SNPS changes
Pick any two versions below to diff them.
- Balance sheet
- Synopsys borrowed to buy Ansys in July 2025. All of its remaining debt is unsecured fixed-rate notes that the parent company issued. At July 31, 2026, debt was $10.0 billion: six series of senior notes at 4.55% to 5.70%, due from April 2027 to 2055. $1.0 billion is due on April 1, 2027. Synopsys has already repaid all $4.3 billion of floating-rate term loans from the deal. $2.0 billion that Nvidia paid for new shares helped this. Cash and short-term investments were $3.6 billion, and about $1.7 billion of this was outside the US. Thus net debt was about $6.4 billion. In the nine months to July 31, 2026, operating income plus amortization and depreciation was $2.0 billion, and interest expense was $429 million. When Synopsys issued the notes in March 2025, Moody's rated them Baa1 and S&P rated them BBB, both stable. An $850 million revolving credit line to December 2027 was undrawn. Goodwill and intangible assets from the deal are larger than total equity of $31.2 billion. Thus the value of the balance sheet depends on Ansys earning its price. Synopsys guides fiscal 2027 free cash flow at about $3.1 billion. It plans to buy back about $1 billion of stock and return up to 50% of free cash flow. Thus debt will now fall more slowly than in the last year. As of 2026-07-31.
- Checkpoints
- Nov 26, 2026 (estimate): Fiscal Q4 2026 earnings: full-year result and Ansys integration. Pending. Watch: Revenue inside the raised $9.69 to $9.74 billion range and fiscal 2027 guidance kept near $11.15 billion pass; a miss or a lower 2027 outlook fails. Feb 2027 (estimate): Fiscal Q1 2027 earnings: margin progress and buyback pace. Pending. Watch: Non-GAAP operating margin moving toward the 44% fiscal 2027 target and buybacks on plan pass; margin pressure from Ansys costs fails. Apr 1, 2027: First $1.0 billion of Ansys deal notes fall due. Pending. Watch: Repayment from cash without new borrowing passes; refinancing that keeps gross debt at $10 billion fails the debt reduction test.