Synopsys, Inc. stock research
FY2026 Q1
Synopsys (SNPS) Gross Margin — Quarter Ended Jan 31, 2026
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue decreased, resulting in an improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, but cost of revenue increased at a faster rate, leading to a lower gross margin.
Gross margin takeaway
Quarter ended Jan 31, 2026 · FY2026 Q1
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue decreased, resulting in an improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, but cost of revenue increased at a faster rate, leading to a lower gross margin.
- The strongest observable margin driver is the reduction in cost of revenue relative to the prior quarter, which supported the gross margin improvement despite higher revenue.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
73.5%
Gross profit
$1.8B
Revenue
$2.4B
Cost of revenue
$637.4M
Quarter-over-quarter change
+2.6 pts
Year-over-year change
-7.9 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 |
|---|---|---|---|---|
| Apr 30, 2025 | $1.6B | $1.3B | $318.3M | 80.2% |
| Jul 31, 2025 | $1.7B | $1.4B | $380.6M | 78.1% |
| Oct 31, 2025 | $2.3B | $1.6B | $654.7M | 71.0% |
| Jan 31, 2026 | $2.4B | $1.8B | $637.4M | 73.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2025
+2.6 pts
Year-over-year change
Jan 31, 2025
-7.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue relative to the prior quarter, which supported the gross margin improvement despite higher revenue.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Monitor the trend in cost of revenue relative to revenue, as its growth rate compared to the prior year quarter outpaced revenue growth.