During its earnings presentation, Synopsys disclosed that, as a result of restrictive policies, Chinese clients are rapidly embracing domestic alternative solutions. This shift has resulted in a substantial drop in its revenue within the Chinese market. Nevertheless, the company has effectively transformed itself into a system solutions provider by acquiring Ansys and intends to roll out collaborative solutions to tackle the prevailing challenges. Synopsys recently unveiled its fiscal 2025 financial results, revealing a total annual revenue of $7.05 billion, marking a year-on-year increase of roughly 15%, with Ansys contributing $757 million to this figure. Revenue for the fourth quarter hit $2.25 billion, aligning with the company's projections. However, notable regional disparities in performance were evident, with the Chinese market witnessing an 18% year-on-year decline over the entire year. Excluding the revenue contribution from Ansys, the revenue decline in the Chinese market would further expand to 22%.
