Synaptics Reports First Quarter Fiscal 2027 Results
SYNAPTICS Inc (SYNA) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Synaptics Reports First Quarter Fiscal 2027 Results Q1'27 Financial Results • Revenue of $294.0 million, up 1% year-over-year • GAAP gross margin of 47.8% • Non-GAAP gross margin of 54.3% • GAAP loss per share of $0.45 • Non-GAAP diluted earnings per share of $1.26 K
How this was made
The 30-second read
Why it matters
The earnings miss and acquisition news provide fresh data for traders to reassess valuation and short‑term price direction.
Market read
First‑time earnings data and acquisition confirmation create a medium‑impact trading opportunity for SYNA.
What to watch
Licensing deal for automotive LCD TDDI technology could open new revenue streams not reflected in current quarter.
Synaptics Reports First Quarter Fiscal 2027 Results
Revenue was $294.0 million, up 1% year-over-year, while GAAP results remained a loss and operating cash flow was negative. Non-GAAP gross margin, operating income, net income and diluted earnings per share improved versus the prior-year period, but management cited supply constraints, memory-related demand dynamics and smartphone softness.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenueGAAP | $294M | – | up 1% year-over-year |
| Acquisition-related costsGAAP | $19.1M | – | – |
| Cost of revenueGAAP | $134.5M | – | – |
| Gross marginGAAP | $140.4M | – | – |
| Gross margin - percentage of revenueGAAP | 47.8% | – | – |
| Gross marginnon-GAAP | $159.7M | – | – |
| Gross margin - percentage of revenuenon-GAAP | 54.3% | – | – |
| Research and developmentGAAP | $91M | – | – |
| Research and development expensenon-GAAP | $69.1M | – | – |
| Selling, general, and administrative expenseGAAP | $51.7M | – | – |
| Selling, general, and administrative expensenon-GAAP | $28.6M | – | – |
| Acquired intangibles amortizationGAAP | $2.3M | – | – |
| Restructuring costsGAAP | $8.1M | – | – |
| Total operating expensesGAAP | $153.1M | – | – |
| Operating lossGAAP | −$12.7M | – | – |
| Operating incomenon-GAAP | $62M | – | – |
| Interest (expense) income and other, netGAAP | −$2.8M | – | – |
| Loss before provision for (benefit from) income taxesGAAP | −$15.5M | – | – |
| Provision for (benefit from) income taxesGAAP | $2.2M | – | – |
| Net lossGAAP | −$17.7M | – | – |
| Net incomenon-GAAP | $51.5M | – | – |
| Net loss per share - basicGAAP | $(0.45) | – | – |
| Net loss per share - dilutedGAAP | $(0.45) | – | – |
| Net income per share - dilutednon-GAAP | $1.26 | – | – |
| Shares used in computing net loss per share - basicGAAP | 39.4 | – | – |
| Shares used in computing net loss per share - dilutedGAAP | 39.4 | – | – |
| Shares used in per share calculation - diluted on non-GAAP basisnon-GAAP | 40.9 | – | – |
| Net cash (used in) provided by operating activitiesGAAP | −$15.5M | – | – |
Capital returns
- Repurchases of common stock, exclusive of excise taxes: —
- Equity compensation, net: $(30.9) million
What drove it
- Management cited strong design activity and customer engagement in Edge and Physical AI.
- Management cited broader opportunities for tactile sensing controllers and video interface products in robotics, alongside customer interest in processor and wireless technologies leveraging Edge AI development platforms.
- The company introduced the Synaptics Astra SR200 series xMCU, a new class of microcontrollers intended to enable larger AI models and richer multimodal workloads to run entirely on-device.
- Synaptics entered into a licensing agreement for its automotive LCD TDDI technology, which management described as consistent with its strategy to focus on higher-value areas and grow in Physical AI and Edge AI.
- Non-GAAP gross margin was 54.3%, compared with 53.2% in the prior-year period, and non-GAAP operating income was $62.0 million, compared with $51.5 million.
Concerns
- Fiscal first quarter revenue was affected by supply constraints and memory-related demand dynamics across multiple markets.
- Management cited smartphone softness affecting touch and wireless products.
- GAAP net loss was $(17.7) million and GAAP operating loss was $(12.7) million.
- Net cash used in operating activities was $(15.5) million, compared with net cash provided by operating activities of $30.2 million in the prior-year period.
- Cash and cash equivalents were $367.7 million as of September 2026, versus $442.5 million as of June 2026.
- The company reported $440.1 million of current portion of debt and $397.9 million of long-term debt as of September 2026.
What to watch
- Supply constraints and memory-related demand dynamics across multiple markets.
- Smartphone demand for touch and wireless products.
- The pipeline in targeted growth markets and execution in Physical AI and Edge AI.
- Progress of the pending onsemi acquisition, which was restructured on October 1, 2026 into an all-cash acquisition.
- The company will not host a quarterly earnings conference call or provide a forward-looking financial outlook due to the pending transaction.
Balance sheet and cash flow
- Cash and cash equivalents: $367.7 million as of September 2026; $442.5 million as of June 2026.
- Current portion of debt: $440.1 million as of September 2026; $439.6 million as of June 2026.
- Long-term debt: $397.9 million as of September 2026; $397.7 million as of June 2026.
- Accounts receivable, net: $188.5 million as of September 2026; $164.0 million as of June 2026.
- Inventories: $184.7 million as of September 2026; $156.4 million as of June 2026.
- Net cash (used in) provided by operating activities: $(15.5) million; $30.2 million in the prior-year period.
- Net cash (used in) provided by investing activities: $(28.1) million; $48.8 million in the prior-year period.
- Purchase of intangible assets: $(25.0) million; — in the prior-year period.
- Purchases of property and equipment: $(3.1) million; $(12.2) million in the prior-year period.
- Net cash used in financing activities: $(30.9) million; $(10.4) million in the prior-year period.
- Net (decrease) increase in cash and cash equivalents: $(74.8) million; $68.4 million in the prior-year period.
- Cash and cash equivalents, end of period: $367.7 million; $459.9 million in the prior-year period.
Analysis
First-quarter fiscal 2027 net revenue was $294.0 million, up 1% year-over-year from $292.5 million. Management attributed the constrained topline to supply constraints and memory-related demand dynamics across multiple markets, and specifically cited smartphone softness affecting touch and wireless products. At the same time, management described strong design activity and customer engagement in Edge and Physical AI, including broader robotics opportunities for tactile sensing controllers and video interface products.
Profitability improved on both reported gross-margin measures versus the prior-year period. GAAP gross margin was 47.8%, compared with 42.6%, while non-GAAP gross margin was 54.3%, compared with 53.2%. GAAP operating loss was $(12.7) million versus $(23.2) million, and non-GAAP operating income was $62.0 million versus $51.5 million. The company remained unprofitable under GAAP, reporting net loss of $(17.7) million, or $(0.45) per diluted share, while non-GAAP net income was $51.5 million, or $1.26 per diluted share.
The period included $19.1 million of acquisition-related costs and $8.1 million of restructuring costs. The non-GAAP reconciliation also excluded $37.0 million of share-based compensation from GAAP operating loss and GAAP net loss. Research and development was $91.0 million on a GAAP basis and $69.1 million on a non-GAAP basis, while GAAP selling, general, and administrative expense was $51.7 million and non-GAAP selling, general, and administrative expense was $28.6 million.
Cash flow weakened relative to the prior-year period. Net cash used in operating activities was $(15.5) million, versus $30.2 million of net cash provided by operating activities, as changes in working capital were $(65.3) million. Cash and cash equivalents ended the period at $367.7 million, compared with $442.5 million at June 2026. The balance sheet also reported $440.1 million of current portion of debt and $397.9 million of long-term debt.
Strategically, Synaptics introduced the Astra SR200 series xMCU, expanded the Coralboard ecosystem with Google Research, and announced support for its capacitive tactile sensing module and Astra Edge AI processors on NVIDIA Isaac Sim and Holoscan platforms. It also entered a licensing agreement for automotive LCD TDDI technology. Financial visibility is limited because the pending onsemi transaction resulted in Synaptics not hosting a quarterly earnings call or providing forward-looking financial outlook.
Management, verbatim
Synaptics delivered another quarter of strong design activity and customer engagement in Edge and Physical AI.
Rahul Patel, President and Chief Executive Officer
We are continuing to see broader opportunities for our tactile sensing controllers and video interface products in robotics, and these new customers are showing growing interest in our processor and wireless technologies leveraging Edge AI development platforms.
Rahul Patel, President and Chief Executive Officer
Not in the filing
stated, not guessed- Forward-looking financial guidance was not provided due to the pending onsemi transaction.
- Prior-quarter financial comparisons were not provided.
- Segment revenue and segment profitability disclosure were not provided.
- Free cash flow was not reported.
- Dividend information was not reported.
- A GAAP or non-GAAP effective tax rate was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Synaptics filed an SEC Form 8‑K reporting its Q1 FY2027 results and confirming a pending all‑cash acquisition by onsemi.
Ticker impact
Q1 FY2027 earnings release with revenue $294M, GAAP loss $0.45 per share and pending onsemi acquisition.
downward pressure as investors price in GAAP loss and acquisition uncertainty
The 8‑K provides first‑time GAAP loss data and confirms an all‑cash onsemi deal, both new material facts.
Market effects
Highlights growth in Edge AI and physical AI markets, may benefit peers in tactile sensing and AI‑enabled microcontrollers.
U.S. tech sector sees modest negative bias from Synaptics earnings miss.
Limited; primarily affects niche AI‑edge hardware segment.
Counterpoint
If the acquisition by onsemi proceeds at cash premium, long‑term upside could outweigh short‑term earnings pain.
Key entities
- CompanySynaptics Inc.
Provider of AI‑enabled touch, sensing and microcontroller solutions.
- Companyonsemi
Semiconductor manufacturer acquiring Synaptics.
