Synopsys, Inc.SNPS
NasdaqGS•Technology•Software - Infrastructure
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.
Synopsys, Inc. (SNPS) reported trailing twelve months revenue of $8.68B as of April 2026, a 42.7% increase year-over-year. Quarterly revenue reached $2.28B, reflecting continued top-line momentum.
Synopsys, Inc. generated $773.27M in TTM net income, with quarterly EBITDA of $576.91M. The operating margin contracted from 23.5% to 5.3%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (5.3%) and net margin (0.8%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 21.5% a year ago, reflecting increased costs or interest expense.
SNPS trades at a P/E of 119.2x (a premium multiple) and a P/S of 10.6x. The price-to-book ratio of 3.0x reflects a moderate premium to book value.
The company generated $574.74M in free cash flow over the trailing twelve months, a 161.5% increase year-over-year, indicating strong cash generation ability. The balance sheet shows $46.89B in total assets with $10.01B in long-term debt against $30.48B in stockholders equity for a debt-to-equity ratio of 0.3, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~14.2% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE is positive at ~13.4% on average, adequate but below the threshold typically associated with wide moats.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
Revenue shows resilience with 5 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.
Data-driven red flags and warnings across 21 quarters
Operating margins dropped 66.2% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.
FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.3 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares outstanding increased 24.8% — significant dilution, likely from stock compensation or capital raises.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation