SYNA · Synaptics Incorporated

Synaptics delivered solid Q3 fiscal 2026 results with revenue of $294.2 million, reflecting 10% year-over-year growth primarily driven by a robust 31% increase in Core IoT product sales. This segment's strength underscores the company's strategic focus on high-growth areas like Physical AI and Edge AI, evidenced by multiple additional design wins in Physical AI and robotics. Non-GAAP gross margin expanded to 53.6%, supported by favorable product mix, while GAAP metrics showed a net loss of $8.0 million or $0.21 per share due to acquisition-related costs, share-based compensation, and other adjustments detailed in the press release. Management highlighted strong execution, with all key metrics exceeding guidance midpoints, and a healthy backlog entering Q4. CEO Rahul Patel emphasized accelerating activity in AI domains and confidence in long-term growth, projecting full-year Core IoT revenue to surpass $385 million, more than 40% above prior year. CFO Ken Rizvi noted the strong balance sheet enabling investments in organic growth. Q4 guidance signals sequential revenue growth to $305 million ± $10 million, with Non-GAAP EPS of $1.20 ± $0.15 and gross margin of 53.5% ± 1.0%, reflecting disciplined cost management despite macroeconomic headwinds like trade uncertainties and geopolitical tensions. Non-GAAP adjustments primarily exclude acquisition/integration costs ($22-23 million in gross margin), share-based compensation ($35-36 million in op ex), and restructuring ($1-2 million), providing a clearer view of core operations.