Aug 6, 2026, 4:13 PM ETTechnology

Synaptics — Fiscal 2026 Earnings Summary

SYNASYNAPTICS INC

Financial Performance

Q4 2026 revenue was $308.0 million, up 9% year-over-year; full year 2026 revenue was $1.2 billion, up 11% year-over-year.
Q4 2026 GAAP gross margin was 47.3% and non-GAAP gross margin was 54.5%; full year 2026 GAAP gross margin was 44.7% (flat vs. prior year) and non-GAAP gross margin was 53.7% (vs. 53.6% prior year).
Q4 2026 GAAP net loss was $447.4 million ($11.53 per share); full year 2026 GAAP net loss was $490.8 million ($12.62 per share).
Q4 2026 non-GAAP net income was $50.1 million ($1.23 per diluted share); full year 2026 non-GAAP net income was $185.9 million ($4.58 per diluted share), a 27% increase year-over-year.
Q4 2026 GAAP loss included a $425.3 million non-cash tax charge for a valuation allowance against U.S. deferred tax assets; this charge is excluded from non-GAAP results.
Full year 2026 operating cash flow was $149.4 million, compared to $142.0 million in the prior year.
Full year 2026 net cash used in financing activities was $111.5 million, primarily driven by $92.7 million in share repurchases.
As of June 2026, total assets were $2.1 billion, with $442.5 million in cash and cash equivalents and $837.3 million in total debt ($439.6 million current, $397.7 million long-term).

Synaptics will not provide forward-looking financial outlook or host a quarterly earnings conference call due to the pending merger with onsemi.
Sampling of AI-native Astra SR-Series microcontrollers for emerging Edge AI applications is expected to begin in the fall.
Management anticipates the merger with onsemi will expand market opportunities, accelerate growth, and deliver greater value to customers and shareholders.

Core IoT product sales grew 43% year-over-year for the full year 2026, representing 33% of total sales; Q4 2026 Core IoT sales grew 24% year-over-year.
Enterprise and Automotive product applications revenue was $641.1 million for the full year 2026, up from $610.1 million in the prior year.
Mobile product applications revenue was $166.4 million for the full year 2026, down from $191.8 million in the prior year.
Performance across all major product categories was in line with expectations, with Core IoT driving upside during the quarter.

Strategic priorities focus on advancing leadership in Physical AI and Edge AI.
The company expanded customer engagements and increased design wins during the quarter.
The pending merger with onsemi is expected to leverage onsemi's manufacturing scale, global customer relationships, and extensive distribution network.

Risks include the completion of the proposed merger with onsemi, including the potential for regulatory or stockholder approval failures, timing of closing, and inability to achieve anticipated synergies.
Global macroeconomic and geopolitical conditions, trade tensions, inflation, and military conflicts may adversely affect customer demand, supply chains, and operational costs.
Manufacturing and supply chain risks include dependence on third parties for yields and schedules, and constraints on critical components like memory.
Risks related to customer concentration, inventory corrections, and changes in end-market adoption trends are noted.

CEO Rahul Patel described the fiscal year as "strong" with "sustained growth and momentum," noting revenue, gross margin, and non-GAAP EPS were above the mid-point of guidance in Q4.
Management highlighted that non-GAAP operating margin reached 20% in Q4, the highest level in 13 quarters and an improvement of 300 basis points year-over-year.
The tone regarding the future is optimistic regarding the merger, stating it brings "highly complementary product portfolios."

On June 25, 2026, onsemi and Synaptics entered into a definitive agreement for an all-stock acquisition of Synaptics by onsemi.
Synaptics repurchased approximately 1.3 million shares for $92.7 million during fiscal 2026.
The company's product portfolio includes Synaptics Astra AI-Native embedded compute, wireless connectivity, and multimodal sensing solutions.
Non-GAAP measures exclude acquisition-related costs, share-based compensation, restructuring costs, legal settlement accruals, intangible asset impairments, and other non-cash items.