Synopsys added Ansys, and nine months of numbers now include the whole thing.

Revenue rose 42.4% to $2.5 billion in the nine months ended July 31, while operating cash flow jumped 161.5% to $2.3 billion. Operating income more than doubled. On the surface, this is what an acquisition can look like: more business, more cash, more profit.

Then the margin math gets less tidy. Gross margin fell 5.6 percentage points, even as operating margin rose 4.9 points. The reason is not a collapse in sales. It is the accounting and cost burden that arrived with the Ansys merger, plus a comparison that included Ansys for a full period this year but only part of one last year.

Synopsys spelled out the scale of that change:

"Total cost of revenue and operating expenses was $6.5 billion, an increase of $2.5 billion or 62%, reflecting increases of $1.1 billion in amortization expense related to intangible assets acquired from the Ansys Merger, $768.9 million in employee-related costs, which includes an increase of $794.8 million from Ansys, primarily due to the inclusion of Ansys' results for a full period for the nine months ended July 31, 2026 versus a partial period for the same period in fiscal 2025, partially offset by a decrease in employee-related costs due to headcount reductions as a result of the 2026 Plan (as defined in Restructuring Charges below)."

Synopsys, 10-Q, Aug. 26, 2026

The $1.1 billion amortization is non-cash. It is an accounting allocation for acquired intangible assets, not a check Synopsys wrote during the period. The employee costs are a different matter, and the company says Ansys accounted for most of the increase as the acquisition moved into a full-period comparison.

There was also a one-off in earnings. Synopsys sold its Processor IP business on June 1 and recorded a $425.4 million pretax gain, which lifted other income.

"The increase in other income (expense), net for the nine months ended July 31, 2026 as compared to the same period in fiscal 2025 was primarily due to a pre-tax gain of $425.4 million on the sale of our Processor IP business on June 1, 2026, partially offset by lower interest income as a result of lower average cash balances and the gain recognized from the sale of an office building in the second quarter of fiscal 2025."

Synopsys, 10-Q, Aug. 26, 2026

That gain helps explain why net income rose 125.1%, faster than revenue. Cash also benefited from the transaction: investing cash included $440.0 million of net proceeds from the Processor IP sale, while capex was $156.1 million.

The balance sheet shows the financing trade-off. Synopsys repaid the remaining $3.5 billion of term loans and bought back $300.0 million of stock, but also issued $2.0 billion of common stock to NVIDIA. Diluted shares rose 18.9% year over year. The acquisition reduced debt, but ownership became a larger pie cut into more slices.

The next quarterly report's gross margin, now that Ansys is in both comparison periods, is the cleanest missing receipt. For now, Synopsys has faster growth, stronger cash flow, and a lower gross margin.

Synopsys' latest 10-Q reports higher revenue and cash flow alongside merger-related non-cash amortization and lower gross margin.