Synopsys
A Silicon Valley company whose software nearly every advanced chip is designed and checked with, and which licenses ready-made chip parts and, since buying Ansys, simulation software.
The scores
Growth3/4 ↑
Revenue grew 15% in FY2025 and is guided about 15% for FY2027, partly from Ansys; core EDA grew 8.5% in Q3 FY2026.
Business quality4/4 →
One of two suppliers of a certified flow customers rarely leave, half its revenue on multi-year licences, a 45% adjusted margin in EDA.
Financial position3/4 ↑
About $6.43B of net debt after Ansys, against cash from operations near $3B a year and maturities spread to 2055.
Execution record3/4 ↑
Closed and integrated Ansys and raised the FY2026 guide, but missed badly on IP in 2025 for reasons partly its own.
Per share capture3/4 →
Diluted shares rose 18.9% and pay in shares runs about 10% of revenue, but revenue per share rose 23% and buybacks restarted.
Potential3/4 ↑
A market growing about 12% with IP at 20%, plus custom-chip IP and simulation lines that are early and undisclosed.
Risk profile3/4 →
No customer above 10% and long contracts, against China export rules, debt from the merger and AI tools that may cut design work.
Valuation3/4 ↑
About 9.9 times trailing sales; the price needs about 13% yearly growth for ten years, below management's 15% plan to FY2030.
Evidence quality3/4 →
Filed figures carry the segments, backlog and balance sheet, but the growth lines the plan leans on, AOIP and agents, rest on management's word.
If it works 1.1× · if it fails you keep about 97%.
The Verdict
We rate Synopsys neutral. The business is solid: it is one of two companies whose design software almost every advanced chip depends on, and customers rarely switch. The price is fair. At about 9.9 times sales, buyers need revenue to grow about 13% a year for ten years, close to management's own plan, while its core design software grew 8.5% in Q3 FY2026. As a bet on its new custom-chip parts business it is defensive: if that works it adds a little, and if it fails shareholders keep nearly all of today's value. The view hinges on growth returning to the plan.
The long caseIf every cloud company designs its own AI chips, each one needs blocks and engineering that only a few suppliers sell.
The evidence under this - 5 claims
- Management's plan of about 15% a year to FY2030 is above 12.9%, so the price does not need the whole plan.
- The multiple's own six-year median is about 11.9 times sales, above today's (S20).
- 8.5% is below the 13% floor the FY2026-30 plan sets for EDA (C08).
- Cadence grew revenue 22% in its September quarter (C33), so the market leader's rival is growing faster.
- Design IP shrank 8% in FY2025 (C02), and the IP target was raised a year later from mid-teens.
- The industry grew 11.2% over the last four quarters (C30), so the plan asks Synopsys to outgrow it for five years.
- The figure is management's alone: nothing is filed for AOIP and the Amazon agreement's terms are not public.
- Royalties start only when the chips are produced, which management places around 2028.
The company
Before a chip is built, its design has to be turned into billions of transistors, laid out and checked against the factory's rules. One mistake found after manufacture can cost a year. Synopsys sells the software that does this, hardware that runs a design fast enough to test real software on it, and, since buying Ansys, simulation of heat and stress.
Its buyers are chip and system makers. Without it they would use Cadence's or Siemens's tools, or build their own.
The evidence under this - 4 claims
- Hardware is recognised upfront, so a record quarter can pull revenue forward from later ones.
- Cadence also reported record results in the same market (C33).
- No revenue is reported yet and launches of combined tools often take years to be adopted.
- Cadence sells its own chip-and-system simulation (C32), so a combined flow is not unique to Synopsys.
How it makes money
Most customers sign licences of about three years and pay over the term; about half of FY2025 revenue came that way. The rest is software and hardware paid for upfront, and support. The chip parts business licenses each block per design and sometimes earns a royalty on every chip sold. No customer was a tenth of FY2025 revenue.
The evidence under this - 3 claims
Where the money comes from, stream by stream
| Stream | Share of sales (FY2025) | How it earns it |
|---|---|---|
| Chip design software and hardware (EDA) | 62% | Design, verification and manufacturing-check tools and emulation hardware, mostly on three-year time-based licences. |
| Design IP | 25% | Pre-built interface, memory, security and foundation blocks licensed per design, with some royalties. |
| Ansys simulation and analysis | 11% | Heat, stress, fluid and electromagnetic simulation for chip and system makers, from July 2025 only. |
| Other | 2% | Services and the optical software sold in October 2025. |
Who runs it
Sassine Ghazi has been chief executive since January 2024, after founder Aart de Geus moved to executive chair; Shelagh Glaser is finance chief, and Siemens's former design software head now runs sales. Directors and officers own under 1% of the shares. Half the bonus rides on revenue and half on adjusted margin, and nothing on reported profit or cash. Insiders sold over the year and bought nothing.
The evidence under this - 4 claims
Why it wins, and who could beat it
Why customers come back
Chip teams build years of scripts, training and checked methods around one vendor's tools, and the factories certify those tools for each new process. Changing risks a failed chip, so few do.
An outside count puts Synopsys at 31% of the market and Cadence at 30%, with Siemens far behind. Contracted revenue not yet earned was $10.9B in July 2026, more than a year of sales.
The evidence under this - 4 claims
The threat
Cadence sells the same tools to the same customers and grew 22% in its latest quarter. Chinese makers, backed by their government, are building their own tools as US export rules shut Synopsys out at times. The newest threat is AI: an analyst asked whether customers' own AI could bypass licensed tools, and only Synopsys has answered.
The evidence under this - 5 claims
- The answer is the seller's own; no customer has said how much design work its AI tools will take over.
- Cadence's 10-K counts in-house tools at electronics makers as a competitor (C32).
The rivals: CDNS, RMBS, ARM, AVGO, MRVL, KEYS, and 4 more that are private, in-house or listed abroad.
Who else does this, rival by rival
| Ticker | Rival | Where it competes | How far along | Priced against it |
|---|---|---|---|---|
| CDNS | CadencePriced against it: Same product | Design Automation: chip design software, hardware and Ansys simulation | On sale | Same product |
| Siemens EDAPriced against it: Listed abroad | Design Automation: chip design software, hardware and Ansys simulation | On sale | Listed abroad | |
| Chinese state-backed design software makers such as EmpyreanPriced against it: Listed abroad | Design Automation: chip design software, hardware and Ansys simulation | On sale | Listed abroad | |
| Dassault Systemes and other simulation vendorsPriced against it: Listed abroad | Design Automation: chip design software, hardware and Ansys simulation | On sale | Listed abroad | |
| In-house | Customers' own tools and AI-native designPriced against it: In-house | Design Automation: chip design software, hardware and Ansys simulation | In research | In-house |
| CDNS · RMBS · ARM | Cadence, Rambus and Arm in chip IPPriced against it: Same product | Design IP: licensed standard chip building blocks | On sale | Same product |
| AVGO · MRVL | Broadcom and Marvell custom-chip design servicesPriced against it: Not checked | Custom-chip IP, AI agents and Multiphysics Fusion | On sale | Not checked |
| KEYS | Keysight TechnologiesPriced against it: One segment only | - | On sale | One segment only |
How big it could get
How big this could get
Chip makers spent $5.7B on design software and chip parts in the second quarter of 2026, 12.2% more than a year before, and spending on chip parts grew 20.4%. That is about $23B a year, of which Synopsys earns roughly two-fifths. Nobody publishes how much systems makers spend on simulation outside chips, the part Ansys adds, so the whole pond cannot be measured exactly.
The evidence under this - 2 claims
Who has signed
Amazon has signed for custom chip parts: about $1B of licence fees over several generations of three products, with royalties once its chips ship, by management's account; the agreement is not filed. The firmer number is the $10.9B of contracted revenue not yet earned, about half of it due within a year.
The evidence under this - 2 claims
- The figure is management's alone: nothing is filed for AOIP and the Amazon agreement's terms are not public.
- Royalties start only when the chips are produced, which management places around 2028.
Where the growth is coming from, business by business
Where the growth is coming from
| Business | Share of revenue | Growth: last quarter | Last half-year | Last year | Share in 3 years at its half-year rate |
|---|---|---|---|---|---|
| License and Maintenance | 40% | +12.4% | +13.2% | +13.1% | 8% |
| Technology Service | 33% | +144.4% | +167.2% | +132.5% | 86% |
| License | 27% | +28.8% | +18.0% | +34.4% | 6% |
| Whole company | 100% | +42.4% | +42.1% | +40.7% | 100% |
On the filed split through 2026-07-31, if each business keeps its last half-year's growth, the company grows about 65% next year and 125% in year 3, against 46.3% over the last twelve months. Technology Service grows fastest: it grows 167% against 15% for the rest, and would be 86% of revenue by then. A scenario, not a forecast: no business holds its rate.
How we read it: The fast line is Ansys's service revenue arriving with the purchase, not organic growth; the score reads the blend beside core EDA's 8.5%.
The results
The numbers
Sales grew 46% over the twelve months to Jul 2026, faster than the 15% in the year to Oct 2025.
Operating margin is 8.5%, down from 24% in the year to Oct 2023.
Running costs take 64¢ of each sales dollar, up from 62¢ in the year to Oct 2021.
Each dollar put into the business earns 1.6% a year after tax, down from 13% in the year to Oct 2021.
It turned 29% of sales into free cash, $2.75B over the last twelve months.
It owes $6.43B more than the cash it holds, about 2.2 years of the cash its operations bring in.
The share count rose 22% in 4.8 years, and pay in shares costs 10% of sales.
All the numbers
Filed figures from the company's 10-K and 10-Q, read 2026-10-27. Fiscal years end in October.
| Oct 2021 | Oct 2022 | Oct 2023 | Oct 2024 | Oct 2025 | 12 mo to Jul 2026 | |
|---|---|---|---|---|---|---|
| Size and growth | ||||||
| Sales | $4.20B | $4.62B | $5.32B | $6.13B | $7.05B | $9.42B |
| Sales growth | +14% | +9.8% | +15% | +15% | +15% | +46% |
| Profit | ||||||
| Gross margin | 80% | 81% | 81% | 80% | 77% | 72% |
| Operating margin | 17% | 25% | 24% | 22% | 13% | 8.5% |
| Net margin | 18% | 21% | 23% | 37% | 19% | 11% |
| What growth costs, per sales dollar | ||||||
| Research and development | 36% | 34% | 35% | 34% | 35% | 31% |
| Sales and marketing | 17% | 14% | 14% | 14% | 15% | 17% |
| General and admin | 7.7% | 6.8% | 7.1% | 9.3% | 11% | 7.6% |
| Pay in shares | 8.2% | 9.9% | 11% | 11% | 13% | 10% |
| Capital spending | 2.2% | 3.0% | 3.6% | 2.3% | 2.4% | 2.0% |
| Cash | ||||||
| Cash from operations | $1.49B | $1.74B | $1.70B | $1.41B | $1.52B | $2.94B |
| Free cash flow | $1.40B | $1.60B | $1.51B | $1.27B | $1.35B | $2.75B |
| Balance sheet | ||||||
| Cash and short-term investments | $1.58B | $1.57B | $1.59B | $4.05B | $2.96B | $3.61B |
| Debt | $100M | $20.8M | $18.1M | $15.6M | $13.5B | $10.0B |
| Net cash | $1.48B | $1.54B | $1.57B | $4.03B | −$10.5B | −$6.43B |
| Returns and shares | ||||||
| Return on capital | 13% | 18% | 20% | 17% | 3.5% | 1.6% |
| Shares (diluted) | 157M | 156M | 155M | 156M | 166M | 192M |
What growth costs
Revenue grew fast with Ansys, but the official operating margin narrowed sharply, because the cost of the purchase is written off over years, restructuring cost money and pay in shares grew. The adjusted margin, which leaves those out, rose.
The evidence under this - 3 claims
The last report (26 Aug)
Quarter ended July 2026, filed figures.
In Q3 FY2026 sales were $2.48B against $1.74B a year earlier, most of the rise from Ansys. Design software and simulation brought in $2.0B at a 45.2% margin before some costs; chip parts $474M at 26.5%.
Beneath the total, the core design software grew 8.5%, below the 13% the five-year plan needs, against a strong quarter a year earlier. Chip parts grew about 11%, the first sign the 2025 slump has passed. Management raised its forecast for the year again.
What it did to the thesisIt supported the business: chip parts returned to growth and the year's forecast rose. It left open what the view turns on, because core design software grew below the plan's floor while its main rival grew faster.
The quarter in detail
Sales growth from the previous quarter, filed figures.
Earnings per share $3.91 against $3.67 expected; $2.84 as filed, the gap being what the company adds back.
The evidence under this - 5 claims
- 8.5% is below the 13% floor the FY2026-30 plan sets for EDA (C08).
- Cadence grew revenue 22% in its September quarter (C33), so the market leader's rival is growing faster.
- One quarter's return to growth follows a year of decline, against a comparison weakened by the 2025 miss.
- The processor IP business sold in June leaves the segment (C24), so later comparisons change.
- The raises follow a year in which IP missed, so the starting guide was set low after the September 2025 fall (C39).
- GAAP EPS for the year is guided far lower, because of amortisation and restructuring (C23).
- Design IP shrank 8% in FY2025 (C02), and the IP target was raised a year later from mid-teens.
- The industry grew 11.2% over the last four quarters (C30), so the plan asks Synopsys to outgrow it for five years.
What management did with the money
Synopsys paid for Ansys half in cash, half in new shares, then sold two smaller businesses and took $2.0B from Nvidia for new shares. It repaid $3.46B of loans in nine months, and in October started a $1B buyback.
Insiders in 2026Q3: 11 purchases and 14 sales, from their Form 4 filings.
The evidence under this - 5 claims
The price, and where we disagree
In short. Fair. The price pays for management's plan working for most of a decade, and leaves little room if core design software keeps growing below it.
The shares fell more than a third in one day in September 2025 when chip parts missed, and have not recovered. At the investor day on 30 September 2026 management set a plan for 15% yearly growth to 2030; the shares jumped 12.8% the next day and gave it all back within three weeks.
The next test is close: fourth-quarter results on 9 December will show whether core design software grows double digits as promised.
The evidence under this - 4 claims
- Design IP shrank 8% in FY2025 (C02), and the IP target was raised a year later from mid-teens.
- The industry grew 11.2% over the last four quarters (C30), so the plan asks Synopsys to outgrow it for five years.
- 8.5% is below the 13% floor the FY2026-30 plan sets for EDA (C08).
- Cadence grew revenue 22% in its September quarter (C33), so the market leader's rival is growing faster.
How we read the multiple
With its debt and net of cash, the company costs about $93.5B. What has to be true:
1. Revenue over the four quarters to July 2026 was $9.42B, so the price is about 9.9 times sales. 2. A buyer wanting 9% a year, a common yardstick, needs revenue near $31.6B in ten years, selling then at 7 times sales. 3. That is growth of about 12.9% a year for a decade, against management's 15% plan to 2030.
Reported profit is far below the adjusted figure analysts quote.
Against its own history. Buyers pay less per dollar of sales than they usually have, because the merger added slower simulation revenue and the chip parts slump is still fresh.
The evidence under this - 4 claims
- Management's plan of about 15% a year to FY2030 is above 12.9%, so the price does not need the whole plan.
- The multiple's own six-year median is about 11.9 times sales, above today's (S20).
- Design IP shrank 8% in FY2025 (C02), and the IP target was raised a year later from mid-teens.
- The industry grew 11.2% over the last four quarters (C30), so the plan asks Synopsys to outgrow it for five years.
Priced against its rivals
Only Cadence Design Systems sells the same thing to the same buyers as a large part of what it does. A price comparison needs at least two, so the price is judged against its own history instead.
The bet: what it pays if it works
The bet is on Synopsys's newest lines: custom chip parts sold to cloud companies such as Amazon, design agents and the combined Synopsys-Ansys design flow. None reports revenue yet.
Valuing the rest of Synopsys at a fair price already accounts for nearly all of today's price. If the new lines reach management's plan they add only a little on top, so the bet is expensive; if they fail, shareholders keep the established business, worth nearly what the company costs today.
| Custom-chip IP, AI agents and Multiphysics Fusion revenue in two to three years | Cloud companies licensing custom-chip IP like Amazon needed | At the stated multiple |
|---|---|---|
| $700.00M | about 3 at 100% kept | 1.0× |
| $1.10B (the big win) | about 4 at 100% kept | 1.1× |
| $1.60B | about 6 at 100% kept | 1.1× |
To pay 2× (a Fair bet) it would need about $12.00B of Custom-chip IP, AI agents and Multiphysics Fusion revenue (about 48 cloud companies licensing custom-chip IP like Amazon); to pay 5× (a Cheap bet), about $47.06B of Custom-chip IP, AI agents and Multiphysics Fusion revenue (about 188 cloud companies licensing custom-chip IP like Amazon), at the same multiple.
Each row is Custom-chip IP, AI agents and Multiphysics Fusion alone, plus the rest of the company (Design software, simulation and standard chip IP) counted at about $91.00B.
The steps it has to take
- Done Amazon custom-chip IP agreement signed, about $1B of licence fees
- Done Multiphysics Fusion launched with Nvidia, Cisco, MediaTek and Samsung Foundry validating
- Not started First revenue from Multiphysics Fusion due 2027-12-31
- Not started A second cloud company signed for custom-chip IP due 2027-10-31
- Not started Royalties from the first custom chips due 2028-12-31
- Not started AOIP reaches about $1B a year due 2030-10-31
The detail behind the label
The evidence under this - 5 claims
- The figure is management's alone: nothing is filed for AOIP and the Amazon agreement's terms are not public.
- Royalties start only when the chips are produced, which management places around 2028.
- No revenue is reported yet and launches of combined tools often take years to be adopted.
- Cadence sells its own chip-and-system simulation (C32), so a combined flow is not unique to Synopsys.
- No agent revenue is disclosed, and the engagements are counts of trials, not contracts.
- An analyst asked on the Q3 call whether AI-native design could bypass commercial tools (C44).
- Management's plan of about 15% a year to FY2030 is above 12.9%, so the price does not need the whole plan.
- The multiple's own six-year median is about 11.9 times sales, above today's (S20).
Where we disagree with the market
AI chips make Synopsys's tools more needed every year, so growth near 15% lasts and adjusted earnings rise fast.
The duopoly is durable, but the price already counts most of the plan, and owners keep less of it than adjusted earnings suggest.
The market counts adjusted earnings and the plan's growth. We count core design software growing below that plan while Cadence grows faster, the fifth more shares the merger created, and pay in shares the adjusted figures leave out.
The evidence against us is real: chip parts returned to growth, the forecast was raised twice, and AI chips keep getting harder to design.
What analysts say, and the evidence
The evidence under this - 8 claims
- 8.5% is below the 13% floor the FY2026-30 plan sets for EDA (C08).
- Cadence grew revenue 22% in its September quarter (C33), so the market leader's rival is growing faster.
- One quarter's return to growth follows a year of decline, against a comparison weakened by the 2025 miss.
- The processor IP business sold in June leaves the segment (C24), so later comparisons change.
- The raises follow a year in which IP missed, so the starting guide was set low after the September 2025 fall (C39).
- GAAP EPS for the year is guided far lower, because of amortisation and restructuring (C23).
What could go wrong, and how we would know
The risks
- Cadence grows faster. Cadence grew 22% in its latest quarter while Synopsys's core design software grew 8.5%.
- Chip parts may slip again. The business shrank 8% in 2025 partly from the company's own choices, and the plan now asks it to grow 17% a year.
- China export rules. In 2025 the US briefly required licences to sell design software to China, which was about a tenth of sales.
- AI could cut design work. Customers' own AI tools may automate steps they now license, and only the seller says otherwise.
- Debt from the merger. Net debt is about $6.4B, with $1B of bonds due in April 2027.
- Pay in shares. Pay in shares runs about a tenth of revenue, which the adjusted earnings leave out.
The evidence under this - 8 claims
- 8.5% is below the 13% floor the FY2026-30 plan sets for EDA (C08).
- Cadence grew revenue 22% in its September quarter (C33), so the market leader's rival is growing faster.
- Two of the three causes are the company's own choices, which it names only after the shares fell 36% in a day.
- Two class actions filed in late 2025 say the weakness was known before it was disclosed (C45).
- The answer is the seller's own; no customer has said how much design work its AI tools will take over.
- Cadence's 10-K counts in-house tools at electronics makers as a competitor (C32).
What we still do not know
- What the Amazon agreement's terms are, and whether a second cloud company will sign for custom chip parts.
- How much of the growth planned for FY2027 comes from the business itself once Ansys is in both years.
- How much design work customers' own AI tools will take over.
The evidence under this - 3 claims
- The figure is management's alone: nothing is filed for AOIP and the Amazon agreement's terms are not public.
- Royalties start only when the chips are produced, which management places around 2028.
- About 4 points of the growth is the first full year of Ansys revenue moving into the comparison, so it is not all organic.
- GAAP EPS is less than half of adjusted EPS, the gap being amortisation and pay in shares (C23, C43).
- The answer is the seller's own; no customer has said how much design work its AI tools will take over.
- Cadence's 10-K counts in-house tools at electronics makers as a competitor (C32).
What would change our view
- Neutral→AttractiveA price that leaves room for a slower plan
It needs all of:
- ○The company is valued at 7.7 times the last year's revenue, with core design software still growing.about ≈$367.88 today, 19% below the last close
- ○Core design software grows 10% or more in the fourth quarter of FY2026 from a year earlier.checked at the next results, due by 9 Dec
- Neutral→AttractiveProof the plan's growth is real
It needs all of:
- ○Core design software grows 13% or more in the first quarter of FY2027 from a year earlier.checked at the next results, due by 9 Dec
- ○Chip parts revenue grows 17% or more in the first quarter of FY2027 from a year earlier.checked at the next results, due by 9 Dec
We would also be wrong if
- The US again requires licences to sell design software to China.
- A large customer says its own AI tools replace licensed design software.
What is coming
- 9 December 2026 Q4 FY2026 results: Whether EDA grows double digits in Q4 as promised, IP keeps growing and FY2027 is guided again at about 15%.
Every dated event ahead
- 9 December 2026 Q4 FY2026 results: Whether EDA grows double digits in Q4 as promised, IP keeps growing and FY2027 is guided again at about 15%.
- 5 January 2027 Settlement of the $1B accelerated buyback: How many shares the buyback took in all.
- 28 February 2027 Q1 FY2027 results, the first with the new segment reporting: Organic EDA growth with Ansys's chip simulation inside it, and the first quarter of the FY2027 plan.
Since we wrote this
- 27 OctThesis writtenNeutral, medium convictionWritten six weeks before Q4 FY2026 results, after the investor day's rise was given back and the day after Cadence reported 22% growth.
Sources 17
Sources - 17
Every claim above cites one of these, or states the reasoning that derived it. The quote is frozen at the date it was read: a link can rot, and an agent fetch returns a reading of a page rather than the page. Backs counts the whole claim ledger, so it can name a claim this page does not surface.
- S01primarycompany filing2025-12-22business description, segments, revenue by type and region, customer concentration, competition, export controls, the Ansys purchase, employees, legal proceedingsbacksC01C02C03C10C11C12C13C14C15C35C43C45C46C47
- S02primarycompany release2025-12-10FY2025 results and the first FY2026 forecast
Revenue | $2,365 | $2,415 | $9,560 | $9,660
backsC02C06 - S03primarycompany release2026-08-26Q3 results, the raised FY2026 forecast and the GAAP to adjusted reconciliation
Raising expectations for full-year total revenue to $9.715 billion at the midpoint and full-year non-GAAP EPS guidance to $15.07 at the midpoint on continued AI-driven demand strength
backsC04C06C23 - S04primarycompany filing2026-08-26segments, regions, backlog, balance sheet, debt, cash flow, share count, divestitures, restructuring, the Nvidia placementbacksC01C04C10C13C15C16C17C18C19C20C22C23C24C25C42C43
- S05primarytranscript2026-08-26Synopsys Q3 fiscal 2026 earnings call transcript (FMP)EDA growth, hardware wins, Multiphysics Fusion, agent engagements, IP growth, Ansys revenue, analysts' questions
Within the Design Automation segment, Q3 EDA revenue increased 8.5% year-over-year, reflecting robust EDA software performance and another record quarter for hardware-assisted verification solutions.
backsC05C26C27C28C29C44C48 - S06primarycompany release2026-09-30the FY2027 forecast, the FY2026-30 targets and the buyback intent
Company expects fiscal year 2027 revenue growth of approximately 15% year over year to $11.15 billion at the midpoint of guidance range.
backsC07C08C09 - S07primarycompany release2026-10-05the size and timing of the buyback
Synopsys will receive an aggregate initial share delivery of approximately 1,735,000 shares, with the remainder, if any, to be settled on or before January 5, 2027
backsC21 - S08primarytranscript2026-09-30the AOIP target and the Amazon agreement, merger synergies, the segment targets, the FY2027 reporting change
In terms of royalty, the $1 billion agreement with Amazon, the $1 billion is for license fee, and it is for multiple generations of the three products that I mentioned earlier.
backsC07C08C09C26C28 - S09primaryindustry data2026-10-19ESD Alliance, 'Electronic System Design Industry Posts $5.7 Billion in Revenue in Q2 2026, ESD Alliance Reports' ESD Alliance (SEMI)the size and growth of the chip design market by category
Semiconductor Intellectual Property (SIP) revenue increased 20.4% to $2,199.0 million.
backsC30 - S10primaryindustry data2025-06-02market shares measured outside the company
TrendForce reports in 2024, Synopsys, Cadence, and Siemens hold 31%, 30%, and 13% market shares respectively.
backsC31 - S11primarycompany filing2026-02-20Cadence Design Systems, Inc. Form 10-K for the fiscal year ended December 31, 2025 Cadence Design Systemsa rival naming Synopsys, Ansys and Siemens EDAbacksC32
- S12primarycompany release2026-10-26Cadence third quarter 2026 results release, Form 8-K Exhibit 99.1 Cadence Design Systemsthe closest rival's growth and backlog
Raising 2026 Revenue Growth Outlook to 21% and Non-GAAP EPS to $8.40 Q3 Recurring Revenue Up 18% YoY, Record Backlog of $8.2 Billion
backsC33 - S13primarycompany filing2025-12-17Keysight Technologies, Inc. Form 10-K for the fiscal year ended October 31, 2025 Keysight Technologiesthe purchase of Synopsys's optical business and PowerArtistbacksC24
- S14primarycompany filing2026-02-19beneficial ownership, pay measures and results, the leadershipbacksC35C36C37
- S15primarycompany filing2026-10-16open-market sales and the Rule 10b5-1 flagbacksC38
- S16primarycompany filing2026-02-20an IP rival naming SynopsysbacksC34
- S20secondaryvendor data2026-10-27Research pack, frozen 2026-10-27 (FMP market data, FINRA short interest, Form 4 roster, filed cohort)daily closes, the price decomposition, analyst ratings, short interest, vendor ratiosbacksC22C39C40C41C42C43