After the market close on December 10 Eastern Time, Synopsys announced its fourth-quarter and full-year financial results for fiscal year 2025.
Summary of Results
Full-year revenue for fiscal year 2025 reached a record high of $7.054 billion; fourth-quarter revenue was $2.255 billion, exceeding the midpoint of guidance.
Both full-year and fourth-quarter non-GAAP diluted earnings per share (EPS) exceeded guidance.
The midpoint of revenue guidance for fiscal year 2026 is $9.610 billion, including an expected contribution of $2.9 billion from Ansys, and reflecting the impact of approximately $110 million from the divestiture of the Optical Solutions Group and PowerArtist RTL business.
"The Synopsys team has successfully completed the year, repositioning the company as a leader in engineering solutions from chip to system," said Sassine Ghazi, President and Chief Executive Officer of Synopsys. "As we enter fiscal year 2026, the company will focus on driving sustainable growth and margin expansion through continued innovation and disciplined execution."
"The company ended the fiscal year with record revenue and a strong backlog of $11.4 billion, highlighting the resilience of the business," said Shelagh Glaser, Chief Financial Officer of Synopsys. "We expect another record revenue year in 2026, while fully integrating Ansys, enhancing operational efficiency, and capitalizing on expanded business opportunities."
Generally Accepted Accounting Principles (GAAP) Results
Under U.S. GAAP, net income for the fourth quarter of fiscal year 2025 was $448.7 million, or $2.39 per diluted share, compared to net income of $279.3 million, or $1.79 per diluted share, for the fourth quarter of fiscal year 2024. For the full year of fiscal year 2025, net income was $1.336 billion, or $8.07 per diluted share, compared to net income of $1.442 billion, or $9.25 per diluted share, for the full year of fiscal year 2024.
Non-GAAP Results
On a non-GAAP basis, net income for the fourth quarter of fiscal year 2025 was $543.1 million, or $2.90 per diluted share, compared to non-GAAP net income of $529.9 million, or $3.40 per diluted share, for the fourth quarter of fiscal year 2024. For the full year of fiscal year 2025, non-GAAP net income was $2.138 billion, or $12.91 per diluted share, compared to non-GAAP net income of $2.058 billion, or $13.20 per diluted share, for the full year of fiscal year 2024.
For a reconciliation of net income, diluted earnings per share, and other metrics under Generally Accepted Accounting Principles (GAAP) and non-GAAP, please refer to the 'GAAP to Non-GAAP Reconciliation Table' in the supplementary tables below.
Business Segments
Synopsys reports its revenue and operating income across two segments: (1) the Design Automation segment, which includes advanced chip design, verification products and services, Ansys products, system integration products and services, digital, custom, and Field-Programmable Gate Array (FPGA) integrated circuit design software, verification software and hardware products, and manufacturing software products; and (2) the Design Intellectual Property segment, which includes interface, foundation, security, and embedded processor intellectual property, IP subsystems, and IP implementation services.
Continuing Operations
On September 30, 2024, Synopsys completed the sale of its Software Integrity business. Unless otherwise stated, Synopsys's Software Integrity business is classified as discontinued operations in the consolidated financial statements for all periods presented in this report, with all financial results and targets reported on the basis of continuing operations.
Financial Objectives
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