Net Profit Margin
since 2005
Calculation
Synopsys Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss) attributed to Synopsys1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Oct 31, 2025 | 18.89% | = | 100 | × | 1,332,220) | ÷ | 7,054,178) |
| Oct 31, 2024 | 36.94% | = | 100 | × | 2,263,380) | ÷ | 6,127,436) |
| Oct 31, 2023 | 21.05% | = | 100 | × | 1,229,888) | ÷ | 5,842,619) |
| Oct 31, 2022 | 19.38% | = | 100 | × | 984,594) | ÷ | 5,081,542) |
| Oct 31, 2021 | 18.02% | = | 100 | × | 757,516) | ÷ | 4,204,193) |
| Oct 31, 2020 | 18.03% | = | 100 | × | 664,347) | ÷ | 3,685,281) |
| Oct 31, 2019 | 15.84% | = | 100 | × | 532,367) | ÷ | 3,360,694) |
| Oct 31, 2018 | 13.86% | = | 100 | × | 432,518) | ÷ | 3,121,058) |
| Oct 31, 2017 | 5.01% | = | 100 | × | 136,563) | ÷ | 2,724,880) |
| Oct 31, 2016 | 11.01% | = | 100 | × | 266,826) | ÷ | 2,422,532) |
| Oct 31, 2015 | 10.08% | = | 100 | × | 225,934) | ÷ | 2,242,211) |
| Oct 31, 2014 | 12.59% | = | 100 | × | 259,124) | ÷ | 2,057,472) |
| Oct 31, 2013 | 12.63% | = | 100 | × | 247,800) | ÷ | 1,962,214) |
| Oct 31, 2012 | 10.39% | = | 100 | × | 182,402) | ÷ | 1,756,017) |
| Oct 31, 2011 | 14.42% | = | 100 | × | 221,364) | ÷ | 1,535,643) |
| Oct 31, 2010 | 17.17% | = | 100 | × | 237,063) | ÷ | 1,380,661) |
| Oct 31, 2009 | 12.33% | = | 100 | × | 167,681) | ÷ | 1,360,045) |
| Oct 31, 2008 | 14.21% | = | 100 | × | 189,978) | ÷ | 1,336,951) |
| Oct 31, 2007 | 10.76% | = | 100 | × | 130,491) | ÷ | 1,212,469) |
| Oct 31, 2006 | 2.26% | = | 100 | × | 24,742) | ÷ | 1,095,560) |
| Oct 31, 2005 | -1.56% | = | 100 | × | (15,478) | ÷ | 991,931) |
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), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31), 10-K (reporting date: 2012-10-31), 10-K (reporting date: 2011-10-31), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-10-31), 10-K (reporting date: 2007-10-31), 10-K (reporting date: 2006-10-31), 10-K (reporting date: 2005-10-31).
1 US$ in thousands
The net profit margin exhibited significant fluctuations over the period from 2005 to 2025. Initially, the company experienced a net loss in 2005, resulting in a negative net profit margin. Subsequent years demonstrated a clear upward trend, culminating in substantial profitability by 2025.
- Initial Period (2005-2009)
- From 2005 to 2009, the net profit margin transitioned from -1.56% to 12.33%. This period reflects a recovery from initial losses and a growing ability to convert revenue into profit. The margin increased substantially between 2006 and 2007, indicating a period of rapid improvement in profitability. While there was a slight decrease in 2009, the margin remained positive and relatively strong.
- Growth and Stability (2010-2014)
- Between 2010 and 2014, the net profit margin generally remained within a range of 10.08% to 17.17%. This suggests a period of relative stability and consistent profitability. The margin peaked at 17.17% in 2010, followed by a slight decline, but remained consistently above 10%. This indicates effective cost management and pricing strategies.
- Fluctuations and Expansion (2015-2019)
- The years 2015 to 2019 saw more pronounced fluctuations. The net profit margin decreased to 5.01% in 2017, before experiencing a significant rebound, reaching 15.84% in 2019. This volatility could be attributed to changing market conditions, increased competition, or specific company investments. The substantial increase in 2019 suggests successful strategic initiatives or favorable market dynamics.
- Recent Performance (2020-2025)
- From 2020 to 2025, the net profit margin demonstrated a strong upward trajectory, increasing from 18.03% to 36.94%. This represents a period of exceptional profitability. The margin exceeded 20% in 2021 and continued to climb, peaking at 36.94% in 2023 before decreasing slightly to 18.89% in 2025. This suggests a highly efficient business model and strong market position. The decrease in 2025 may warrant further investigation to determine the underlying causes.
Overall, the net profit margin demonstrates a long-term positive trend, with periods of fluctuation. The company has shown a consistent ability to improve its profitability over time, culminating in a significantly higher margin in the most recent years. The substantial increase in margin from 2020 onwards is particularly noteworthy and suggests a period of strong financial performance.
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Comparison to Competitors
Synopsys Inc., net profit margin, long-term trends, comparison to competitors
| Synopsys Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Oct 31, 2025 | 18.89% | 11.02% | 30.00% | 60.83% | 20.94% | -0.49% | 3.14% | 15.69% | 20.55% | 36.15% | 21.68% | 36.31% | 12.30% | 16.35% | 13.16% | 6.23% |
| Oct 31, 2024 | 36.94% | 11.19% | 25.85% | 33.55% | 22.74% | 2.92% | 6.85% | 9.60% | 18.19% | 35.96% | 19.76% | 16.13% | 32.11% | 11.87% | 12.97% | 19.02% |
| Oct 31, 2023 | 21.05% | 10.72% | 27.97% | 10.87% | 25.46% | -8.18% | 2.28% | 12.13% | 16.59% | 34.15% | 17.02% | 9.43% | 6.38% | 0.66% | 19.30% | -5.90% |
| Oct 31, 2022 | 19.38% | 11.17% | 27.01% | -6.84% | 23.84% | -16.18% | -2.99% | 2.71% | 16.23% | 36.69% | 15.83% | -19.61% | -4.85% | 5.45% | 4.49% | 0.57% |
| Oct 31, 2021 | 18.02% | 11.69% | 30.55% | 1.27% | 23.29% | -10.59% | -2.02% | 10.01% | 21.41% | 36.45% | 33.96% | -33.75% | -11.72% | 19.16% | 3.90% | -6.54% |
| Oct 31, 2020 | 18.03% | 11.52% | 40.88% | — | 22.02% | -29.45% | -4.07% | 7.59% | 23.78% | 30.96% | 25.94% | -106.75% | -7.83% | 0.74% | 2.62% | -13.25% |
| Oct 31, 2019 | 15.84% | 11.06% | 26.42% | — | 42.33% | — | -4.61% | 12.22% | 22.95% | 31.18% | 28.05% | — | -2.82% | 8.36% | 18.11% | -14.82% |
| Oct 31, 2018 | 13.86% | 9.76% | 28.69% | — | 16.17% | — | — | 10.97% | 20.31% | 15.02% | 9.60% | — | -6.51% | 1.22% | -1.02% | -14.99% |
| Oct 31, 2017 | 5.01% | 9.37% | 23.20% | — | 10.50% | — | — | 7.27% | 18.76% | 23.57% | 24.74% | — | -12.30% | 2.14% | -7.71% | -26.01% |
| Oct 31, 2016 | 11.01% | 11.82% | 19.96% | — | 11.18% | — | — | 14.86% | 20.86% | 19.69% | 24.03% | — | -16.39% | -0.71% | -32.49% | -24.94% |
| Oct 31, 2015 | 10.08% | 9.28% | 13.13% | — | 14.83% | — | — | 16.14% | 8.71% | 13.03% | 26.00% | — | -17.78% | -4.89% | -19.73% | -31.48% |
| Oct 31, 2014 | 12.59% | 9.23% | 6.47% | — | 10.05% | — | — | 12.96% | 20.13% | 25.42% | 28.62% | — | -37.86% | -5.70% | -26.28% | -36.79% |
| Oct 31, 2013 | 12.63% | 10.80% | 7.15% | — | 11.25% | — | — | 16.52% | 20.57% | 28.08% | 29.38% | — | -7.38% | -8.87% | -17.36% | -43.55% |
| Oct 31, 2012 | 10.39% | 8.58% | 18.91% | — | 33.17% | — | — | 15.89% | 19.08% | 23.03% | 26.89% | — | 0.29% | -0.51% | -15.32% | — |
| Oct 31, 2011 | 14.42% | 8.33% | 19.75% | — | 6.28% | — | — | 14.83% | 16.46% | 33.10% | 23.99% | — | — | 3.89% | — | — |
| Oct 31, 2010 | 17.17% | 7.71% | 20.39% | — | 13.52% | — | — | 14.85% | 16.61% | 30.02% | 22.87% | — | — | 6.18% | — | — |
| Oct 31, 2009 | 12.33% | 6.86% | 13.12% | — | -17.58% | — | — | 14.02% | 14.05% | 24.93% | 24.05% | — | — | 4.03% | — | — |
| Oct 31, 2008 | 14.21% | 6.68% | 24.35% | — | -178.51% | — | — | 11.90% | 15.52% | 29.26% | 24.61% | — | — | 2.45% | — | — |
| Oct 31, 2007 | 10.76% | 5.79% | 22.92% | — | 18.34% | — | — | 10.55% | 16.46% | 27.51% | 23.75% | — | — | 0.10% | — | — |
| Oct 31, 2006 | 2.26% | 5.34% | 19.64% | — | 9.61% | — | — | 10.38% | 17.80% | 28.45% | 23.51% | — | — | 9.19% | — | — |
| Oct 31, 2005 | -1.56% | 5.50% | 30.66% | — | 3.71% | — | — | 8.71% | 18.73% | 30.80% | 24.46% | — | — | 4.16% | — | — |
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), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31), 10-K (reporting date: 2012-10-31), 10-K (reporting date: 2011-10-31), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-10-31), 10-K (reporting date: 2007-10-31), 10-K (reporting date: 2006-10-31), 10-K (reporting date: 2005-10-31).
Comparison to Sector (Software & Services)
Synopsys Inc., net profit margin, long-term trends, comparison to sector (software & services)
| Synopsys Inc. | Software & Services | |
|---|---|---|
| Oct 31, 2025 | 18.89% | 26.02% |
| Oct 31, 2024 | 36.94% | 24.71% |
| Oct 31, 2023 | 21.05% | 21.78% |
| Oct 31, 2022 | 19.38% | 21.43% |
| Oct 31, 2021 | 18.02% | 25.04% |
| Oct 31, 2020 | 18.03% | 20.02% |
| Oct 31, 2019 | 15.84% | 21.61% |
| Oct 31, 2018 | 13.86% | 12.10% |
| Oct 31, 2017 | 5.01% | 15.36% |
| Oct 31, 2016 | 11.01% | 16.49% |
| Oct 31, 2015 | 10.08% | 14.57% |
| Oct 31, 2014 | 12.59% | 18.21% |
| Oct 31, 2013 | 12.63% | 20.55% |
| Oct 31, 2012 | 10.39% | 18.62% |
| Oct 31, 2011 | 14.42% | 20.48% |
| Oct 31, 2010 | 17.17% | 19.41% |
| Oct 31, 2009 | 12.33% | 17.17% |
| Oct 31, 2008 | 14.21% | 16.67% |
| Oct 31, 2007 | 10.76% | 15.91% |
| Oct 31, 2006 | 2.26% | 15.65% |
| Oct 31, 2005 | -1.56% | 15.06% |
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), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31), 10-K (reporting date: 2012-10-31), 10-K (reporting date: 2011-10-31), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-10-31), 10-K (reporting date: 2007-10-31), 10-K (reporting date: 2006-10-31), 10-K (reporting date: 2005-10-31).
Comparison to Industry (Information Technology)
Synopsys Inc., net profit margin, long-term trends, comparison to industry (information technology)
| Synopsys Inc. | Information Technology | |
|---|---|---|
| Oct 31, 2025 | 18.89% | 25.74% |
| Oct 31, 2024 | 36.94% | 20.58% |
| Oct 31, 2023 | 21.05% | 20.29% |
| Oct 31, 2022 | 19.38% | 22.34% |
| Oct 31, 2021 | 18.02% | 23.54% |
| Oct 31, 2020 | 18.03% | 19.63% |
| Oct 31, 2019 | 15.84% | 19.81% |
| Oct 31, 2018 | 13.86% | 18.58% |
| Oct 31, 2017 | 5.01% | 17.82% |
| Oct 31, 2016 | 11.01% | 17.77% |
| Oct 31, 2015 | 10.08% | 18.35% |
| Oct 31, 2014 | 12.59% | 19.38% |
| Oct 31, 2013 | 12.63% | 20.21% |
| Oct 31, 2012 | 10.39% | 20.08% |
| Oct 31, 2011 | 14.42% | 20.68% |
| Oct 31, 2010 | 17.17% | 20.24% |
| Oct 31, 2009 | 12.33% | 14.53% |
| Oct 31, 2008 | 14.21% | 15.21% |
| Oct 31, 2007 | 10.76% | 15.81% |
| Oct 31, 2006 | 2.26% | 16.24% |
| Oct 31, 2005 | -1.56% | 16.66% |
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), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31), 10-K (reporting date: 2012-10-31), 10-K (reporting date: 2011-10-31), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-10-31), 10-K (reporting date: 2007-10-31), 10-K (reporting date: 2006-10-31), 10-K (reporting date: 2005-10-31).