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Synopsys SNPS Design Automation: — Adjusted operating income

Other segment segments

Design IP:
$110.66M-26.5%

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Other financials

Income statement

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Revenue$2.3B+41.9%
Gross profit$1.6B+28.0%
Operating income$120.4M-68.0%
Net income$17.1M-95.0%
EPS (diluted)$0.09-95.9%

Balance sheet

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Cash & equivalents$198.1M-98.6%
Total debt$10.8B+0.9%
Total equity$30.5B+207%
Total assets$46.9B+97.4%

Cash flow

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Operating cash flow$628.9M+128%
CapEx$54.2M-2.5%
Free cash flow$574.7M+162%

Valuation

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Market cap$76.75B-33.7%
Enterprise value$87.39B-31.9%
P/E99.3×+41.3×
P/S8.8×-9.2×

Profitability

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Gross margin73.5%-6.4pp
Operating margin7%-13.9pp
Net margin8.9%-25.9pp
FCF margin30.3%+13.2pp

Returns & leverage

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Return on equity3.8%-21.5pp
Debt / equity0.4×-0.7×
Current ratio1.4×-5.6×

Where this comes from

Reported directly by Synopsys in its filing.

Tagged under the XBRL concept us-gaap:OperatingIncomeLoss.

The source filing: Synopsys’s 10-Q, filed May 27, 2026.

Filed
May 27, 2026, 4:31 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0000883241-26-000018
Line itemThree Months Ended April 30, 2026Three Months Ended April 30, 2025Six Months Ended April 30, 2026Six Months Ended April 30, 2025
Design Automation:
Revenue$1,821,776$1,122,235$3,823,594$2,142,451
Cost of revenue and operating expenses1,032,718663,4792,087,0041,279,025
Adjusted operating income789,058458,7561,736,590863,426
Adjusted operating margin43%41%45%40%
Design IP:
Revenue$454,209$482,031$861,189$917,130
Cost of revenue and operating expenses343,551331,517684,411640,069

Item 1. Financial Statements

FAQ

What is Synopsys's design automation: — adjusted operating income?
Synopsys (SNPS) reported design automation: — adjusted operating income of $789.06M in Q1 2026.
How has Synopsys's design automation: — adjusted operating income changed year-over-year?
Synopsys's design automation: — adjusted operating income increased by 72.0% year-over-year, from $458.76M to $789.06M.
What is the long-term trend for Synopsys's design automation: — adjusted operating income?
Over 3 years (2022 to 2025), Synopsys's design automation: — adjusted operating income has grown at a 23.5% compound annual growth rate (CAGR), from $1.18B to $2.21B.
What does design automation: — adjusted operating income mean?
This metric represents the profitability of the design automation segment after adjusting for non-recurring or non-cash items such as stock-based compensation and amortization of intangible assets. It provides a clearer view of the underlying operational performance and cash-generating capability of the core business. This figure is essential for assessing the segment's contribution to the company's overall bottom line.

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