Results Summary
"We finished the year with record revenue and strong backlog of $11.4 billion dollars, which underscores the resilience of business," said Shelagh Glaser, CFO of Synopsys. "We expect to set another revenue record in 2026 while fully integrating Ansys, driving further operational efficiency, and capitalizing on our expanded opportunity."
GAAP Results
On a U.S. generally accepted accounting principles (GAAP) basis, net income for the fourth quarter of fiscal year 2025 was $448.7 million, or $2.39 per diluted share, compared to $279.3 million, or $1.79 per diluted share, for the fourth quarter of fiscal year 2024. GAAP net income for fiscal year 2025 was $1.336 billion, or $8.07 per diluted share, compared to $1.442 billion, or $9.25 per diluted share, for fiscal year 2024.
Non-GAAP Results
On a non-GAAP basis, net income for the fourth quarter of fiscal year 2025 was $543.1 million, or $2.90 per diluted share, compared to non-GAAP net income of $529.9 million, or $3.40 per diluted share, for the fourth quarter of fiscal year 2024. Non-GAAP net income for fiscal year 2025 was $2.138 billion, or $12.91 per diluted share, compared to non-GAAP net income of $2.058 billion, or $13.20 per diluted share, for fiscal year 2024.
For a reconciliation of net income, earnings per diluted share and other measures on a GAAP and non-GAAP basis, see "GAAP to Non-GAAP Reconciliation" in the accompanying tables below.
Business Segments
Synopsys reports revenue and operating income in two segments: (1) Design Automation, which includes our advanced silicon design, verification products and services, Ansys products, system integration products and services, digital, custom and field programmable gate array IC design software, verification software and hardware products, manufacturing software products and other; and (2) Design IP, which includes our interface, foundation, security, and embedded processor IP, IP subsystems, and IP implementation services.
Continuing Operations
On September 30, 2024, Synopsys completed the sale of its Software Integrity business. Unless otherwise noted, Synopsys' Software Integrity business has been presented as a discontinued operation in the Synopsys' consolidated financial statements for all periods presented herein and all financial results and targets are presented herein on a continuing operations basis.
Financial Targets
Synopsys also provided its consolidated financial targets for the first quarter and full fiscal year 2026. These targets also assume no further changes to export control restrictions or the current U.S. government "Entity List" restrictions. These targets constitute forward-looking statements and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see "Forward-Looking Statements" below.
Link to Press Release
- - Record full-year 2025 revenue of $7.054 billion. Fourth-quarter revenue of $2.255 billion, exceeding midpoint of guidance.
- - Full-year and fourth-quarter non-GAAP earnings per diluted share (EPS) exceeded guidance.
- - Expecting fiscal year 2026 revenue of $9.610 billion at mid-point, including $2.9 billion of expected Ansys revenue and reflecting the impact of approximately $110 million of divested Optical Solutions Group and PowerArtist RTL businesses.
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Synopsys headquarters
"We finished the year with record revenue and strong backlog of $11.4 billion dollars, which underscores the resilience of business," said Shelagh Glaser, CFO of Synopsys. "We expect to set another revenue record in 2026 while fully integrating Ansys, driving further operational efficiency, and capitalizing on our expanded opportunity."
GAAP Results
On a U.S. generally accepted accounting principles (GAAP) basis, net income for the fourth quarter of fiscal year 2025 was $448.7 million, or $2.39 per diluted share, compared to $279.3 million, or $1.79 per diluted share, for the fourth quarter of fiscal year 2024. GAAP net income for fiscal year 2025 was $1.336 billion, or $8.07 per diluted share, compared to $1.442 billion, or $9.25 per diluted share, for fiscal year 2024.
Non-GAAP Results
On a non-GAAP basis, net income for the fourth quarter of fiscal year 2025 was $543.1 million, or $2.90 per diluted share, compared to non-GAAP net income of $529.9 million, or $3.40 per diluted share, for the fourth quarter of fiscal year 2024. Non-GAAP net income for fiscal year 2025 was $2.138 billion, or $12.91 per diluted share, compared to non-GAAP net income of $2.058 billion, or $13.20 per diluted share, for fiscal year 2024.
For a reconciliation of net income, earnings per diluted share and other measures on a GAAP and non-GAAP basis, see "GAAP to Non-GAAP Reconciliation" in the accompanying tables below.
Business Segments
Synopsys reports revenue and operating income in two segments: (1) Design Automation, which includes our advanced silicon design, verification products and services, Ansys products, system integration products and services, digital, custom and field programmable gate array IC design software, verification software and hardware products, manufacturing software products and other; and (2) Design IP, which includes our interface, foundation, security, and embedded processor IP, IP subsystems, and IP implementation services.
Continuing Operations
On September 30, 2024, Synopsys completed the sale of its Software Integrity business. Unless otherwise noted, Synopsys' Software Integrity business has been presented as a discontinued operation in the Synopsys' consolidated financial statements for all periods presented herein and all financial results and targets are presented herein on a continuing operations basis.
Financial Targets
Synopsys also provided its consolidated financial targets for the first quarter and full fiscal year 2026. These targets also assume no further changes to export control restrictions or the current U.S. government "Entity List" restrictions. These targets constitute forward-looking statements and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see "Forward-Looking Statements" below.
Link to Press Release