v3.26.1
Revenue
 6 Months Ended
Apr. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Disaggregated Revenue
The following table shows the percentage of revenue by product groups:
Three Months Ended 
 April 30,		Six Months Ended 
 April 30,
2026202520262025
EDA51.0 %66.9 %48.3 %67.1 %
Design IP20.0 %30.0 %18.4 %30.0 %
Ansys28.7 %— %32.8 %— %
Other0.3 %3.1 %0.5 %2.9 %
Total100.0 %100.0 %100.0 %100.0 %
Contract Balances
The timing of revenue recognition may differ from the timing of invoicing customers, resulting in receivables, contract assets, or contract liabilities (deferred revenue) in our condensed consolidated balance sheets. For specific software, hardware, and IP agreements with payment plans, we record an unbilled receivable associated with revenue recognized upon transfer of control, as it holds an unconditional right to invoice and receive payment in the future for those transferred products or services. Unbilled receivables are presented as accounts receivable, net, in the condensed consolidated balance sheets.
A contract asset is recorded when revenue is recognized before we have the unconditional right to invoice or retain performance risk concerning that performance obligation. These contract assets transition to receivables when the rights become unconditional, generally upon the completion of a milestone. The contract assets listed below are included in prepaid and other current assets and other long-term assets in the condensed consolidated balance sheets.
Contract balances are as follows:
As of
April 30, 2026October 31, 2025
 (in thousands)
Contract assets, net$1,119,650 $1,222,029 
Unbilled receivables$28,620 $45,528 
Deferred revenue$2,809,295 $2,628,518 
Long-term contract assets were $359.7 million and $336.4 million as of April 30, 2026 and October 31, 2025, respectively.
During the three and six months ended April 30, 2026, we recognized revenue of $598.7 million and $1.7 billion, respectively, that was included in the deferred revenue balance as of October 31, 2025, including previously unfulfilled contracts that have expired and are no longer subject to an implied promise to provide future services.
Contracted but unsatisfied or partially unsatisfied performance obligations (backlog) were approximately $11.0 billion as of April 30, 2026, which includes $1.8 billion in non-cancellable Flexible Spending Account (FSA) commitments from customers where actual product selection and quantities of specific products or services are to be determined by customers at a later date. We have elected to exclude future sales-based royalty payments from the remaining performance obligations. Approximately 49% of the backlog as of April 30, 2026, excluding non-cancellable FSA, is expected to be recognized as revenue over the next 12 months, with the remainder to be recognized thereafter. The majority of the remaining backlog is expected to be recognized in the following three years.
During the three and six months ended April 30, 2026, we recognized $27.9 million and $61.7 million, respectively, from performance obligations satisfied from sales-based royalties earned during the periods. During the three and six months ended April 30, 2025, we recognized $25.7 million and $50.7 million, respectively, from performance obligations satisfied from sales-based royalties earned during the periods.
Costs of Obtaining a Contract with Customer
Capitalized commission costs, net of accumulated amortization, as of April 30, 2026 were $119.1 million, of which $31.8 million are included in prepaid and other current assets, and $87.3 million in other long-term assets in our
condensed consolidated balance sheets. Amortization of these assets were $21.9 million and $41.2 million during the three and six months ended April 30, 2026, respectively, and are included in sales and marketing expense in our condensed consolidated statements of income. Amortization of these assets were $12.9 million and $25.4 million during the three and six months ended April 30, 2025, respectively, and are included in sales and marketing expense in our condensed consolidated statements of income.