Synopsys, Inc.

Worth knowing

• Profit lifted by an asset sale. FY Oct 2025 operating profit includes a $508M gain on selling assets; without it the operating margin was about 5.8%.

  Synopsys's FY Oct 2025 operating profit of $915M includes a one-off $508M gain on selling assets or businesses. Without it, operations would have earned $407M, an operating margin of about 5.8%.

• Profit growing, cash flow isn't. Profit +35% since FY Oct 2022, operating cash flow −13%.

  Synopsys's reported profit rose 35% since FY Oct 2022, but the cash its operations generate changed −13%. When profit and cash diverge like this, it's worth understanding why (for example, customers paying more slowly or gains that aren't cash).Synopsys's reported profit rose 35% since FY Oct 2022, but the cash its operations generate changed −13%. When profit and cash diverge like this, it's worth understanding why.

• Shareholders being diluted. Shares outstanding up 26% from October 2022 to August 2026.

  Synopsys had 26% more shares at August 2026 than at October 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.Synopsys had 26% more shares at August 2026 than at October 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.

• Stock pay outran buybacks. Stock-based pay expense $2.1B vs $1.2B spent repurchasing shares over the 3 fiscal years to FY Oct 2025.

  Over three fiscal years Synopsys recorded $2.1B of stock-based pay expense and spent $1.2B repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Synopsys recorded $2.1B of stock-based pay expense and spent $1.2B repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.