Synopsys Inc Financials
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Synopsys Inc has an operating margin of 13.0%, meaning the company retains $13 of operating profit per $100 of revenue. This strong profitability earns a score of 65/100, reflecting efficient cost management and pricing power. This is down from 22.1% the prior year.
Synopsys Inc's revenue surged 15.1% year-over-year to $7.1B, reflecting rapid business expansion. This strong growth earns a score of 72/100.
Synopsys Inc carries a low D/E ratio of 0.48, meaning only $0.48 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 94/100, indicating a strong balance sheet with room for future borrowing.
Synopsys Inc's current ratio of 1.62 indicates adequate short-term liquidity, earning a score of 45/100. The company can meet its near-term obligations, though with limited headroom.
Synopsys Inc converts 19.1% of revenue into free cash flow ($1.3B). This strong cash generation earns a score of 96/100.
Synopsys Inc generates a 4.7% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 19/100. This is down from 24.3% the prior year.
Synopsys Inc scores 3.09, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($83.6B) relative to total liabilities ($19.9B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Synopsys Inc passes 3 of 9 financial strength tests. 3 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), neither operating efficiency signal passes.
For every $1 of reported earnings, Synopsys Inc generates $1.14 in operating cash flow ($1.5B OCF vs $1.3B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Synopsys Inc earns $2.0 in operating income for every $1 of interest expense ($914.9M vs $446.7M). This adequate coverage means the company can meet its interest obligations, but has limited cushion if earnings fall.
This page shows Synopsys Inc (SNPS) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 18 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Synopsys Inc generated $7.1B in revenue in fiscal year 2025. This represents an increase of 15.1% from the prior year.
Synopsys Inc's EBITDA was $1.6B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 4.6% from the prior year.
Synopsys Inc generated $1.3B in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 6.4% from the prior year.
Synopsys Inc reported $1.3B in net income in fiscal year 2025. This represents a decrease of 41.1% from the prior year.
Synopsys Inc earned $8.04 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 44.6% from the prior year.
Synopsys Inc held $2.9B in cash against $13.5B in long-term debt as of fiscal year 2025.
Synopsys Inc had 191M shares outstanding in fiscal year 2025. This represents an increase of 23.8% from the prior year.
Synopsys Inc's gross margin was 77.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 2.7 percentage points from the prior year.
Synopsys Inc's operating margin was 13.0% in fiscal year 2025, reflecting core business profitability. This is down 9.2 percentage points from the prior year.
Synopsys Inc's net profit margin was 18.9% in fiscal year 2025, showing the share of revenue converted to profit. This is down 18.1 percentage points from the prior year.
Synopsys Inc's ROE was 4.7% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 19.6 percentage points from the prior year.
Synopsys Inc invested $2.5B in research and development in fiscal year 2025. This represents an increase of 19.1% from the prior year.
Synopsys Inc spent $0 on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
Synopsys Inc invested $169.5M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 21.5% from the prior year.
SNPS Income Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q3'23 | Q2'23 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.7B+8.4% | $1.6B+10.2% | $1.5B-4.6% | $1.5B+4.9% | $1.5B-3.7% | $1.5B+11.6% | $1.4B+7.3% | $1.3B |
| Cost of Revenue | $380.6M+19.5% | $318.3M+17.9% | $270.0M-7.1% | $290.7M-3.2% | $300.4M+7.6% | $279.2M+7.2% | $260.4M+4.9% | $248.2M |
| Gross Profit | $1.4B+5.7% | $1.3B+8.5% | $1.2B-4.0% | $1.2B+7.0% | $1.2B-6.3% | $1.2B+12.6% | $1.1B+7.8% | $1.0B |
| R&D Expenses | $625.3M+12.9% | $554.0M+0.1% | $553.2M+8.7% | $508.9M+3.2% | $493.1M-6.2% | $525.5M+8.5% | $484.5M+5.2% | $460.5M |
| SG&A Expenses | $280.6M+105.5% | $136.5M-18.3% | $167.1M+11.1% | $150.4M+31.1% | $114.8M-12.6% | $131.3M+31.6% | $99.8M+17.8% | $84.7M |
| Operating Income | $165.3M-56.1% | $376.4M+49.5% | $251.8M-30.1% | $360.2M+8.5% | $332.1M-5.8% | $352.6M+17.5% | $300.1M+2.6% | $292.4M |
| Interest Expense | $146.5M+55.3% | $94.3M+783.0% | $10.7M-9.0% | $11.7M+66.2% | $7.1M+433.8% | $1.3M+287.1% | $342K+9.6% | $312K |
| Income Tax | -$53.0M-212.3% | $47.2M+849.6% | -$6.3M+79.5% | -$30.7M-167.6% | $45.4M+98.3% | $22.9M+429.6% | -$7.0M-129.0% | $23.9M |
| Net Income | $242.5M-29.8% | $345.3M+16.8% | $295.7M-27.5% | $408.1M+39.7% | $292.1M-35.0% | $449.1M+33.6% | $336.3M+23.2% | $272.9M |
| EPS (Diluted) | $1.50-32.1% | $2.21+16.9% | $1.89-27.6% | $2.61+38.8% | $1.88-34.9% | $2.89+33.2% | $2.17+23.3% | $1.76 |
SNPS Balance Sheet
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q3'23 | Q2'23 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $48.2B+103.0% | $23.8B+82.2% | $13.0B-0.2% | $13.1B+18.7% | $11.0B+4.3% | $10.6B+2.2% | $10.3B+5.5% | $9.8B |
| Current Assets | $6.0B-64.4% | $16.9B+166.9% | $6.3B-2.3% | $6.5B+39.0% | $4.7B+36.5% | $3.4B-0.7% | $3.4B+8.5% | $3.2B |
| Cash & Equivalents | $2.9B-79.5% | $14.1B+286.4% | $3.7B-6.2% | $3.9B+159.3% | $1.5B+34.3% | $1.1B-22.0% | $1.4B-7.2% | $1.5B |
| Inventory | $365.2M-7.6% | $395.3M-4.8% | $415.2M+14.7% | $361.8M-4.2% | $377.9M-1.3% | $382.7M+17.5% | $325.6M+27.0% | $256.4M |
| Accounts Receivable | $1.5B+50.2% | $1.0B+12.3% | $892.6M-4.5% | $934.5M+11.9% | $834.9M-21.5% | $1.1B+24.2% | $856.7M+9.8% | $779.9M |
| Goodwill | $26.9B+677.1% | $3.5B+0.8% | $3.4B-0.4% | $3.4B+0.6% | $3.4B-17.0% | $4.1B+23.5% | $3.3B-13.9% | $3.9B |
| Total Liabilities | $19.9B+43.8% | $13.8B+270.5% | $3.7B-7.8% | $4.1B+5.9% | $3.8B-0.7% | $3.9B-7.2% | $4.1B+5.9% | $3.9B |
| Current Liabilities | $3.7B+54.7% | $2.4B+2.0% | $2.4B-11.0% | $2.7B+5.7% | $2.5B-5.1% | $2.6B-11.4% | $3.0B+8.6% | $2.7B |
| Long-Term Debt | $13.5B+34.3% | $10.0B+70418.2% | $14.2M-8.9% | $15.6M-8.0% | $17.0M+0.1% | $17.0M-6.2% | $18.1M-10.5% | $20.2M |
| Total Equity | $28.3B+185.7% | $9.9B+6.6% | $9.3B+3.5% | $9.0B+25.7% | $7.2B+7.2% | $6.7B+8.5% | $6.1B+5.4% | $5.8B |
| Retained Earnings | $10.3B+7.2% | $9.6B+3.7% | $9.3B+3.3% | $9.0B+20.1% | $7.5B+4.0% | $7.2B+6.6% | $6.7B+11.0% | $6.1B |
SNPS Cash Flow Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q3'23 | Q2'23 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $639.7M+132.3% | $275.4M+508.2% | -$67.5M-112.0% | $562.8M+18.1% | $476.6M+642.9% | -$87.8M-126.9% | $326.1M-53.6% | $702.9M |
| Capital Expenditures | $34.5M-37.9% | $55.6M+36.5% | $40.7M+96.4% | $20.7M-46.0% | $38.4M-5.0% | $40.4M-23.9% | $53.1M+10.9% | $47.9M |
| Free Cash Flow | $605.2M+175.4% | $219.8M+303.2% | -$108.2M-120.0% | $542.1M+23.7% | $438.2M+441.9% | -$128.2M-147.0% | $273.0M-58.3% | $655.1M |
| Investing Cash Flow | $564.4M+642.9% | $76.0M+445.7% | -$22.0M-101.5% | $1.4B+1390.8% | -$111.8M-105.5% | -$54.4M+81.9% | -$300.5M-228.6% | -$91.5M |
| Financing Cash Flow | -$835.9M-108.3% | $10.1B+7218.3% | -$141.8M-571.3% | $30.1M-7.6% | $32.6M+117.4% | -$187.2M+26.4% | -$254.3M-18.6% | -$214.4M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | $0 | $0 | $0-100.0% | $300.0M0.0% | $300.0M |
SNPS Financial Ratios
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q3'23 | Q2'23 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 78.1%-2.0pp | 80.2%-1.3pp | 81.5%+0.5pp | 81.0%+1.6pp | 79.3%-2.2pp | 81.5%+0.8pp | 80.8%+0.4pp | 80.3% |
| Operating Margin | 9.5%-14.0pp | 23.5%+6.2pp | 17.3%-6.3pp | 23.6%+0.8pp | 22.8%-0.5pp | 23.3%+1.2pp | 22.2%-1.0pp | 23.2% |
| Net Margin | 13.9%-7.6pp | 21.5%+1.2pp | 20.3%-6.4pp | 26.7%+6.7pp | 20.1%-9.6pp | 29.7%+4.9pp | 24.8%+3.2pp | 21.6% |
| Return on Equity | 0.9%-2.6pp | 3.5%+0.3pp | 3.2%-2.1pp | 5.3%+1.2pp | 4.1%-2.6pp | 6.7%+1.1pp | 5.6%+1.0pp | 4.7% |
| Return on Assets | 0.5%-1.0pp | 1.5%-0.8pp | 2.3%-1.2pp | 3.5%+0.9pp | 2.6%-1.6pp | 4.3%+0.9pp | 3.4%+0.6pp | 2.8% |
| Current Ratio | 1.62-5.4 | 7.02+4.3 | 2.68+0.2 | 2.44+0.6 | 1.86+0.6 | 1.29+0.1 | 1.150.0 | 1.15 |
| Debt-to-Equity | 0.48-0.5 | 1.01+1.0 | 0.000.0 | 0.000.0 | 0.000.0 | 0.000.0 | 0.000.0 | 0.00 |
| FCF Margin | 36.4%+22.6pp | 13.7%+21.1pp | -7.4%-34.7pp | 27.2%-2.9pp | 30.1%+38.6pp | -8.5%-46.5pp | 38.0%-13.9pp | 51.9% |
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Frequently Asked Questions
What is Synopsys Inc's annual revenue?
Synopsys Inc (SNPS) reported $7.1B in total revenue for fiscal year 2025. This represents a 15.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Synopsys Inc's revenue growing?
Synopsys Inc (SNPS) revenue grew by 15.1% year-over-year, from $6.1B to $7.1B in fiscal year 2025.
Is Synopsys Inc profitable?
Yes, Synopsys Inc (SNPS) reported a net income of $1.3B in fiscal year 2025, with a net profit margin of 18.9%.
What is Synopsys Inc's earnings per share (EPS)?
Synopsys Inc (SNPS) reported diluted earnings per share of $8.04 for fiscal year 2025. This represents a -44.6% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Synopsys Inc's EBITDA?
Synopsys Inc (SNPS) had EBITDA of $1.6B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Synopsys Inc have?
As of fiscal year 2025, Synopsys Inc (SNPS) had $2.9B in cash and equivalents against $13.5B in long-term debt.
What is Synopsys Inc's gross margin?
Synopsys Inc (SNPS) had a gross margin of 77.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Synopsys Inc's operating margin?
Synopsys Inc (SNPS) had an operating margin of 13.0% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Synopsys Inc's net profit margin?
Synopsys Inc (SNPS) had a net profit margin of 18.9% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Synopsys Inc's return on equity (ROE)?
Synopsys Inc (SNPS) has a return on equity of 4.7% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Synopsys Inc's free cash flow?
Synopsys Inc (SNPS) generated $1.3B in free cash flow during fiscal year 2025. This represents a 6.4% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Synopsys Inc's operating cash flow?
Synopsys Inc (SNPS) generated $1.5B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Synopsys Inc's total assets?
Synopsys Inc (SNPS) had $48.2B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Synopsys Inc's capital expenditures?
Synopsys Inc (SNPS) invested $169.5M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Synopsys Inc spend on research and development?
Synopsys Inc (SNPS) invested $2.5B in research and development during fiscal year 2025.
How many shares does Synopsys Inc have outstanding?
Synopsys Inc (SNPS) had 191M shares outstanding as of fiscal year 2025.
What is Synopsys Inc's current ratio?
Synopsys Inc (SNPS) had a current ratio of 1.62 as of fiscal year 2025, which is generally considered healthy.
What is Synopsys Inc's debt-to-equity ratio?
Synopsys Inc (SNPS) had a debt-to-equity ratio of 0.48 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Synopsys Inc's return on assets (ROA)?
Synopsys Inc (SNPS) had a return on assets of 2.8% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Synopsys Inc's Altman Z-Score?
Synopsys Inc (SNPS) has an Altman Z-Score of 3.09, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Synopsys Inc's Piotroski F-Score?
Synopsys Inc (SNPS) has a Piotroski F-Score of 3 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Synopsys Inc's earnings high quality?
Synopsys Inc (SNPS) has an earnings quality ratio of 1.14x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Synopsys Inc cover its interest payments?
Synopsys Inc (SNPS) has an interest coverage ratio of 2.0x, meaning it can adequately cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Synopsys Inc?
Synopsys Inc (SNPS) scores 65 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.