Stock Analysis on Net
Stock Analysis on Net

Synopsys Inc. (NASDAQ:SNPS)

Common-Size Income Statement 
Quarterly Data

Synopsys Inc., common-size consolidated income statement (quarterly data)

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3 months ended: Jan 31, 2026 Oct 31, 2025 Jul 31, 2025 Apr 30, 2025 Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020
Time-based products 39.50 41.72 51.29 51.63 56.91 51.00 52.64 53.74 53.28 54.42 62.05 57.94 57.47 62.93 60.45 56.58 55.70 59.71 62.96 63.34 65.06 59.15 63.48 68.51 66.69
Upfront products 30.78 27.29 29.68 31.83 25.30 31.84 29.00 27.25 29.28 28.09 20.03 24.77 24.73 19.72 21.53 26.31 28.99 23.80 19.23 20.42 17.97 23.81 21.88 15.07 18.06
Products revenue 70.29% 69.01% 80.98% 83.47% 82.21% 82.84% 81.64% 80.99% 82.56% 82.51% 82.09% 82.71% 82.20% 82.65% 81.98% 82.90% 84.69% 83.51% 82.19% 83.75% 83.03% 82.96% 85.36% 83.58% 84.75%
Maintenance and service 29.71 30.99 19.02 16.53 17.79 17.16 18.36 19.01 17.44 17.49 17.91 17.29 17.80 17.35 18.02 17.10 15.31 16.49 17.81 16.25 16.97 17.04 14.64 16.42 15.25
Revenue 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Products -10.06 -11.14 -13.27 -13.48 -11.60 -13.23 -11.77 -13.66 -11.61 -13.36 -12.83 -13.24 -12.81 -13.52 -13.15 -11.78 -13.02 -13.23 -12.07 -13.15 -13.12 -13.93 -12.29 -12.56 -14.12
Maintenance and service -6.09 -6.84 -5.94 -5.89 -6.36 -5.61 -6.33 -6.06 -5.99 -6.18 -6.61 -6.84 -6.71 -6.95 -7.03 -6.85 -6.16 -5.99 -6.21 -6.62 -7.09 -6.83 -6.31 -7.22 -7.42
Amortization of acquired intangible assets -10.31 -11.05 -2.67 -0.48 -0.59 -4.09 -0.95 -0.93 -0.87 -1.25 -1.24 -1.28 -1.37 -1.54 -1.55 -1.13 -1.05 -1.15 -1.12 -1.11 -1.22 -1.14 -1.42 -1.61 -1.58
Cost of revenue -26.46% -29.03% -21.87% -19.84% -18.55% -22.92% -19.05% -20.65% -18.48% -20.78% -20.67% -21.37% -20.89% -22.01% -21.73% -19.76% -20.23% -20.37% -19.40% -20.89% -21.44% -21.90% -20.02% -21.39% -23.12%
Gross margin 73.54% 70.97% 78.13% 80.16% 81.45% 77.08% 80.95% 79.35% 81.52% 79.22% 79.33% 78.63% 79.11% 77.99% 78.27% 80.24% 79.77% 79.63% 80.60% 79.11% 78.56% 78.10% 79.98% 78.61% 76.88%
Research and development -29.68 -33.12 -35.94 -34.53 -38.01 -33.91 -33.35 -33.90 -34.78 -30.55 -34.12 -34.81 -34.18 -35.94 -35.65 -30.48 -30.23 -35.91 -35.11 -35.37 -36.84 -33.11 -33.46 -35.13 -37.67
Sales and marketing -16.46 -17.32 -14.91 -13.40 -14.37 -13.40 -13.86 -14.42 -14.48 -14.32 -15.27 -15.92 -15.48 -16.23 -15.97 -14.98 -14.21 -17.15 -16.22 -16.87 -17.58 -17.21 -16.23 -16.97 -18.32
General and administrative -7.59 -8.23 -16.13 -8.51 -11.48 -10.52 -9.86 -7.89 -8.69 -7.01 -7.38 -6.53 -7.15 -8.36 -7.33 -5.78 -6.38 -7.72 -7.93 -7.10 -7.99 -7.78 -7.63 -7.25 -8.24
Amortization of acquired intangible assets -6.48 -6.92 -1.64 -0.25 -0.27 -0.25 -0.27 -0.31 -0.23 -0.50 -0.45 -0.47 -0.49 -0.52 -0.57 -0.54 -0.71 -0.75 -0.81 -0.81 -0.86 -0.91 -1.03 -1.19 -1.12
Restructuring charges -4.91 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.09 -2.24 -0.30 -3.00 0.00 0.00 -0.02 -0.92 -1.58 -1.43 0.00 0.00 0.04 0.21 -3.44 -1.05
Operating expenses -65.11% -65.58% -68.63% -56.69% -64.14% -58.08% -57.34% -56.52% -58.19% -52.30% -59.46% -58.04% -60.31% -61.06% -59.52% -51.81% -52.45% -63.12% -61.50% -60.15% -63.28% -58.98% -58.14% -63.99% -66.40%
Operating income 8.43% 5.38% 9.50% 23.46% 17.30% 19.00% 23.61% 22.83% 23.34% 26.92% 19.87% 20.60% 18.80% 16.93% 18.75% 28.43% 27.32% 16.51% 19.10% 18.96% 15.29% 19.13% 21.84% 14.62% 10.49%
Interest expense -6.76 -8.64 -8.42 -5.88 -0.77 -0.89 -0.77 -0.49 -0.12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other income (expense), net 1.61 26.16 9.80 7.11 3.46 1.63 2.85 1.14 7.05 -1.30 1.74 0.30 1.71 -0.41 0.19 -1.87 -1.56 0.76 1.08 2.12 2.96 -0.45 2.72 -1.83 1.45
Income before income taxes 3.28% 22.91% 10.88% 24.70% 20.00% 19.74% 25.69% 23.48% 30.28% 25.62% 21.60% 20.90% 20.51% 16.52% 18.94% 26.56% 25.76% 17.27% 20.18% 21.09% 18.25% 18.68% 24.57% 12.79% 11.93%
(Provision) benefit for income taxes -0.60 -3.02 3.04 -2.94 0.43 -3.79 2.01 -3.12 -1.52 -3.95 0.79 -1.55 -0.78 -4.72 -1.34 -3.59 -1.09 0.18 -1.41 -2.07 -1.55 0.49 1.67 -0.03 0.54
Net income from continuing operations 2.69% 19.89% 13.93% 21.76% 20.44% 15.94% 27.70% 20.35% 28.76% 21.67% 22.39% 19.35% 19.73% 11.80% 17.60% 22.97% 24.67% 17.45% 18.77% 19.02% 16.70% 19.17% 26.23% 12.76% 12.47%
Income (loss) from discontinued operations, net of income taxes 0.00 0.00 0.00 -0.24 0.00 51.03 -1.17 -0.48 0.77 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net income 2.69% 19.89% 13.93% 21.51% 20.44% 66.97% 26.54% 19.87% 29.53% 21.67% 22.39% 19.35% 19.73% 11.80% 17.60% 22.97% 24.67% 17.45% 18.77% 19.02% 16.70% 19.17% 26.23% 12.76% 12.47%
Net (income) loss attributed to non-controlling interest and redeemable non-controlling interest 0.01 0.01 0.01 0.01 -0.12 1.13 0.21 0.21 0.19 0.17 0.21 0.21 0.21 0.15 0.24 0.07 0.03 0.03 0.02 0.03 0.03 0.09 0.00 0.00 0.00
Net income attributed to Synopsys 2.70% 19.90% 13.94% 21.53% 20.32% 68.10% 26.74% 20.08% 29.72% 21.84% 22.61% 19.57% 19.95% 11.95% 17.84% 23.04% 24.69% 17.48% 18.79% 19.04% 16.73% 19.26% 26.23% 12.76% 12.47%

Based on: 10-Q (reporting date: 2026-01-31), 10-K (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31).

The common-size income statement reveals several noteworthy trends in the company’s financial performance between January 2020 and October 2025. Revenue composition has shifted over time, with notable changes in the relative contributions of different product categories. Profitability, as measured by key margin percentages, has exhibited fluctuations, and expense management appears to have evolved throughout the period.

Revenue Composition
Time-based products consistently represented a significant portion of revenue, starting at 66.69% in January 2020, but experienced a gradual decline to 41.72% by October 2025. Upfront products showed more volatility, ranging from 15.07% to 28.99%, with a general upward trend until October 2022, followed by a decline. The combined contribution of time-based and upfront products to total revenue decreased from 84.75% to 69.01% over the observed period. Maintenance and service revenue demonstrated a generally increasing trend, rising from 15.25% to 30.99% by October 2025, becoming a more substantial component of overall revenue.
Gross Margin
The gross margin exhibited considerable fluctuation. It began at 76.88% in January 2020, peaked at 79.98% in July 2020, and then generally trended downwards to 70.97% in October 2025. This suggests potential changes in the cost structure of products or pricing strategies. A significant dip in gross margin is observed in October 2025.
Operating Expenses
Operating expenses, as a percentage of revenue, generally decreased from 66.40% in January 2020 to 52.30% in October 2025. This reduction was driven by changes in several expense categories. Research and development expenses, while substantial, decreased from 37.67% to 33.12% over the period. Sales and marketing expenses also showed a decreasing trend, from 18.32% to 17.32%. General and administrative expenses decreased from 8.24% to 6.84%. Amortization of acquired intangible assets decreased significantly from 1.12% to 0.25% until October 2025, where it increased to 1.64%.
Profitability
Operating income as a percentage of revenue increased from 10.49% in January 2020 to a peak of 26.92% in October 2025, before decreasing to 9.50% in October 2025. Net income followed a similar pattern, increasing from 12.47% to 68.10% in October 2025, before decreasing to 13.93% in October 2025. The significant increase in net income in October 2024 is largely attributable to income from discontinued operations. Interest expense remained minimal until April 2024, when it began to increase, reaching 0.89% by October 2025. Other income (expense), net, fluctuated considerably, with a notable positive impact in July 2024 and October 2025. The provision for income taxes varied significantly, impacting the final net income percentage.

The company experienced a period of increasing profitability, driven by expense management and shifts in revenue composition, but the most recent quarter (October 2025) shows a significant decline in key profitability metrics, warranting further investigation.

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