5.86M | 4.1M | 0 | 0 | 0 | 0 | 42.28M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.04 | 8.04 | 14.51 | 7.92 | 6.29 | 4.81 | 4.27 | 3.45 | 2.82 | 0.88 | 1.73 | 1.43 | 1.64 | 1.58 | 1.21 | 1.47 | 1.56 | 1.15 | 1.29 | 0.87 | 0.17 | -0.11 | 0.47 | 0.91 | -1.51 | 0.44 | 0.69 | 1.10 | 0.65 | 0.63 | 0.14 |
| EPS Growth % | -68.45% | -44.59% | 83.21% | 25.91% | 30.77% | 12.65% | 23.77% | 22.34% | 220.45% | -49.13% | 20.98% | -12.8% | 3.8% | 30.58% | -17.69% | -5.77% | 35.65% | -10.85% | 48.28% | 411.76% | 254.55% | -123.4% | -48.35% | 160.26% | -443.18% | -36.23% | -37.27% | 69.23% | 3.17% | 350% | -53.33% |
| EPS (Basic) | - | 8.13 | 14.78 | 8.08 | 6.44 | 4.96 | 4.40 | 3.55 | 2.90 | 0.91 | 1.76 | 1.46 | 1.67 | 1.62 | 1.24 | 1.51 | 1.60 | 1.17 | 1.33 | 0.91 | 0.17 | -0.11 | 0.49 | 0.95 | -1.51 | 0.47 | 0.72 | 1.15 | 0.67 | 0.66 | 0.14 |
| Diluted Shares Outstanding | 191.58M | 161.68M | 155.94M | 155.19M | 156.49M | 157.34M | 155.71M | 154.19M | 153.39M | 154.87M | 154.72M | 158.06M | 157.71M | 156.6M | 150.28M | 150.37M | 151.91M | 145.86M | 147.67M | 149.72M | 144.73M | 144.97M | 158.16M | 164.53M | 132.45M | 129.32M | 142M | 146.84M | 139.05M | 131.2M | 83.33M |
| Basic Shares Outstanding | 190.51M | 160.17M | 153.14M | 152.15M | 153M | 152.7M | 151.13M | 149.87M | 149.04M | 150.46M | 152.02M | 154.96M | 155.05M | 153.32M | 146.89M | 146.57M | 148.01M | 143.75M | 143.26M | 143.95M | 142.83M | 144.97M | 151.71M | 157.6M | 132.45M | 121.2M | 137.02M | 140.24M | 133.14M | 125.19M | 83.33M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Geopolitical Export Control Exposure
According to recent financial disclosures, Synopsys achieved a significant revenue acceleration to 41.9% in 2026Q2, yet this top-line expansion appears decoupled from operational efficiency as the company navigates a complex integration phase and shifting product mix within its core electronic design automation and intellectual property segments.
The sharp uptick in revenue growth suggests successful scaling of high-value design IP and EDA toolsets, likely driven by the ongoing transition to advanced process nodes. However, investors should monitor whether this growth is sustainable or if it reflects a pull-forward of demand ahead of the pending Ansys acquisition.
As reported in quarterly income statements, gross margins have contracted from historical highs above 80% to 72.3% in 2026Q2, suggesting that the company's shift toward hardware-intensive emulation systems or potential acquisition-related cost absorption is exerting downward pressure on the firm's traditionally high-margin software-centric business model.
The decline in gross margin indicates a potential shift in the revenue mix toward lower-margin hardware offerings or increased costs associated with maintaining competitive IP libraries. This trend warrants further investigation into whether the company can restore its premium software-like profitability profile post-integration.
Based on the latest reported figures, operating margins have compressed to 10.4% in 2026Q2, a stark departure from the 20%+ levels observed in early 2024, indicating that rising R&D and SG&A expenses are currently outpacing the company's ability to scale its core software revenue streams effectively.
The current operating margin profile suggests that the company is absorbing substantial non-recurring costs, likely tied to the Ansys deal and internal restructuring efforts. Analysts should evaluate if these expenses are transitory or if they represent a permanent increase in the cost of doing business.
As evidenced by recent filings, stock-based compensation reached $222.3 million in 2026Q2, consistently representing a significant portion of operating expenses and contributing to the volatility in reported net income, which fell to $17.1 million during the same period despite substantial top-line growth in the core business.
The heavy reliance on stock-based compensation suggests that the company's reported EPS may not fully reflect the true economic cost of talent retention in the competitive EDA landscape. Investors should adjust for these non-cash charges to better assess the underlying cash-generative capacity of the firm.
Quick answers to the most common questions about buying SNPS stock.
For fiscal year 2025, Synopsys, Inc. (SNPS) reported total revenue of $7.05B. This represents a 1242.1% increase compared to $525.6M in 1996.
Synopsys, Inc. (SNPS) is profitable, generating $1.33B in net income for the fiscal year ending 2025 with a net profit margin of 18.9%.
Synopsys, Inc. (SNPS) reported an operating income of $914.9M, resulting in an operating profit margin of 13.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Synopsys, Inc. (SNPS) generated $5.43B in gross profit for the year, representing a gross profit margin of 77.0%. This demonstrates the company's core pricing power and production efficiency.