v3.26.1
Segment Disclosure
 9 Months Ended
Jul. 31, 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) integrated circuit (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 and security IP.
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 
 July 31,		Nine Months Ended 
 July 31,
2026202520262025
(in thousands)
Total Segments:
Revenue$2,476,822 $1,739,737 $7,161,605 $4,799,318 
Cost of revenue and operating expenses
1,446,402 1,069,959 4,217,817 2,989,053 
Adjusted operating income1,030,420 669,778 2,943,788 1,810,265 
Adjusted operating margin42 %38 %41 %38 %
Design Automation:
Revenue$2,002,971 $1,312,166 $5,826,565 $3,454,617 
Cost of revenue and operating expenses
1,097,943 728,411 3,184,947 2,007,436 
Adjusted operating income905,028 583,755 2,641,618 1,447,181 
Adjusted operating margin45 %44 %45 %42 %
Design IP:
Revenue$473,851 $427,571 $1,335,040 $1,344,701 
Cost of revenue and operating expenses
348,459 341,548 1,032,870 981,617 
Adjusted operating income125,392 86,023 302,170 363,084 
Adjusted operating margin27 %20 %23 %27 %
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, restructuring charges, acquisition/divestiture related items, and changes in the fair value of deferred compensation plan, 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 
 July 31,		Nine Months Ended 
 July 31,
2026202520262025
(in thousands)
Total segment adjusted operating income$1,030,420 $669,778 $2,943,788 $1,810,265 
Reconciling items:
Amortization of acquired intangible assets
(402,426)(74,941)(1,210,292)(99,193)
Stock-based compensation expense(231,604)(267,723)(712,631)(655,909)
Restructuring charges(2,164)— (236,340)— 
Acquisition/divestiture related items
(22,850)(118,428)(62,091)(218,680)
Deferred compensation plan(13,885)(43,417)(41,471)(42,949)
Total operating income$357,491 $165,269 $680,963 $793,534 
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,
2026202520262025
(in thousands)
Revenue:
United States$1,051,925 $816,194 $3,122,432 $2,076,203 
Europe370,921 178,595 1,216,031 527,109 
Korea325,600 202,117 837,634 710,097 
China255,466 247,288 706,951 578,742 
Other472,910 295,543 1,278,557 907,167 
Consolidated$2,476,822 $1,739,737 $7,161,605 $4,799,318 
Geographic revenue data for multi-regional, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and to our allocation methodology.