Fundamentals Hub
▼ FY 2025 Summary Analysis
Annual report ending Oct 31, 2025Overview and Growth
In fiscal 2025, SYNOPSYS INC recorded $7.05B of revenue, net income of $1.33B, and an operating cash inflow of $1.52B. Revenue of $7.05B sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line expanded 15.1% from $6.13B in fiscal 2024, increasing the company’s operating scale. On a per-share basis, diluted EPS was $8.04, which connects the reported earnings outcome with the company’s diluted share count. The per-share result recorded a 44.6% decrease from fiscal 2024 diluted EPS of $14.51. The revenue-to-assets relationship was 0.15x, showing the sales generated relative to the resources carried on the balance sheet.Profitability
Gross profit was $5.43B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross profit represented 77.0% of revenue, showing how much of the top line remained after direct costs. The reported operating result was $914.93M, capturing profitability after direct costs and the operating expenses reflected in the statements. Relative to revenue, operating income represented 13.0%, showing how efficiently sales converted into operating profit. The bottom-line result was net income of $1.33B, after the operating, financing, tax, and other items recognized for the period. Measured against reported revenue, net income produced a 18.9% margin after operating costs and the remaining recognized items. The earnings statement records $1.39B of pretax income, the profit base against which the reported tax provision can be assessed. The pretax margin was 19.7%, relating income before taxes directly to revenue. The reported income-tax provision was $55.99M, the amount recognized between pretax income and the final net-income result. The income-tax provision equaled 4.0% of pretax income, showing the tax burden absorbed by the year’s earnings.Liquidity and Capital Structure
At period end, the $48.22B asset base was financed through $19.90B of liabilities and $28.33B of equity. At period end, current assets of $6.01B compared with current liabilities of $3.72B, defining the company’s short-term resource position. The current ratio was 1.62x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $2.89B, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 77.6% of current liabilities, showing how much near-term coverage came from cash alone. Borrowings totaled $13.48B, adding a fixed financing obligation alongside the company’s equity capital. The debt-to-equity relationship was 0.48x, showing how much debt the company carried for each unit of book equity. The debt-to-assets relationship was 28.0%, comparing borrowing with the total asset balance. Relative to total assets, liabilities measured 41.3%, complementing the separate equity-based view of the company’s capital structure. Measured against total assets, cash and equivalents represented 6.0%, a balance-sheet composition measure rather than a liquidity forecast.Cash Flow and Earnings Quality
Cash flow from operations was $1.52B, a reported cash inflow that can be compared directly with net income and capital spending. Against net income, operating cash flow measured 1.14x, showing the relationship between accrual earnings and operating cash. The cash-flow statement records $169.45M of capital expenditures, the investment amount considered after operating cash generation. Capital spending absorbed 11.2% of operating cash flow, quantifying the share of cash from operations directed to investment. The combination of operating cash flow and capital spending produced $1.35B of positive free cash flow for the period. Free cash flow represented 19.1% of revenue, linking post-investment cash generation with the company’s operating scale. Measured against total assets, free cash flow represented 2.8%, showing the cash productivity of the company’s assets.
Based on the annual report for the fiscal year ending Oct 31, 2025.
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