SYNOPSYS INC (SNPS) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that SYNOPSYS INC surfaced in its latest filing.

• U.S. and other governments enacted tariffs beginning in 2025 and subsequent tariff and trade policy revisions.2025
• Received administrative subpoenas from the BIS requesting production of information and documentation relating to transactions with certain Chinese entities.
• United States government has implemented controls on advanced computing ICs, computer commodities that contain such ICs, and certain semiconductor manufacturing items, as well as controls on transactions involving items for supercomputer and semiconductor manufacturing end-users.
• Controls expand the scope of foreign-produced items subject to license requirements for certain entities on the Entity List maintained by the BIS.
• A major foundry customer negatively impacted our financial results for fiscal year 2025.2025
• The Ansys Merger was completed in July 2025.July 2025
• Incurrence of substantial debt in connection with the Ansys Merger, including Senior Notes, with approximately $10.0 billion of total debt outstanding as of April 30, 2026.April 30, 2026
• The indenture governing the Senior Notes restricts mergers, consolidations, acquisitions, granting liens, certain sale and leaseback transactions, and incurring debt at subsidiaries.
• In 2025 and 2026, shareholder class action complaints were filed against Synopsys and certain current directors and officers alleging material misstatements or omissions related to the performance of the Design IP segment in violation of federal securities laws.2025-2026
• Pending divestiture of our Processor IP business.
• For details on ongoing non-U.S. income tax examinations, see Note 19. Income Taxes under 'Non-U.S. Examinations' in this Quarterly Report.
• Reallocating resources in the IP business to higher growth opportunities due to underperformance of the Design IP segment.