Short answer
Synopsys (SNPS) filed its Q1 2026 10-Q quarterly report on Feb 25, 2026 for the quarter ended Jan 31, 2026. Quarterly revenue was $2.4B (up 65.5% year over year) with net income of $65M.
Q1 2026 key financials · XBRL
- Revenue
- $2.4B
- +65.5% YoY
- Net income
- $65M
- −78.0% YoY
- Operating margin
- 8.4%
- Gross margin
- 73.5%
- EPS (diluted)
- $0.34
- −82.0% YoY
Source: XBRL data from the Synopsys (SNPS) Q1 2026 10-Q on SEC EDGAR. USD.
Synopsys Q1 2026 10-Q analysis
AI summary of MD&A and risk factor updates
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
Generated from the filing text; verify against the original. 10-K vs 10-Q vs 8-K
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