At a glance
Synopsys Inc is worth $89.32B, about 58 times its fiscal 2025 earnings. Revenue grew 15.1% to $7.05B in fiscal 2025, with 18.9% kept as profit; over 3 years it has grown 15.2% a year. It pays no dividend; it spent $3.01B buying back its shares over FY2021–FY2025. The stock returned +2.7% over the past year with dividends reinvested and +6.9% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 34.3% in the 2020 crash (S&P 500: 33.7%) and 29.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 7 months after the lows.
The business in plain English
Synopsys makes the software engineers use to design chips and the products built around them. Its core offering is electronic design automation (EDA): tools that help engineers lay out a chip, check that it works as intended and prepare it for manufacturing. It also offers hardware for testing chip designs, plus support and design services. Through its merger with Ansys, it added simulation and analysis software that predicts how products will behave in the real world. That software is used in industries from aerospace and cars to healthcare.
The Design Automation segment, which holds the EDA tools and Ansys software, brought in 75.2% of the $7.05 billion in revenue for the fiscal year ended October 31, 2025. The Design IP segment (IP stands for intellectual property) supplied the other 24.8%. It offers pre-designed circuits, such as memory, interface and security blocks, that customers drop into their own chips to cut development risk and reach market faster.
Customers are mainly chipmakers and electronics companies, and the company depends on a relatively small number of large ones. Nearly half of revenue (49.5%) came from time-based licenses that run for a set term. Another 28.5% came from products counted as revenue upfront, and 22% from maintenance and services. The United States supplied 43.9% of revenue, South Korea 13.4%, Europe 12.6% and China 11.5%.
Price history
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SNPS +2.7% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Time-based products | $3.49B | 49.5% |
| Upfront products | $2.01B | 28.5% |
| Maintenance and service | $1.55B | 22% |
By business segment
| Design Automation | $5.30B | 75.2% |
| Design IP | $1.75B | 24.8% |
By geography
| UNITED STATES | $3.10B | 43.9% |
| Other | $1.30B | 18.5% |
| KOREA, REPUBLIC OF | $947.0M | 13.4% |
| Europe | $888.5M | 12.6% |
| China | $814.3M | 11.5% |
Latest results
- In Q3 FY2026 (ended Jul 31, 2026), revenue was $2.48B, up 42.4% from a year earlier, and net income was $545.8M (+125.1%).
- For fiscal 2025, revenue was $7.05B (+15.1% year over year; +15.2% a year from FY2022 to FY2025) with a 18.9% net margin.
Financial health check
| Revenue growth a year (FY2022–FY2025) | +15.2% good |
|---|---|
| Operating margin | 13% watch |
| Free cash flow margin | 19.1% good |
| Return on equity (FY2025) | 4.7% weak |
| Return on assets (FY2025) | 2.8% weak |
| Net cash (cash minus debt) | $-6.43B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $3.69B | $664.3M | $836.6M |
| FY2021 | $4.20B | $757.5M | $1.40B |
| FY2022 | $4.62B | $984.6M | $1.60B |
| FY2023 | $5.32B | $1.23B | $1.51B |
| FY2024 | $6.13B | $2.26B | $1.27B |
| FY2025 | $7.05B | $1.33B | $1.35B |
Valuation snapshot
| Market value | $89.32B |
|---|---|
| P/E ratio | 58 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
Synopsys’s market value went from $8.83B at the end of 2016 to $89.32B on Nov 2, 2026, about 10.1 times as much; since the end of 2025 it is down 1%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $89.32B | -0.6% |
| 2025 | $89.87B | +19.8% |
| 2024 | $75.03B | -4.1% |
| 2023 | $78.26B | +60.8% |
| 2022 | $48.67B | -13.9% |
| 2021 | $56.54B | +42.5% |
| 2020 | $39.67B | +89.3% |
| 2019 | $20.95B | +66.4% |
| 2018 | $12.60B | -0.6% |
| 2017 | $12.68B | +43.5% |
| 2016 | $8.83B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| SNPS price data to Nov 2, 2026 | -0.8% | +2.7% | -0.9% | +6.9% | +23.2% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -0.8% |
| 2025 | -3.2% |
| 2024 | -5.7% |
| 2023 | +61.3% |
| 2022 | -13.3% |
| 2021 | +42.1% |
| 2020 | +86.2% |
| 2019 | +65.2% |
| 2018 | -1.2% |
| 2017 | +44.8% |
| 2016 | +29.1% |
| 2015 | +4.9% |
| 2014 | +7.2% |
| 2013 | +27.4% |
| 2012 | +17.0% |
| 2011 | +1.1% |
| 2010 | +20.8% |
| 2009 | +20.3% |
| 2008 | -28.6% |
| 2007 | -3.0% |
| 2006 | +33.3% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 37.5% over that stretch · deepest drop along the way 49.1%, back to its old high 26.6 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 34.3% over that stretch · deepest drop along the way 34.3%, back to its old high 1.9 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 23.5% over that stretch · deepest drop along the way 29.3%, back to its old high 7.2 months after the low |
Insider activity
Form 4 filings from 2025-10-27 to 2026-10-27 (25 read): 0 open-market purchases and 11 sales ($59.6M), 7 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 28, 2026 | Geus Aart De EXECUTIVE CHAIR, Director | sell (plan) | $11.1M |
| Aug 31, 2026 | Geus Aart De EXECUTIVE CHAIR, Director | sell (plan) | $11.0M |
| Sep 1, 2026 | Geus Aart De EXECUTIVE CHAIR, Director | sell (plan) | $10.3M |
| Oct 15, 2026 | Sassine Ghazi PRESIDENT AND CEO, Director | sell (plan) | $6.8M |
| Jun 15, 2026 | Sassine Ghazi PRESIDENT AND CEO, Director | sell (plan) | $6.7M |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 7.48% | Mar 31, 2026 |
| Capital World Investors | 4.2% | Sep 30, 2025 |
ETFs with the most weight in SNPS
| SMHX VanEck Fabless Semiconductor ETF | 5.55% |
| WUGI AXS Esoterica NextG Economy ETF | 5.26% |
| SMH VanEck Semiconductor ETF | 3.36% |
| CLOD Themes Cloud Computing ETF | 3.07% |
| SHOC Strive U.S. Semiconductor ETF | 2.95% |
| ARVR First Trust Indxx Metaverse ETF | 2.71% |
| XOVR ERShares Private-Public Crossover ETF | 2.69% |
| IGV iShares Expanded Tech-Software Sector ETF | 2.49% |
What could go wrong
- Ansys merger may not pay off. Synopsys may not get the financial or strategic benefits it expects from merging with Ansys, whose simulation software sits in the Design Automation segment. Combining companies is complex, and expected gains can fall short.
- Export controls and China sales. Government export and import rules can limit what Synopsys may offer abroad, and to whom. That matters for a company that earned 11.5% of fiscal 2025 revenue in China.
- Reliance on a few big customers. Synopsys depends on a relatively small number of large customers. If one of them cuts spending, or customers merge and gain bargaining power, sales and profits could suffer.
- Tied to the chip industry's cycles. Most sales depend on chip and electronics companies starting new designs, so an industry slowdown cuts demand. The 10-K noted that industrial, automotive and consumer electronics markets recovered more slowly than AI and high-performance computing.
- Significant debt limits flexibility. As of July 31, 2026, total debt was about $10.04 billion, against $3.61 billion of cash and investments. Covenants, or promises made to lenders, also limit some business decisions.
- Competition and an uncertain AI push. Synopsys must keep delivering better technology at lower cost or its products could lose ground or become obsolete. Its push into AI-driven chip design may also fail to pay off.
Recent events
- Other company announcement
- Quarterly results released
- Executive or board change
- Major agreement signed; Executive or board change; Investor presentation or announcement
- Quarterly results released
- Executive or board change; Shareholder vote results
- Other company announcement
- Quarterly results released; Other company announcement
- Executive or board change; Investor presentation or announcement
- Quarterly results released
For income and retirement investors
Synopsys does not pay a dividend, so it provides no regular income. An investor wanting income from it would have to cash in shares, possibly at a low price during a downturn. The company returned about $3.01 billion through buybacks (repurchases of its own stock) over fiscal 2021 to 2025, though none in fiscal 2024 or 2025. Even so, the share count rose 24.9% between December 8, 2021, and August 24, 2026. That shrinks each existing share's slice of the company.
The stock fell 49.1% in the 2008 financial crisis and took about 27 months from its low to regain its peak. It fell 34.3% in the 2020 COVID crash but recovered in about two months. It dropped 29.3% in 2022 and recovered in about seven months. Its one-year beta was 1.75 as of October 28, 2026, meaning it has tended to swing more than the overall market. A single stock carries more risk than a diversified fund.
Questions investors ask
Does Synopsys pay a dividend?
No. Synopsys does not pay a dividend and paid none from fiscal 2021 through fiscal 2025. It returned about $3.01 billion to shareholders through share buybacks (the company repurchasing its own stock) over those years, though it made no buybacks in fiscal 2024 or 2025. Investors who need regular income would have to cash in shares to draw money from this stock. It may suit those focused on long-term growth rather than payouts.
How does Synopsys make money?
Synopsys makes money by licensing chip design software and offering ready-made circuit designs to companies that build chips and electronic products. Revenue was $7.05 billion in the fiscal year ended October 31, 2025. Time-based licenses that run for a set term made up 49.5%, products counted as revenue upfront 28.5%, and maintenance and services 22%. The Design Automation segment, which includes Ansys simulation software, brought in 75.2%, and the Design IP segment 24.8%.
Is Synopsys stock expensive?
By one common measure, yes. As of October 28, 2026, Synopsys traded at about 59.9 times its fiscal 2025 earnings of $8.04 per share. This price-to-earnings ratio (P/E) shows how much investors pay for each dollar of yearly profit, and a figure near 60 is high. Part of the reason is that net income fell 41.1% in fiscal 2025 to $1.33 billion. In the quarter ended July 31, 2026, revenue rose 42.4% and net income 125.1% from a year earlier.
What did Synopsys get from the Ansys merger?
The Ansys merger added simulation and analysis software to Synopsys's lineup. Ansys tools let engineers, designers and researchers predict how a product will work in the real world, from early design through final testing. Customers span high-tech, aerospace and defense, automotive, energy, healthcare and construction. These products sit in the Design Automation segment, which made up 75.2% of fiscal 2025 revenue. The 10-K warns that Synopsys may not realize the deal's expected financial or strategic benefits.
How much of Synopsys's revenue comes from China?
China supplied 11.5% of Synopsys's revenue, about $814 million, in the fiscal year ended October 31, 2025. The United States was the largest market at 43.9%, followed by South Korea at 13.4% and Europe at 12.6%. The 10-K warns that export and import rules set by the U.S. and other governments could restrict sales and hurt the company's ability to compete internationally. It also cites tariffs enacted in 2025 as one source of economic uncertainty.