Synopsys Achieves Record Revenues in Fiscal Year 2025 with Strong Q4 Results
Synopsys Posts Impressive Financial Results for Q4 and FY 2025
Synopsys, Inc. (NASDAQ: SNPS) announced its financial results for the fourth quarter and fiscal year 2025 in a press release dated December 10, 2025. For the fourth quarter, Synopsys recorded revenues of $2.255 billion, marking a substantial increase from the previous year's $1.636 billion for the same quarter. Additionally, the company's full-year revenue reached a remarkable $7.054 billion, reflecting a 15% rise from the $6.127 billion achieved in fiscal year 2024.
This exceptional performance was bolstered by the integration of Ansys, which contributed $667.7 million in revenue during the fourth quarter and $756.6 million for the entire fiscal year. The acquisition of Ansys has been pivotal for Synopsys, enhancing its position in the engineering solutions market. "The Synopsys team delivered a solid finish to a year that redefined our company as the leader in engineering solutions from silicon to systems," remarked Sassine Ghazi, president and CEO of Synopsys, highlighting the company's successful transition.
In terms of earnings, Synopsys also exceeded expectations in both GAAP and non-GAAP metrics. The GAAP net income for the fourth quarter stood at $448.7 million, equivalent to $2.39 per diluted share, in contrast to $279.3 million ($1.79 per diluted share) reported for the fourth quarter of fiscal year 2024. Meanwhile, the fiscal year 2025 GAAP net income reached $1.336 billion, or $8.07 per diluted share, although this was a slight decline from $1.442 billion, or $9.25 per diluted share, recorded in the previous fiscal year.
On a non-GAAP basis, net income for the fourth quarter was $543.1 million, or $2.90 per diluted share, compared to $529.9 million, or $3.40 per diluted share, in the fourth quarter of fiscal year 2024. For fiscal year 2025, non-GAAP net income totaled $2.138 billion, or $12.91 per diluted share. This performance demonstrates that, despite a slight dip in GAAP income per share, the company remained robust in its operational efficiency.
The growth trajectory is expected to continue into fiscal year 2026, where Synopsys anticipates revenues reaching approximately $9.610 billion at midpoint. This forecast includes a projected $2.9 billion from Ansys revenues but also factors in a $110 million impact related to divested businesses, specifically the Optical Solutions Group and PowerArtist RTL.
Shelagh Glaser, CFO of Synopsys, commented on the strategic direction, stating, "We finished the year with record revenue and a strong backlog of $11.4 billion, which underscores the resilience of our business. We expect to set another revenue record in 2026 while fully integrating Ansys and continuing to drive operational efficiency."
The company operates under two primary segments: Design Automation, which comprises advanced silicon design and verification products, and Design IP, including interface, foundation, and security IPs. Given the ongoing complexities within global supply chains and evolving market conditions, Synopsys continues to respond proactively, focusing on allocating resources effectively to ensure sustained growth.
In summary, Synopsys, Inc. has successfully completed fiscal year 2025 on a high note, showcasing strong revenue growth, effective integration of Ansys, and a strategic roadmap that points toward continued success in the engineering solutions domain. The company's commitment to innovation and operational efficiency stands as a testament to its leadership and resilience in an ever-changing industry landscape.