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Synopsys

Our readBest-in-class EDA franchise temporarily wearing an Ansys-debt-and-amortization disguise — the GAAP "collapse" is accounting, not the business; the real risk is paying ~35x forward for a name whose Design-IP leg is structurally cracked and whose synergy math doesn't pay until FY2028.

catalyst in 30dWebsite
Ticker
SNPS
Beat
hardware
Size
Public Company
Revenue
$2.5B
as of Jul 2026
Cash
$3.6B
as of Jul 2026
Researched · Fresh
8 days ago

Best-in-class EDA franchise temporarily wearing an Ansys-debt-and-amortization disguise — the GAAP "collapse" is accounting, not the business; the real risk is paying ~35x forward for a name whose Design-IP leg is structurally cracked and whose synergy math doesn't pay until FY2028.

Orbit · who it trades with and competes with
11 on the rings · 10 trade · 2 rival
20 mentions across our dossiers
Focus · Hardware
Synopsys
SNPS · public
No published house view
Trades and competes with
Trades with
Competes with
Next prints in its web
Links · 11 companies · 10 trade · 2 rival
“Customers = essentially every chip and systems designer on earth (NVIDIA, AMD, Apple, Intel, Samsung, TSMC's ecosystem, the hyperscalers' custom-silicon teams).”Intel · TRADE · from Synopsys’s dossier
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Price

Weekly closes

SNPS · weekly close
467.61 USD+8.7%
Friday 30 Oct 2026 · last 52 Fridays 373.47–525.18
pick a pin
Every pin is a dated row
Solid: filed with the SEC, settled at FINRA, or a recorded split. Hollow: the scheduled print, past the last close, never a price.
Height is the close · the ribbon is the stored record, a missing week a missing point · a pin stands on its Friday
  1. Insiders sold, 90 days: 1,144 sh · 1 filing, Form 4 · 6 Oct 2026
  2. Short interest: 6,478,309 sh · 2.18 days to cover, FINRA · settled 15 Oct 2026
  3. Insiders bought, 90 days: 1,290 sh · 1 filing, Form 4 · 11 Sept 2026
  4. Next print: in 30 days, Scheduled · 6 Dec 2026, scheduled
467.61USD+8.7%hardware -0.4%SNPS · 112 weekly closes to 2026-10-30

Who is buying

Insiders sold, last 90 daysSEC Form 4 · newest 6 Oct 2026
1 filing · 1,144 shares
Insiders bought, last 90 daysSEC Form 4 · newest 11 Sept 2026
1 filing · 1,290 shares
Shares sold shortFINRA · settled 15 Oct 2026
6,478,309 shares
Days to unwind the shortFINRA · settled 15 Oct 2026
2.18
see the whole series
Financials

The reported figures

Revenue · quarterly
$2.5B
latest, Q2 ’26 · 12 periods stored
Filed · primary
Q2 ’26
$2.5B USD
as of 31 Jul 2026
Source: sec.gov
Solid = filed (primary) · hollow dashed = estimate · a dashed floor tick is a period with no figure held · quarterly and annual never share an axis
Synopsys, quarterly figures held, Q3 ’23 to Q2 ’26
PeriodAs ofRevenueOperating marginFree cash flowCapexCashShares outstandingGradingSource
Q3 ’2331 Oct 2023$1.5B USD28.9% share of revenue$273M USD$53.1M USD$1.4B USD152.1M sharesFiled · primarysec.gov
Q4 ’2331 Jan 2024$1.5B USD23.3% share of revenue-$128M USD$40.4M USD$1.1B USD152.0M sharesFiled · primarysec.gov
Q1 ’2430 Apr 2024$1.5B USD22.8% share of revenue$438M USD$38.4M USD$1.5B USD152.5M sharesFiled · primarysec.gov
Q2 ’2431 Jul 2024$1.5B USD23.6% share of revenue$415M USD$40.0M USD$1.8B USD153.2M sharesFiled · primarysec.gov
Q3 ’2431 Oct 2024$1.6B USD19.0% share of revenue$542M USD$20.7M USD$3.9B USD153.6M sharesFiled · primarysec.gov
Q4 ’2431 Jan 2025$1.5B USD17.3% share of revenue-$108M USD$40.7M USD$3.7B USD154.6M sharesFiled · primarysec.gov
Q1 ’2530 Apr 2025$1.6B USD23.5% share of revenue$220M USD$55.6M USD$14.1B USD154.6M sharesFiled · primarysec.gov
Q2 ’2531 Jul 2025$1.7B USD9.5% share of revenue$632M USD$38.6M USD$2.5B USD155.2M sharesFiled · primarysec.gov
Q3 ’2531 Oct 2025$2.3B USD5.4% share of revenue$605M USD$34.5M USD$2.9B USD185.7M sharesFiled · primarysec.gov
Q4 ’2531 Jan 2026$2.4B USD8.4% share of revenue$822M USD$35.3M USD$2.1B USD191.3M sharesFiled · primarysec.gov
Q1 ’2630 Apr 2026$2.3B USD5.3% share of revenue$575M USD$54.2M USD$2.4B USD191.6M sharesFiled · primarysec.gov
Q2 ’2631 Jul 2026$2.5B USD14.4% share of revenue$746M USD$66.6M USD$3.6B USD191.5M sharesFiled · primarysec.gov

Synopsys’s figures as the company reported them in its filings. Quarters are calendar quarters, so a company whose year ends in January shows each fiscal quarter under the calendar quarter it falls in. An empty slot is a quarter we hold no figure for.

Revenue · quarterlyQ3 ’23 – Q2 ’26
$2.5B+42% vs Q2 ’25

Q2 ’26 · as of Jul 2026

Revenue Q3 ’23: $1.5B, as of Oct 2023Revenue Q4 ’23: $1.5B, as of Jan 2024Revenue Q1 ’24: $1.5B, as of Apr 2024Revenue Q2 ’24: $1.5B, as of Jul 2024Revenue Q3 ’24: $1.6B, as of Oct 2024Revenue Q4 ’24: $1.5B, as of Jan 2025Revenue Q1 ’25: $1.6B, as of Apr 2025Revenue Q2 ’25: $1.7B, as of Jul 2025Revenue Q3 ’25: $2.3B, as of Oct 2025Revenue Q4 ’25: $2.4B, as of Jan 2026Revenue Q1 ’26: $2.3B, as of Apr 2026Revenue Q2 ’26: $2.5B, as of Jul 2026
Operating margin · quarterlyQ3 ’23 – Q2 ’26
14.4%+4.9 pts vs Q2 ’25

Q2 ’26 · as of Jul 2026

Operating margin Q3 ’23: 28.9%, as of Oct 2023Operating margin Q4 ’23: 23.3%, as of Jan 2024Operating margin Q1 ’24: 22.8%, as of Apr 2024Operating margin Q2 ’24: 23.6%, as of Jul 2024Operating margin Q3 ’24: 19.0%, as of Oct 2024Operating margin Q4 ’24: 17.3%, as of Jan 2025Operating margin Q1 ’25: 23.5%, as of Apr 2025Operating margin Q2 ’25: 9.5%, as of Jul 2025Operating margin Q3 ’25: 5.4%, as of Oct 2025Operating margin Q4 ’25: 8.4%, as of Jan 2026Operating margin Q1 ’26: 5.3%, as of Apr 2026Operating margin Q2 ’26: 14.4%, as of Jul 2026
Free cash flow · quarterlyQ3 ’23 – Q2 ’26
$746M

Q2 ’26 · as of Jul 2026

Free cash flow Q3 ’23: $273M, as of Oct 2023Free cash flow Q4 ’23: -$128M, as of Jan 2024Free cash flow Q1 ’24: $438M, as of Apr 2024Free cash flow Q2 ’24: $415M, as of Jul 2024Free cash flow Q3 ’24: $542M, as of Oct 2024Free cash flow Q4 ’24: -$108M, as of Jan 2025Free cash flow Q1 ’25: $220M, as of Apr 2025Free cash flow Q2 ’25: $632M, as of Jul 2025Free cash flow Q3 ’25: $605M, as of Oct 2025Free cash flow Q4 ’25: $822M, as of Jan 2026Free cash flow Q1 ’26: $575M, as of Apr 2026Free cash flow Q2 ’26: $746M, as of Jul 2026

Operating cash flow minus capital spending.

Cash · quarterlyQ3 ’23 – Q2 ’26
$3.6Bdebt $10.0B

Q2 ’26 · as of Jul 2026

Cash Q3 ’23: $1.4B, as of Oct 2023Cash Q4 ’23: $1.1B, as of Jan 2024Cash Q1 ’24: $1.5B, as of Apr 2024Cash Q2 ’24: $1.8B, as of Jul 2024Cash Q3 ’24: $3.9B, as of Oct 2024Cash Q4 ’24: $3.7B, as of Jan 2025Cash Q1 ’25: $14.1B, as of Apr 2025Cash Q2 ’25: $2.5B, as of Jul 2025Cash Q3 ’25: $2.9B, as of Oct 2025Cash Q4 ’25: $2.1B, as of Jan 2026Cash Q1 ’26: $2.4B, as of Apr 2026Cash Q2 ’26: $3.6B, as of Jul 2026Debt Q1 ’25: $10.1B, as of Apr 2025Debt Q2 ’25: $14.3B, as of Jul 2025Debt Q3 ’25: $13.5B, as of Oct 2025Debt Q4 ’25: $10.0B, as of Jan 2026Debt Q1 ’26: $10.0B, as of Apr 2026Debt Q2 ’26: $10.0B, as of Jul 2026

CashDebt

Shares outstanding · quarterlyQ3 ’23 – Q2 ’26
191.5M+26% since Q3 ’23

Q2 ’26 · as of Jul 2026

Shares outstanding Q3 ’23: 152.1M, as of Oct 2023Shares outstanding Q4 ’23: 152.0M, as of Jan 2024Shares outstanding Q1 ’24: 152.5M, as of Apr 2024Shares outstanding Q2 ’24: 153.2M, as of Jul 2024Shares outstanding Q3 ’24: 153.6M, as of Oct 2024Shares outstanding Q4 ’24: 154.6M, as of Jan 2025Shares outstanding Q1 ’25: 154.6M, as of Apr 2025Shares outstanding Q2 ’25: 155.2M, as of Jul 2025Shares outstanding Q3 ’25: 185.7M, as of Oct 2025Shares outstanding Q4 ’25: 191.3M, as of Jan 2026Shares outstanding Q1 ’26: 191.6M, as of Apr 2026Shares outstanding Q2 ’26: 191.5M, as of Jul 2026

A rising count is dilution: each existing share owns less of the company.

Latest filing: sec.gov

The record

What happened

What happened
DateWhat happened
5 Oct 20268-K Item 8.01: Synopsys $1 billion accelerated share repurchase with JPMorganEntered an accelerated share repurchase agreement with JPMorgan Chase Bank, N.A. to repurchase an aggregate $1 billion of common stock (corrected source link for the entry logged with a placeholder URL).filing · SEC 8-K · 5 Oct 2026
dossier age
8 days
researched 29 Oct 2026 · ring fills at 180
pick a section
Each column is a section of the dossier
Its height is how many times the section names a filing: 24 mentions across 2 sections. A dashed foot names none.
Primary sources
0 of 2 sections name no filing · Enter steps through them
  1. The dossier: Refresh delta (since 2026-06-23), 612 words, 21 filing mentions
  2. The dossier: What held, 82 words, 3 filing mentions
Research

The Synopsys dossier

The verdict

Best-in-class EDA franchise temporarily wearing an Ansys-debt-and-amortization disguise — the GAAP "collapse" is accounting, not the business; the real risk is paying ~35x forward for a name whose Design-IP leg is structurally cracked and whose synergy math doesn't pay until FY2028.

Primary sources

SEC filings

Source documents — open to read in full

Refresh delta (since 2026-06-23)

  1. Q3 FY2026: revenue $2,476.8M against $1,739.7M a year earlier, +42.4% [Form 10-QThe quarterly version of the annual report. Lighter, and not audited., segment note; Form 8-KA filing for something that happened between reports and matters enough to tell shareholders now. Q3]. GAAP net income $545.8M, GAAP EPS $2.84 (Q3 FY2025: $242.5M, $1.50); non-GAAP net income $752.5M, non-GAAP EPS $3.91 (Q3 FY2025: $548.9M, $3.39) [8-K Q3]. Non-GAAP EPS is up 15.3% YoY. The prior dossier's Q2 print showed non-GAAP EPS down YoY ($3.35 vs $3.67); Q3 reverses that direction.

  2. Segments, Q3 [10-Q, Note 17]: Design Automation revenue $2,003.0M against $1,312.2M, adjusted operating margin 45% (44%). Design IP revenue $473.9M against $427.6M, adjusted operating margin 27% (20%). The release says Design IP "returned to year-over-year growth" [8-K Q3]. Design IP growth is 10.8%. For nine months, Design IP revenue is $1,335.0M against $1,344.7M, so still slightly down [10-Q, Note 17]. The prior dossier calls Design IP "still bleeding" at −6% in Q2.

  3. The GAAP profit includes a gain. Synopsys sold its Processor IP business to GlobalFoundries on 2026-06-01 for $443.3M cash, recognising a pre-tax gain of $425.4M in other income (expense), net, and incurring $44.9M of divestiture-related expenses [10-Q, Note on divestitures and MD&A]. The non-GAAP reconciliation shows acquisition/divestiture-related items of −$402.6M in Q3 [8-K Q3]. GAAP EPS of $2.84 therefore is not comparable with Q2's $0.09. The prior seed lists the Processor IP divestiture close as a 2H 2026 catalyst; it closed on 2026-06-01.

  4. Guidance (as given in the release): FY2026 revenue $9,690M to $9,740M (midpoint $9,715M); non-GAAP EPS $15.04 to $15.10 (midpoint $15.07); GAAP EPS $3.84 to $4.08; non-GAAP operating margin about 41.5%; Free cash flowCash left after paying to run and maintain the business. Unlike profit, it is hard to flatter with accounting choices. about $2,600M; Ansys revenue $2.98B; Q4 revenue $2,530M to $2,580M and non-GAAP EPS $4.10 to $4.16. The targets assume no further change to export controls or the Entity List [8-K Q3]. The prior dossier's raised guidance was revenue midpoint $9.665B and non-GAAP EPS $14.76, so the midpoints moved by $50M and $0.31. Those prior figures are sourced in the dossier.

  5. Restructuring: the cost estimate was raised. On 2026-08-21 the Board approved updated estimates for the plan first approved on 2025-11-09: pre-tax GAAP charges of $425M to $500M, mostly severance and site closures [8-K/A 2.05]. Restructuring charges recognised in the nine months to 2026-07-31 were $236.3M, of which $2.2M in Q3 [8-K Q3, reconciliation].

  6. Balance sheet, 2026-07-31 against 2025-10-31 [10-Q, balance sheet and debt note]: cash, equivalents and short-term investments $3,607.7M ($2,961.0M); accounts receivable, net $1,318.7M ($1,505.4M); inventories $479.1M ($365.2M); goodwill $26,834.8M ($26,899.2M); intangible assets, net $11,458.6M; total debt $10,037.4M ($1,020.2M short-term plus $9,017.1M long-term), against $13,484.5M a year-start. Nine-month operating cash flow $2,298.6M (nine months of FY2025: $878.9M); financing activities used $1,901.9M, which the 10-Q attributes in part to repaying the remaining term-loan balance. Goodwill plus intangibles is $38.3B; the seed cites $39.6B at the prior balance sheet date. No goodwill impairment charge appears in the 10-Q text read for the nine months [10-Q].

  7. Buybacks resumed. The prior dossier says management "suspended the buyback" to delever. The 10-Q shows a $2.0B replenishment approved in February 2026 with $1.7B remaining at 2026-07-31, and a $250M accelerated repurchase in March 2026 settled on 2026-06-01 at an average of $442.69 a share [10-Q, stock repurchase note]. On 2026-10-05 Synopsys entered a further $1B accelerated repurchase with JPMorgan, with an initial delivery of about 1,735,000 shares and settlement by 2027-01-05 [8-K ASR]. The seed's catalyst reads "deleveraging milestones → buyback resumption, when: FY2027".

  8. Other filings: the General Counsel and Corporate Secretary, Janet Lee, will leave that role by 2026-12-31 or when a successor is appointed, then advise until 2027-06-30 [8-K 5.02]. The 10-Q still lists the U.S. Entity List and ECAD export restrictions as risk factors; no new restriction was found in the text read [10-Q, Item 1A].

What held

  • The Ansys effect on GAAP is still large: Q3 amortization of acquired intangibles was $402.4M [8-K Q3, reconciliation], in line with the $403.6M the prior dossier cites for Q2.
  • Non-GAAP operating margin guidance of about 41.5% and a double-digit-growth EDA outlook are the company's own words [8-K Q3].
  • Interest costs are still heavy: non-GAAP interest and other expense guided at $481M to $485M for FY2026 [8-K Q3], though total debt is down about $3.4B in nine months (fact 6).

How our view changed

2 dossiers on Synopsys since . The verdict has held each time.

Research trail

The research around Synopsys

Covered in the Knowledge Base

Hardware — Memory & Compute Architecture

Company details

IndustrySemiconductors
SizePublic Company
WebsiteVisit Synopsys

Others in hardware

5 names

Where Synopsys sits against the other names we cover on this beat. Each line is that company’s verdict, not a summary of it.