Synopsys (SNPS) Q1 2026 10-Q Quarterly Report
Filed: Feb 25, 2026Period ending Jan 31, 2026
Information Technology
Services-Prepackaged SoftwareSEC EDGAR Synopsys (SNPS) 10-Q quarterly report for Q1 2026, filed with SEC EDGAR on Feb 25, 2026 for the fiscal period ending Jan 31, 2026. This page provides AI-powered analysis including management discussion & analysis (MD&A), risk factor updates, and key quarterly financial data such as revenue and net income extracted from XBRL.
Synopsys Q1 2026 10-Q Analysis
Management Discussion & Analysis
- • Revenue $2.41B, up 66% YoY (+$953.5M); Ansys contributed $885.6M, organic growth offset by Design IP weakness
- • Operating margin 8.4% vs 17.3% YoY; net income collapsed to $65M from $295.7M; $394.1M intangible amortization from Ansys weighed heavily
- • Design Automation best performer: adjusted operating income $947.5M vs $404.7M YoY; Design IP worst: adjusted operating income $66.1M vs $126.5M, margin down 13ppts
- • Operating cash flow $856.8M vs -$67.5M YoY; repaid $3.5B remaining Term Loans; received $2.0B from NVIDIA stock sale; $2.2B cash on hand; Board approved $2.0B new buyback authorization
- • Management expects muted Design IP growth in FY2026; challenging near-term China environment due to export controls and macro; restructuring plan (2026 Plan) $300M–$350M total charges, majority in FY2026
Risk Factors
- • ~$10.0B total debt as of Jan 31, 2026 from Ansys Merger (closed Jul 2025); Senior Notes covenants restrict M&A, liens, subsidiary debt
- • Shareholder securities class action filed 2025 alleging material misstatements re Design IP segment performance; outcome uncertain
- • BIS administrative subpoenas received re transactions with Chinese entities; export control Trade Restrictions expanding in scope and enforcement
- • IP segment underperformance triggering resource reallocation to higher-growth areas; success of reallocation not assured
- • ~half of revenue from outside U.S.; tariffs enacted 2025 by U.S. and other governments creating FX volatility and customer payment delays
Synopsys Q1 2026 Quarterly FinancialsXBRL
Revenue
$2.4B
▲ +65.5% YoY
Net Income
$65M
▼ -78.0% YoY
Gross Margin
73.5%
▼ -791bp YoY
Operating Margin
8.4%
▼ -888bp YoY
Net Margin
2.7%
▼ -1762bp YoY
ROE
0.2%
Total Assets
$47.2B
▼ -2.0% QoQ
EPS (Diluted)
$0.34
▼ -82.0% YoY
Operating Cash Flow
$857M
▲ +1370.2% YoY
Source: XBRL data from Synopsys Q1 2026 10-Q filing on SEC EDGAR. All figures in USD.
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