v3.26.1
Segment Disclosure
 6 Months Ended
Apr. 30, 2026
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 our chief operating decision maker (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, Ansys products, 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 logic libraries, embedded memories, wired interface IP, memory interface IP, security IP, and embedded processors.
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.
Information by reportable segment is as follows:
 Three Months Ended 
 April 30,		Six Months Ended 
 April 30,
 2026202520262025
 (in thousands)
Total Segments:
Revenue$2,275,985 $1,604,266 $4,684,783 $3,059,581 
Cost of revenue and operating expenses
1,376,269 994,996 2,771,415 1,919,094 
Adjusted operating income899,716 609,270 1,913,368 1,140,487 
Adjusted operating margin40 %38 %41 %37 %
Design Automation:
Revenue$1,821,776 $1,122,235 $3,823,594 $2,142,451 
Cost of revenue and operating expenses
1,032,718 663,479 2,087,004 1,279,025 
Adjusted operating income789,058 458,756 1,736,590 863,426 
Adjusted operating margin43 %41 %45 %40 %
Design IP:
Revenue$454,209 $482,031 $861,189 $917,130 
Cost of revenue and operating expenses
343,551 331,517 684,411 640,069 
Adjusted operating income110,658 150,514 176,778 277,061 
Adjusted operating margin24 %31 %21 %30 %
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, restructuring charges, 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:
 Three Months Ended 
 April 30,		Six Months Ended 
 April 30,
 2026202520262025
 (in thousands)
Total segment adjusted operating income$899,716 $609,270 $1,913,368 $1,140,487 
Reconciling items:
Amortization of acquired intangible assets
(403,631)(11,656)(807,866)(24,252)
Stock-based compensation expense(222,303)(201,723)(481,027)(388,186)
Restructuring charges(115,894)— (234,176)— 
Acquisition/divestiture related items
(23,649)(39,571)(39,241)(100,252)
Deferred compensation plan(13,813)20,106 (27,586)468 
Total operating income$120,426 $376,426 $323,472 $628,265 
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 
 April 30,		Six Months Ended 
 April 30,
 2026202520262025
 (in thousands)
Revenue:
United States$974,422 $649,299 $2,070,507 $1,260,009 
Europe378,077 194,843 845,110 348,514 
China240,402 157,506 451,485 331,454 
Korea265,418 257,595 512,034 507,980 
Other417,666 345,023 805,647 611,624 
Consolidated$2,275,985 $1,604,266 $4,684,783 $3,059,581 
Geographic revenue data for multi-regional, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and to our allocation methodology.