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Synopsys SNPS Design Automation: — Adjusted operating margin

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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$78.83B-30.9%
Enterprise value$89.47B-29.3%
P/E101.9×+44.9×
P/S9.1×-8.6×

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 snps:OperatingMarginPercentage.

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
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
Adjusted operating income110,658150,514176,778277,061

Item 1. Financial Statements

FAQ

What is Synopsys's design automation: — adjusted operating margin?
Synopsys (SNPS) reported design automation: — adjusted operating margin of 43% in Q1 2026.
How has Synopsys's design automation: — adjusted operating margin changed year-over-year?
Synopsys's design automation: — adjusted operating margin increased by 4.9% year-over-year, from 41% to 43%.
What does design automation: — adjusted operating margin mean?
This metric measures the profitability of the design automation segment as a percentage of its total revenue, after adjusting for non-recurring or non-cash items. It serves as a key indicator of the segment's operational efficiency and its ability to convert revenue into profit. High margins typically reflect strong pricing power and effective cost control within the core software business.

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