Synopsys Inc. reported fiscal fourth‑quarter 2025 results on December 10, 2025, delivering revenue of $2.255 billion—an increase of 38% year‑over‑year—and a non‑GAAP net income of $543.1 million, which translated into diluted earnings per share of $2.90. The earnings beat the consensus estimate of $2.78 per share by $0.12, while revenue topped the $2.250 billion forecast by $5 million, underscoring robust demand for the company’s chip‑design tools and hardware‑verification systems.
The quarter’s revenue mix highlighted the impact of the recently completed Ansys acquisition. Ansys contributed $667.7 million to the total, representing a 30% share of Q4 revenue and a 12% year‑over‑year increase, driven by strong sales of simulation and analysis solutions to data‑center and automotive customers. In contrast, the Design IP segment generated $428 million, a 7.7% decline from $463 million a year earlier, reflecting a slowdown in legacy IP licensing and intensified competition in that space. The decline was partially offset by a 5% rise in the Design Automation segment, which benefited from record shipments of ZeBu Server 5 and HAPS 200 verification platforms.
Management reiterated its fiscal 2026 outlook, projecting revenue of $9.56 billion to $9.66 billion and adjusted earnings per share of $14.32 to $14.40—both above consensus expectations. The guidance signals confidence that the Ansys integration will generate significant revenue synergies and margin expansion. Synopsys also disclosed that total debt has risen to $14.3 billion, cash balances stand at $2.6 billion, and a 10% workforce reduction is underway to streamline operations and support the merger integration.
CEO Sassine Ghazi said the quarter “demonstrates the power of our combined engineering portfolio and the accelerating demand for AI‑driven silicon design.” CFO Shelagh Glaser added that the company’s backlog of $11.4 billion, up from $10.1 billion a quarter earlier, reflects sustained customer confidence and positions Synopsys to capture growth in high‑margin AI and automotive markets.
The results come amid headwinds such as China export‑control restrictions that have reduced revenue from that region by 18% year‑over‑year and a high debt load that could constrain future capital allocation. Nevertheless, the company’s strong cash flow, disciplined cost management, and the strategic fit of Ansys are expected to offset these risks, supporting the optimistic guidance and reinforcing Synopsys’s leadership in the silicon‑to‑systems space.
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