Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Synopsys Inc., consolidated income statement

US$ in thousands

12 months ended:	Oct 31, 2025	Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Time-based products	3,489,609)	3,224,299)	3,383,632)	2,993,786)	2,633,763)	2,365,199)
Upfront products	2,010,602)	1,802,222)	1,429,330)	1,226,728)	861,063)	735,572)
Products revenue	5,500,211)	5,026,521)	4,812,962)	4,220,514)	3,494,826)	3,100,771)
Maintenance and service	1,553,967)	1,100,915)	1,029,657)	861,028)	709,367)	584,510)
Revenue	7,054,178)	6,127,436)	5,842,619)	5,081,542)	4,204,193)	3,685,281)
Products	(867,165)	(770,238)	(763,494)	(653,783)	(542,114)	(487,307)
Maintenance and service	(444,526)	(367,055)	(383,835)	(342,978)	(271,202)	(254,931)
Amortization of acquired intangible assets	(311,858)	(107,996)	(74,864)	(66,936)	(48,461)	(52,452)
Cost of revenue	(1,623,549)	(1,245,289)	(1,222,193)	(1,063,697)	(861,777)	(794,690)
Gross margin	5,430,629)	4,882,147)	4,620,426)	4,017,845)	3,342,416)	2,890,591)
Research and development	(2,479,338)	(2,082,360)	(1,946,813)	(1,680,379)	(1,504,823)	(1,279,022)
Sales and marketing	(1,074,191)	(859,342)	(889,016)	(779,777)	(712,491)	(632,010)
General and administrative	(769,648)	(568,496)	(410,311)	(353,840)	(322,988)	(284,530)
Amortization of acquired intangible assets	(192,525)	(16,238)	(28,025)	(29,754)	(33,919)	(38,829)
Restructuring charges	—)	—)	(77,002)	(12,057)	(33,405)	(36,059)
Operating expenses	(4,515,702)	(3,526,436)	(3,351,167)	(2,855,807)	(2,607,626)	(2,270,450)
Operating income	914,927)	1,355,711)	1,269,259)	1,162,038)	734,790)	620,141)
Interest expense	(446,729)	(35,161)	(1,178)	(1,698)	(3,365)	(5,140)
Interest income	277,684)	67,017)	36,674)	8,545)	2,442)	3,561)
Gain on divestitures	548,906)	—)	—)	—)	—)	—)
Gains (losses) on assets related to deferred compensation plan	65,492)	85,446)	20,488)	(68,778)	71,603)	21,469)
Gain on sale of building	51,385)	1,906)	—)	—)	—)	—)
Gain (loss) on sale of strategic investments	(3,635)	55,077)	—)	—)	—)	—)
Foreign currency exchange gains (losses)	1,842)	6,294)	(1,529)	4,694)	5,292)	5,544)
Other, net	(16,730)	(22,432)	(21,932)	10,713)	(5,248)	(7,416)
Other income (expense), net	924,944)	193,308)	33,701)	(44,826)	74,089)	23,158)
Income before income taxes	1,393,142)	1,513,858)	1,301,782)	1,115,514)	805,514)	638,159)
(Provision) benefit for income taxes	(55,991)	(99,718)	(83,657)	(137,078)	(49,155)	25,288)
Net income from continuing operations	1,337,151)	1,414,140)	1,218,125)	978,436)	756,359)	663,447)
Income (loss) from discontinued operations, net of income taxes	(3,900)	821,670)	—)	—)	—)	—)
Net income	1,333,251)	2,235,810)	1,218,125)	978,436)	756,359)	663,447)
Net (income) loss attributed to non-controlling interest and redeemable non-controlling interest	(1,031)	27,570)	11,763)	6,158)	1,157)	900)
Net income attributed to Synopsys	1,332,220)	2,263,380)	1,229,888)	984,594)	757,516)	664,347)

Based on: 10-K (reporting date: 2025-10-31), 10-K (reporting date: 2024-10-31), 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31).

The income statement reveals a generally positive trend in revenue and net income over the observed period, although growth rates fluctuate. Revenue consistently increased from 2020 to 2024, reaching a peak of US$6,127,436 thousand, before experiencing a slight decrease in growth in 2025. Cost of revenue also increased steadily, but at a slower pace than revenue, resulting in expanding gross margins. Operating expenses grew significantly throughout the period, impacting operating income, which experienced a decline in 2025.

Revenue Composition: Products revenue constitutes the majority of total revenue, increasing from US$3,100,771 thousand in 2020 to US$5,500,211 thousand in 2025. Upfront products experienced more rapid growth than time-based products, particularly between 2021 and 2024. Maintenance and service revenue also demonstrated consistent growth, reaching US$1,553,967 thousand in 2025.
Profitability Analysis: Gross margin increased from US$2,890,591 thousand in 2020 to US$5,430,629 thousand in 2025, indicating improved efficiency in managing the cost of revenue. However, operating income peaked in 2024 at US$1,355,711 thousand and decreased in 2025 to US$914,927 thousand, primarily due to a substantial increase in operating expenses. Net income attributed to Synopsys followed a similar pattern, with a significant jump in 2024 driven by income from discontinued operations, followed by a decrease in 2025.
Expense Trends: Research and development expenses consistently represent a significant portion of revenue, increasing from US$1,279,022 thousand in 2020 to US$2,479,338 thousand in 2025. Sales and marketing expenses also increased, though at a slower rate, reaching US$1,074,191 thousand in 2025. General and administrative expenses experienced the most substantial percentage increase, rising from US$284,530 thousand in 2020 to US$769,648 thousand in 2025. Amortization of acquired intangible assets also increased significantly, particularly in 2025.
Other Income and Expenses: Other income (expense), net, fluctuated considerably throughout the period. Interest income increased substantially, while interest expense remained relatively stable until 2025, when it experienced a significant rise. Gains on divestitures and sales of assets contributed positively to income in 2025, but were not present in prior years. Gains (losses) on assets related to deferred compensation plan also varied, with a substantial gain in 2025.
Tax Rate: The provision for income taxes varied significantly, resulting in fluctuating effective tax rates. A benefit was recorded in 2021, while a provision was recorded in all other years. The effective tax rate was notably high in 2024.

Overall, the company demonstrated strong revenue growth and profitability for most of the period. However, the increase in operating expenses, particularly in 2025, and the impact of discontinued operations in 2024, warrant further investigation to understand the underlying drivers and potential implications for future performance.

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Synopsys Inc. (NASDAQ:SNPS)

Income Statement