The Short Answer
Synopsys stock (SNPS) is doubtful on our current filing-based screen. EDA software and semiconductor IP are generally permissible, and the known financial ratios pass, but prohibited activity is not fully quantified.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-04-30; calculated 2026-07-15.
10,035.962 / 46,889.027
2,484.438 / 46,889.027
3,679.777 / 46,889.027
12.885 / 2,275.985
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 21.41%, liquidity/assets is 5.30%, receivables plus cash/assets is 7.85% and interest income/revenue is 0.57%; activity remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 21.41%, liquidity/assets is 5.30% and receivables plus cash/assets is 7.85%, below the examined MSCI limits; activity remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets and liquidity/assets are below 33%, and interest income/revenue is 0.57%; activity remains incomplete and this is not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored; the filing-based asset screen passes but the overall result remains incomplete.
Business-activity disclosure
Synopsys provides electronic-design-automation software and semiconductor intellectual property. Software and IP licensing are generally permissible, while customer end uses require separate review.
Limitation: The filing does not provide a reproducible prohibited-revenue numerator across customer end uses.
Purification
Quarterly interest income is disclosed at $12.885 million, but no scholar-approved purification percentage is inferred.
Inputs, assumptions and primary sources
- Amounts are USD millions from Synopsys' April 30, 2026 Form 10-Q.
- Debt includes current and long-term debt.
- Quarterly revenue is $2,275.985 million and quarterly interest income is $12.885 million.
- No prohibited-activity revenue numerator is separately disclosed.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
The April 30, 2026 filing reports debt/assets of 21.41%, liquidity/assets of 5.30%, receivables-plus-cash/assets of 7.85% and interest income/revenue of 0.57%. The overall result remains incomplete.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
What Synopsys Does
Synopsys, Inc. (headquartered in Sunnyvale, California) is one of the two dominant EDA companies. Its business spans:
- EDA software: Tools for designing, simulating, and verifying integrated circuits.
- Semiconductor IP: Pre-designed, licensable building blocks that chipmakers integrate into their designs.
- Systems design and multiphysics simulation: Expanded via the Ansys acquisition, covering engineering-simulation software.
Synopsys sells software licenses and IP — a high-margin, permissible technology business.
Current Filing-Based Quantitative Screen
Based on Synopsys' April 30, 2026 Form 10-Q:
- Debt / Assets: 21.41% — below the examined limits ✅
- Liquidity / Assets: 5.30% — below the examined limits ✅
- Receivables + Cash / Assets: 7.85% — below the examined limits ✅
- Interest Income / Revenue: 0.57% — below the examined 5% benchmark ✅
Synopsys has generally screened comfortably, but the Ansys acquisition changed the balance sheet, so re-confirm the debt ratio against the latest filings.
Concerns to Be Aware Of
1. Acquisition Debt (Ansys)
Synopsys funded its acquisition of Ansys partly with debt. Although the company was historically nearly debt-free, this is now the primary screening item.
Action required: Confirm that total debt / market cap stays under the 33% threshold using the latest filings.
2. Interest Income on Cash
Synopsys holds a sizable cash balance that earns interest income. This should be checked against the 5% threshold and the corresponding portion of returns purified.
3. Software Receivables
As a software-and-IP licensor with multi-year contracts, Synopsys carries billed and unbilled receivables worth checking.
Action required: Confirm total receivables / total assets against your screening board's threshold (49–70%).
Methodology Interpretation
The known financial ratios pass the examined FTSE Yasaar, MSCI and Malaysia asset proxies, but the overall result is incomplete because activity disclosures are limited. No third-party classification is implied.
Bottom Line
Synopsys (SNPS) is doubtful on the current filing-based screen. Its EDA and IP business is generally permissible and the known financial ratios pass, but the overall activity disclosure remains incomplete.
For Muslim investors seeking halal exposure to the software backbone of the chip industry, SNPS is a clean, licensing-based option.
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