Sassine Ghazi 2026 Letter to Stakeholders: Re-engineering Engineering in the Age of AI

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Dear Synopsys Shareholders, Customers, Partners, and Colleagues,

2025 was a year that redefined Synopsys and our role in product engineering. The completion of the acquisition of simulation and analysis leader Ansys in July transformed Synopsys overnight from the leader in EDA to the leader in engineering solutions - from silicon to systems.

The combination of these two pioneering organizations comes at a pivotal time for the market. Artificial intelligence will revolutionize every industry - demanding more compute performance while compounding engineering complexity. Building complex, AI-powered systems with the right performance, scale, and efficiency requires new tools with multidomain integration and new workflows to enable tight software and hardware co-design. Engineering needs to be re-engineered. That's why I am so excited about the combination of Synopsys and Ansys.

The addition of Ansys also broadens Synopsys' reach across industries. Synopsys had already made significant inroads beyond the semiconductor sector before the acquisition closed. Now with Ansys - as well as its expansive channel partner network - we are deepening our presence into other verticals including automotive, energy, aerospace, robotics, industrial, and healthcare.

As the nature of products continues to transform before our eyes, the ways of doing business are also changing. As a global company, Synopsys has felt the impact of geopolitics in our selling motion. Export restrictions, for example, added a measure of uncertainty to our business in 2025. That, in addition to the evolving IP landscape, led to some execution challenges for Synopsys during the year. While the immediate impact was pronounced, our long-term strategy is sound and is already producing results for Synopsys, our customers and our shareholders.

Here are a few examples from this past year:

• We partnered with the world's leading foundries to usher in the angstrom era of semiconductor manufacturing.
• We expanded our leading hardware-assisted verification portfolio to advance the pace and impact of next-generation AI chip design.
• We demonstrated the value of our GenAI capabilities to accelerate design workflows from days to hours, and hours to minutes, while introducing the foundation for the next frontier in AI-AgentEngineer^TM technology for chip design.
• We integrated NVIDIA Omniverse technology into simulation and analysis products to accelerate physical AI development and create enhanced digital twins.

As we turn our attention to the new year before us, Synopsys is continuing our ongoing transformation to better serve you, our stakeholders. With a proven strategy and strong track record of success, we are moving forward with a focus on technology leadership, operational excellence, and financial discipline.

We will further our technology leadership in early 2026 with our expected delivery of the first set of integrated capabilities that fuse multiphysics from Ansys across Synopsys' full EDA stack, including for multi-die advanced packaging. This first-of-its-kind offering will help companies rethink how they design and develop their products.

Our recently announced partnership with NVIDIA is just the first example of how the combination of Synopsys and Ansys will change the market in 2026 and beyond. With NVIDIA, we are dramatically advancing physical AI development through the power of accelerated computing and digital twins. Jointly, Synopsys and NVIDIA are taming the complexity of co-designing and optimizing across the engineering disciplines of advanced electronics, electrical, mechanical, and the other areas of physics that govern our world so organizations can deliver AI-powered intelligent machines.

We will discuss our new and growing partnerships, our integrated Synopsys-Ansys solution, and much more at our highly anticipated Synopsys Converge event in March 2026, in Silicon Valley. At Synopsys Converge, we will bring together our customers in semiconductors and simulation and analysis, as well as our ecosystem partners, the start-up community, and academia to explore industry trends and discuss how AI is revolutionizing engineering and changing the way the products are designed and developed.

It's exciting to note that 2026 also marks a truly special moment for Synopsys - our 40th anniversary! This is not just another milestone; it's a celebration of four decades of innovation, bold vision, and relentless pursuit of excellence. With Ansys now part of our family, with a solid business strategy, and with the support of our entire community, including you, we're not just redefining Synopsys - we're transforming the very way products are imagined and built. As we approach this ruby anniversary, we'll proudly honor our remarkable journey and accomplishments, but our focus is firmly set on the future ahead.

I would like to thank all our investors, partners, customers, and, of course, my colleagues at Synopsys, for your dedication in 2025. As the engineering solutions leader - from silicon to systems - Synopsys is uniquely positioned to deliver unprecedented value to our customers across industries. I promise you that the best is yet to come, and together, we are poised to shape what's next.

Here's to an amazing 2026!

Sassine