fourth quarter and full year of fiscal 2026
Filed Aug 6, 2026Synaptics Reports Fourth Quarter and Full Year Fiscal 2026 Results
Fiscal 2026 revenue increased 11% and Core IoT product sales increased 43% year-over-year, while fourth-quarter revenue increased 9% and non-GAAP diluted earnings per share was $1.23. Reported GAAP results were dominated by a $425.3 million non-cash deferred-tax valuation-allowance charge, producing a fourth-quarter GAAP loss of $11.53 per basic share and a full-year GAAP loss of $12.62 per basic share. The pending all-stock acquisition by onsemi means Synaptics will not provide a forward-looking financial outlook.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenueGAAP | $308.0 million | – | up 9% year-over-year |
| GAAP gross marginGAAP | 47.3% | – | – |
| Non-GAAP gross marginnon-GAAP | 54.5% | – | – |
| GAAP net lossGAAP | $447.4 million | – | – |
| GAAP net loss per basic shareGAAP | $11.53 | – | – |
| Non-GAAP net incomenon-GAAP | $50.1 million | – | – |
| Non-GAAP diluted earnings per sharenon-GAAP | $1.23 | – | – |
| Non-GAAP operating marginnon-GAAP | 20% | – | an improvement of 300 basis points year-over-year |
| Net revenueGAAP | $1.2 billion | – | increased 11% year-over-year |
| GAAP gross marginGAAP | 44.7% | – | flat compared to the prior year |
| Non-GAAP gross marginnon-GAAP | 53.7% | – | – |
| GAAP net lossGAAP | $490.8 million | – | – |
| GAAP net loss per basic shareGAAP | $12.62 | – | – |
| Non-GAAP net incomenon-GAAP | $185.9 million | – | – |
| Non-GAAP diluted earnings per sharenon-GAAP | $4.58 | – | increased 27% |
| Non-cash charge related to establishment of a valuation allowance against U.S. deferred tax assetsGAAP | $425.3 million, or $10.96 per share | – | – |
Capital returns
- Repurchased shares in the amount of $92.7 million (or approximately 1.3 million shares)
What drove it
- Fiscal 2026 Core IoT product sales increased 43% year-over-year and represented 33% of total sales.
- Fiscal fourth-quarter Core IoT product sales grew by 24% year-over-year.
- Management said performance across all major product categories was in line with expectations, with continued strength in Core IoT driving upside during the quarter.
- Management said customer engagements, design wins, and the pipeline expanded across key growth markets, including Physical AI and robotics.
- Sampling of AI-native Astra SR-Series microcontrollers for emerging Edge AI applications is expected to begin this fall.
Concerns
- Fourth-quarter results included a $425.3 million, or $10.96 per share, non-cash charge related to the establishment of a valuation allowance against U.S. deferred tax assets.
- GAAP net loss was $447.4 million in the fourth quarter and $490.8 million for fiscal 2026.
- The pending acquisition by onsemi has ended Synaptics' quarterly earnings call and forward-looking financial outlook.
What to watch
- Progress of the pending all-stock transaction under the definitive agreement announced on June 25, 2026.
- Core IoT product sales growth after fiscal 2026 growth of 43% year-over-year.
- Sampling of AI-native Astra SR-Series microcontrollers expected to begin this fall.
- Whether non-GAAP operating margin can build from 20%, described as the highest level in 13 quarters.
Analysis
Synaptics closed fiscal 2026 with fourth-quarter net revenue of $308.0 million, up 9% year-over-year, and full-year net revenue of $1.2 billion, increased 11% year-over-year. The release identifies Core IoT as the principal growth driver: fiscal 2026 Core IoT product sales increased 43% year-over-year, represented 33% of total sales, and grew 24% year-over-year in the fourth quarter. Management said all major product categories performed in line with expectations and that Core IoT strength drove upside during the quarter.
Profitability was stronger on a non-GAAP basis. Fourth-quarter non-GAAP gross margin was 54.5%, non-GAAP diluted earnings per share was $1.23, and non-GAAP operating margin reached 20%, which management described as its highest level in 13 quarters and an improvement of 300 basis points year-over-year. For fiscal 2026, non-GAAP gross margin was 53.7%, compared to 53.6% in the prior year, while non-GAAP net income was $185.9 million and non-GAAP diluted earnings per share increased 27% to $4.58.
GAAP results were materially affected by the establishment of a valuation allowance against U.S. deferred tax assets. The fourth quarter included a $425.3 million, or $10.96 per share, non-cash charge that was excluded from non-GAAP results. Consequently, fourth-quarter GAAP net loss was $447.4 million, or a net loss of $11.53 per basic share, and fiscal 2026 GAAP net loss was $490.8 million, or a net loss of $12.62 per basic share. Fiscal 2026 GAAP gross margin was 44.7% and was flat compared to the prior year.
Capital allocation included repurchases of $92.7 million, or approximately 1.3 million shares, during fiscal 2026. The company also highlighted expanded customer engagements, design wins, and pipeline activity in Physical AI and robotics, with sampling of its AI-native Astra SR-Series microcontrollers expected to begin this fall.
The outlook is constrained by the pending transaction with onsemi. Synaptics and onsemi entered into a definitive agreement on June 25, 2026, under which onsemi agreed to acquire Synaptics in an all-stock transaction. Because of the pending transaction, Synaptics will not host a quarterly earnings conference call or provide forward-looking financial outlook, leaving transaction progress and execution on the stated product roadmap as the disclosed items to monitor.
Management, verbatim
Synaptics completed another strong fiscal year, with sustained growth and momentum across the business.
Rahul Patel, President and Chief Executive Officer
We delivered solid financial results in fiscal 2026, with revenue increasing 11%, driven by 43% growth in our Core IoT portfolio.
Rahul Patel, President and Chief Executive Officer
Our strategic priorities remain unchanged as we advance our leadership in Physical AI and Edge AI.
Rahul Patel, President and Chief Executive Officer
Not in the filing
stated, not guessed- Quarterly segment revenue by product category, including Core IoT revenue
- Quarterly and full-year GAAP operating income or loss
- Quarterly and full-year non-GAAP operating income
- Quarterly GAAP and non-GAAP operating expenses
- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- Dividend information
- Forward-looking financial guidance
- Prior-quarter comparisons for reported financial metrics
- Prior-year values for revenue, quarterly gross margin, net income or loss, and earnings per share
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.