Stock Analysis on Net
Stock Analysis on Net

Synopsys Inc. (NASDAQ:SNPS)

$24.99

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.

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Synopsys Inc., consolidated income statement

US$ in thousands

Microsoft Excel
12 months ended: Oct 31, 2025 Oct 31, 2024 Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 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
Interest income
Gain on divestitures
Gains (losses) on assets related to deferred compensation plan
Gain on sale of building
Gain (loss) on sale of strategic investments
Foreign currency exchange gains (losses)
Other, net
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-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.