$SYNA earnings report

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.

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.