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Makes electronic design automation (EDA) software for chip design and, after buying Ansys, engineering simulation tools.
Makes electronic design automation (EDA) software for chip design and, after buying Ansys, engineering simulation tools.
Sells chip-design software on multi-year licences that customers pay for over the term, and licenses ready-made circuit blocks, called IP, that chipmakers drop into their designs. Its spending follows customers' design projects. It bought Ansys in 2025 to extend from chips into simulation of whole products.
Moat: wide (switching costs, IP / patents, installed base). EDA design flows and IP blocks are deeply embedded in customer chip projects over multi-year cycles.
Headquarters: Sunnyvale, California, US · Founded: 1986 · Employees: 28,000
Size Synopsys (SNPS) is a United States Information Technology company (Packaged Software) with a market value of $86.3B, the 158th largest of 3,117 United States companies the cockpit tracks. Shares closed at $450.46 on 6 Nov 2026.
Performance Over six months the shares fell 12.8%, against +9.4% for the median peer and -1.1% for the United States market (cap-weighted) — 3rd lowest of 21 in its peer set.
Growth Revenue grew 46.3% over the last twelve months (peer median +20.5%); the operating margin is 12.1% (peer median 10.1%).
Valuation It trades at 25.6× forward earnings against a peer median of 22.4× (10th most expensive of 20).
Price implies For today's price to make sense, revenue must grow about 39% a year for seven years (Req g). Recent delivered growth is +14%, so the hurdle is +25 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 7.8 points below its cost of capital (10.2% WACC).
Backlog Backlog (remaining performance obligations) was $10.9B at 31 Jul 2026, up 8% on a year earlier — 1.2 years of trailing revenue. Backlog detail →
Credit Synopsys has 6 bonds outstanding ($10.0B), rated BBB+ by the agencies and trading like BBB+ at a weighted spread of 86 bp.
Short interest Short interest is 3.4% of the free float (15 Oct 2026).
Next results Next results expected around 2 Dec 2026 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | $9.41B | $7.05B | $6.12B | $5.33B | $5.07B |
| Revenue growth | — | +15% | +15% | +5% | — |
| Gross profit | $5.92B | $5.08B | $4.69B | $4.10B | $3.85B |
| EBITDA | $3.02B | $1.84B | $1.81B | $1.71B | $1.51B |
| Net income | $1.08B | $1.34B | $1.39B | $1.23B | $985M |
| Free cash flow | $2.75B | $1.35B | $1.27B | $1.51B | $1.60B |
| Capital expenditure | $191M | $169M | $140M | $192M | $139M |
| Total debt | $10.8B | $14.3B | $684M | $678M | $656M |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Synopsys SNPS | $86.3B | -13% | +46% | 12% | 25.6× | 39.2% |
| Cadence Design Systems CDNS | $87.8B | -12% | +18% | 30% | 34.0× | 29.9% |
| Siemens SIE.DE | $225B | -4% | +4% | 13% | 23.4× | 18.3% |
| Dassault Systemes DSY.PA | $39.0B | +32% | 0% | 26% | 19.2× | 8.3% |
| Hexagon HEXA-B.ST | $29.4B | +14% | -20% | -14% | 30.0× | 9.1% |
| Keysight Technologies KEYS | $46.3B | -24% | +26% | 24% | 20.3× | 20.9% |
| Empyrean Technology 301269.SZ | $7.70B | +5% | +15% | -10% | 357.4× | n/a |
| Silvaco SVCO | n/a | -39% | n/a | n/a | n/a | n/a |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | SNPS | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -9.5% | -7.2% | 9th lowest of 21 |
| 6-month return | -12.8% | +9.4% | 3rd lowest of 21 |
| Distance from 52-week high | -16.5% | -31.1% | 4th highest of 21 |
| Revenue growth (TTM) | +46.3% | +20.5% | 2nd highest of 21 |
| Operating margin | 12.1% | 10.1% | 11th highest of 21 |
| Forward P/E | 25.6× | 22.4× | 10th most expensive of 20 |
| Growth the price implies (Req g, 7 yrs) | 39.2% | 28.2% | 6th most demanding of 18 |
| Growth delivered (Del g) | +13.9% | +23.5% | 6th lowest of 18 |
| Hurdle (Req g minus delivered) | +25.3 pp | +2.4 pp | 2nd most demanding of 18 |
| ROIC minus cost of capital | -7.8 pp | -0.8 pp | 5th lowest of 21 |
| EV / EBITDA | 31.0× | 24.1× | 6th most expensive of 14 |
| Net debt / EBITDA | 2.4× | 0.1× | 3rd most indebted of 20 |
| Bond spread | 86 bp | 95 bp | 4th tightest of 15 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Synopsys SNPS | United States | $86.3B | -13% | +46% | 12% | 25.6× | 39.2% | +13.9% |
| Cadence Design Systems CDNS | United States | $87.8B | -12% | +18% | 30% | 34.0× | 29.9% | +14.6% |
| Prosus PRX.AS | Netherlands | $83.9B | -3% | +45% | 3% | 10.1× | 55.8% | +13.8% |
| Intuit INTU | United States | $91.3B | -14% | +14% | 29% | 14.8× | 3.1% | +17.4% |
| Adobe ADBE | United States | $93.1B | -5% | +12% | 36% | 8.9× | 0.9% | +13.1% |
| SNOW SNOW | United States | $97.3B | +81% | +32% | -22% | 108.4× | 41.3% | +51.2% |
| ServiceNow NOW | United States | $106B | +12% | +22% | 13% | 22.4× | 29.5% | +24.1% |
| Datadog DDOG | United States | $64.3B | -11% | +33% | 2% | 61.0× | n/a | n/a |
| AppLovin APP | United States | $131B | -16% | +29% | 78% | 20.0× | 28.2% | +30.4% |
| Autodesk ADSK | United States | $54.7B | +7% | +19% | 23% | 20.1× | 18.1% | +13.7% |
| Constellation Software CSU.TO | Canada | $53.3B | +37% | +17% | 16% | 19.7× | 11.2% | +25.0% |
| Roper Technologies ROP | United States | $47.2B | +39% | +9% | 28% | 19.7× | 12.7% | +10.2% |
| Salesforce CRM | United States | $176B | +18% | +11% | 22% | 14.6× | 13.7% | +14.3% |
| Dassault Systemes DSY.PA | France | $39.0B | +32% | 0% | 26% | 19.2× | 8.3% | +7.0% |
| Atlassian TEAM | United States | $38.7B | +5% | +26% | 4% | 28.7× | 44.7% | +25.8% |
| NBIS NBIS | United States | $35.2B | -8% | +461% | -49% | n/a | n/a | n/a |
| CrowdStrike CRWD | United States | $222B | +64% | +24% | -1% | 153.6× | 52.4% | +40.6% |
| Zscaler ZS | United States | $32.2B | +30% | +25% | -4% | 40.5× | 20.7% | +37.9% |
| Twilio TWLO | United States | $31.3B | 0% | +19% | 8% | 30.7× | 38.2% | +23.5% |
| Okta OKTA | United States | $29.5B | +101% | +11% | 8% | 41.3× | 39.2% | +28.4% |
| Palo Alto Networks PANW | United States | $257B | +51% | +24% | 5% | 75.0× | n/a | n/a |
Synopsys has 6 bonds outstanding with $10.0B face value. The agencies rate it BBB+; its bonds trade like BBB+. Weighted yield 5.63%, a spread of 86 bp over government bonds.
Synopsys reported $10.9B of remaining performance obligations at 31 Jul 2026, up 8% from a year earlier and down 1% from the previous quarter. That is 1.2 years of trailing revenue already under contract. Book-to-bill last quarter: 0.96.