Synopsys, Inc. stock research
FY2026 Q2
Synopsys (SNPS) Gross Margin — Quarter Ended Apr 30, 2026
Revenue and gross profit both decreased from the prior quarter, while cost of revenue also declined. Gross margin weakened compared to both the prior quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Apr 30, 2026 · FY2026 Q2
Revenue and gross profit both decreased from the prior quarter, while cost of revenue also declined. Gross margin weakened compared to both the prior quarter and the same quarter one year earlier.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue fell more sharply than cost of revenue, compressing gross margin.
- Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.3%
Gross profit
$1.6B
Revenue
$2.3B
Cost of revenue
$629.9M
Quarter-over-quarter change
-1.2 pts
Year-over-year change
-7.8 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, 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% |
| Apr 30, 2026 | $2.3B | $1.6B | $629.9M | 72.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2026
-1.2 pts
Year-over-year change
Apr 30, 2025
-7.8 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 and cost of revenue: revenue fell more sharply than cost of revenue, compressing gross margin.
Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin was lower.
Monitor the trajectory of cost of revenue relative to revenue, as a slower decline in cost of revenue contributed to margin compression.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Synopsys, Inc. (SNPS) | 72.3% |