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How Synopsys (SNPS) makes money

Synopsys (SNPS) made $2.5B of revenue in the third quarter fiscal 2026 (Q3 FY26), +42% from a year earlier. Products brought in $1.7B (67%); Maintenance and service brought in $809M (33%). Of every dollar of revenue, 73¢ was left as gross profit, 14¢ was left as operating profit, 22¢ was left as net earnings.

Drawing the Sankey…

Synopsys revenue by segment, Q3 FY26Synopsys revenue by segment, Q3 FY26Products$1.7BMaintenance and service$809M
Synopsys: revenue by line, Q4 FY24 to Q3 FY26Synopsys: revenue by line, Q4 FY24 to Q3 FY26ProductsMaintenance and servi…Products: $1.7B latest$1.7BMaintenance and service: $809M latest$809MQ4 FY24Q2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26
Products went from 83% of revenue in Q4 FY24 to 67% in Q3 FY26, the largest shift in the mix.
Synopsys revenue by quarterSynopsys revenue by quarter$1.6BQ4 FY24$1.6BQ2 FY25$1.7BQ3 FY25$2.3BQ4 FY25$2.4BQ1 FY26$2.3BQ2 FY26$2.5BQ3 FY26
Synopsys: where each dollar of revenue goesSynopsys: where each dollar of revenue goesCost of revenue27¢Gross profit73¢Operating expenses58¢Operating profit14¢Income tax6¢Net earnings22¢Operating cash flow33¢Free cash flow30¢

Revenue by segment, Q3 FY26

SegmentRevenueShareQ/QY/Y
Products$1.7B67.3%+12%+18%
  ↳ Time-based products$1.0B40.5%+6%+12%
  ↳ Upfront products$665M26.9%+22%+29%
Maintenance and service$809M32.7%+3%+144%

Where each dollar of revenue goes

LineQ3 FY26% of revenue
Revenue$2.5B100.0%
Cost of revenue$679M27.4%
Gross profit$1.8B72.6%
Operating expenses$1.4B58.1%
Operating profit$357M14.4%
Income tax$138M5.6%
Net earnings$546M22.0%
Operating cash flow$813M32.8%
Free cash flow$746M30.1%

Revenue, quarter by quarter

QuarterRevenueY/Y
Q3 FY26$2.5B+42%
Q2 FY26$2.3B+42%
Q1 FY26$2.4B+66%
Q4 FY25$2.3B+38%
Q3 FY25$1.7B+14%
Q2 FY25$1.6B+10%
Q4 FY24$1.6B+12%

From Synopsys' 10-Q filed Aug 26, 2026 (on EDGAR).

Questions

How does Synopsys make money?

Synopsys (SNPS) made $2.5B of revenue in the third quarter fiscal 2026 (Q3 FY26), +42% from a year earlier. Products brought in $1.7B (67%); Maintenance and service brought in $809M (33%). Of every dollar of revenue, 73¢ was left as gross profit, 14¢ was left as operating profit, 22¢ was left as net earnings.

What is Synopsys' biggest business?

Products: $1.7B in the third quarter fiscal 2026, 67% of revenue, +18% from a year earlier.

What is Synopsys' profit margin?

Net earnings were $546M, 22.0% of revenue, in the third quarter fiscal 2026; the operating margin was 14.4%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.