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: Jul 31, 2026 Apr 30, 2026 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 40.49 41.55 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 26.86 24.00 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 67.34% 65.55% 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 32.66 34.45 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% 100.00% 100.00%
Products -11.13 -10.23 -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 -6.32 -6.53 -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 -9.98 -10.91 -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 -27.43% -27.67% -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 72.57% 72.33% 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 -29.06 -30.76 -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 -15.58 -16.78 -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 -7.15 -7.58 -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 -6.27 -6.82 -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 -0.09 -5.09 -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 -58.14% -67.04% -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 14.43% 5.29% 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 -5.38 -5.86 -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 18.56 1.42 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 27.61% 0.85% 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 -5.58 -0.11 -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 22.03% 0.74% 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 0.00 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 22.03% 0.74% 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 0.00 0.01 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 22.04% 0.75% 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: 2026-07-31), 10-Q (reporting date: 2026-04-30), 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).

Revenue composition has undergone a structural transformation over the analyzed period. A significant downward trend is observed in time-based products, which declined from a peak of 68.51% in April 2020 to approximately 40.49% by July 2026. This contraction is offset by a substantial increase in maintenance and service revenue, which rose from 15.25% in January 2020 to a range between 29.71% and 34.45% in the final year of the data. Upfront products have remained relatively stable, though they show a general increase from early 2020 levels.

Gross Margin and Cost of Revenue
Gross margins remained consistently high, generally fluctuating between 77% and 81% from January 2020 through July 2024. However, a notable compression occurred starting in October 2024, with margins dropping to a range of 70.97% to 73.54%. This decline is primarily attributed to a sharp increase in the amortization of acquired intangible assets within the cost of revenue, which jumped from approximately 1% of revenue to nearly 11% in late 2024 and 2025.
Operating Expense Trends
Research and development (R&D) remains the largest operating expense, typically consuming between 29% and 38% of revenue. Sales and marketing expenses have remained relatively stable, hovering between 13% and 18%. A significant anomaly is observed in general and administrative expenses, which spiked to 16.13% in July 2025 before returning to historical norms of 7% to 9%. Additionally, amortization of acquired intangible assets within operating expenses saw a permanent step-up starting in October 2024, rising from under 0.3% to over 6% of revenue.
Operating Income and Profitability
Operating income margins showed strong performance between 2020 and 2023, often exceeding 20%. A period of volatility and margin contraction occurred between October 2024 and April 2026, where operating margins dipped as low as 5.29% due to the aforementioned increase in amortization and operating costs. A recovery is observed by July 2026, with the operating margin returning to 14.43%.
Non-Recurring Items and Financial Charges
Net income was heavily distorted in October 2024, reaching 68.10% of revenue due to a one-time gain of 51.03% from discontinued operations. Interest expenses, which were non-existent in the early years of the data, emerged in January 2024 and peaked at 8.64% in October 2024, indicating a significant increase in debt obligations during that period. Other income and expenses have remained volatile, with a massive spike to 26.16% of revenue in October 2024.

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