1. SNPS reported $7.054 billion in 2025 revenue, a 15% increase. 2. Fourth-quarter revenue reached $2.255 billion, exceeding guidance mid-point. 3. FY2026 revenue expected at $9.610 billion, boosted by Ansys contribution. 4. Strong backlog of $11.4 billion emphasizes business resilience. 5. Net income per diluted share recorded at $2.39 for Q4 2025.
FAQ
Why Bullish?
Record revenue and projected growth indicate strong financial performance. Historical patterns show sustained growth often leads to corresponding stock price increases.
How important is it?
The article outlines significant earnings performance and future projections, affecting investor sentiment and stock valuations positively.
Why Long Term?
The growth indications and integration plans for Ansys suggest a sustained positive impact over the next several quarters. Long-term projects often take time to realize full potential benefits.
Synopsys Reports Impressive Financial Results for Fourth Quarter and Fiscal Year 2025
Synopsys, Inc. (Nasdaq: SNPS) has announced strong financial outcomes for the fourth quarter and fiscal year 2025, revealing a record revenue of $7.054 billion for the year. The fourth-quarter revenue reached $2.255 billion, surpassing the midpoint of their previous guidance.
Fourth Quarter and Fiscal Year Overview
For the fourth quarter of fiscal year 2025, Synopsys reported revenue of $2.255 billion, a remarkable increase from $1.636 billion in the same period of the previous year. Notably, Ansys contributed $667.7 million to this quarter's revenue. Over the entire fiscal year, Synopsys's revenue rose by approximately 15% compared to fiscal year 2024, with Ansys contributing $756.6 million to the annual total.
Management Insights on Performance
"The Synopsys team delivered a solid finish to a year that redefined our company as the leader in engineering solutions from silicon to systems," affirmed Sassine Ghazi, president and CEO of Synopsys. He emphasized the company's determination to focus on sustainable growth and margin expansion as they transition into fiscal year 2026.
Moreover, CFO Shelagh Glaser remarked, "We finished the year with record revenue and a robust backlog of $11.4 billion, which underscores the resilience of our business model. We anticipate setting another revenue record in fiscal year 2026 while fully integrating Ansys and enhancing operational efficiency."
Financial Metrics and Earnings Comparison
On a U.S. Generally Accepted Accounting Principles (GAAP) basis, net income for the fourth quarter was $448.7 million, equating to $2.39 per diluted share, up from $279.3 million or $1.79 per diluted share in the previous year. The GAAP net income for the entire fiscal year 2025 was $1.336 billion, or $8.07 per diluted share, down slightly from $1.442 billion or $9.25 per diluted share in fiscal year 2024.
On a non-GAAP basis, the fourth quarter net income amounted to $543.1 million, or $2.90 per diluted share, compared to $529.9 million or $3.40 per diluted share for the same quarter last year. For the full year, non-GAAP net income stood at $2.138 billion, representing $12.91 per diluted share versus $2.058 billion or $13.20 per diluted share in fiscal year 2024.
Looking Ahead: Financial Targets for Fiscal Year 2026
Synopsys has provided consolidated financial targets for the first quarter and the entirety of fiscal year 2026. These targets anticipate a revenue range of $9.610 billion at the mid-point for the fiscal year, accounting for $2.9 billion from expected Ansys revenue, while adjusting for approximately $110 million from divested businesses.
- First Quarter Revenue Target: Between $2.365 billion and $2.415 billion
- Fiscal Year Revenue Target: Between $9.560 billion and $9.660 billion
- GAAP EPS Estimate: Between $2.49 and $2.90 for the full year
- Non-GAAP EPS Estimate: Between $14.32 and $14.40 for the full year
Investor Communications
Synopsys will hold a conference call for financial analysts and investors today at 2:00 p.m. Pacific Time. This call will provide a platform for discussions regarding the financial results and future outlook. Investors can access the live webcast at Synopsys’ corporate website, with a replay available for later viewing.