Monday, 9 November 2026
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Arm vs Synopsys: revenue, margins and valuation

These are asset-light IP/software businesses, but licence, royalty and subscription revenue have different drivers. Arm licenses chip IP and earns licence fees and royalties linked to chip shipments; Synopsys sells chip-design software and IP licences, with subscription and licence revenue. Latest reported quarterly revenue: Arm US$1.4B in Q2 FY2027; Synopsys US$2.5B in Q3 FY2026.

  • ArmARM
  • SynopsysSNPS

You can add 1 more.

Different business models: Arm (IP licensing) · Synopsys (EDA & IP). Margins and multiples are not directly comparable.

ARM · EI EDA & IPNo upcoming date listed
SNPS · EI EDA & IPNo upcoming date listed

Valuation

Market cap

Arm Holdings. Leader.
Synopsys.

Trailing P/Elower is better

Arm Holdings.
Synopsys. Leader.

P/Slower is better

Arm Holdings.
Synopsys. Leader.

Growth

Revenue growth

Arm Holdings.
Synopsys. Leader.

Peer median (20 companies): 46.5% · 18 with data

Profitability

Gross margin

Arm Holdings. Leader.
Synopsys.

Peer median (20 companies): 61.9% · 19 with data

Operating margin

Arm Holdings.
Synopsys. Leader.

Peer median (20 companies): 36.8%

Net margin

Arm Holdings.
Synopsys. Leader.

Peer median (20 companies): 30.7%

Diluted EPS

Arm Holdings.
Synopsys. Leader.

EPS (basic)

Arm Holdings.
Synopsys. Not stored for this period

R&D % of revenue

Arm Holdings.
Synopsys.

Peer median (20 companies): 9.9% · 18 with data

Scale

Revenue

Arm Holdings.
Synopsys. Leader.

Operating income

Arm Holdings.
Synopsys. Leader.

Net income

Arm Holdings.
Synopsys. Leader.

R&D

Arm Holdings.
Synopsys.

Capex

Arm Holdings.
Synopsys.

Free cash flow

Arm Holdings.
Synopsys. Leader.

Net cash / net debt

Arm Holdings. Leader.
Synopsys.

EmployeesPeriods differ

Arm Holdings.
Synopsys.

Shares outstandingPeriods differ

Arm Holdings.
Synopsys.
MetricArmSynopsysPeer median(20 companies)
Valuation
Market capLeader.
Trailing P/Elower is betterLeader.
P/Slower is betterLeader.
Growth
Revenue growthLeader. 46.5%18 with data
Profitability
Gross marginLeader. 61.9%19 with data
Operating marginLeader. 36.8%
Net marginLeader. 30.7%
Diluted EPSLeader.
EPS (basic)—
R&D % of revenue9.9%18 with data
Scale
RevenueLeader.
Operating incomeLeader.
Net incomeLeader.
R&D
Capex
Free cash flowLeader.
Net cash / net debtLeader.
EmployeesPeriods differ
Shares outstandingPeriods differ

Valuation

Trailing P/EMultiple (x), trailing twelve months; period under each companyArm: 271.7x · TTM diluted EPS to Q1 FY2027 · to 30 Jun 2026 (Calculated)Arm271.7xTTM diluted EPS to Q1…Synopsys: 89.2x · TTM ended 31 Jul 2026 · to 31 Jul 2026 (Calculated)Synopsys89.2xTTM ended 31 Jul 2026…Source: company filings, trailing twelve months · Silicon Analytica calculationsSilicon Analyticasiliconanalytica.com/compare/arm-vs-synopsys
  • Calculated Price ÷ last four reported quarters of diluted EPS. Loss-making companies show N/M.
View sources (2)
P/SMultiple (x), trailing twelve months; period under each companyArm: 55.0x · TTM to Q1 FY2027 · to 30 Jun 2026 (Calculated)Arm55.0xTTM to Q1 FY2027 · to…Synopsys: 10.4x · TTM revenue through 31 Jul 2026 · to 31 Jul 2026 (Calculated)Synopsys10.4xTTM revenue through 3…Source: company filings, trailing twelve months · Silicon Analytica calculationsSilicon Analyticasiliconanalytica.com/compare/arm-vs-synopsys
  • Calculated Market cap ÷ trailing-twelve-month revenue.
View sources (2)

Growth

Revenue growthPercent, latest quarter; period under each companyArm: 27.1% · Q2 FY2027 · to 30 Sep 2026 (Calculated)Arm27.1%Q2 FY2027 · to 30 Sep…Synopsys: 42.4% · Q3 FY2026 · to 31 Jul 2026 (Calculated)Synopsys42.4%Q3 FY2026 · to 31 Jul…Peer median (20 companies) 46.5%Source: company filings, latest quarter · Silicon Analytica calculationsSilicon Analyticasiliconanalytica.com/compare/arm-vs-synopsys
  • Calculated Change versus the same period a year earlier.
View sources (2)

Profitability

Gross marginPercent, latest quarter; period under each companyArm: 97.1% · Q2 FY2027 · to 30 Sep 2026 (Calculated)Arm97.1%Q2 FY2027 · to 30 Sep…Synopsys: 72.6% · Q3 FY2026 · to 31 Jul 2026 (Calculated)Synopsys72.6%Q3 FY2026 · to 31 Jul…Peer median (20 companies) 61.9%Source: company filings, latest quarter · Silicon Analytica calculationsSilicon Analyticasiliconanalytica.com/compare/arm-vs-synopsys
  • Calculated Gross profit ÷ revenue, GAAP/IFRS unless labelled otherwise.
View sources (2)
Operating marginPercent, latest quarter; period under each companyArm: 13.9% · Q2 FY2027 · to 30 Sep 2026 (Calculated)Arm13.9%Q2 FY2027 · to 30 Sep…Synopsys: 14.4% · Q3 FY2026 · to 31 Jul 2026 (Calculated)Synopsys14.4%Q3 FY2026 · to 31 Jul…Peer median (20 companies) 36.8%Source: company filings, latest quarter · Silicon Analytica calculationsSilicon Analyticasiliconanalytica.com/compare/arm-vs-synopsys
  • Calculated Operating income ÷ revenue, GAAP/IFRS unless labelled otherwise.
View sources (2)
Net marginPercent, latest quarter; period under each companyArm: 9.0% · Q2 FY2027 · to 30 Sep 2026 (Calculated)Arm9.0%Q2 FY2027 · to 30 Sep…Synopsys: 22.0% · Q3 FY2026 · to 31 Jul 2026 (Calculated)Synopsys22.0%Q3 FY2026 · to 31 Jul…Peer median (20 companies) 30.7%Source: company filings, latest quarter · Silicon Analytica calculationsSilicon Analyticasiliconanalytica.com/compare/arm-vs-synopsys
  • Calculated Net income ÷ revenue for the same period (Silicon Analytica calculation unless the company states it).
View sources (2)
R&D % of revenuePercent, latest quarter; period under each companyArm: 59.4% · Q2 FY2027 · to 30 Sep 2026 (Calculated)Arm59.4%Q2 FY2027 · to 30 Sep…Synopsys: 29.1% · Q3 FY2026 · to 31 Jul 2026 (Calculated)Synopsys29.1%Q3 FY2026 · to 31 Jul…Peer median (20 companies) 9.9%Source: company filings, latest quarter · Silicon Analytica calculationsSilicon Analyticasiliconanalytica.com/compare/arm-vs-synopsys
  • Calculated R&D ÷ revenue for the same period.
View sources (2)

Scale

RevenueUS$, latest quarter; period under each companyArm: US$1.4B · Q2 FY2027 · to 30 Sep 2026 (Reported)ArmUS$1.4BQ2 FY2027 · to 30 Sep…Synopsys: US$2.5B · Q3 FY2026 · to 31 Jul 2026 (Reported)SynopsysUS$2.5BQ3 FY2026 · to 31 Jul…Source: company filings, latest quarterSilicon Analyticasiliconanalytica.com/compare/arm-vs-synopsys
View sources (2)

Revenue mix

Arm

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Synopsys

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Each company's own classification and latest fiscal year with a stored split; categories differ between companies and are never added together.

Period ends — Arm: 30 Sep 2026 · Synopsys: 31 Jul 2026. Valuation multiples remain trailing.

Copper underline: the leader among values for comparable periods. Higher is better, except P/E and P/S, where the lower positive multiple leads. R&D, capex, employees and shares have no leader. Peer median uses the latest quarter of the 20 covered companies and is shown for ratios only. “—” means neither the figure nor its inputs are stored; hover or tap for the missing input. Values marked Calculated are Silicon Analytica calculations from stored reported figures.

How to read this comparison

Business models. These are asset-light IP/software businesses, but licence, royalty and subscription revenue have different drivers. Arm licenses chip IP and earns licence fees and royalties linked to chip shipments; Synopsys sells chip-design software and IP licences, with subscription and licence revenue.

Cyclicality. IP and EDA revenue is sensitive to chip-design activity and, for royalties, chip shipments.

Accounting and periods. Latest reported quarter ends — Arm: 2026-09-30 · Synopsys: 2026-07-31. Each value retains its period, status and source; adjusted measures remain separate. Same-mode periods within 100 days are compared; valuation multiples remain trailing.

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Arm Holdings profile · Synopsys profile