Synopsys (SNPS) financials

NASDAQ · Technology · Software - Infrastructure · 28,000 employees · CEO Sassine Ghazi

Price: $467.61 -4.61%
Market cap: $89.6B
Enterprise value: $96.8B
Last report: Q3 '26 filed 2026-08-26
Next report: 2026-12-09 EPS est. $4.12

Revenue (TTM)$9.42B+46.3% vs a year agoLast 4 quarters; bars = each quarter

Operating margin (TTM)9.8%-7.4 pp vs a year agoOperating income $918M

Net income (TTM)$1.08B-46.1% vs a year agoAfter tax, incl. non-operating gains

Free cash flow (TTM)$2.79B+114.2% vs a year agoCapex $191M

Diluted EPS (TTM)$5.72-55.2% vs a year agoSum of the last 4 quarters

Net cash-$7.23B+42.3% vs a year agoCash + short-term investments - debt

Valuation & key figures

Market cap: $89.6B
Revenue: $9.42B
Revenue growth: +38%
Profit margin: 11.4%
P/E: 81.2×
P/S: 9.5×
EV / EBITDA: 25.9×
Free cash flow: $2.79B
Net income: $1.08B
Revenue estimate: $9.72B
Earnings: 2026-12-09
Dividend: –

Key takeaways

Computed from the reported numbers - every statement carries the figure it rests on.

Last report (2026-08-26): revenue beat by 1.6%, EPS beat by 6.5%Revenue $2.48B vs $2.44B expected (+1.6%); EPS $3.91 vs $3.67 (+6.5%).
Revenue growth accelerating: 42.4% year on yearQ3 '26 revenue $2.48B, against an average of 39.8% over the four quarters before.
Operating margin 9.8% (TTM), -7.4 pp on a year agoOperating income grew -16.9% while revenue grew 46.3%.
29.3% of pre-tax profit is non-operatingPre-tax income $1.3B vs operating income $918M (TTM). Gains on equity stakes and other one-off items lift net income and EPS - operating income is the cleaner measure of the business.
Capex 2.0% of revenue (a year ago 2.2%)$191M invested in the last 4 quarters (+36.9% on a year earlier). Free cash flow $2.79B = 259.2% of net income.
Returned $135M to shareholders = 4.8% of free cash flowBuybacks $135M (a year earlier $138M), dividends $0, stock-based pay $950M (TTM).
Diluted share count up 18.9% in a year192M diluted shares in Q3 '26, 162M a year earlier.
Net debt $7.23BCash + short-term investments $3.61B, debt incl. leases $10.8B; a year ago net debt $12.5B.
Design Automation Segment: revenue +52.6%, margin 45.2% (was 44.5%)Fastest-growing reported segment in Q3 '26: operating income $905M on revenue $2B (from the segment note of the filing).

Last quarter: Q3 '26

Quarter ended 2026-07-31. Compared with the same quarter a year earlier and with the analyst consensus before the report.

Quarter vs a year ago

	Q3 '26	Year ago	Change
Revenue	$2.48B	$1.74B	+42.4%
Gross margin	72.6%	78.1%	-5.6 pp
Operating income	$357M	$165M	+116.3%
Operating margin	14.4%	9.5%	+4.9 pp
Net income	$546M	$243M	+125.1%
Diluted EPS	$2.84	$1.50	+89.3%
Operating cash flow	$813M	$671M	+21.1%
Capex	$66.6M	$38.6M	+72.4%
Free cash flow	$746M	$632M	+18.0%
R&D	$720M	$625M	+15.1%
Stock-based compensation	$232M	$268M	-13.5%

Reported vs consensus

2026-08-26

	Actual	Consensus	vs consensus
Revenue	$2.48B	$2.44B	+1.6%
EPS (as estimated)	$3.91	$3.67	+6.5%

From the report of 2026-08-26 for Q3 '26: revenue and the EPS analysts estimate (often adjusted), so it can differ from the EPS of the statements above.

EPS vs consensus

last 8 reports

Revenue

Where the money comes from - by business line and by region, quarter by quarter.

Revenue, operating income and growth

quarterly

Revenue by business line

stacked, quarterly

Segment	Q3 '26	y/y	Share	TTM	TTM y/y
License and Maintenance	$1B	+12.4%	40.5%	$3.84B	-8.3%
License	$665M	+28.8%	26.9%	$2.57B	+8.9%
Technology Service	$809M	+144.4%	32.7%	$3.01B	+114.9%

Revenue by region

share of total

Segment	Q3 '26	y/y	Share	TTM	TTM y/y
United States	$1.05B	+28.9%	42.5%	$4.15B	+52.6%
Other Countries	$473M	+60.0%	19.1%	$1.68B	+45.9%
Europe	$371M	+107.7%	15.0%	$1.58B	+128.5%
Korea, Republic Of	$326M	+61.1%	13.1%	$1.07B	+17.9%
CHINA	$255M	+3.3%	10.3%	$943M	+13.6%

Segment profits

Operating income per reported segment, read from the segment note of each 10-Q / 10-K (the profit split most data feeds leave out).

Segments in Q3 '26

Segment	Revenue	y/y	Operating income	y/y	Margin	Margin a year ago	TTM operating income
Design Automation Segment	$2B	+52.6%	$905M	+55.0%	45.2%	44.5%	$3.41B
Design IP Segment	$474M	+10.8%	$125M	+45.8%	26.5%	20.1%	$358M
Semiconductor And System Design	–	–	–	–	–	–	–
Silicon IP	–	–	–	–	–	–	–

Operating income by segment

quarterly

Segment operating margin

quarterly

Fourth quarters are derived: the 10-K reports the full year, minus the three quarters of the 10-Qs.

Margins & cost structure

How much of each unit of revenue is left at each level - and where the costs go.

Margins

quarterly

Costs as % of revenue

quarterly

Cash flow & capital allocation

Cash generated, what it is spent on, and what reaches shareholders.

Operating cash flow, capex, free cash flow

quarterly

Uses of cash vs operating cash flow

fiscal years

Last 4 quarters

cash flow statement

Operating cash flow: $2.98B
Capex: -$191M
Buybacks: -$135M
Dividends: $0
Acquisitions: $604M
Net debt issued: -$4.32B
Stock-based compensation: $950M
Free cash flow: $2.79B
Returned to shareholders / FCF: 4.8%

Share count and EPS

quarterly, diluted

Balance sheet

Liquidity, investments and debt at each quarter end.

Cash, investments and debt

quarter ends

Valuation & returns

Today's multiples against the company's own last five fiscal years; analyst targets and ratings.

Multiples and returns

TTM vs 5 fiscal years

	Now	5y average	Where today sits in the 5-year range
P/E (TTM)	81.2×	52.1×	34.8× – 66.5×
EV / EBITDA	25.9×	40.4×	33.0× – 49.0×
EV / Sales	10.3×	11.8×	9.5× – 13.3×
Price / FCF	32.1×	45.3×	28.0× – 61.3×
Price / Book	2.9×	8.1×	2.6× – 11.6×
FCF yield	3.1%	2.4%	1.6% – 3.6%
Return on invested capital	1.7%	11.1%	2.0% – 16.0%
Return on equity	3.6%	16.4%	4.7% – 25.2%

Analysts

Consensus target $575.93 (+23.2%)
range $420.00 – $700.00 · rating Buy

Strong buy0

Buy28

Hold2

Sell0

Strong sell0

Outlook

Analyst consensus for the coming fiscal years and what it implies at today's price.

Consensus estimates

Fiscal year	Revenue	Growth	EPS	Growth	P/E at today's price	Analysts (EPS)
FY2026	$9.72B	+37.8%	$15.16	+88.6%	30.8×	14
FY2027	$11B	+13.5%	$18.76	+23.8%	24.9×	14
FY2028	$12.6B	+13.9%	$23.11	+23.2%	20.2×	11
FY2029	$14.3B	+14.1%	$27.38	+18.5%	17.1×	4
FY2030	$16.3B	+13.6%	$33.51	+22.4%	14.0×	4

Financial statements

Every line of the income statement, balance sheet and cash flow statement - 12 quarters and 10 fiscal years, as values, as % of revenue or as growth.

Income statementRevenue, costs, operating income, net income and EPSOpen Balance sheetCash, investments, assets, debt, liabilities and equityOpen Cash flowOperating cash flow, capex, free cash flow, buybacks and dividendsOpen

Every reported line

All 324 figures Synopsys, Inc. tagged in its recent 10-Q / 10-K filings, with the official SEC label and definition - including the notes (leases, taxes, buybacks, employees, ...).

Line (SEC label)	Latest quarter	Year ago	y/y	Latest FY	Prior FY	y/y
Accounts Payable and Accrued Liabilities, Current	$1.48B	$1.28B	+15.4%	$1.33B	$1.16B	+14.0%
Accounts Payable, Current	$187M	$133M	+40.9%	$165M	$207M	-20.5%
Accounts Receivable, after Allowance for Credit Loss, Current	$1.32B	$1.39B	-5.3%	$1.51B	$934M	+61.1%
Accounts Receivable, Allowance for Credit Loss, Current	$89M2025-10-31	$51M	+74.4%	$89M	$51M	+74.4%
Accounts Receivable, before Allowance for Credit Loss, Current	$1.55B2025-10-31	$941M	+64.5%	$1.55B	$941M	+64.5%
Accounts Receivable, Credit Loss Expense (Reversal)	$7.01M	$7.62M	-8.1%	$50.9M	$19.7M	+158.0%
Accrued Income Taxes, Current	$88.5M	$17.1M	+418.4%	$94.7M	$147M	-35.7%
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$965M2025-10-31	$930M	+3.8%	$965M	$930M	+3.8%
Accumulated Other Comprehensive Income (Loss), Net of Tax	-$311M	-$232M	-33.9%	-$232M	-$180M	-28.8%
Additional Paid in Capital	$20.7B	$18.5B	+11.7%	$18.6B	$1.21B	+1,439.0%
Amortization of Intangible Assets	$155M	$28.6M	+443.1%	$193M	$16.2M	+1,085.6%
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1.52M	479K	+218.0%	427K	229K	+86.5%
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	$232M	$268M	-13.5%	$893M	$692M	+29.0%
Assets	$47.7B	$48.2B	-1.0%	$48.2B	$13.1B	+268.9%
Assets, Current	$6.64B	$5.6B	+18.7%	$6.01B	$6.47B	-7.1%
Buildings and Improvements, Gross	$100M2025-10-31	$104M	-3.6%	$100M	$104M	-3.6%
Business Acquisition, Pro Forma Net Income (Loss)	$450M2025-10-31	$779M	-42.3%	$744M	$651M	+14.2%
Business Acquisition, Pro Forma Revenue	$2.25B2025-10-31	$2.06B	+9.2%	$8.92B	$8.45B	+5.6%
Business Combination, Acquisition Related Costs	$3.4M	$115M	-97.0%	$267M	$162M	+65.1%
Capital Expenditures Incurred but Not yet Paid	–	–	–	$24.3M	$32M	-24.1%
Capitalized Contract Cost, Amortization	$29.7M	$13.5M	+120.0%	$53.2M	$48.5M	+9.7%
Capitalized Contract Cost, Net	$125M	$67.9M	+84.2%	$92.5M	$72.8M	+27.1%
Capitalized Contract Cost, Net, Current	$33.6M	$1.4M	+2,300.0%	$13.4M	–	–
Capitalized Contract Cost, Net, Noncurrent	$91.5M	$66.5M	+37.6%	$79.1M	–	–
Cash and Cash Equivalents, at Carrying Value	$3.61B	$2.53B	+42.7%	$2.89B	$3.9B	-25.9%
Cash and Cash Equivalents, Fair Value Disclosure	$43.1M	–	–	$53M	$878M	-94.0%
Cash Equivalents, at Carrying Value	$43.1M	–	–	$53M	$878M	-94.0%
Cash, Cash Equivalents, and Short-term Investments	$3.61B	$2.59B	+39.1%	$2.96B	$4.05B	-26.9%
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$2.89B2025-10-31	$3.9B	-25.8%	$2.89B	$3.9B	-25.8%
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Disposal Group, Including Discontinued Operations	$02025-10-31	$0	–	$0	$0	–
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations	$3.61B	$2.53B	+42.6%	$2.89B	$3.9B	-25.8%
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	$1.19B	-$11.6B	+110.3%	-$1.01B	$2.46B	-140.9%
Common Stock, Par or Stated Value Per Share	$0.01	$0.01	0.0%	$0.01	$0.01	0.0%
Common Stock, Shares Authorized	400M	400M	0.0%	400M	400M	0.0%
Common Stock, Shares, Issued	186M2025-10-31	154M	+20.7%	186M	154M	+20.7%
Common Stock, Shares, Outstanding	192M	185M	+3.3%	186M	154M	+20.7%
Common Stock, Value, Issued	$1.92M	$1.86M	+3.3%	$1.86M	$1.54M	+20.7%
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest	-$94K	-$232K	+59.5%	$1.03M	-$27.6M	+103.7%
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$479M	$251M	+91.2%	$1.28B	$2.28B	-43.8%
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	$479M	$251M	+91.3%	$1.28B	$2.25B	-43.1%
Contract with Customer, Asset, after Allowance for Credit Loss	$1.23B	$1.18B	+4.5%	$1.22B	$757M	+61.4%
Contract with Customer, Asset, after Allowance for Credit Loss, Noncurrent	$364M	$356M	+2.4%	$336M	–	–
Contract with Customer, Liability	$2.72B	$2.37B	+14.3%	$2.63B	$1.73B	+51.7%
Contract with Customer, Liability, Current	$2.33B	$1.99B	+17.1%	$2.25B	$1.39B	+61.4%
Contract with Customer, Liability, Noncurrent	$384M	$383M	+0.1%	$383M	$341M	+12.2%
Contract with Customer, Liability, Revenue Recognized	$348M	$245M	+42.2%	$1.5B	$1.5B	0.0%
Cost of Property Repairs and Maintenance	–	–	–	$105M	$89.4M	+17.1%
Cost of Revenue	$679M	$381M	+78.5%	$1.62B	$1.25B	+30.4%
Cost, Depreciation, Amortization and Depletion	$247M	$46.4M	+433.2%	$312M	$108M	+188.8%
Costs and Expenses	–	–	–	$4.42B	$3.77B	+17.4%
Current Federal Tax Expense (Benefit)	–	–	–	$376M	$346M	+8.7%
Current Foreign Tax Expense (Benefit)	–	–	–	$119M	$110M	+7.9%
Current Income Tax Expense (Benefit)	–	–	–	$520M	$476M	+9.3%
Current State and Local Tax Expense (Benefit)	–	–	–	$25M	$19.8M	+26.4%
Debt Conversion, Converted Instrument, Amount	–	–	–	$0	$0	–
Debt Securities, Available-for-sale	$1.38M	$67.2M	-97.9%	$72.9M	$154M	-52.6%
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	$0	$23K	-100.0%	$219K	$523K	-58.1%
Debt Securities, Available-for-sale, Amortized Cost	$1.38M	$67.2M	-97.9%	$72.7M	$153M	-52.6%
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year One Through Five	$43.5M2026-04-30	$65.2M	-33.3%	$45.8M	$92.2M	-50.4%
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, Year One	$1.38M	$20.3M	-93.2%	$26.9M	$57M	-52.7%

Source: SEC companyfacts (XBRL of every 10-Q / 10-K). Cash-flow quarters are derived from the year-to-date figures the 10-Q tags. Segment breakdowns are tagged with dimensions and are shown in the segment section instead.

Sources

Statements, segment revenue, metrics, estimates: Financial Modeling Prep. Segment profits and every reported line: SEC EDGAR (XBRL). Filings read: 10-Q 2026-07-31, 10-Q 2026-04-30, 10-Q 2026-01-31, 10-K 2025-10-31, 10-Q 2025-07-31, 10-Q 2025-04-30, 10-Q 2025-01-31, 10-K 2024-10-31, 10-Q 2024-07-31

Data as of 2026-11-01