Synopsys, Inc.

The forensic screens in this data point in different directions, so readers should weigh them against the reported figures rather than treat any single one as a verdict. The Beneish M-Score is -1.889, below the -1.78 threshold, so the label places it outside the elevated manipulation-risk zone. That is a screening result, not proof that the reported numbers are accurate, and it does not explain the large balance-sheet change visible in fiscal 2025. The Altman Z″-Score is 2.63, which the label places in the safe zone at 2.60 or above, indicating a lower near-term distress screen on this data. The Piotroski F-Score is 3 of 8 computable signals. It is a checklist of profitability, leverage and efficiency tests, so the three passing signals should be read alongside the net income decline rather than as a sign of overall health. Operating cash flow of $1.52 billion was 1.14 times net income of $1.33 billion, meaning cash generation exceeded accounting profit in fiscal 2025. Total assets rose to $48.22 billion from $13.07 billion, and the forward-looking statements reference the Ansys merger and its expected impact. That merger is the likely driver of the jump in assets and debt, though the data does not isolate its effect. Readers may want to look at the Ansys acquisition accounting and the debt terms in the 10-K notes to see how much of the change is acquired rather than organic.

Catalyst.Management describes continued strength in artificial intelligence and high-performance computing demand, while industrial, automotive and consumer electronics customers have recovered more slowly. Revenue rose to $7.05 billion in fiscal 2025 from $6.13 billion in fiscal 2024, a 15.1% increase, though the prior year was a 53-week period that the filing says affected results. The company is reallocating resources in its Design IP segment toward higher growth opportunities after what it calls underperformance there. Operating cash flow was $1.52 billion in fiscal 2025, up from $1.41 billion. The filing also references the Ansys merger and the Ansys S&A software portfolio, which sits within the Design Automation segment.

Hidden risk.Net income fell to $1.33 billion in fiscal 2025 from $2.26 billion in fiscal 2024, and operating income fell to $914.93 million from $1.36 billion, even as revenue grew. Long-term debt rose to $13.46 billion from $15.6 million a year earlier, and total liabilities rose to $19.9 billion from $4.05 billion. The risk factors also cite customers delaying payments, banks that hold the company's foreign currency and deposit relationships, and export controls that can lengthen transaction cycles. China is described as building government-backed EDA competitors. Readers may want to look at how the debt was structured and how the company intends to service it.