Is SNPS (Synopsys, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, SNPS is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (15.42% vs ≤33% threshold), interest income ratio (3.94% vs ≤5% threshold), and cash & securities ratio (3.19% vs ≤33% threshold).

Synopsys, Inc. is a global leader in electronic design automation (EDA) software, providing the essential tools needed to design and test complex integrated circuits. The company offers advanced solutions like the Fusion Design Platform and Verification Continuum Platform, alongside intellectual property components for technologies like USB, PCI Express, and Ethernet. For Muslim investors, Synopsys represents a strong, shariah-compliant opportunity in the semiconductor infrastructure sector. The stock successfully passes all four AAOIFI screening criteria, meaning its core business activities are unequivocally halal and its financial structure aligns with Islamic principles. From an Islamic finance perspective, Synopsys demonstrates excellent financial discipline. The company carries a low debt-to-market cap ratio of 15.4% and minimal cash and securities relative to its market cap at 3.2%, indicating it does not rely heavily on interest-bearing leverage or hoard excessive cash in interest-yielding accounts. While currently compliant, Muslim investors should keep an eye on the company's interest income, which currently sits at 3.94% of revenue. Though this is safely below the 5% maximum threshold, any significant increase in interest-bearing investments could jeopardize its halal status in future quarters, requiring investors to regularly purify these specific earnings. Synopsys, Inc. operates in the Technology sector under the Software - Infrastructure industry and is headquartered in Sunnyvale, CA, US. The company is led by CEO Sassine Ghazi and employs approximately 28,000 people.

SNPS was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. SNPS passed 4 of these 4 screens.

Although SNPS passes all shariah screens, it does earn $277.7M in interest income (3.94% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $3.94 to purify the income.

SNPS was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.