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Synopsys QJan26
- Revenue up +7% q/q and +66% y/y to $2.4B; Ex-Ansys down -4% q/q and up +5% y/y; Ansys up 17% q/q- QApr guidance implies -7% q/q decline- IP down for 3 straight quarters while EDA down for 2 straight quarters- IP OPM down to 16.2% in vs 29.1% a year ago quarter- FY26 to be a transitional year for IP business but pick up likely in late FY26Source: Sravan Kundojjala
Synopsys QOct25
- Revenue up 30% q/q and 38% y/y to $2.25B, driven Ansys contribution; Ex-Ansys revenue down by 4% q/q; QJan revenue will grow 6% q/q- Both EDA and P down q/q and IP down sharply y/y; FY26 will be transitional year for IP but SNPS insists mid-teens growth long-term- IP margins down by almost 23 percentage points y/y in QOctSource: Sravan Kundojjala
Trade Desk ( $Trade Desk(TTD.US) ) is set to join the S&P 500, replacing ANSYS before markets open on July 18.
Source: StockMarket.News
Since the announcement of merger with Synopsys in Jan 2024, Ansys revenue grew 12% in CY24 to $2.5B at 89% GM and 28.2% OPM. 50% of revenue from software licenses. The deal increases their TAM by 1.5x to $28B by CY28 (11% CAGR from CY23 base). Ansys has 30% exposure to semi/high-tech while SNPS has 85%. All about system simulation. The companies shredded around $200M business to appease regulators. Cadence, on the other hand, draws 12% of its revenue from system simulation.
Source: Sravan Kundojjala
China has delayed approval of the US$35 billion Synopsys purchase of Ansys, the FT reports, citing unnamed sources, adding approval had been expected by end-June, and most major governments have signed off on the deal. US tariffs and export controls have derailed China’s approval process. $Synopsys(SNPS.US) $ANSYS(ANSS.US) #semiconductors
Source: Dan Nystedt
While Synopsys noted in its recent earnings call that it will be able to close the Ansys merger in 1H25, the merger has huge termination fee. $1.5B by Synopsys or $950M by Ansys. So far the UK CMA, EC, Japan and Korea approved. China, Taiwan FTC and US FTC pending. Tariff war adds uncertainty, obviously.
Source: Sravan Kundojjala
