Company: SNPS
Filing Date: 2025-09-09
Form Type: 10-Q
Source: 0000883241-25-000024
Chunk: 81

Company: SYNOPSYS INC
Filing Date: 2025-09-09
Form: 10-Q
Item: Item 1
Chunk 81
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our Annual Report). 

Overview

Unless otherwise noted, this Management’s Discussion and Analysis of Financial Condition and Results of Operations relates solely to our continuing operations and does not include the operations of our former Software Integrity business. See Note 3. Discontinued Operations of the Notes to Condensed Consolidated Financial Statements for additional information about the sale of our former Software Integrity business (the Software Integrity Divestiture).

Financial Performance Summary

For the third quarter of fiscal 2025, our results reflect strength in our Design Automation segment, including strong demand for our hardware products, offset by weakness in our Design IP segment, due to several headwinds, including China export control restrictions, such as the Q3 2025 BIS Restrictions, which disrupted customer design starts in China, weaker than expected demand from a major foundry customer, and certain roadmap and resource decisions that did not yield their intended results. In response to this weakness in our Design IP segment, we will be taking actions to sharpen our execution and reallocate resources to the highest growth opportunities. 

39

The following table sets forth some of our key quarterly unaudited financial information: 

Three Months Ended July 31,Nine Months Ended July 31,2025*20242025*2024(in millions, except per share amounts)Revenue$1,739.7 $1,525.7 $4,799.3 $4,491.5 Cost of revenue$380.6 $290.7 $968.9 $870.3 Operating expenses$1,193.9 $874.9 $3,036.9 $2,576.3 Operating income$165.3 $360.2 $793.5 $1,044.9 Net income from continuing operations attributed to Synopsys$242.5 $425.9 $887.4 $1,162.4 Net income (loss) from discontinued operations attributed to Synopsys$— $(17.8)$(3.9)$(13.2)Diluted net income (loss) per share attributed to Synopsys:Continuing operations$1.50 $2.73 $5.61 $7.46 Discontinued operations$— $(0.12)$(0.02)$(0.09)

*The operating results of Ansys, which have been included in our financial results for the three and nine months ended July