Synopsys Inc. has recently released its 10-Q report, providing a detailed look into the company's financial performance and operations. The company, incorporated in 1986 and headquartered in Sunnyvale, California, specializes in electronic design automation software products used to design and test integrated circuits. Synopsys operates in two segments, Design Automation and Design IP, offering a range of digital and custom IC design solutions, verification solutions, FPGA design products, intellectual property solutions, and system-on-chip infrastructure IP, among others.
The 10-Q report for the second quarter of fiscal 2025 reveals that Synopsys Inc. has seen significant growth in its financial performance. In the three months ended April 30, 2025, the company reported revenues of $1.6 billion, marking a 10% increase compared to the same period in fiscal 2024. Operating income for the same period increased by 13% to $376.4 million. For the six months ended April 30, 2025, revenues reached $3.1 billion, a 3% increase from the same period in fiscal 2024, while operating income decreased by 8% to $628.3 million.
Synopsys attributes its revenue growth to increases in customer spending for hardware and IP, as well as changes in revenue mix across products and geographies. The company reported a rise in employee-related costs and legal, consulting, and other professional fees, mainly in connection with the pending acquisition of ANSYS, Inc. Synopsys also highlighted its consistent revenue growth since 2005, emphasizing its solid execution, leading technologies, and strong customer relationships.
The report also delves into Synopsys' pending acquisition of ANSYS, a provider of engineering simulation and analysis software and services, in a cash-and-stock transaction valued at approximately $35.0 billion. The acquisition is expected to result in ANSYS equityholders and Synopsys equityholders owning approximately 16.5% and 83.5%, respectively, of the combined company on a pro forma basis following the Effective Time. The acquisition is subject to customary closing conditions, including the clearance of the ANSYS Merger under certain antitrust and foreign investment regimes.
Synopsys has taken steps to finance the acquisition, including entering into a term loan facility credit agreement and issuing senior notes to fund a portion of the cash consideration to be paid in the ANSYS Merger, as well as to pay related transaction fees and expenses and to repay ANSYS' outstanding indebtedness.
The 10-Q report also addresses the potential impact of the current macroeconomic and geopolitical environment on Synopsys' financial results, including the effects of changes in U.S. and global trade policy, sustained global inflationary pressures, and geopolitical pressures. The company acknowledges that its operating results may fluctuate in the future, which could adversely affect its stock price.
Today the company's shares have moved -9.64% to a price of $462.43. For more information, read the company's full 10-Q submission here.
