SYNA Q4 Earnings Beat Estimates, Strong Core IoT Sales Aid Revenues

Synaptics beats fiscal Q4 estimates as Core IoT sales jump 24%, margins expand and operating profit rises, while its pending onsemi deal keeps guidance on hold.

Zacks Equity Research

2 min read

Synaptics SYNA reported fourth-quarter fiscal 2026 non-GAAP earnings of $1.23 per share, which increased 21.8% year over year and beat the Zacks Consensus Estimate by 1.65%.

Revenues increased 9% year over year to $308 million and surpassed the consensus mark by 0.98%. Core IoT product sales grew 24% year over year in the reported quarter to $104.6 million. Management said continued strength in Core IoT drove upside during the quarter, while performance across all major product categories was in line with expectations.

Enterprise and Automotive product applications produced $164.3 million in revenues, up 9.8% year over year. Mobile product application revenues declined 20.2% to $39.1 million, partly offsetting growth in the other two categories.

SYNA’s Q4 Operating Details

Non-GAAP gross margin expanded 100 basis points (bps) year over year to 54.5%.

Synaptics Incorporated Price, Consensus and EPS Surprise

Synaptics Incorporated price-consensus-eps-surprise-chart | Synaptics Incorporated Quote

Non-GAAP research and development expenses increased 3.1% year over year to $75.7 million.

On a non-GAAP basis, selling, general and administrative expenses increased 2.9% to $32 million.

Non-GAAP operating income increased 29.1% year over year to $60.3 million. Non-GAAP operating margin reached 20%, its highest level in 13 quarters and an improvement of 300 bps year over year.

SYNA Generates Cash Flow & Returns Capital

As of June 27, 2026, Synaptics had $442.5 million in cash and cash equivalents. Total debt stood at $837.3 million.

For the period ended June 27, 2026, net cash provided by operating activities increased to $149.4 million from $142 million as of June 27, 2025.

Synaptics returned capital to shareholders, repurchasing $92.7 million of common stock during the period ended June 27, 2026.

SYNA Withholds Outlook Amid Pending onsemi Deal

Synaptics did not provide forward-looking financial guidance or schedule a quarterly earnings conference call because of its pending acquisition by onsemi. The companies entered into a definitive all-stock merger agreement on June 25, 2026.

Management said its strategic priorities remain focused on Physical AI and Edge AI. The company reported expanding customer engagements, increased design wins and a growing pipeline across key markets, including Physical AI and robotics. Synaptics plans to begin sampling its AI-native Astra SR-Series microcontrollers for emerging Edge AI applications this fall.

SYNA Zacks Rank & Stocks to Consider

Currently, Synaptics carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Computer and Technology sector include Kimball Electronics KE, NVIDIA NVDA and Inuvo INUV. Currently, Kimball Electronics and Inuvo each sport a Zacks Rank #1 (Strong Buy), while NVDA carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Kimball Electronics have lost 6.1% in the year-to-date period. KE is set to report the fourth quarter of fiscal 2026 results on Aug. 12.

Inuvo shares have plunged 58.5% in the year-to-date period. INUV is set to report first-quarter fiscal 2027 results on Aug. 11.

Shares of NVIDIA have gained 20.1% in the year-to-date period. NVDA is slated to report second-quarter 2026 results on Aug. 26.

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