Synopsys Inc. has recently released its 10-K report, revealing a 15% revenue growth compared to fiscal 2024, primarily due to revenue growth across a majority of product groups and geographies and the closing of the Ansys Merger, which contributed $756.6 million in revenue. The company's total cost of revenue and operating expenses was $6.1 billion, an increase of $1.4 billion or 29%, primarily due to an increase of $664.5 million in employee-related costs from headcount increases as a result of the Ansys Merger of $432.1 million and the balance from organic growth, as well as $457.8 million of amortization expense related to intangible assets acquired from the Ansys Merger.
In terms of financial performance, revenues for the year ended October 31, 2025, were $7.054.2 billion, compared to $6.127.4 billion in 2024 and $5.318.0 billion in 2023. Operating income was $914.9 million, $1.355.7 million, and $1.273.2 million for 2025, 2024, and 2023 respectively. Net income from continuing operations attributed to Synopsys was $1.336.1 billion, $1.441.7 billion, and $1.227.0 billion for the same years. Diluted net income per share attributed to Synopsys from continuing operations was $8.07, $9.25, and $7.91 for 2025, 2024, and 2023 respectively.
The company saw strength in its Design Automation segment, including strong demand for its hardware products, but experienced weakness in its Design IP segment due to several headwinds, including China export control restrictions, weaker than expected demand from a major foundry customer, and certain roadmap and resource decisions that did not yield their intended results. Synopsys has begun taking actions to sharpen its execution and reallocate resources to the highest growth opportunities in the Design IP segment, but expects to see muted growth in fiscal 2026.
Synopsys delivers industry-leading silicon design, simulation and analysis (S&A) and IP solutions as well as design services. The company partners closely with its customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow. Synopsys has consistently grown its revenue since 2005, despite periods of global economic uncertainty. The company's growth strategy is focused on expanding its total addressable market by maximizing the capabilities of R&D teams across industries spanning semiconductor, high-tech, industrial, aerospace, and more with engineering solutions from silicon to systems.
The current macroeconomic environment, including the effects of changes in U.S. and global trade policy, sustained global inflationary pressures, and geopolitical pressures, have resulted in increased volatility in global markets. While Synopsys has seen continued strength in the artificial intelligence and high-performance computing sectors, certain industries such as industrial, automotive, and consumer electronics have recovered more slowly from recent macroeconomic uncertainty. The company expects a challenging near-term environment, including in China, due to macroeconomic factors and trade restrictions.
Synopsys is actively monitoring changes to global trade policy, such as changes to U.S. Export Regulations and developments related to the tariffs enacted by the U.S. government. The evolving nature of U.S. Export Regulations, including the potential for new and expanded license requirements, creates uncertainty regarding the current and future impacts on the company's business. The company is also monitoring other geopolitical pressures around the world, including changes in China-Taiwan and U.S.-China relations, and conflicts in Ukraine and the Middle East, which could materially affect its employees, business, operating results, financial condition, or customers in those regions of the world. The market has reacted to these announcements by moving the company's shares 1.98% to a price of $467.195. For the full picture, make sure to review SYNOPSYS INC's 10-K report.
