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Goodwill and Intangible Assets
 12 Months Ended
Oct. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill
Goodwill represents the excess of the aggregate purchase price over the fair value of the net tangible and identifiable intangible assets acquired in business combination. The change in the goodwill during fiscal 2025 resulted primarily from $23.4 billion related to the Ansys Merger. For additional information, refer to Note 4. Business Combination of the Notes to Consolidated Financial Statements in this Annual Report.
We performed the required annual goodwill assessment in the fourth quarter of fiscal 2025, and concluded the goodwill was not impaired. There was no goodwill impairment in fiscal 2025, 2024 and 2023.
Goodwill activity by reportable segment consists of the following:
 
Design Automation
Design IPTotal
(in thousands)
Balance at October 31, 2023$2,400,682 $945,383 $3,346,065 
Additions61,803 34,339 96,142 
Adjustments170 — 170 
Effect of foreign currency translation6,602 (129)6,473 
Balance at October 31, 20242,469,257 979,593 3,448,850 
Additions23,442,889 — 23,442,889 
Adjustments (OSG Divestiture)(19,471)— (19,471)
Effect of foreign currency translation24,255 2,692 26,947 
Balance at October 31, 2025$25,916,930 $982,285 $26,899,215 
Intangible Assets
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be fully recoverable. The change in the gross carrying amounts of intangible assets in fiscal 2025 was due to the Ansys Merger. For additional information, refer to Note 4. Business Combination of the Notes to Consolidated Financial Statements in this Annual Report.
During the fourth quarter of fiscal 2024, we assessed long-lived assets for impairment and recorded an impairment charge of $53.5 million related to acquired intangible assets. The impairment charge was triggered by a decline in estimated fair value resulting from the reductions in the expected future cash flows associated with our core/developed technology intangible assets related to our OpenLight business. There were no other impairment charges for long-lived assets in fiscal 2025, 2024 and 2023.
Intangible assets as of October 31, 2025 consists of the following:
Gross Carrying AmountAccumulated
Amortization		Net Amount
 (in thousands)
Core/developed technology$7,309,753 $929,901 $6,379,852 
Customer relationships5,415,558 428,377 4,987,181 
Contract rights intangible614,358 239,808 374,550 
Trademarks and trade names962,925 24,917 938,008 
Total$14,302,594 $1,623,003 $12,679,591 
Intangible assets as of October 31, 2024 consists of the following:
Gross Carrying Amount
Accumulated
Amortization
and Impairment
Net Amount
 (in thousands)
Core/developed technology$904,347 $777,518 $126,829 
Customer relationships314,140 247,025 67,115 
Contract rights intangible176,382 175,170 1,212 
Trademarks and trade names12,925 12,917 8 
Total$1,407,794 $1,212,630 $195,164 
Amortization expense related to acquired intangible assets, including the impairment charge, consists of the following:
 Year Ended October 31,
 202520242023
 (in thousands)
Core/developed technology$247,210 $104,797 $42,892 
Customer relationships180,525 15,550 9,288 
Contract rights intangible64,648 3,872 2,389 
Trademarks and trade names12,000 15 7 
Capitalized software development costs(1)
— — 4,770 
Total$504,383 $124,234 $59,346 
(1)Amortization of capitalized software development costs is included in cost of products revenue in the consolidated statements of income.
The following table presents the estimated future amortization of acquired intangible assets as of October 31, 2025:
Fiscal Year(in thousands)
2026$1,613,410 
20271,544,994 
20281,384,004 
20291,381,360 
20301,375,519 
2031 and thereafter5,380,304 
Total$12,679,591