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Synopsys SNPS Design IP: — Cost of revenue and operating expenses

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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$74.44B-36.8%
Enterprise value$85.08B-34.7%
P/E96.3×+37.4×
P/S8.6×-9.7×

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:CostsAndExpenses.

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
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
Adjusted operating margin24%31%21%30%

Item 1. Financial Statements

FAQ

What is Synopsys's design IP: — cost of revenue and operating expenses?
Synopsys (SNPS) reported design IP: — cost of revenue and operating expenses of $343.55M in Q1 2026.
How has Synopsys's design IP: — cost of revenue and operating expenses changed year-over-year?
Synopsys's design IP: — cost of revenue and operating expenses increased by 3.6% year-over-year, from $331.52M to $343.55M.
What does design IP: — cost of revenue and operating expenses mean?
This metric aggregates the direct costs of delivering IP products, including amortization of acquired technology, alongside the operating expenses required to maintain and develop the IP portfolio. It captures the total investment required to sustain the Design IP business unit. Monitoring this helps evaluate the cost structure and operational efficiency of the IP development lifecycle.

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