SYNOPSYS, INC.

Business Segment Reporting ⁽¹⁾⁽²⁾

(in millions)

Three Months Ended
July 31, 2023

Three Months Ended
July 31, 2022

Nine Months Ended
July 31, 2023

Nine Months Ended
July 31, 2022

Revenue by segment

- Design Automation

$                        1,004.2

$                           816.5

$                     2,821.5

$                     2,438.1

% of Total

67.6 %

65.4 %

66.4 %

64.2 %

- Design IP

$                           350.2

$                           313.0

$                     1,029.1

$                     1,020.4

% of Total

23.5 %

25.1 %

24.3 %

26.9 %

- Software Integrity

$                           132.9

$                           118.3

$                        392.9

$                        338.8

% of Total

8.9 %

9.5 %

9.3 %

8.9 %

Total segment revenue

$                        1,487.3

$                        1,247.8

$                     4,243.5

$                     3,797.3

Adjusted operating income by segment

- Design Automation

$                           415.7

$                           297.2

$                     1,121.8

$                        911.9

- Design IP

$                             86.7

$                             83.6

$                        290.6

$                        373.5

- Software Integrity

$                             22.4

$                             11.3

$                          56.3

$                          36.3

Total adjusted segment operating income

$                           524.8

$                           392.1

$                     1,468.6

$                     1,321.7

Adjusted operating margin by segment

- Design Automation

41.4 %

36.4 %

39.8 %

37.4 %

- Design IP

24.7 %

26.7 %

28.2 %

36.6 %

- Software Integrity

16.9 %

9.5 %

14.3 %

10.7 %

Total adjusted segment operating margin

35.3 %

31.4 %

34.6 %

34.8 %