Synopsys Reports Q3 2025 Results; Ansys Merger Drives Transformation and 2025 Outlook

Synopsys, Inc. (Nasdaq: SNPS) reported its third quarter of fiscal year 2025 results with revenue of about $1.74 billion, up from $1.53 billion a year earlier. The company framed Q3 as a transformational quarter driven by the closing of the Ansys acquisition, expanding its portfolio and AI-powered product opportunities, while noting weakness in the Design IP business offset strength in Design Automation. GAAP net income was $242.5 million ($1.50 per diluted share) versus $425.9 million ($2.73) in the prior year’s quarter. On a non-GAAP basis, net income rose to $548.9 million ($3.39 per diluted share) from $535.5 million ($3.43) a year ago.

Business segments show Design Automation generating $1,312.1 million and Design IP $427.6 million in quarterly revenue (about 75.4% and 24.6% of total, respectively). Adjusted operating income by segment was $583.8 million for Design Automation (44.5% margin) and $86.0 million for Design IP (20.1% margin).

For the fourth quarter and full fiscal year 2025, Synopsys provided targets: revenue of $2.23–$2.26 billion for Q4 and $7.03–$7.06 billion for FY2025; GAAP expenses $2.115–$2.139 billion and non-GAAP expenses $1.440–$1.450 billion; non-GAAP tax rate of 16%; outstanding shares about 187–188 million. Non-GAAP EPS is guided to $2.76–$2.80 for Q4 and $12.76–$12.80 for FY2025; GAAP EPS is guided to a negative range for Q4 and $5.03–$5.16 for FY2025. Operating cash flow is projected near $1.13 billion and free cash flow about $0.95 billion, with capital expenditures around $180 million.

Notes: Synopsys completed the Software Integrity sale in 2024 and acquired Ansys in 2025. The company also cautions that forward-looking targets are subject to risks including macro conditions and export controls.