Synopsys Revenue vs. Net Income

SNPS Stock  USD 437.09  13.74  3.25%   
Based on Synopsys' profitability indicators, Synopsys may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in March. Profitability indicators assess Synopsys' ability to earn profits and add value for shareholders.
 
Total Revenue  
First Reported
1989-10-31
Previous Quarter
1.7 B
Current Value
2.3 B
Quarterly Volatility
452.9 M
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
At this time, Synopsys' Price To Sales Ratio is comparatively stable compared to the past year. EV To Sales is likely to gain to 11.27 in 2026, whereas Sales General And Administrative To Revenue is likely to drop 0.09 in 2026. At this time, Synopsys' Net Income Per Share is comparatively stable compared to the past year. Income Quality is likely to gain to 2.09 in 2026, whereas Income Tax Expense is likely to drop slightly above 37.6 M in 2026. At this time, Synopsys' Gross Profit is comparatively stable compared to the past year. Gross Profit Margin is likely to gain to 0.91 in 2026, whereas Pretax Profit Margin is likely to drop 0.12 in 2026.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.910.89
Fairly Up
Slightly volatile
Net Profit Margin0.0960.17
Way Down
Slightly volatile
Operating Profit Margin0.110.12
Significantly Down
Pretty Stable
Pretax Profit Margin0.120.18
Way Down
Slightly volatile
Return On Assets0.03020.0318
Notably Down
Very volatile
Return On Equity0.05140.0541
Notably Down
Pretty Stable
For Synopsys profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Synopsys to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Synopsys utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Synopsys's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Synopsys over time as well as its relative position and ranking within its peers.

Synopsys' Revenue Breakdown by Earning Segment

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For more information on how to buy Synopsys Stock please use our How to Invest in Synopsys guide.The next projected EPS of Synopsys is estimated to be 3.604375 with future projections ranging from a low of 3.555 to a high of 3.860775. Synopsys' most recent 12-month trailing earnings per share (EPS TTM) is at 8.35. Please be aware that the consensus of earnings estimates for Synopsys is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
Synopsys is projected to generate 3.604375 in earnings per share on the 31st of October 2026. Synopsys earnings estimates show analyst consensus about projected Synopsys EPS (Earning Per Share). It derives the highest and the lowest estimates based on Synopsys' historical volatility. Many public companies, such as Synopsys, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Synopsys Revenue Breakdown by Earning Segment

By analyzing Synopsys' earnings estimates, investors can diagnose different trends across Synopsys' analyst sentiment over time as well as compare current estimates against different timeframes.
Is there potential for Application Software market expansion? Will Synopsys introduce new products? Factors like these will boost the valuation of Synopsys. If investors know Synopsys will grow in the future, the company's valuation will be higher. Understanding fair value requires weighing current performance against future potential. All the valuation information about Synopsys listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.67)
Earnings Share
8.35
Revenue Per Share
43.027
Quarterly Revenue Growth
0.378
Return On Assets
0.0187
The market value of Synopsys is measured differently than its book value, which is the value of Synopsys that is recorded on the company's balance sheet. Investors also form their own opinion of Synopsys' value that differs from its market value or its book value, called intrinsic value, which is Synopsys' true underlying value. Analysts utilize numerous techniques to assess fundamental value, seeking to purchase shares when trading prices fall beneath estimated intrinsic worth. Because Synopsys' market value can be influenced by many factors that don't directly affect Synopsys' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Synopsys' value and its price as these two are different measures arrived at by different means. Investors typically determine if Synopsys is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. Meanwhile, Synopsys' quoted price indicates the marketplace figure where supply meets demand through bilateral consent.

Synopsys Net Income vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Synopsys's current stock value. Our valuation model uses many indicators to compare Synopsys value to that of its competitors to determine the firm's financial worth.
Synopsys is rated fourth in revenue category among its peers. It is rated fifth in net income category among its peers making up about  0.19  of Net Income per Revenue. The ratio of Revenue to Net Income for Synopsys is roughly  5.29 . At this time, Synopsys' Total Revenue is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Synopsys by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Synopsys Revenue vs. Competition

Synopsys is rated fourth in revenue category among its peers. Market size based on revenue of Information Technology industry is at this time estimated at about 175.09 Billion. Synopsys holds roughly 7.05 Billion in revenue claiming about 4% of equities under Information Technology industry.

Synopsys Net Income vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Synopsys

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
7.05 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Synopsys

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
1.33 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Synopsys Net Income Comparison

Synopsys is currently under evaluation in net income category among its peers.

Synopsys Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Synopsys, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Synopsys will eventually generate negative long term returns. The profitability progress is the general direction of Synopsys' change in net profit over the period of time. It can combine multiple indicators of Synopsys, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-209.2 M-198.7 M
Operating Income1.1 B1.1 B
Income Before Tax1.6 B1.7 B
Total Other Income Expense Net549.9 M577.4 M
Net Income1.5 B1.6 B
Income Tax Expense64.4 M37.6 M
Net Income Applicable To Common Shares1.1 B1.2 B
Net Income From Continuing Ops1.5 B1.6 B
Non Operating Income Net Other-41.9 M-39.8 M
Interest Income319.3 M335.3 M
Net Interest Income-152.1 M-144.5 M
Change To Netincome589 M618.5 M
Net Income Per Share 7.49  7.86 
Income Quality 1.31  2.09 
Net Income Per E B T 0.86  0.67 

Synopsys Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Synopsys. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Synopsys position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Synopsys' important profitability drivers and their relationship over time.

Synopsys Earnings Estimation Breakdown

The calculation of Synopsys' earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Synopsys is estimated to be 3.604375 with the future projection ranging from a low of 3.555 to a high of 3.860775. Please be aware that this consensus of annual earnings estimates for Synopsys is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
3.56
Lowest
Expected EPS
3.604375
3.86
Highest

Synopsys Earnings Projection Consensus

Suppose the current estimates of Synopsys' value are higher than the current market price of the Synopsys stock. In this case, investors may conclude that Synopsys is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Synopsys' stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of October 2026Current EPS (TTM)
2589.83%
0.0
3.604375
8.35

Synopsys Earnings History

Earnings estimate consensus by Synopsys analysts from Wall Street is used by the market to judge Synopsys' stock performance. Investors also use these earnings estimates to evaluate and project the stock performance into the future in order to make their investment decisions. However, we suggest analyzing not only Synopsys' upcoming profit reports and earnings-per-share forecasts but also comparing them to our different valuation methods.

Synopsys Quarterly Gross Profit

1.6 Billion

At this time, Synopsys' Retained Earnings are comparatively stable compared to the past year. Retained Earnings Total Equity is likely to gain to about 6.7 B in 2026, whereas Price Earnings Ratio is likely to drop 42.11 in 2026. Net Income Applicable To Common Shares is likely to gain to about 1.2 B in 2026, whereas Common Stock Shares Outstanding is likely to drop slightly above 147.6 M in 2026.
Hype
Prediction
LowEstimatedHigh
435.70438.20440.70
Details
Intrinsic
Valuation
LowRealHigh
393.38492.93495.43
Details
22 Analysts
Consensus
LowTargetHigh
505.64555.65616.78
Details
Earnings
Estimates (0)
LowProjected EPSHigh
3.563.603.86
Details
Note that many institutional investors and large investment bankers can move markets due to the volume of Synopsys assets they manage. They also follow analysts to some degree and often drive overall investor sentiments towards Synopsys. With so many stockholders watching consensus numbers, the difference between actual and projected earnings is one of the most critical factors driving Synopsys' stock price in the short term.

Synopsys Earnings per Share Projection vs Actual

Actual Earning per Share of Synopsys refers to what the company shows during its earnings calls or quarterly reports. The Expected EPS is what analysts covering Synopsys predict the company's earnings will be in the future. The higher the earnings per share of Synopsys, the better is its profitability. While calculating the Earning per Share, we use the weighted ratio, as the number of shares outstanding can change over time.

Synopsys Estimated Months Earnings per Share

For an investor who is primarily interested in generating an income out of investing in entities such as Synopsys, the EPS ratio can tell if the company is intending to increase its current dividend. Although EPS is an essential tool for investors, it should not be used in isolation. EPS of Synopsys should always be considered in relation to other companies to make a more educated investment decision.

Synopsys Quarterly Analyst Estimates and Surprise Metrics

Earnings surprises can significantly impact Synopsys' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
null
nullnullnullnull
null
nullnullnullnull
2025-12-03
2025-10-312.782.90.12
2025-09-09
2025-07-313.753.39-0.36
2025-05-28
2025-04-303.43.670.27
2025-02-26
2025-01-312.793.030.24
2024-12-04
2024-10-313.33.40.1
2024-08-21
2024-07-313.283.430.15
2024-05-22
2024-04-302.953.00.05
2024-02-21
2024-01-313.433.560.13
2023-11-29
2023-10-313.043.170.13
2023-08-16
2023-07-312.742.880.14
2023-05-17
2023-04-302.462.540.08
2023-02-15
2023-01-312.52.620.12
2022-11-30
2022-10-311.851.910.06
2022-08-17
2022-07-311.992.10.11
2022-05-18
2022-04-302.372.50.13
2022-02-16
2022-01-312.372.40.03
2021-12-01
2021-10-311.781.820.04
2021-08-18
2021-07-311.781.810.03
2021-05-19
2021-04-301.521.70.1811 
2021-02-17
2021-01-311.471.520.05
2020-12-02
2020-10-311.581.580.0
2020-08-19
2020-07-311.351.740.3928 
2020-05-20
2020-04-300.991.220.2323 
2020-02-19
2020-01-310.921.010.09
2019-12-04
2019-10-311.131.150.02
2019-08-21
2019-07-311.11.180.08
2019-05-22
2019-04-301.091.160.07
2019-02-20
2019-01-310.971.080.1111 
2018-12-05
2018-10-310.780.780.0
2018-08-22
2018-07-310.920.950.03
2018-05-23
2018-04-301.081.080.0
2018-02-21
2018-01-3111.10.110 
2017-11-29
2017-10-310.570.690.1221 
2017-08-16
2017-07-310.920.920.0
2017-05-17
2017-04-300.860.880.02
2017-02-15
2017-01-310.780.940.1620 
2016-11-30
2016-10-310.770.770.0
2016-08-17
2016-07-310.740.760.02
2016-05-18
2016-04-300.790.810.02
2016-02-17
2016-01-310.620.680.06
2015-12-02
2015-10-310.660.670.01
2015-08-19
2015-07-310.590.630.04
2015-05-20
2015-04-300.630.680.05
2015-02-18
2015-01-310.620.80.1829 
2014-12-03
2014-10-310.610.640.03
2014-08-20
2014-07-310.60.650.05
2014-05-21
2014-04-300.590.650.0610 
2014-02-19
2014-01-310.520.590.0713 
2013-12-04
2013-10-310.550.560.01
2013-08-21
2013-07-310.540.550.01
2013-05-22
2013-04-300.630.660.03
2013-02-20
2013-01-310.550.670.1221 
2012-12-05
2012-10-310.470.470.0
2012-08-22
2012-07-310.50.550.0510 
2012-05-23
2012-04-300.550.53-0.02
2012-02-22
2012-01-310.520.560.04
2011-11-30
2011-10-310.450.450.0
2011-08-17
2011-07-310.430.460.03
2011-05-18
2011-04-300.450.450.0
2011-02-16
2011-01-310.40.440.0410 
2010-12-01
2010-10-310.390.390.0
2010-08-18
2010-07-310.380.390.01
2010-05-19
2010-04-300.390.410.02
2010-02-17
2010-01-310.390.410.02
2009-12-02
2009-10-310.320.330.01
2009-08-19
2009-07-310.410.470.0614 
2009-05-20
2009-04-300.40.450.0512 
2009-02-18
2009-01-310.410.50.0921 
2008-12-03
2008-10-310.380.430.0513 
2008-08-20
2008-07-310.390.440.0512 
2008-05-21
2008-04-300.380.410.03
2008-02-20
2008-01-310.380.440.0615 
2007-12-06
2007-10-310.360.40.0411 
2007-08-22
2007-07-310.30.320.02
2007-05-23
2007-04-300.280.350.0725 
2007-02-21
2007-01-310.270.30.0311 
2006-11-29
2006-10-310.190.210.0210 
2006-08-16
2006-07-310.190.210.0210 
2006-05-17
2006-04-300.150.170.0213 
2006-02-15
2006-01-310.140.180.0428 
2005-11-30
2005-10-310.10.10.0
2005-08-17
2005-07-310.080.10.0225 
2005-05-18
2005-04-300.090.090.0
2005-02-16
2005-01-310.060.10.0466 
2004-12-01
2004-10-310.030.01-0.0266 
2004-08-18
2004-07-310.320.330.01
2004-05-19
2004-04-300.330.350.02
2004-02-23
2004-01-310.310.330.02
2003-12-03
2003-10-310.420.440.02
2003-08-20
2003-07-310.40.410.01
2003-05-21
2003-04-300.350.40.0514 
2003-02-19
2003-01-310.320.340.02
2002-12-04
2002-10-310.470.480.01
2002-08-21
2002-07-310.260.270.01
2002-06-04
2002-04-300.180.20.0211 
2002-02-20
2002-01-310.130.140.01
2001-12-03
2001-10-310.180.20.0211 
2001-08-22
2001-07-310.150.14-0.01
2001-05-23
2001-04-300.10.120.0220 
2001-01-26
2000-10-31-0.220.080.3136 
2000-08-16
2000-07-310.310.3-0.01
2000-05-18
2000-04-300.250.270.02
2000-02-17
2000-01-310.340.340.0
1999-10-26
1999-07-310.350.360.01
1999-07-27
1999-04-300.320.340.02
1999-04-22
1999-01-310.30.30.0
1999-01-20
1998-10-310.280.280.0
1998-10-27
1998-07-310.280.290.01
1998-07-21
1998-04-300.260.270.01
1998-04-27
1998-01-310.240.250.01
1998-01-29
1997-10-310.190.18-0.01
1997-10-21
1997-07-310.20.210.01
1997-07-17
1997-04-300.190.190.0
1997-04-17
1997-01-310.190.190.0
1997-01-20
1996-10-310.170.190.0211 
1996-10-22
1996-07-310.160.160.0
1996-07-16
1996-04-300.150.150.0
1996-04-17
1996-01-310.140.140.0

Use Synopsys in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Synopsys position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Synopsys will appreciate offsetting losses from the drop in the long position's value.

Synopsys Pair Trading

Synopsys Pair Trading Analysis

The ability to find closely correlated positions to Synopsys could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Synopsys when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Synopsys - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Synopsys to buy it.
The correlation of Synopsys is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Synopsys moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Synopsys moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Synopsys can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Synopsys position

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Additional Tools for Synopsys Stock Analysis

When running Synopsys' price analysis, check to measure Synopsys' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Synopsys is operating at the current time. Most of Synopsys' value examination focuses on studying past and present price action to predict the probability of Synopsys' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Synopsys' price. Additionally, you may evaluate how the addition of Synopsys to your portfolios can decrease your overall portfolio volatility.