Stock Analysis on Net
Stock Analysis on Net

Synopsys Inc. (NASDAQ:SNPS)

$24.99

Common-Size Income Statement
Quarterly Data

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

Microsoft Excel
3 months ended: 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
Upfront products
Products revenue
Maintenance and service
Revenue
Products
Maintenance and service
Amortization of acquired intangible assets
Cost of revenue
Gross margin
Research and development
Sales and marketing
General and administrative
Amortization of acquired intangible assets
Restructuring charges
Operating expenses
Operating income
Interest expense
Other income (expense), net
Income before income taxes
(Provision) benefit for income taxes
Net income from continuing operations
Income (loss) from discontinued operations, net of income taxes
Net income
Net (income) loss attributed to non-controlling interest and redeemable non-controlling interest
Net income attributed to Synopsys

Based on: 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).

The financial trajectory of the company indicates a significant shift in revenue composition and a subsequent compression of profit margins over the analyzed period. A transition is observed from a product-centric revenue model toward an increased reliance on maintenance and service offerings, coinciding with rising operational costs and financing expenses.

Revenue Mix and Composition
A long-term decline in the contribution of time-based products is evident, falling from 66.69% in early 2020 to 41.55% by April 2026. Conversely, maintenance and service revenue experienced a sharp increase, rising from a historical range of 14% to 19% to a peak of 34.45% in April 2026. Total products revenue, which consistently remained above 80% for several years, dropped significantly to 65.55% by the end of the period, signaling a fundamental change in the company's income streams.
Gross Margin and Cost Analysis
Gross margins remained robust between 77% and 81% from 2020 through mid-2024. However, a notable contraction occurred in late 2025 and early 2026, with margins falling to a low of 70.97%. This compression is primarily attributed to a surge in the amortization of acquired intangible assets, which escalated from approximately 1% of revenue to over 10% in the final quarters. Consequently, the total cost of revenue increased from an average of 20% to nearly 29% during the same timeframe.
Operating Expense Trends
Research and development costs remained the largest operating expenditure, generally fluctuating between 30% and 38% of revenue. Sales and marketing expenses showed a gradual downward trend, improving from 18.32% in January 2020 to approximately 16% by April 2026. General and administrative expenses remained relatively stable around 7% to 8% for most of the period but spiked to 16.13% in July 2025. Additionally, restructuring charges became a significant factor in the final two quarters, averaging roughly 5% of revenue.
Operating and Net Profitability
Operating income experienced a severe downturn, dropping from peaks of 28.43% in 2022 to 5.29% by April 2026. This decline was further exacerbated by the emergence of substantial interest expenses, which were non-existent in early 2020 but grew to represent 8.64% of revenue by October 2025. While a significant anomaly occurred in October 2024—where net income surged to 66.97% due to income from discontinued operations—the underlying trend for net income attributed to the company shows a sharp decline to 0.75% by April 2026.