Synopsys Inc

Synopsys closed out fiscal 2025 on a strong note, reporting Q4 revenue of $2.25 billion and non-GAAP EPS of $2.90, with results exceeding the midpoint of guidance and capping a record full-year revenue of $7.05 billion — up approximately 15% from the prior year. The transformative acquisition of Ansys, which closed in Q3 FY2025, was the single largest driver of that growth, contributing $667.70 million in Q4 revenue alone and fundamentally repositioning Synopsys as a <a href="https://247wallst.com/investing/2026/02/26/synopsys-beats-on-eps-and-revenue-as-ai-fueled-chip-design-demand-remains-strong/">silicon-to-systems engineering</a> solutions provider. The deal came at a cost, however — long-term debt climbed to $13.46 billion and GAAP EPS from continuing operations fell to $8.07 from $9.25 year-over-year, weighed down by $504.38 million in amortization of acquired intangibles and $446.73 million in interest expense. The company's Design IP segment also drew scrutiny amid multiple shareholder lawsuits alleging misrepresentation of its financial stability. Looking ahead, Synopsys guided fiscal 2026 revenue of $9.56 billion to $9.66 billion, with non-GAAP EPS of $14.32 to $14.40 and free cash flow of approximately $1.90 billion, as management targets margin expansion through disciplined Ansys integration.