Synopsys Inc.
Synopsys Inc (SNPS) is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) used to design, verify and secure modern chips and systems. With a market capitalisation of about $85.27 billion, the company supplies tools and IP blocks to semiconductor firms, cloud providers, automotive OEMs and consumer-electronics companies. Revenue comes mainly from licence fees, subscriptions and IP royalties, giving Synopsys a recurring, high-margin profile. Growth is supported by rising chip complexity, AI and data‑centre demand, automotive electrification and advanced packaging. The business invests heavily in R&D and has pursued an acquisitive strategy to broaden its product set. Key risks include semiconductor industry cyclicality, customer concentration, technology shifts, acquisition integration and geopolitical or export-control pressures. This summary is general educational information, not personal financial advice; investors should assess their own needs and consider professional guidance.
Why It's Moving
Synopsys Caps Transformational 2025 with Record Revenue and Surging Backlog Despite Lingering IP Headwinds.
Synopsys reported blockbuster full-year revenue of $7.05 billion, up 15% year-over-year, fueled by the Ansys acquisition and robust bookings that boosted backlog to $11.4 billion. While Q4 results hit guidance and signal operational momentum, ongoing securities lawsuits highlight past Design IP struggles tied to AI customization demands.
- Full-year revenue hit record $7.05 billion with Q4 at $2.255 billion exceeding guidance midpoint, showcasing Ansys integration progress and efficiency gains.
- Backlog soared to $11.4 billion from $10.1 billion last quarter, driven by strength across segments and positioning for 2026 revenue records.
- Restructuring and new CRO hire accelerate synergies, though lawsuits allege prior undisclosed IP weakness from AI focus eroded economics.
Synopsys Caps Transformational 2025 with Record Revenue and Surging Backlog Despite Lingering IP Headwinds.
Synopsys reported blockbuster full-year revenue of $7.05 billion, up 15% year-over-year, fueled by the Ansys acquisition and robust bookings that boosted backlog to $11.4 billion. While Q4 results hit guidance and signal operational momentum, ongoing securities lawsuits highlight past Design IP struggles tied to AI customization demands.
- Full-year revenue hit record $7.05 billion with Q4 at $2.255 billion exceeding guidance midpoint, showcasing Ansys integration progress and efficiency gains.
- Backlog soared to $11.4 billion from $10.1 billion last quarter, driven by strength across segments and positioning for 2026 revenue records.
- Restructuring and new CRO hire accelerate synergies, though lawsuits allege prior undisclosed IP weakness from AI focus eroded economics.
Stock Performance Snapshot
Analyst Rating
Analysts recommend buying Synopsys' stock with a target price of $554.93, indicating growth potential.
Financial Health
Synopsys is showing strong revenue and cash flow, with solid profit margins indicating good financial performance.
View more stocks by downloading the app for FREE
It only takes 60 seconds.
Baskets Featuring SNPS
EDA Underdogs
This collection features carefully selected companies in the electronic design automation (EDA) and semiconductor IP space. Our professional analysts have identified these stocks as potential beneficiaries of the changing competitive landscape following Synopsys' massive $35 billion acquisition of Ansys.
Published: July 15, 2025
Explore BasketChina's AI Chip Access
This carefully selected group of stocks represents companies poised to benefit from China's renewed access to advanced AI chips. Our professional analysts have identified key players across the semiconductor supply chain that could see significant growth as this massive market reopens.
Published: July 15, 2025
Explore BasketAI's Foundry Foundation
This carefully curated group of stocks represents the essential companies building the hardware backbone of the AI revolution. Selected by professional analysts, these stocks include the critical semiconductor manufacturers, equipment suppliers, and design software firms that make advanced AI chips possible.
Published: July 11, 2025
Explore BasketRiding Microsoft's AI Wave
This carefully selected group of stocks represents companies powering the AI revolution beyond just Microsoft. Professional analysts have identified these firms in semiconductors, cloud infrastructure, and AI software as positioned to benefit from the massive industry-wide investment surge in artificial intelligence.
Published: July 11, 2025
Explore BasketTech Titans' Triumph
Ride the wave of tech giants' success with this carefully selected group of stocks. These companies are vital suppliers to industry leaders like Apple, Nvidia, and Tesla, handpicked by our expert analysts to help you capitalize on the tech sector's powerful momentum.
Published: July 3, 2025
Explore BasketThe Figma Effect: Investing in Collaborative Tech
Figma's upcoming IPO is creating waves in the tech industry. This collection features companies positioned to benefit from growing demand for digital collaboration tools and a revitalized tech IPO landscape, carefully selected by our expert analysts.
Published: July 2, 2025
Explore BasketRace to Four Trillion
Invest in the companies building the foundation of the AI revolution. These carefully selected stocks represent crucial suppliers and enablers benefiting from Nvidia and Microsoft's historic race to $4 trillion valuations and their unprecedented spending on AI infrastructure.
Published: June 30, 2025
Explore BasketWhy You’ll Want to Watch This Stock
Recurring Revenue Profile
Licences and subscriptions provide a recurring, high‑margin revenue mix that can support stability, though semiconductor cycles may still affect bookings.
Tech Leadership & R&D
Heavy investment in R&D and bolt‑on acquisitions aims to keep Synopsys at the cutting edge of chip‑design tools, but integration and execution are important risks.
End Market Exposure
Exposure to AI, cloud, automotive and mobile chips offers growth potential, while tying performance to industry cycles and geopolitical developments.
Compare Synopsys with other stocks
NetEase vs Synopsys
NetEase vs Synopsys
Synopsys vs Marvell
Synopsys vs Marvell
Synopsys vs Roblox
Synopsys vs Roblox
Why invest with Nemo?
Zero Commission
Trade stocks, ETFs, and more with zero commission. Keep more of your returns.
Trusted & Regulated
Part of Exinity Group 2015, serving over a million customers globally.
6% Interest on Cash
Earn 6% AER on uninvested cash with daily interest payments.
Discover More Opportunities
Accenture plc
Provides consulting and technology services.
Adobe Systems Inc.
Develops software and cloud-based solutions for digital media and digital marketing.
Automatic Data Processing, Inc.
Provides business process outsourcing and technology services.
