Synopsys (SNPS): what its 10-K says it depends on

Customers

Large customers (customer concentration)

concentrated innamed as a risk

Further, we depend on a relatively small number of large customers for a large portion of our revenues.Risk factors (Item 1A)

Also named by IOT, OKTA

Semiconductor and electronics industries

earns fromnamed as a risk

The growth of the EDA industry as a whole and our sales in our Design Automation and Design IP segments are primarily dependent on the semiconductor and electronics industries.Risk factors (Item 1A)

Major foundry customer

earns fromnamed as a risk

For example, challenges with a major foundry customer negatively impacted our financial results for fiscal year 2025.Risk factors (Item 1A)

Artificial intelligence and high-performance computing sectors

earns fromnamed as a risk

For example, while we have seen continued strength in the artificial intelligence and high-performance computing sectors, certain industries such as industrial, automotive and consumer electronics have recovered more slowly from recent macroeconomic uncertainty, which have affected our business and operating results.Risk factors (Item 1A)

Suppliers

Sole supplier for hardware products

depends onnamed as a risk

•Delays in production and delivery of our hardware products, including due to, among other things, difficulty scaling production capacity and yield to meet customer demand, or a dependence on a sole supplier for certain hardware products, which may reduce our control over product availability, quality and pricing; Risk factors (Item 1A)

Partners and platforms

Semiconductor foundries

depends onnamed as a risk

If we fail to optimize our EDA and IP solutions for use with major foundries’ manufacturing processes or major IP providers’ products, or if our access to such foundry processes or third-party IP products is hampered, then our solutions may become less desirable to our customers, resulting in an adverse effect on our business and financial condition.Risk factors (Item 1A)

Also named by CDNS

Ansys independent channel partners

depends onnamed as a risk

Difficulties in ongoing relationships with channel partners, such as failure to meet performance criteria, differences in handling customer relationships or the loss of a major channel partner, could adversely affect the performance of our Ansys business.Risk factors (Item 1A)

Microsoft Azure

depends on

Our Synopsys Cloud offering provides customers additional options for accessing our EDA products in their own cloud environments and in the industry’s first EDA Software-as-a-Service solution developed in partnership with Microsoft Azure.Business (Item 1)

Also named by AIOT, AKAM, BLK, DDOG, DOCN, DOCU, EXTR, FFIV and 14 more

Other companies

Ansys, Inc.

named as a risk

Furthermore, the anticipated benefits we expect from the Ansys Merger are based on projections and assumptions about our combined business with Ansys, which may not materialize as expected or which may prove to be inaccurate.Risk factors (Item 1A)

Shareholder class action lawsuits (N.D. California)

named as a risk

Both complaints allege that certain material misstatements or omissions related to the performance of our Design IP segment were made in violation of federal securities laws.Risk factors (Item 1A)

Keysight Technologies, Inc.

Synopsys' Optical Solutions Group was sold to Keysight Technologies, Inc. in October 2025.Business (Item 1)

Competitors

Chinese domestic EDA competitors

competes withnamed as a risk

For example, China has implemented national policies favoring Chinese companies and has formed government-backed investment funds as it seeks to build independent EDA capabilities and compete internationally in the semiconductor industry.Risk factors (Item 1A)

Places

Outside the United States (international revenue)

earns from · roughly half of our revenuenamed as a risk

We derive roughly half of our revenue from sales outside the United States, and we expect our orders and revenue to continue to depend on sales to customers outside the U.S.Risk factors (Item 1A)

Also named by APD, ARW, BALL, CCK, COO, GGG, GIS, HPE and 10 more

China

operates innamed as a risk

For example and as described above, the ongoing geopolitical and economic uncertainty between the U.S. and China, the unknown impact of current and future U.S. and Chinese trade regulations, including tariffs, and other geopolitical risks with respect to China and Taiwan may cause disruptions in the markets and industries we serve and our supply chain, decreased demand from customers for products using our solutions or other disruptions, which could, directly or indirectly, materially harm our business, operating results and financial condition.Risk factors (Item 1A)

Also named by A, AA, AAOI, AAP, AAPL, AB, ADI, AEHR and 261 more

Taiwan

operates innamed as a risk

For example and as described above, the ongoing geopolitical and economic uncertainty between the U.S. and China, the unknown impact of current and future U.S. and Chinese trade regulations, including tariffs, and other geopolitical risks with respect to China and Taiwan may cause disruptions in the markets and industries we serve and our supply chain, decreased demand from customers for products using our solutions or other disruptions, which could, directly or indirectly, materially harm our business, operating results and financial condition.Risk factors (Item 1A)

Also named by AAOI, AAPL, AB, ADI, AEHR, ALAB, AMAT, AMD and 50 more

California

concentrated innamed as a risk

Moreover, our corporate headquarters, a significant portion of our research and development activities, our data centers, and certain other critical business operations are located in California, near major earthquake faults and sites of recent wildfires, which may become more frequent, along with other extreme weather events, due to climate change.Risk factors (Item 1A)

Also named by A, AAON, AFRM, ALK, ALLY, AN, ARE, AVAV and 88 more

Hazards

California wildfires

concentrated innamed as a risk

Moreover, our corporate headquarters, a significant portion of our research and development activities, our data centers, and certain other critical business operations are located in California, near major earthquake faults and sites of recent wildfires, which may become more frequent, along with other extreme weather events, due to climate change.Risk factors (Item 1A)

Also named by AWK, C, CEG, IONS, RHI, SRE, TRV

California earthquakes

concentrated innamed as a risk

Moreover, our corporate headquarters, a significant portion of our research and development activities, our data centers, and certain other critical business operations are located in California, near major earthquake faults and sites of recent wildfires, which may become more frequent, along with other extreme weather events, due to climate change.Risk factors (Item 1A)

Also named by AMD, DXCM, ELS, KLAC, ONTO

Commodities and inputs

SOFR

exposed to its price · $3.5 billion of outstanding term loansnamed as a risk

The carrying value of the term loans approximates their fair value as the underlying interest rates are tied to SOFR or ABR.Market risk (Item 7A)

Also named by AAP, AIOT, APG, APH, ARES, AXON, BGC, BR and 82 more

Euro

exposed to its price · approximately $3.4 millionnamed as a risk

For example, if the Euro were to depreciate by 10% compared to the U.S. dollar prior to the settlement of the Euro forward contracts listed in the table below as of October 31, 2025, the fair value of the contracts would decrease by approximately $3.4 million, and we would be required to pay approximately $3.4 million to the counterparty upon contract maturity.Market risk (Item 7A)

Also named by ABBV, ABNB, ABT, ADBE, ADI, AME, AMG, AMGN and 186 more

Indian rupee

exposed to its price · $ 637,068named as a risk

The foreign currency contracts are carried at fair value and denominated in various currencies as listed in the tables below.Market risk (Item 7A)

Also named by ACN, ADBE, AJG, AVY, BEN, CIEN, CTSH, EEFT and 11 more

Japanese yen

exposed to its pricenamed as a risk

Likewise, a strengthening of the U.S. dollar relative to other currencies, including the renminbi or Yen, reduces revenue of our foreign subsidiaries upon translation and consolidation.Market risk (Item 7A)

Also named by ABBV, ABT, ACN, ADBE, ALK, AMAT, AMKR, BMY and 24 more

Chinese renminbi

exposed to its pricenamed as a risk

Likewise, a strengthening of the U.S. dollar relative to other currencies, including the renminbi or Yen, reduces revenue of our foreign subsidiaries upon translation and consolidation.Market risk (Item 7A)

Also named by AAOI, ALB, AOS, APD, BBW, BWA, CGNX, COHR and 15 more

Regulators

U.S. Bureau of Industry and Security (BIS)

subject tonamed as a risk

For example, we have received administrative subpoenas from BIS requesting production of information and documentation relating to transactions with certain Chinese entities.Risk factors (Item 1A)

Also named by AAOI, AMD, APH, CRWV, EXTR, GLW, GTLB, LITE and 5 more

Laws and programs

Term loan (Ansys Merger financing)

$4.3 billion term loannamed as a risk

We have incurred a substantial amount of debt in connection with the Ansys Merger, including the Senior Notes and the $4.3 billion term loan.Risk factors (Item 1A)

Also named by ASO, DVN, VNOM

U.S. Export Administration Regulations

subject tonamed as a risk

Any failure to comply with the U.S. Export Regulations or other U.S. or non-U.S. export, sanctions, or similar trade requirements (collectively, the Trade Restrictions) could subject us to substantial civil and criminal penalties, including fines and the possible loss of the ability to engage in exporting and other international transactions.Risk factors (Item 1A)

Also named by ADI, ALAB, AMD, APP, ARW, AVGO, CARR, CDRE and 40 more

EU Corporate Sustainability Reporting Directive

subject tonamed as a risk

For example, developing and acting on evolving sustainability reporting standards, including California's climate-related disclosure laws and the European Union's Corporate Sustainability Reporting Directive, as well as customer requirements, may be costly, difficult and time consuming.Risk factors (Item 1A)

Also named by AMAT, AVY, CBRE, FFIV, GNRC, HLT, IEX, INGR and 19 more

BIS Entity List

subject tonamed as a risk

These controls expand the scope of foreign-produced items subject to license requirements for certain entities on the Entity List maintained by the BIS.Risk factors (Item 1A)

Also named by CDNS, MXL

U.S. tariffs enacted in 2025

subject tonamed as a risk

The current macroeconomic environment demonstrates the effects of, among other things, changes in U.S. and global trade policy, including the tariffs enacted in 2025 by the U.S. and other governments, sustained global inflationary pressures and elevated interest rates, potential economic slowdowns or recessions, supply chain disruptions, geopolitical pressures and fluctuations in foreign exchange rates.Risk factors (Item 1A)