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SYNA Q1 Earnings Beat Estimates, Revenues Miss on Weak Demand
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Key Takeaways
Synaptics' Q1 earnings rose 15.6% to $1.26 per share, while revenues grew 0.5% to $294 million.
Supply constraints, memory-related demand challenges and smartphone weakness weighed on SYNA's revenues.
SYNA expanded its Edge AI portfolio and withheld guidance amid its pending all-cash acquisition by onsemi.
Synaptics Incorporated (SYNA - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings of $1.26 per share, up 15.6% year over year from $1.09. The figure surpassed the Zacks Consensus Estimate by 2.44%.
Revenues increased 0.5% year over year to $294 million but missed the Zacks Consensus Estimate by 7.59%. Performance was affected by supply constraints, memory-related demand dynamics, and softness in smartphone demand, which weighed on the company’s touch and wireless products.
SYNA’s Q1 Operating Details
Non-GAAP gross margin expanded 110 basis points (bps) year over year to 54.3% from 53.2% in the year-ago quarter. GAAP gross margin improved to 47.8% from 42.6%.
Non-GAAP research and development expenses declined 6.1% year over year to $69.1 million. On a non-GAAP basis, selling, general and administrative expenses decreased 5.9% year over year to $28.6 million.
Synaptics Incorporated Price, Consensus and EPS Surprise
Non-GAAP operating income increased 20.4% year over year to $62 million from $51.5 million. Non-GAAP operating margin improved to approximately 21.1% from 17.6%, reflecting stronger profitability despite subdued revenue growth.
SYNA’s Edge AI Initiatives Gain Momentum
Synaptics continued expanding its presence in Edge AI and Physical AI markets through new product launches, partnerships, and customer engagements.
The company introduced the Synaptics Astra SR200 series, featuring a new class of microcontrollers called xMCUs. These solutions enable larger AI models and richer multimodal workloads to run directly on devices, supporting growing demand for on-device artificial intelligence.
Synaptics also expanded its Coralboard ecosystem in collaboration with Google Research. The company made Coralboard SL generally available through partners and introduced Coralboard SR, powered by the Astra SR200 series.
Synaptics announced that its capacitive tactile sensing module and Astra Edge AI processors are supported by NVIDIA's Isaac Sim and Holoscan platforms, enabling multisensory processing capabilities.
The company highlighted growing opportunities for its tactile sensing controllers and video interface products in robotics, alongside increasing customer interest in its processor and wireless technologies.
SYNA’s Cash Flow & Balance Sheet
As of Sept. 26, 2026, Synaptics had cash and cash equivalents of $367.7 million, down from $442.5 million as of June 27, 2026.
Total debt stood at $838 million, including $440.1 million in current debt and $397.9 million in long-term debt.
Net cash used in operating activities was $15.5 million during the reported quarter against cash generated from operating activities of $30.2 million in the year-ago period.
SYNA Withholds Outlook Amid Pending onsemi Acquisition
Synaptics did not provide forward-looking financial guidance or schedule a quarterly earnings conference call due to its pending acquisition by onsemi.
The companies initially entered into a definitive all-stock merger agreement on June 25, 2026. On Oct. 1, 2026, the agreement was amended to restructure the transaction into an all-cash acquisition.
Synaptics remains focused on expanding its presence in Physical AI and Edge AI markets through new product development and strategic partnerships. However, supply constraints, memory-related demand challenges and smartphone market softness remain near-term headwinds.
SYNA’s Zacks Rank & Stocks to Consider
Synaptics currently carries a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
SYNA Q1 Earnings Beat Estimates, Revenues Miss on Weak Demand
Key Takeaways
Synaptics Incorporated (SYNA - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings of $1.26 per share, up 15.6% year over year from $1.09. The figure surpassed the Zacks Consensus Estimate by 2.44%.
Revenues increased 0.5% year over year to $294 million but missed the Zacks Consensus Estimate by 7.59%. Performance was affected by supply constraints, memory-related demand dynamics, and softness in smartphone demand, which weighed on the company’s touch and wireless products.
SYNA’s Q1 Operating Details
Non-GAAP gross margin expanded 110 basis points (bps) year over year to 54.3% from 53.2% in the year-ago quarter. GAAP gross margin improved to 47.8% from 42.6%.
Non-GAAP research and development expenses declined 6.1% year over year to $69.1 million. On a non-GAAP basis, selling, general and administrative expenses decreased 5.9% year over year to $28.6 million.
Synaptics Incorporated Price, Consensus and EPS Surprise
Synaptics Incorporated price-consensus-eps-surprise-chart | Synaptics Incorporated Quote
Non-GAAP operating income increased 20.4% year over year to $62 million from $51.5 million. Non-GAAP operating margin improved to approximately 21.1% from 17.6%, reflecting stronger profitability despite subdued revenue growth.
SYNA’s Edge AI Initiatives Gain Momentum
Synaptics continued expanding its presence in Edge AI and Physical AI markets through new product launches, partnerships, and customer engagements.
The company introduced the Synaptics Astra SR200 series, featuring a new class of microcontrollers called xMCUs. These solutions enable larger AI models and richer multimodal workloads to run directly on devices, supporting growing demand for on-device artificial intelligence.
Synaptics also expanded its Coralboard ecosystem in collaboration with Google Research. The company made Coralboard SL generally available through partners and introduced Coralboard SR, powered by the Astra SR200 series.
Synaptics announced that its capacitive tactile sensing module and Astra Edge AI processors are supported by NVIDIA's Isaac Sim and Holoscan platforms, enabling multisensory processing capabilities.
The company highlighted growing opportunities for its tactile sensing controllers and video interface products in robotics, alongside increasing customer interest in its processor and wireless technologies.
SYNA’s Cash Flow & Balance Sheet
As of Sept. 26, 2026, Synaptics had cash and cash equivalents of $367.7 million, down from $442.5 million as of June 27, 2026.
Total debt stood at $838 million, including $440.1 million in current debt and $397.9 million in long-term debt.
Net cash used in operating activities was $15.5 million during the reported quarter against cash generated from operating activities of $30.2 million in the year-ago period.
SYNA Withholds Outlook Amid Pending onsemi Acquisition
Synaptics did not provide forward-looking financial guidance or schedule a quarterly earnings conference call due to its pending acquisition by onsemi.
The companies initially entered into a definitive all-stock merger agreement on June 25, 2026. On Oct. 1, 2026, the agreement was amended to restructure the transaction into an all-cash acquisition.
Synaptics remains focused on expanding its presence in Physical AI and Edge AI markets through new product development and strategic partnerships. However, supply constraints, memory-related demand challenges and smartphone market softness remain near-term headwinds.
SYNA’s Zacks Rank & Stocks to Consider
Synaptics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector include Cisco Systems (CSCO - Free Report) , Analog Devices (ADI - Free Report) , and NVIDIA (NVDA - Free Report) . Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cisco Systems shares have gained 24.3% year to date. Cisco Systems is set to report first-quarter fiscal 2027 results on Nov. 12.
Shares of Analog Devices have risen 33.2% year to date. Analog Devices is set to report fourth-quarter fiscal 2026 results on Nov. 24.
NVIDIA shares have lost 2.6% year to date. NVIDIA is set to report third-quarter fiscal 2027 results on Nov. 17.