Synopsys Posts Higher Quarterly Revenue and Profit While Year-to-Date Earnings Soften on Ansys Integration Costs

Bottom line

- For the three months ended July 31, 2026, Synopsys reported higher Revenue from Contract with Customer, Excluding Assessed Tax of $2,476,822,000 USD, higher Operating Income (Loss) of $357,491,000 USD, higher Net Income (Loss) Attributable to Parent of $545,800,000 USD, and higher Earnings Per Share, Diluted of $2.84 per diluted share USD/SHARES, all measured against the prior-year comparative period. - For the three months ended July 31, 2025, the corresponding figures were Revenue from Contract with Customer, Excluding Assessed Tax of $1,739,737,000 USD, Operating Income (Loss) of $165,269,000 USD, Net Income (Loss) Attributable to Parent of $242,509,000 USD, and Earnings Per Share, Diluted of $1.50 per diluted share USD/SHARES. - For the nine months ended July 31, 2026, Synopsys reported higher Revenue from Contract with Customer, Excluding Assessed Tax of $7,161,605,000 USD, but lower Operating Income (Loss) of $680,963,000 USD, lower Net Income (Loss) Attributable to Parent of $627,863,000 USD, and lower Earnings Per Share, Diluted of $3.27 per diluted share USD/SHARES, again all measured against the prior-year comparative period. - For the nine months ended July 31, 2025, the corresponding figures were Revenue from Contract with Customer, Excluding Assessed Tax of $4,799,318,000 USD, Operating Income (Loss) of $793,534,000 USD, Net Income (Loss) Attributable to Parent of $883,524,000 USD, and Earnings Per Share, Diluted of $5.59 per diluted share USD/SHARES.

- Management describes Synopsys as the leader in electronic design automation (EDA) software, semiconductor intellectual property, simulation and analysis, and design services, and notes the integration of the recently acquired Ansys solutions portfolio, as referenced in Note 1. - Management states that the interim period results are unaudited, reflect normal recurring adjustments except where otherwise indicated, and should be read alongside the prior Annual Report, as referenced in Note 2. - Management discloses senior notes, bridge commitment, term loan and revolving credit facilities associated with the Ansys acquisition financing, as referenced in Note 10 and Note 11, and recent accounting pronouncements not yet adopted, as referenced in Note 2.

- Across both windows, results remained profitable on every reported line, consistent with a continuing profit-to-profit transition in each case.

- The nine-month year-to-date period showed lower Operating Income (Loss), Net Income (Loss) Attributable to Parent, and Earnings Per Share, Diluted than the prior-year comparative, even as Revenue from Contract with Customer, Excluding Assessed Tax rose; this divergence in profitability is disclosed but not explained within the narrative. The filing evidence does not attribute this change to any single cause.

UNKNOWN: - The filing evidence does not contain any peer, sector, or industry benchmark against which Synopsys' reported results can be compared. The filing evidence contains no peer or industry comparison.

Financial performance

The reported top line for SYNOPSYS INC advanced on a year-over-year basis in both windows captured in this 10-Q filed for period-ended-2026-07-31 under accession 0000883241-26-000025. Revenue from Contract with Customer, Excluding Assessed Tax was $7,161,605,000 USD for the nine months ended July 31, 2026, higher than the prior-year figure of $4,799,318,000 USD for the nine months ended July 31, 2025, and was $2,476,822,000 USD for the three months ended July 31, 2026, higher than the prior-year figure of $1,739,737,000 USD for the three months ended July 31, 2025. The filing evidence does not attribute this change to any single cause.

Profitability comparisons follow a more mixed pattern. Operating Income (Loss) was $680,963,000 USD for the nine months ended July 31, 2026, lower than the prior-year figure of $793,534,000 USD for the nine months ended July 31, 2025, while the three-month window showed a turnaround, with Operating Income (Loss) of $357,491,000 USD for the three months ended July 31, 2026 higher than the prior-year figure of $165,269,000 USD for the three months ended July 31, 2025. Both periods remained profitable. Net Income (Loss) Attributable to Parent was $627,863,000 USD for the nine months ended July 31, 2026, lower than the prior-year figure of $883,524,000 USD for the nine months ended July 31, 2025, but for the three months ended July 31, 2026 the figure rose to $545,800,000 USD, higher than the prior-year figure of $242,509,000 USD for the three months ended July 31, 2025. Both periods stayed in profit. Earnings Per Share, Diluted mirrored that split: it was $3.27 per diluted share USD/SHARES for the nine months ended July 31, 2026, lower than the prior-year figure of $5.59 per diluted share USD/SHARES for the nine months ended July 31, 2025, while the three-month figure was $2.84 per diluted share USD/SHARES for the three months ended July 31, 2026, higher than the prior-year figure of $1.50 per diluted share USD/SHARES for the three months ended July 31, 2025. The filing evidence does not attribute this change to any single cause.

The accounting context for these reported numbers is described in Note 2 and Note 1. The condensed consolidated financial statements are unaudited and were prepared using the same significant accounting policies as the Annual Report on Form (omitted) referenced in the source narrative, with normal recurring adjustments only. The acquisition of Ansys was accounted for using the acquisition method of accounting for business combinations, as discussed in the cited note. The former Software Integrity business was treated as discontinued operations following the Software Integrity Divestiture, with no Software Integrity related activity for the three and nine months ended July (omitted); that treatment is addressed in Note 3 and in the cited note. Financing-related disclosures, including Senior Notes, a Bridge Commitment Letter, a Term Loan and Revolving Credit Facilities, appear in Note 11 and Note 10, and goodwill and intangible assets are addressed in Note 6.

Management discussion of forward periods in the cited note focuses on recent FASB Accounting Standards Updates not yet adopted, covering income tax disclosures, income statement expense disaggregation, credit-loss measurement, internal-use software, interim reporting improvements, and environmental credits; none is stated to materially change the figures presented here. Management's commentary also cautions that interim operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. The filing evidence contains no peer or industry comparison, and the filing does not state a numerical revenue, earnings, or margin outlook for the next quarter or the full fiscal year; the section is therefore presented without a quantitative baseline for analyst expectations, in line with what is described in the filing itself. Investors comparing SYNOPSYS INC against other interim filers may find parallel reporting patterns in Lizely Finance Earnings Analysis — UFP TECHNOLOGIES INC Interim Filing: Profit-to-Profit Growth on Both Windows useful as a reference point for how similar profitability trajectories are framed elsewhere on the platform.

Operating drivers and segments

- The reporting period results from SYNOPSYS INC show Operating Income (Loss) of $357,491,000 USD for the three months ended July 31, 2026, against a prior-year figure of $165,269,000 USD for the three months ended July 31, 2025, with the year-over-year comparison authorized as an increase from a profit base to a higher profit base. - On the year-to-date window, Operating Income (Loss) was $680,963,000 USD for the nine months ended July 31, 2026, versus $793,534,000 USD for the nine months ended July 31, 2025, with the year-over-year comparison authorized as a decrease from a profit base to a lower profit base.

- Revenue from Contract with Customer, Excluding Assessed Tax for the three-month period was $2,476,822,000 USD, against $1,739,737,000 USD in the prior-year quarter, with the year-over-year comparison authorized as an increase. - The nine-month Revenue from Contract with Customer, Excluding Assessed Tax was $7,161,605,000 USD, against $4,799,318,000 USD in the prior-year comparable window, with the year-over-year comparison authorized as an increase. - The filing does not separately disaggregate a segment-level operating result for the current quarter within the cited notes; the company describes a single integrated portfolio of EDA software, semiconductor IP, simulation and analysis, and the recently acquired Ansys simulation portfolio, and the consolidated revenue and operating-income lines above are the only operating-segment evidence available in the cited notes.

- Because absolute revenue and operating-income values are inserted by the machine, qualitative reading is the only framing this section can support: revenue rose on both windows while operating income moved in opposite directions across the two windows, with a lower year-to-date profit base offsetting a higher quarterly profit base. - Management positions itself as a global leader in electronic design automation, with AI-driven chip design, a full-stack EDA suite, and an expanded simulation portfolio following the Ansys acquisition accounted for using the acquisition method of business combinations, as discussed in Note 1 and the business-combination reference captured under Note 4.

- Management cites pending ASUs covering income-tax disclosures, income-statement expense disaggregation, and credit-loss measurement, and indicates ongoing evaluation rather than a quantified impact, per the recent-pronouncements discussion in the cited notes. - Management reiterates that interim results are unaudited, prepared under SEC condensed-disclosure rules, and may not be indicative of full-year outcomes, per the basis-of-presentation language carried in Note 2.

Cash flow and capital

- $2,298,603,000 of operating cash inflow over the nine months ended July 31, 2026 was higher than the $878,870,000 comparative inflow for the nine months ended July 31, 2025, leaving the year-to-date still firmly cash-generative from operations for SYNOPSYS INC (ticker SNPS, CIK 0000883241, filed on 10-Q for period-ended-2026-07-31, accession 0000883241-26-000025). - $353,763,000 flipped from the -$16,445,686,000 use of cash into a net source of cash over the nine months ended July 31, 2026, reflecting the inflow tied to the Software Integrity divestiture described under the cited note covering Note 3. - -$1,901,902,000 swung from the $14,191,608,000 inflow into a net use of cash over the nine months ended July 31, 2026, consistent with the funding mechanics disclosed for the Ansys transaction under Note 11 and the related discussion in Note 10 and Note 4. - $156,089,000 was higher than the $134,908,000 baseline for the nine months ended July 31, 2025, a higher run-rate of property, plant and equipment spending year over year. - $300,000,000 was higher than a roughly $0 baseline for the nine months ended July 31, 2025, indicating that common-stock repurchases stepped up meaningfully rather than continuing near prior-period levels. - $3,606,286,000 as of the balance sheet date of July 31, 2026 reflects the post-transaction cash position of SYNOPSYS INC after the Ansys merger funding flows, with $9,017,113,000 showing the long-term debt stack carried forward at the balance-sheet date. - $1,480,598,000 as of the balance sheet date of July 31, 2026 represents the current trade-and-accrual obligations outstanding on the balance sheet.

Reported facts: - The operating-cash inflow widened year over year on a nine-month basis. - Investing activities moved from a use of cash to a source of cash on the nine-month comparison. - Financing activities shifted from a source to a use of cash on the nine-month comparison. - Capital expenditures rose relative to the prior-year nine-month period. - Share repurchases stepped up from a near-zero prior-year nine-month base. - The cited note covering Note 3 describes the Software Integrity divestiture that closed in September of the prior fiscal year. - Note 11 and Note 10 describe the Senior Notes, term loan and revolving credit facilities used in funding the Ansys merger. - Note 6 discusses goodwill and intangible assets arising from the Ansys combination. - Note 1 frames SYNOPSYS INC as the description-of-business context for the period. - Note 2 covers the basis of presentation and significant accounting policies. - Note 15 covers employee benefit plan disclosures.

Management explanations: - Management attributes the investing-side swing and the financing-side swing primarily to the proceeds and funding structure tied to the Ansys Merger and the Software Integrity Divestiture, as discussed under the cited notes covering Note 3 and Note 11.

Analyst inference: - The combination of a wider operating-cash inflow, a step-up in capital spending, higher share-repurchase outflows and a net financing use is consistent with a company funding both organic reinvestment and shareholder returns after a major acquisition-financing window.

Counter-evidence: - No counter-evidence is present in the excerpt that would offset the reported year-over-year directions for operating, investing, financing, capex or repurchase cash flows.

Unknowns: - The detailed drivers of the change in accounts payable and accrued liabilities between periods are not addressed in the cited evidence: The filing evidence does not attribute this change to any single cause.. - Segment-level cash-flow attribution is not separately disclosed in the excerpt: The filing evidence does not disclose segment-level detail for this dimension.. - No peer or industry benchmark is provided in the filing evidence: The filing evidence contains no peer or industry comparison..

Peer and historical context

Reading the year-over-year authorized relations for SYNOPSYS INC, filed as 10-Q for period-ended-2026-07-31 under accession 0000883241-26-000025, the consolidated trend on the year-to-date window looks uneven: top-line growth paired with compressed profitability and weaker earnings. Because the catalog supplies no peer or industry benchmark for the electronic design automation space, the comparison here is strictly internal — quarter and nine-month periods versus the corresponding prior-year periods.

The filing evidence contains no peer or industry comparison.

Year-to-date, revenue from contracts with customers moved higher — $7,161,605,000 versus $4,799,318,000, an authorized direction increase over the nine months ended July 31, 2025. That headline momentum, however, did not flow through the income statement. Operating income for the same span contracted — $680,963,000 versus $793,534,000, an authorized direction decrease, while the line remained profitable at both ends. Net income attributable to parent also moved lower on the cumulative window — $627,863,000 versus $883,524,000, an authorized direction decrease, retaining a profit-to-profit transition. The dilution in profitability despite a higher revenue base is the most notable internal divergence in this filing. The filing evidence does not attribute this change to any single cause.

The three-month window tells a more constructive story. Revenue from contracts with customers lifted to $2,476,822,000 from $1,739,737,000, an authorized direction increase for the three months ended July 31, 2026. Operating income climbed in tandem — $357,491,000 versus $165,269,000, an authorized direction increase, again profit to profit. Net income attributable to parent for the quarter similarly expanded — $545,800,000 versus $242,509,000, an authorized direction increase, also profit to profit. So while the year-to-date picture is mixed, the most recent quarter is uniformly stronger than the prior-year comparable on the three lines available here.

On cash generation, operating cash flow rose on the year-to-date view — $2,298,603,000 versus $878,870,000, an authorized direction increase for the nine months ended July 31, 2025, with both periods positive. The release of working-capital tension visible in this line is consistent with the post-Ansys integration narrative in Note 1 and the debt-funded consideration mechanics described in Note 11, although the filing evidence stops short of attributing the swing to any single driver.

Read against the most recently published interim analyses in this catalog — for example, Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year in Filing and the UFP TECHNOLOGIES INC Interim Filing — SYNOPSYS INC shares the authorized pattern of higher revenue on the cumulative window, but the divergence between top-line growth and compressed profitability on that same window sets it apart. No peer-specific benchmark for SNPS is contained in the filing evidence.

Scenario analysis

In the base case, SYNOPSYS INC sustains the growth pattern already visible across both reporting windows in 10-Q period-ended-2026-07-31 under accession 0000883241-26-000025. Revenue from Contract with Customer, Excluding Assessed Tax on a year-to-date basis is higher than the prior-year comparative, with the nine-month figure at $7,161,605,000 USD against $4,799,318,000 USD, and the three-month window of the three months ended July 31, 2026 is also higher than the three months ended July 31, 2025, with the quarter at $2,476,822,000 USD against $1,739,737,000 USD. Net Income (Loss) Attributable to Parent is higher than the prior year in the three-month window, with $545,800,000 USD above $242,509,000 USD, while the nine-month comparison shows a decrease, with $627,863,000 USD below $883,524,000 USD. The base case assumes the Ansys-related intangible and goodwill framework described in Note 6 continues to amortize and contribute as anticipated by management.

The upside path assumes the revenue lift visible in both windows — year-to-date and three-month — accelerates, with $7,161,605,000 USD and $2,476,822,000 USD extending the increases already posted against $4,799,318,000 USD and $1,739,737,000 USD. Under that condition, the quarter-over-quarter Net Income (Loss) Attributable to Parent expansion recorded in the three months ended July 31, 2026 — $545,800,000 USD versus $242,509,000 USD — widens further, and the year-to-date gap between $627,863,000 USD and $883,524,000 USD narrows. The upside narrative relies on the relief-from-royalty and multi-period excess earnings methodologies applied to the Ansys intangible portfolio discussed in Note 6 delivering the cost savings, operating efficiencies and other strategic benefits projected by management for the Ansys Merger.

In the downside path, the year-to-date net-income decline already printed between $627,863,000 USD and $883,524,000 USD deepens, even as the quarter-window improvement between $545,800,000 USD and $242,509,000 USD fades. Revenue at $7,161,605,000 USD and $2,476,822,000 USD would also flatten against $4,799,318,000 USD and $1,739,737,000 USD, undercutting the goodwill assigned to the Design Automation reporting unit referenced in Note 6. The filing evidence does not attribute this change to any single cause.

A reader comparing these scenarios against other interim issuers — for example, Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year in the reporting period Filing — can position SYNOPSYS INC accordingly, while The filing evidence contains no peer or industry comparison. prevents a formal cross-name benchmark inside this report.

Risks and what to watch

- Reported facts. SYNOPSYS INC (SNPS) reported through period-ended-2026-07-31 on 10-Q (accession 0000883241-26-000025, CIK 0000883241). Revenue from Contract with Customer, Excluding Assessed Tax was $2,476,822,000 for the three months ended July 31, 2026 and $7,161,605,000 for the nine months ended July 31, 2026, against $1,739,737,000 for the three months ended July 31, 2025 and $4,799,318,000 for the nine months ended July 31, 2025. Net Income (Loss) Attributable to Parent was $545,800,000 for the three months ended July 31, 2026 and $627,863,000 for the nine months ended July 31, 2026, against $242,509,000 for the three months ended July 31, 2025 and $883,524,000 for the nine months ended July 31, 2025. Both the quarter and the nine-month window remain profitable on both sides of the comparison, and revenue is authorized to be higher than the prior period on both windows.

- Management explanation. The filing ties a meaningful share of activity to the Ansys business combination described in the cited note on Business Combination and to debt instruments captured in the cited note on Senior Notes, Bridge Commitment Letter, Term Loan and Revolving Credit Facilities. Intangible assets recorded in the cited note on Goodwill and Intangible Assets rely on the multi-period excess earnings method and the relief-from-royalty method, with economic useful lives calibrated to customer turnover, developed-technology life, backlog fulfilment, and expected brand usage. Transaction costs tied primarily to the Ansys merger were expensed as incurred, and the operating results of Ansys are consolidated from the Acquisition Date.

- Analyst inference. The contrast between the two windows is the dominant read-through. The quarter line items show authorized profit-to-profit growth on both revenue and net income, while the nine-month year-to-date line items show authorized revenue growth but authorized contraction in net income, with both periods remaining profitable. The wider divergence in the year-to-date view, set against the in-period strength, is the key tension the filing presents.

- Counter-evidence. The cited note on Discontinued Operations indicates a completed sale of a former business during the prior fiscal year, which can shift the base of comparison and complicate like-for-like interpretation of the nine-month change in net income. The cited note on Senior Notes, Bridge Commitment Letter, Term Loan and Revolving Credit Facilities flags new debt and a Bridge Commitment Letter, which can weigh on reported earnings through interest and amortization. Transaction costs tied to the Ansys merger and Bridge Commitment financing costs, expensed as incurred, further pressure the year-to-date profitability comparison.

- Unknowns. The filing evidence does not attribute this change to any single cause. The filing evidence contains no peer or industry comparison. The filing evidence does not disclose segment-level detail for this dimension.

- Metrics to watch next period. Confirm whether the quarter-line profit-to-profit expansion extends into the next interim print, whether the year-to-date net-income contraction narrows, whether backlog-derived contract rights intangible recognised in the cited note on Goodwill and Intangible Assets begins amortising in line with the disclosed economic useful lives, and how the Senior Notes and term loan referenced in the cited note on Senior Notes, Bridge Commitment Letter, Term Loan and Revolving Credit Facilities flow through interest expense.

For comparison, see Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year in Filing for context on profit-to-profit top-line growth in an adjacent semiconductor name.