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- **Record Growth with Ansys**: FY25 revenue $7.05B, Q4 $2.25B, with Ansys contributing $668M. FY26 guided to $9.61B, driven by Ansys ($2.9B) and cost synergies.
- **AI & HPC Leadership**: 5,000+ AI-driven chip design users, AWS Graviton5 partnership, and 13 PCIe 7.0 design wins highlight strategic momentum.
- **China Risks**: Revenue down 18% YoY, with FY26 guide assuming stable environment. Long-term EDA growth tied to joint solutions and AI workflows.
- **Financial Strength**: Non-GAAP EPS $14.36, free cash flow $2.2B, and $2B NVIDIA investment to accelerate AI innovation.

**【CEO Summary Section】**
- Synopsys achieved record FY25 revenue of $7.05B, with Q4 revenue at $2.25B, driven by Ansys integration and strong demand in AI and HPC. China revenue declined 18% YoY due to ongoing restrictions.
- Ansys contributed $668M in Q4, with FY26 guidance of $2.9B midpoint, reflecting double-digit growth. The company is targeting first Synopsys-Ansys joint solutions in H1 2026.
- Design Automation highlights include record HAV wins, AI-driven chip design adoption (5,000+ active users), and strategic partnerships like AWS Graviton5. Ansys demonstrated robust growth in industrial and automotive markets.
- Design IP faced muted FY26 growth (8% YoY) due to supply chain delays and customer prioritization, but maintained leadership in PCIe 224G and UCIe IP with 13 PCIe 7.0 design wins.

**【CFO Financial Commentary】**
- FY25 GAAP net income: $8.07B; non-GAAP EPS: $12.91, ahead of expectations. Q4 non-GAAP operating margin: 36.5%, up 320bps YoY.
- FY26 guidance: $9.61B revenue midpoint, with Ansys contributing $2.9B. Non-GAAP EPS: $14.36, driven by cost synergies ($225M restructuring) and debt repayment ($850M in Q4 2025).
- Free cash flow: $1.35B in FY25, guided to $2.2B in FY26, up $700M YoY, despite $135M tax impact from divestitures.

**【Q&A Highlights】**
- **Organic Growth & IP Challenges**: FY26 EDA/IP growth ~8% (excluding Ansys), with muted IP growth due to supply chain and customer delays. Long-term IP target: mid-teens growth post-FY26.
- **China Impact**: China revenue down 22% YoY (excluding Ansys), with share shift to local competitors. FY26 guide assumes stable environment, but long-term EDA growth hinges on joint solutions and AI workflows.
- **Ansys Integration**: Ansys revenue growth driven by industrial and automotive markets. First joint solutions expected H1 2026, targeting 3DIC and multi-physics simulation.
- **NVIDIA Partnership**: $2B investment to accelerate AI and HPC, with debt repayment enhancing FY26 EPS by ~$0.10.
- **Cash Flow & Synergies**: FY26 non-GAAP margin target: 40.5%, up 320bps YoY, driven by Ansys and cost cuts. Restructuring largely complete by mid-2026.

Synopsys, Inc. (SNPS) Q4 2025 Earnings Call Transcript

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