SYNOPSYS INC Earnings Per Share Disclosure
| Year Ended October 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||
| Numerator: | |||||||||||||||||
| Net income from continuing operations attributed to Synopsys | $ | 1,336,120 | $ | 1,441,710 | $ | 1,227,045 | |||||||||||
| Net income (loss) from discontinued operations attributed to Synopsys | (3,900) | 821,670 | 2,843 | ||||||||||||||
| Net income attributed to Synopsys | $ | 1,332,220 | $ | 2,263,380 | $ | 1,229,888 | |||||||||||
| Denominator: | |||||||||||||||||
| Weighted average common shares for basic net income per share | 163,947 | 153,138 | 152,146 | ||||||||||||||
| Dilutive effect of common share equivalents from equity-based compensation | 1,709 | 2,806 | 3,049 | ||||||||||||||
| Weighted average common shares for diluted net income per share | 165,656 | 155,944 | 155,195 | ||||||||||||||
| Net income (loss) per share attributed to Synopsys - basic: | |||||||||||||||||
| Continuing operations | $ | 8.15 | $ | 9.41 | $ | 8.06 | |||||||||||
| Discontinued operations | (0.02) | 5.37 | 0.02 | ||||||||||||||
| Basic net income per share | $ | 8.13 | $ | 14.78 | $ | 8.08 | |||||||||||
| Net income (loss) per share attributed to Synopsys - diluted: | |||||||||||||||||
| Continuing operations | $ | 8.07 | $ | 9.25 | $ | 7.91 | |||||||||||
| Discontinued operations | (0.03) | 5.26 | 0.01 | ||||||||||||||
| Diluted net income per share | $ | 8.04 | $ | 14.51 | $ | 7.92 | |||||||||||
| Anti-dilutive employee stock-based awards excluded | 427 | 229 | 475 | ||||||||||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.