Synopsys

The business model is highly predictable and recurring. Over 80% of revenue derives from time-based licenses and maintenance, so quarterly sales have long tail visibility. Historically, Synopsys grew roughly 10-15% annually over the past decade, riding secular increases in design complexity.

Customer R&D budgets tend to move slowly, and Synopsys captures that growth consistently. Recent quarters have shown minor fluctuations, likely due to macro softness, but management reaffirmed high-single-digit to low-double-digit growth. The ANSYS merger further smooths cyclicality by diversifying products into standalone simulation.

The long-term tech trends (AI/ML, chiplet design, SoCs) underpin enduring demand in multiple industries, and Synopsys has little exposure to problematic jurisdictions. In short, revenue and FCF trajectory is steady and easy to model, which merits a high predictability score.