Synopsys Inc

Company facts

Industry

Services-Prepackaged Software

Headquarters

Sunnyvale, California

Most recent report

10-Q, filed Aug 26, 2026

Incorporated

Delaware

Filings on record

1,001+ filings

On EDGAR

CIK 883241

Fiscal year ends

October

Filer status

Large accelerated filer

What to read: Jul 2026 10-Q

SECSift found 4 of 11 sections worth reading, with 1 positive, 13 notable, and 3 negative flags.

• Financial Statements (Item 1)

  Core financial statements: all numbers for Q3 and nine months FY2026.
  Notable

  • Gain on Processor IP divestiture $425.4M in Q3 2026 distorts comparability.
  • Dilutive $2.0B private placement to NVIDIA (4.8M shares at $414.79) in December 2025.
  Negative

  • Restructuring charges $236.3M in nine months FY2026; total expected $425M–$500M.

• Management's Discussion (Item 2)

  MD&A with key results, restructuring, divestiture gain, and debt details.
  Positive

  • Revenue $2.48B, up 42% in Q3 2026, driven by Ansys and organic growth.
  Notable

  • Revenue recognition for reseller arrangements changed to gross basis in Q2 2026.
  • Backlog of $10.9B as of July 31, 2026, including $1.9B non-cancellable FSA commitments.
  • Gain of $425.4M from selling Processor IP business in June 2026, a one-time item.
  • Board replenished stock repurchase program to $2.0B; $1.7B remains available.

• Legal Proceedings (Item 1)

  Six shareholder lawsuits with specific dates and allegations, pending resolution.
  Notable

  • Three class actions filed Oct-Dec 2025 allege securities law violations regarding Design IP segment and Ansys merger.
  • Consolidated class action schedule set: complaint due Sep 23, 2026, response due Nov 4, 2026.
  • No loss accrual recorded as of July 31, 2026 because loss is not probable or estimable.

• Risk Factors (Item 1A)

  Specific risks: $10B debt, IP segment underperformance, securities suits, BIS subpoenas, customer concentration.
  Notable

  • Design IP underperformance leads to resource reallocation; growth strategy may fail.
  • U.S. BIS subpoenas demand info on China transactions; risk of trade restrictions or penalties.
  • Significant executive leadership team departures in past period; retention risk.
  • Securities class actions (2025-2026) allege misstatements about Design IP performance; outcome uncertain.
  Negative

  • Major foundry customer issues hurt FY2025 results; concentration risk remains.
  • Synopsys carries $10.0B in debt from Ansys Merger as of July 31, 2026, limiting financial flexibility.

What changed: Jul 2026 vs. Apr 2026

About 6% of SNPS's Jul 2026 10-Q is new information. 29 paragraphs were added, 161 changed, and 41 removed. Below are the most important lines SECSift identified.

• Item 1 67
• Item 2 66
• Item 1A 5
• Item 3 2
• Item 4 1
• Item 6 1