Synopsys Stock Price, News & Analysis

Synopsys, Inc. (Nasdaq: SNPS) is described in its public communications as a leader in engineering solutions from silicon to systems, enabling customers to rapidly innovate AI-powered products. The company is associated with the information sector and software publishing, and its stock is listed on the Nasdaq Global Select Market under the symbol SNPS. Synopsys reports two main business segments in its financial disclosures: Design Automation and Design IP, reflecting a portfolio that spans silicon design tools, intellectual property, simulation and analysis technologies, and design services.

According to Synopsys, its Design Automation segment includes advanced silicon design and verification products and services, system integration products and services, digital, custom and field programmable gate array IC design software, verification software and hardware products, manufacturing software products, and Ansys products. The Design IP segment includes interface, foundation, security, and embedded processor IP, IP subsystems, and IP implementation services. Together, these offerings support customers across a wide range of industries that rely on complex semiconductor devices and engineered systems.

Synopsys emphasizes that it delivers silicon design, IP, simulation and analysis solutions, and design services. The company positions itself as a partner that works closely with customers to maximize research and development capability and productivity. Its stated focus is on enabling engineering teams to design, simulate and verify intelligent products with greater precision and speed, while managing complexity and cost.

Business focus and portfolio evolution

Synopsys has communicated several portfolio changes and strategic priorities in its recent news and SEC filings. In its financial reporting, it notes that it completed the sale of its Software Integrity business, which is now presented as a discontinued operation. The company has also indicated that it divested certain Optical Solutions Group and PowerArtist RTL businesses, and that it is reallocating resources in its Design IP segment toward what it describes as higher growth opportunities.

In a definitive agreement announced with GlobalFoundries, Synopsys agreed to sell its Processor IP Solutions business. This transaction covers the Synopsys Processor IP portfolio, including ARC-V (RISC-V) and ARC CPU IP, DSP IP, Neural Network Processing Unit (NPU) IP, and related software development tools such as ARC MetaWare Development Toolkits, as well as ASIP Designer and ASIP Programmer tools for application-specific instruction-set processors. Synopsys has stated that this move is intended to sharpen the focus of its IP business on interface and foundation IP and on what it describes as high-value, AI-driven opportunities from cloud to edge.

At the same time, Synopsys has said it will retain and continue to grow a broad design IP portfolio spanning logic libraries, embedded memories, interface IP, security IP, and subsystems. The company characterizes these areas as essential IP categories that help designers reduce integration risk and accelerate time-to-market.

Role in electronic design and simulation

Synopsys is also known, based on third-party descriptions, as a provider of electronic design automation (EDA) software and intellectual property products. EDA software is used to automate and aid in the chip design process, with the goal of enhancing design accuracy, productivity, and the ability to manage complexity. Synopsys’ portfolio is described as benefiting from trends in which semiconductor companies move toward more system-level capabilities and systems companies move toward in-house chip design, expanding the base of potential EDA and IP customers.

Beyond chip design, Synopsys highlights a portfolio of simulation and analysis solutions that now includes Ansys technologies. Public announcements describe applications spanning areas such as fluid simulation, electromagnetic analysis, optical simulation, and digital twins. Synopsys presents these capabilities as part of a broader engineering platform that connects electronics and physics and supports digital transformation initiatives in industries that depend on complex physical systems.

AI, digital twins, and sector collaborations

Synopsys frequently references AI-driven and software-defined engineering in its communications. For example, at CES it showcased solutions aimed at automotive engineering, describing how it helps automakers and suppliers virtualize silicon and software development, predict system performance, and optimize reliability. Synopsys refers to concepts such as electronics digital twins, virtualization of vehicle electronics, and AI-driven models for design exploration and validation.

The company also participates in partnerships around digital twin technology. In collaboration announcements, Synopsys is associated with digital twin software such as Ansys TwinAI, which is described as supporting simulation of digital twins, hybrid analytics, and cloud deployment. Synopsys has also been involved in demonstrating frameworks that combine GPU-accelerated physics solvers, cloud platforms, and interoperability standards to optimize manufacturing processes in near real time.

Synopsys’ partnership with NVIDIA is another example of its focus on AI and accelerated computing. The companies have described a multi-year collaboration that integrates NVIDIA CUDA accelerated computing, AI technologies, and Omniverse digital twin platforms with Synopsys engineering solutions. The stated goal is to accelerate and optimize compute-intensive applications in areas such as chip design, physical verification, molecular simulations, electromagnetic analysis, and optical simulation.

Automotive and industry use cases

In the automotive sector, Synopsys highlights solutions for what it calls software-defined mobility and AI in vehicles. Public statements describe how Synopsys helps automotive customers virtualize design, integration, and prototyping, reduce physical prototyping, and shorten development cycles. The company refers to electronics digital twins, virtual development kits for automotive system-on-chips, and collaborations with ecosystem partners to support advanced driver assistance systems and in-vehicle experiences.

Synopsys also points to use cases in manufacturing, where its accelerated simulation technologies are used to build digital representations of production lines. In one example, a framework involving Synopsys solvers, cloud infrastructure, and partner technologies was used to create a virtual assembly line for bottle filling, with the goal of enabling real-time scenario comparison and optimization.

Corporate actions and restructuring

Synopsys’ SEC filings provide additional context on its corporate actions. In an 8-K filing, the company reported that its board of directors approved a restructuring plan expected to result in the termination of approximately 10% of its workforce as of fiscal 2025 year-end. The filing states that this restructuring is intended to allow Synopsys to invest in key growth opportunities and drive business efficiencies following the completion of its acquisition of Ansys, Inc. The company expects to substantially complete this restructuring plan by the end of fiscal year 2027, subject to local law and consultation requirements.

Another 8-K filing notes changes in executive roles, such as the departure of a chief revenue officer and the appointment of a new board member to a board committee. These filings illustrate how Synopsys uses SEC reports to disclose material events related to governance, restructuring, and financial results.

Financial reporting and segments

In its earnings communications, Synopsys reports revenue and net income on both GAAP and non-GAAP bases, and it provides reconciliations between these measures. The company highlights revenue contributions from Ansys within its Design Automation segment and discloses the proportion of revenue attributable to its Design IP segment. It also provides forward-looking financial targets for future fiscal periods, including expected expenses, earnings per diluted share, and effective tax rates, along with explanations of adjustments such as amortization of acquired intangible assets, stock-based compensation, restructuring charges, and tax items.

Synopsys’ filings and press releases emphasize backlog, financial targets, and expectations related to integration of acquisitions, export control developments, and macroeconomic conditions. The company also discloses that it uses its corporate website and investor relations site to share earnings materials and other financial information.

Legal and regulatory context

Synopsys is subject to securities laws and export control regulations, as reflected in its filings and public statements. An 8-K filing notes that the U.S. Department of Commerce’s Bureau of Industry and Security rescinded certain export restrictions related to China that had previously affected Synopsys products, and that the company is working to restore access to those products in China while assessing the impact of export restrictions on its business.

Separately, a law firm announcement describes a class action securities lawsuit related to Synopsys, seeking to recover losses for investors based on alleged securities fraud over a defined period and in connection with the acquisition of Ansys. The announcement summarizes the complaint’s allegations about financial results, segment performance, and market reaction, and outlines the process for investors to seek appointment as lead plaintiff.

Stock and investor information

Synopsys common stock has a par value of $0.01 per share and is registered under Section 12(b) of the Securities Exchange Act of 1934. The company regularly files Form 8-K reports to disclose material events, including earnings results, restructuring plans, export control developments, governance changes, and other significant corporate actions. It also files annual and quarterly reports that include risk factors, financial statements, and management discussion and analysis, as referenced in its forward-looking statements disclosures.

Investors following SNPS can use these disclosures, along with Synopsys’ press releases, to understand the company’s business segments, strategic priorities, partnerships, restructuring activities, and financial performance over time. Because Synopsys operates in markets affected by technology trends, regulation, and global economic conditions, its filings frequently include cautionary statements about risks and uncertainties that could affect future results.