Business Description
Synopsys, Inc. is a leading provider of electronic design automation (EDA) software, instrumental in the creation and validation of integrated circuits. The company offers a robust portfolio of platforms, including the Fusion Design Platform for digital implementation, and the comprehensive Verification Continuum Platform. The latter provides a suite of solutions such as virtual prototyping, static and formal verification, simulation, emulation, and FPGA-based prototyping with integrated debugging tools. Synopsys also develops FPGA design products, which enable programming for specific functions. A significant part of its business involves intellectual property (IP) solutions. This encompasses IP for widely adopted communication standards like USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth Low Energy. They also furnish analog IP, including data converters and audio codecs, alongside system-on-chip (SoC) infrastructure IP, specialized datapath and building block IP, and verification IP products. Furthermore, their offerings include mathematical and floating-point components, as well as Arm AMBA interconnect fabric and peripherals. Beyond core IP, Synopsys supplies logic libraries, embedded memories, and configurable processor cores, complemented by application-specific instruction-set processor tools for embedded applications. They also develop IP subsystems for audio, sensor, and data fusion functionalities, in addition to specialized security IP solutions. For advanced system design and analysis, Synopsys provides Platform Architect solutions for SoC architecture optimization, along with general virtual prototyping tools and HAPS FPGA-based prototyping systems. Their expertise extends to tools designed for optical systems and photonic devices. In addition to software and IP, the company delivers a range of services, including security testing, managed services, professional programs, and training. These services are designed to help customers identify and resolve security vulnerabilities and defects across the software development lifecycle. Manufacturing solutions are also part of their extensive offerings. Synopsys serves a diverse global client base, with applications across electronics, financial services, automotive, medicine, energy, and various industrial sectors. The company was founded in 1986 and is headquartered in Mountain View, California.
Business History
Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 8.13
Total Equity: $28.33B
Shares: 161,682,000
Total Debt: $13.48B
Cash: $2.89B
EBITDA: $2.50B
Total Debt: $13.48B
Cash: $2.89B
Revenue: $7.05B
Revenue: $7.05B
Revenue: $7.05B
Total Equity: $28.33B
Tax Rate: 4.0%
Equity: $28.33B
Total Debt: $13.48B
Cash: $2.89B
Current Liabilities: $3.72B
Long-Term Debt: $13.46B
Total Debt: $13.48B
Total Equity: $28.33B
Shares: 161,682,000
Shares: 161,682,000
CapEx: -$169.45M
Shares: 161,682,000
Stock Price: $454.34
Net Income: $1.33B
Industry Benchmarks
Deep Analysis
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Income Statement (Annual)
Last updated: Jun 27, 2026 3:04am (6h ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $4.2B | $4.6B | $5.3B | $6.1B | $7.1B |
| Cost of Revenue | $861.8M | $898.0M | $1.0B | $1.2B | $1.6B |
| Gross Profit | $3.3B | $3.7B | $4.3B | $4.9B | $5.4B |
| Operating Expenses | $2.6B | $2.6B | $3.0B | $3.5B | $4.5B |
| Operating Income | $734.8M | $1.1B | $1.3B | $1.4B | $914.9M |
| Net Income | $757.5M | $984.6M | $1.2B | $2.3B | $1.3B |
| EBITDA | $1.0B | $1.3B | $1.6B | $1.8B | $2.5B |
| EPS | $4.96 | $6.44 | $8.08 | $14.78 | $8.13 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 27, 2026 3:04am (6h ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $1.4B | $1.4B | $1.4B | $3.9B | $2.9B |
| Total Current Assets | $2.8B | $3.0B | $3.4B | $6.5B | $6.0B |
| Total Assets | $8.8B | $9.4B | $10.3B | $13.1B | $48.2B |
| Current Liabilities | $2.4B | $2.8B | $3.0B | $2.7B | $3.7B |
| Long-Term Debt | $25.1M | $20.8M | $18.1M | $15.6M | $13.5B |
| Total Liabilities | $3.5B | $3.9B | $4.1B | $4.1B | $19.9B |
| Total Equity | $5.3B | $5.5B | $6.1B | $9.0B | $28.3B |
| Retained Earnings | $4.5B | $5.5B | $6.7B | $9.0B | $10.3B |
Cash Flow (Annual)
Last updated: Jun 27, 2026 3:04am (6h ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $1.5B | $1.7B | $1.7B | $1.4B | $1.5B |
| Capital Expenditure | -$95.7M | -$139.1M | -$191.8M | -$123.2M | -$169.5M |
| Free Cash Flow | $1.4B | $1.6B | $1.5B | $1.3B | $1.3B |
| Acquisitions (net) | -$296.0M | -$422.4M | -$297.7M | -$156.9M | -$15.9B |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | -$753.1M | -$1.1B | -$1.2B | $0 | $0 |
| Net Change in Cash | $197.2M | -$15.3M | $21.3M | $2.5B | -$1.0B |
Analyst Estimates (Annual)
Last updated: Jun 26, 2026 11:47pm (10h ago)| Metric | 2026 | 2027 | 2028 | 2029 |
|---|---|---|---|---|
| Revenue |
$9.7B $9.7B – $9.8B
|
$10.7B $10.4B – $10.9B
|
$12.0B $12.0B – $12.0B
|
$13.2B $12.9B – $13.4B
|
| EBITDA |
$2.9B $2.9B – $2.9B
|
$3.2B $3.1B – $3.2B
|
$3.6B $3.6B – $3.6B
|
$3.9B $3.8B – $4.0B
|
| Net Income |
$2.4B $2.3B – $2.4B
|
$2.8B $2.6B – $2.9B
|
$3.9B $2.4B – $5.4B
|
$3.8B $3.7B – $3.8B
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 27, 2026 3:04am (6h ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +9.8% | +15.2% | +15.2% | +15.1% |
| Gross Profit Growth | +11.2% | +15.3% | +13.9% | +11.2% |
| Operating Income Growth | +56.3% | +10.8% | +6.5% | -32.5% |
| Net Income Growth | +30.0% | +24.9% | +84.0% | -41.1% |
| EBITDA Growth | +31.7% | +16.6% | +18.7% | +35.5% |
Narrative Economics
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