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Synopsys: How AI-Driven Design Complexity Is Quietly Reshaping Its Revenue Engine!

Synopsys reported results that reflected a year of structural change, with the integration of Ansys reshaping both the scale and scope of the business. Revenue reached $7.05 billion for the fiscal year, supported by $757 million of contribution from Ansys, while backlog expanded to $11.4 billion, indicating solid multi-year demand visibility across design automation, simulation, and related software. Fourth-quarter revenue and non-GAAP earnings per share came in within or slightly ahead of guidance, supported by disciplined expense control and strong execution in hardware-assisted verification and advanced-node design tools. Free cash flow exceeded expectations due to favorable collection timing, although leverage remains elevated following the acquisition, with total debt ending the year at $13.5 billion. From an investment perspective, the combination with Ansys represents a meaningful strategic shift. Management emphasized the opportunity to move beyond traditional electronic design automation into broader engineering solutions spanning silicon to systems.