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Synopsys, Inc. provides design IP solutions in the semiconductor and electronics industries. It operates in two segments, Design Automation and Design IP. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; FPGA design products that are programmed to perform specific functions; synopsys technology computer-aided design (TCAD), mask synthesis, and manufacturing analytic solutions; and AI-driven EDA solutions. It also provides pre-verified and silicon-proven IP solutions, logic libraries and embedded memories, processor and security solutions, IP Offerings for the automotive market, SOC infrastructure IP, data path and building block IP, and mathematical and floating-point components. Synopsys, Inc. has a strategic collaboration with Arm Holdings plc for development of AGI CPU that provides solutions across its full-stack design portfolio including EDA, interface IP, and hardware-assisted verification (HAV). The company was incorporated in 1986 and is headquartered in Sunnyvale, California.
5-year financial trends. Figures in USD millions.
Latest fiscal year: 2025
Year-by-year revenue, profitability, and cash flow (USD millions, last 10 years)
| Year | Revenue | EBITDA | Net Profit | FCF | ROE | Rev Growth 1Y | NP Growth 1Y |
|---|---|---|---|---|---|---|---|
| 2025 | $7.1B | $2.5B | $1.3B | $1.3B | 4.7% | 15.1% | -41.1% |
| 2024 | $6.1B | $1.8B | $2.3B | $1.3B | 25.2% | 15.2% | 84.0% |
| 2023 | $5.3B | $1.6B | $1.2B | $1.5B | 20.0% | 15.2% | 24.9% |
| 2022 | $4.6B | $1.3B | $985M | $1.6B | 17.9% | - | - |
Income statement, balance sheet, and cash flow as reported
Consolidated Figures in USD Millions.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Total Revenue | 4,615.71 | 5,318.01 | 6,127.44 | 7,054.18 |
| Cost Of Revenue | 898.01 | 1,030.84 | 1,245.29 | 1,623.55 |
| Gross Profit | 3,717.70 | 4,287.17 | 4,882.15 | 5,430.63 |
| Operating Expense | 2,557.77 | 2,960.84 | 3,526.44 | 4,515.70 |
| Operating Income | 1,159.94 | 1,326.33 | 1,355.71 | 914.93 |
| EBITDA | 1,333.56 | 1,555.29 | 1,845.75 | 2,500.30 |
| EBIT | 1,105.15 | 1,308.17 | 1,550.69 | 1,839.87 |
| Pretax Income | 1,103.45 | 1,305.47 | 1,513.86 | 1,393.14 |
| Tax Provision | 139.38 | 90.19 | 99.72 | 55.99 |
| Net Income | 984.59 | 1,229.89 | 2,263.38 | 1,332.22 |
| Net Income Common Stockholders | 984.59 | 1,229.89 | 2,263.38 | 1,332.22 |
| Total Expenses | 3,455.78 | 3,991.68 | 4,771.73 | 6,139.25 |
| Interest Expense | 1.70 | 2.70 | 36.83 | 446.73 |
| Interest Income | -58.97 | 36.67 | 67.02 | 277.68 |
| Research And Development | 1,589.85 | 1,849.94 | 2,082.36 | 2,479.34 |
| Selling General And Administration | 956.28 | 1,101.61 | 1,427.84 | 1,843.84 |
| Normalized EBITDA | 1,340.08 | 1,609.91 | 1,782.48 | 1,901.80 |
| Normalized Income | 975.93 | 1,277.89 | 1,382.61 | 761.56 |
| Market Cap | 95,938.10 | 95,938.10 | 95,938.10 | 95,938.10 |
Technology sector peers, ranked by market cap
| Company | Ticker | Market Cap | P/E | P/B | ROE | EV/EBITDA |
|---|---|---|---|---|---|---|
| Synopsys, Inc.this co. | SNPS | $82.1B | 72.01↑ premium | 3.39 | 4.7% | 42.93 |
| Cadence Design Systems, Inc. | CDNS | $90.3B | 82.88 | 16.79 | 20.3% | 48.88 |
| Automatic Data Processing, Inc. | ADP | $80.0B | 19.40 | 12.79 | 65.9% | 13.37 |
| Monolithic Power Systems, Inc. | MPWR | $78.4B | 128.99 | 22.70 | 17.6% | 101.24 |
| Ciena Corporation | CIEN | $73.8B |
| 597.06 |
| 26.98 |
| 4.5% |
| 190.98 |
| Motorola Solutions, Inc. | MSI | $73.0B | 33.82 | 30.22 | 89.4% | 22.64 |
| Teradyne, Inc. | TER | $66.6B | 118.14 | 23.41 | 19.8% | 83.04 |
| Fortinet, Inc. | FTNT | $63.8B | 33.67 | 50.43 | 149.8% | 24.82 |
| TE Connectivity plc | TEL | $63.7B | 34.20 | 5.01 | 14.6% | 16.40 |
| Peer Median | - | 58.54 | 23.06 | 20.0% | 36.85 | |