Synopsys (NASDAQ: SNPS) is an electronic design automation (EDA) and semiconductor IP company that provides software, IP, and services used to design and verify integrated circuits. Revenue comes from two segments: Design Automation, which generated $5,302.4M in FY2025 (year ended October 31, 2025), and Design IP, which generated $1,751.8M in FY2025, for total revenue of $7,054.2M, up 15% year-over-year. Design Automation includes EDA software tools, verification hardware and software, simulation and analysis (S&A) solutions from the Ansys acquisition, and silicon lifecycle management products. Design IP includes semiconductor IP blocks licensed to chip designers. Revenue is recognized through time-based subscription licenses, perpetual licenses, and support and maintenance arrangements. Switching costs are high: customers negotiate multi-product arrangements covering broad portfolios, expanded license usage, and future purchase rights, making displacement costly. Sassine Ghazi serves as President and CEO, with Aart J. de Geus, a co-founder, serving as Executive Chair. The company is headquartered in Sunnyvale, California.

Revenue model

Time-based subscription licenses (recognized upfront or ratably depending on product type), perpetual licenses, hardware product sales, royalties, and support and maintenance services. Customers negotiate total arrangement value across broad product portfolios rather than unit pricing. Flexible Spending Account drawdowns, IP product timing, and hardware sales create period-to-period revenue fluctuations.

Products and services

EDA software: digital, custom, and FPGA IC design tools including Synplify FPGA synthesis; verification software and hardware; Ansys semiconductor simulation and analysis (S&A) products covering structural, thermal, and computational fluid dynamics (CFD) analysis. Silicon Lifecycle Management (SLM) products including Yield Explorer, Silicon.da, TestMAX ALE, and PVT IP for in-chip monitoring. Design IP segment provides semiconductor IP blocks for chip designers.

Customers and end markets

Semiconductor and electronics companies designing integrated circuits and advanced computing systems. Customers include chip designers requiring EDA tools, IP blocks, and verification solutions across digital, custom, and FPGA design flows. China-based customers represent a material portion of business, as evidenced by BIS export control restrictions impacting operations in FY2025.

Value-chain role

Synopsys sits upstream in the semiconductor value chain, supplying the software tools and IP that chip designers use before fabrication. It does not manufacture chips. It sells tools and IP to fabless chip companies, integrated device manufacturers, and electronics system designers.

Geographic exposure

Revenue is generated globally across multiple geographic regions as disclosed in segment reporting. China is a material market; U.S. export control restrictions on EDA software exports to China, including a BIS license requirement issued May 29, 2025 and rescinded July 2, 2025, negatively impacted business in FY2025.

Source: SEC 10-K, filed 2025-12-22

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