Synopsys, Inc. stock research
FY2025 Q2
Synopsys (SNPS) Gross Margin — Quarter Ended Apr 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but improved relative to the same quarter a year ago.
Gross margin takeaway
Quarter ended Apr 30, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but improved relative to the same quarter a year ago.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue compared to the same quarter last year, supporting margin improvement.
- Compared to the immediately preceding quarter, gross margin was lower, as cost of revenue grew faster relative to revenue. Compared to the same quarter one year earlier, gross margin was higher, with revenue growth outpacing cost of revenue growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.2%
Gross profit
$1.3B
Revenue
$1.6B
Cost of revenue
$318.3M
Quarter-over-quarter change
-1.3 pts
Year-over-year change
+0.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jul 31, 2024 | $1.5B | $1.2B | $290.7M | 80.9% |
| Oct 31, 2024 | $1.6B | $1.3B | $375.0M | 77.1% |
| Jan 31, 2025 | $1.5B | $1.2B | $270.0M | 81.4% |
| Apr 30, 2025 | $1.6B | $1.3B | $318.3M | 80.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2025
-1.3 pts
Year-over-year change
Apr 30, 2024
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue compared to the same quarter last year, supporting margin improvement.
Compared to the immediately preceding quarter, gross margin was lower, as cost of revenue grew faster relative to revenue. Compared to the same quarter one year earlier, gross margin was higher, with revenue growth outpacing cost of revenue growth.
Monitor the trend in cost of revenue relative to revenue, as its faster growth in the current quarter versus the prior quarter contributed to the margin decline.