10-Q · May 7, 2026
Synaptics' Q3 FY 2026 results showed stronger-than-expected revenue of $294.2 million and EPS of $1.09, surpassing estimates by 12.9% and 29.8% respectively. Segment performance was robust in Core IoT, which saw a 30.8%…
Earnings analysis · 10-K
SYNA earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
Synaptics delivered stronger fiscal 2026 revenue, led by Core IoT and the Broadcom transaction, while operating losses narrowed and cash generation improved. However, the company remained loss-making, with a $490.8…
Read full summary
Synaptics delivered stronger fiscal 2026 revenue, led by Core IoT and the Broadcom transaction, while operating losses narrowed and cash generation improved. However, the company remained loss-making, with a $490.8 million net loss driven largely by a $411.4 million tax provision and a full U.S. deferred-tax valuation allowance. The pending all-stock onsemi merger provides a strategic path for the AI-edge portfolio but introduces execution, regulatory and integration uncertainty through the expected mid-2027 closing.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-12.62
What stood out
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Revenue Growth and Operating Improvement
Fiscal 2026 revenue increased 11.4% to $1,197.2 million from $1,074.3 million in fiscal 2025 and $959.4 million in fiscal 2024. Operating loss improved to $67.1 million, or 5.7% of revenue, from $94.1 million, or 8.8%, in fiscal 2025 and $101.6 million in fiscal 2024.
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Core IoT Drives Product-Mix Shift
Core IoT was the primary growth engine, with revenue rising 43.1% to $389.7 million from $272.4 million, including the Broadcom transaction. Enterprise and Automotive revenue increased 5.1% to $641.1 million, while Mobile declined 13.2% to $166.4 million.
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AI-Native Edge Strategy
Synaptics describes its strategy as delivering AI-native edge solutions through standard and custom silicon and software platforms for Edge AI, Physical AI, wireless connectivity and human-interface technologies. Its Astra family combines embedded compute, connectivity and multimodal sensing, while $88.0 million of Broadcom roadmap technology assets are expected to be delivered through May 2028.
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Stable Gross Margin, Better Cost Leverage
Gross margin remained 44.7% in both fiscal 2026 and fiscal 2025, despite revenue growth. Operating expenses declined to 50.4% of revenue from 53.5%, with restructuring costs falling to $3.3 million from $16.9 million.
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Cash Generation Rebounded
Operating activities generated $149.4 million of cash in fiscal 2026 versus $142.0 million in fiscal 2025. The company spent $48.0 million on property and equipment and ended the year with $442.5 million of cash and cash equivalents, up from $391.5 million.
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Capital Returns and Onsemi Merger
Synaptics repurchased approximately 1.3 million shares for $92.7 million in fiscal 2026 under a $150.0 million authorization, but suspended repurchases after announcing the onsemi merger. The all-stock transaction provides 1.350 shares of onsemi for each Synaptics share and is expected to close in mid-2027, subject to stockholder and regulatory approvals.
What to watch
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Large Deferred-Tax Valuation Allowance
The company recorded a $411.4 million tax provision and a $490.8 million net loss, primarily because it established a full valuation allowance against U.S. deferred tax assets. The valuation allowance increased to $522.6 million, including a $425.3 million non-cash tax expense, after the company reported a three-year cumulative loss.
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Geopolitical and Supply-Chain Exposure
Synaptics says the Middle East conflict and restrictions affecting transportation routes such as the Strait of Hormuz could disrupt supply chains and increase logistics costs, inflation and gross-margin pressure. The filing states that escalation or continued duration could materially and adversely affect the business and financial results, although no material near-term order impact had yet been observed.
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Memory Constraints and Inventory Risk
Constrained availability and elevated pricing of memory components did not materially affect fiscal 2026 results, but the company warns that persistence could affect customer development timelines, purchasing behavior, production schedules and order visibility. Inventory increased to $156.4 million from $139.5 million, increasing exposure to demand changes and obsolescence.
Management's outlook
The 10-K does not provide quantitative fiscal 2027 or annual guidance; outlook was deferred to the earnings press release and conference call.
Earlier filings 4
10-Q · February 5, 2026
Synaptics reported a strong performance in Q2 FY 2026, achieving revenues of $302.5 million, significantly surpassing estimates. EPS also exceeded expectations at $1.21, reflecting improved demand in certain product…
10-Q · November 6, 2025
Synaptics reported strong Q1 2026 results, surpassing revenue and EPS estimates. Net revenue reached $292.5 million, reflecting a 13.5% increase year-over-year largely driven by the Core IoT segment, which grew 73.8%.…
10-K · August 21, 2025
Synaptics Incorporated reported a significant revenue increase of 12% in fiscal 2025, reaching $1,074.3 million, driven by strong performance in the Core IoT product category. The company’s strategic partnerships and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.