v3.25.2
Segment Disclosure
 9 Months Ended
Jul. 31, 2025
Segment Reporting [Abstract]  
Segment Disclosure Segment Disclosure
Segment reporting is based upon the “management approach,” i.e., how management organizes our operating segments for which separate financial information is (1) available and (2) evaluated regularly by the CODM in deciding how to allocate resources and in assessing performance. Our CODM is our CEO.
We have two reportable segments: (1) Design Automation, which includes our advanced silicon design, verification products and services, S&A solutions, system integration products and services, digital, custom and field programmable gate array (FPGA) IC design software, verification software and hardware products, manufacturing software products and other; and (2) Design IP, which includes our interface, foundation, security, and embedded processor IP, IP subsystems, and IP implementation services.
We completed our assessment of our organizational structure after the Ansys Merger and concluded that Ansys will be included within our Design Automation segment based on how our CODM will evaluate the financial results in making operational decisions, allocating resources and assessing performance.
The financial information provided to and used by the CODM to assist in making operational decisions, allocating resources, and assessing performance includes consolidated financial information as well as revenue, adjusted operating income, and adjusted operating margin information for the Design Automation and Design IP segments, accompanied by disaggregated information relating to revenue by geographic region.
The Software Integrity business constituted its own reportable segment under Topic 280. In accordance with applicable accounting guidance, the results of the Software Integrity business were presented as discontinued operations in the condensed consolidated statements of income and, as such, have been excluded from both continuing operations and segment results for all periods presented. See Note 3. Discontinued Operations of the Notes to Condensed Consolidated Financial Statements.
Information by reportable segment is as follows:
 Three Months Ended 
 July 31,		Nine Months Ended 
 July 31,
 2025202420252024
 (in thousands)
Total Segments:
Revenue$1,739,737 $1,525,749 $4,799,318 $4,491,450 
Adjusted operating income669,778 610,589 1,810,265 1,758,823 
Adjusted operating margin38 %40 %38 %39 %
Design Automation:
Revenue$1,312,166 $1,062,666 $3,454,617 $3,102,938 
Adjusted operating income583,755 440,864 1,447,181 1,218,574 
Adjusted operating margin44 %41 %42 %39 %
Design IP:
Revenue$427,571 $463,083 $1,344,701 $1,388,512 
Adjusted operating income86,023 169,725 363,084 540,249 
Adjusted operating margin20 %37 %27 %39 %
Certain operating expenses are not allocated to the segments and are managed at a consolidated level. The unallocated expenses managed at a consolidated level, including amortization of acquired intangible assets, stock-based compensation, changes in the fair value of deferred compensation plan, and acquisition/divestiture related items, are presented in the table below to provide a reconciliation of the total adjusted operating income from segments to our consolidated operating income from continuing operations:
 Three Months Ended 
 July 31,		Nine Months Ended 
 July 31,
 2025202420252024
 (in thousands)
Total segment adjusted operating income$669,778 $610,589 $1,810,265 $1,758,823 
Reconciling items:
Amortization of acquired intangible assets
(74,941)(18,572)(99,193)(53,317)
Stock-based compensation expense(267,723)(164,354)(655,909)(492,550)
Deferred compensation plan(43,417)(25,780)(42,949)(76,276)
Acquisition/divestiture related items
(118,428)(41,672)(218,680)(91,771)
Total operating income$165,269 $360,211 $793,534 $1,044,909 
The CODM does not use total assets by segment to evaluate segment performance or allocate resources. As a result, total assets by segment are not disclosed.
In allocating revenue to particular geographic areas, the CODM considers where individual “seats” or licenses to our products are located. Revenue is defined as revenue from external customers. Revenue related to operations in the United States and other geographic areas are: 
 Three Months Ended 
 July 31,		Nine Months Ended 
 July 31,
 2025202420252024
 (in thousands)
Revenue:
United States$816,194 $660,479 $2,076,203 $2,015,066 
Europe178,595 144,631 527,109 429,377 
China247,288 266,699 578,742 729,583 
Korea202,117 194,817 710,097 569,538 
Other295,543 259,123 907,167 747,886 
Consolidated$1,739,737 $1,525,749 $4,799,318 $4,491,450 
Geographic revenue data for multi-regional, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and to our allocation methodology.