NASDAQ Shariah screener · October 2026
Is Synopsys, Inc. (SNPS) Halal?
Synopsys, Inc. · NASDAQ: SNPS · Technology
The short answer
Yes — Synopsys (NASDAQ: SNPS) passes this Shariah stock screen. Its business is electronic design automation software, semiconductor IP and (since the ~$35B Ansys acquisition closed July 17, 2025) engineering simulation software — no prohibited lines. Interest-bearing debt of $10.04B is about 10.7% of its ~$94.0B market cap (191.6M shares at ~$490.54, Oct 2026), under the 33% ceiling; interest income of $48.8M is about 0.68% of nine-month revenue ($7.16B), under the 5% ceiling. Musaffa's Nasdaq-100 list marks SNPS 'Halal'; no SNPS rating was found on Zoya or ShariaPortfolio — honestly reported as absent, not invented.
Gate 1 — Business activity: PASS
Synopsys, Inc. (NASDAQ: SNPS) is a software company serving the semiconductor and systems industries. Its core business is electronic design automation (EDA) — software tools for designing and verifying chips — sold mainly through its Design Automation segment, plus licensable semiconductor intellectual property (IP) building blocks in its Design IP segment. On July 17, 2025 it closed the approximately $35 billion acquisition of Ansys, the multiphysics simulation software leader, adding engineering simulation and analysis products used in aerospace, automotive, electronics and industrial design. Revenue comes from software licensing, maintenance and services. None of the disclosed lines — EDA software, semiconductor IP, simulation software — are prohibited lines (no alcohol, gambling, pork, conventional banking/insurance, tobacco, cannabis, weapons, or adult entertainment). Gate 1 passes. Facts only.
Gate 2 — Debt and cash: PASS
At July 31, 2026 (Q3 FY2026 10-Q) the company's interest-bearing debt was $10.04B — $1.02B short-term debt plus $9.02B long-term debt — taken on to fund the Ansys acquisition and already being paid down (long-term debt fell from $13.46B at October 31, 2025). Against a market capitalization of about $94.0B — 191,636,646 shares outstanding per the 10-Q cover at ~$490.54, the early-October 2026 quote — debt ÷ market cap is about 10.7%, well below the ~33% ceiling. Cash, cash equivalents and short-term investments of $3.61B are about 3.8% of market cap, within the ~33% guideline. Gate 2 passes. Facts only.
Gate 3 — Non-compliant income: PASS
Interest income was $48.8M for the nine months ended July 31, 2026 ($18.5M in Q3 alone), per the Other Income (Expense), net note in the Q3 FY2026 10-Q, against nine-month revenue of $7.16B — about 0.68%, far below the 5% non-compliant income ceiling. Note: the quarter's headline 'other income, net' of $459.7M was driven by a one-time $425.4M gain on divestitures — a business gain, not interest income — so it is excluded from this ratio. Gate 3 passes. Facts only.
Key figures used
- Business: EDA software (Design Automation) + semiconductor IP (Design IP) + Ansys multiphysics simulation (~$35B acquisition closed Jul 17, 2025); software licensing and services only — no prohibited lines
- Interest-bearing debt: $10.04B at Jul 31, 2026 (Ansys-deal debt; long-term debt paid down from $13.46B at Oct 31, 2025) — ≈10.7% of ~$94.0B market cap, under the ~33% ceiling
- Market cap: ~$94.0B (191,636,646 shares outstanding × ~$490.54, early-Oct 2026); cash + short-term investments $3.61B ≈ 3.8% of market cap
- Interest income: $48.8M for nine months ended Jul 31, 2026 (Q3: $18.5M) vs revenue $7.16B — ≈0.68%, far under the 5% non-compliant income ceiling
- Q3 FY2026: revenue $2.48B (+42% YoY), net income $545.8M ($2.84 diluted EPS); Ansys expected to contribute ~$2.98B of FY2026 revenue; Q3 'other income, net' $459.7M includes a one-time $425.4M gain on divestitures (not interest income)
- Third-party coverage: Musaffa's Nasdaq-100 list marks SNPS 'Halal' (1/5 rating, circa Feb 2026); no SNPS rating found on Zoya or ShariaPortfolio — reported as absent, not invented
Frequently asked questions
What does Synopsys do?
Synopsys (NASDAQ: SNPS) is a software company serving the semiconductor and systems industries. Its core business is electronic design automation (EDA) — software tools for designing and verifying chips — sold mainly through its Design Automation segment, plus licensable semiconductor intellectual property (IP) building blocks in its Design IP segment. On July 17, 2025 it closed the approximately $35 billion acquisition of Ansys, the multiphysics simulation software leader, adding engineering simulation and analysis products (used in aerospace, automotive, electronics and industrial design). Revenue is software licensing, maintenance and services — none of the disclosed lines are prohibited.
Why does Synopsys pass this Shariah stock screen?
Synopsys passes all three gates of this screen. Gate 1 (business): its lines are EDA software, semiconductor IP and engineering simulation — no prohibited lines such as alcohol, gambling, pork, conventional banking or insurance, tobacco, cannabis, weapons or adult entertainment. Gate 2 (financial structure): interest-bearing debt of $10.04B is about 10.7% of its ~$94.0B market cap, under the ~33% ceiling. Gate 3 (income): interest income of $48.8M is about 0.68% of nine-month revenue ($7.16B), under the 5% non-compliant income ceiling. This is a factual screen, not a religious ruling — consult a qualified scholar for personal guidance.
What is Synopsys's interest-bearing debt ratio?
At July 31, 2026 (Q3 FY2026 10-Q) Synopsys reported interest-bearing debt of about $10.04B — $1.02B short-term plus $9.02B long-term — taken on to fund the Ansys acquisition and already being paid down (long-term debt fell from $13.46B at October 31, 2025). Against a market capitalization of about $94.0B (191,636,646 shares outstanding per the 10-Q cover × ~$490.54, the early-October 2026 quote), debt ÷ market cap is about 10.7%, well under the ~33% ceiling. Cash, cash equivalents and short-term investments of $3.61B are about 3.8% of market cap, within the ~33% guideline. Gate 2 passes. Facts only.
What is Synopsys's non-compliant income ratio?
For the nine months ended July 31, 2026, Synopsys reported interest income of $48.8M ($18.5M in Q3 alone), per the Other Income (Expense), net note in its Q3 FY2026 10-Q, against nine-month revenue of $7.16B — about 0.68%, far below the 5% non-compliant income ceiling. Note: the quarter's headline 'other income, net' of $459.7M was driven by a one-time $425.4M gain on divestitures — a business gain, not interest income — so it is excluded from this ratio. Gate 3 passes. Facts only.
Do Zoya, Musaffa, or ShariaPortfolio cover Synopsys?
Partially. Musaffa covers Synopsys: its published Nasdaq-100 Shariah list marks SNPS as 'Halal' with a 1/5 rating (published circa February 2026; ratings can change, so check Musaffa's current screener). No individual SNPS rating was found on Zoya or ShariaPortfolio — honestly reported as absent, not invented. This page applies the screen directly from the company's filings: the Q3 FY2026 Form 10-Q (filed August 26, 2026, quarter ended July 31, 2026).
Sources
- Synopsys — Q3 FY2026 Form 10-Q (filed Aug 26, 2026, quarter ended Jul 31, 2026): balance sheet (short-term debt $1,020,247k; long-term debt $9,017,113k; cash $3,606,286k), income statement (revenue $2,476,822k Q3 / $7,161,605k nine months), Other Income note (interest income $18,517k Q3 / $48,836k nine months; $425,406k gain on divestitures)
- Synopsys — Q3 FY2026 Financial Supplement (Aug 26, 2026): outstanding debt $10,037M, cash & short-term investments $3,608M, segment revenue (Design Automation $2,003.0M, Design IP $473.8M in Q3)
- Synopsys — Q3 FY2026 earnings results press release (Aug 26, 2026): revenue $2.48B; interest expense $133.2M; Ansys expected to contribute ~$2.98B of FY2026 revenue
- Finnhub — SNPS quote (current price ~$490.54, NASDAQ, Oct 2026)
- Musaffa Academy — Nasdaq-100 halal stocks list (SNPS listed as Halal, rating 1)
- ASICPro — Synopsys completes $35B Ansys acquisition (closed Jul 17, 2025)
Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.
Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).