Synaptics (SYNA) grows FY 2026 revenue 11% amid pending onsemi deal
Rhea-AI Filing Summary
Synaptics Incorporated reported fiscal 2026 results showing solid top-line growth but a GAAP loss driven by a large tax charge. Net revenue was $1.2 billion, up 11% year-over-year, with Core IoT product sales growing 43% and representing 33% of total sales. Fourth-quarter revenue was $308.0 million, up 9% year-over-year.
GAAP net loss for fiscal 2026 was $490.8 million, or $12.62 per basic share, largely due to a $425.3 million non-cash tax expense from establishing a full valuation allowance against U.S. deferred tax assets. Non-GAAP net income was $185.9 million, with non-GAAP diluted earnings per share increasing 27% to $4.58. Non-GAAP gross margin was 53.7%, slightly above the prior year, and non-GAAP operating margin reached 20% in the fourth quarter. The company repurchased $92.7 million of stock, approximately 1.3 million shares.
Synaptics highlighted ongoing momentum in Core IoT, Edge AI and new Astra AI-native microcontrollers. On June 25, 2026, it entered a definitive agreement to be acquired by onsemi in an all-stock transaction, and, in light of this pending merger, it is not providing a forward-looking financial outlook or hosting an earnings conference call.
Positive
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Negative
- None.
Filing Explained
The filing adds a
8-K Event Classification
10 items: 0.02, 0.07, 0.08, 0.8, 2.02, 2.7, 3.0, 9.01, 219.0, 728.3
10 items
Item 0.02
Item 0.02
Item 0.07
Item 0.07
Item 0.08
Item 0.08
Item 0.8
Item 0.8
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 2.7
Item 2.7
Item 3.0
Item 3.0
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Item 219.0
Item 219.0
Item 728.3
Item 728.3
Key Figures
Fiscal 2026 net revenue: $1.2 billion
Fiscal 2026 Core IoT revenue: $389.7 million
Fiscal 2026 GAAP net loss: $490.8 million
+5 more
8 metrics
Fiscal 2026 net revenue
$1.2 billion
Full year fiscal 2026 net revenue; increased 11% year-over-year
Fiscal 2026 Core IoT revenue
$389.7 million
Core IoT product applications revenue for fiscal 2026; up 43% year-over-year
Fiscal 2026 GAAP net loss
$490.8 million
Full year GAAP net loss; includes impact of valuation allowance
Fiscal 2026 non-GAAP net income
$185.9 million
Full year non-GAAP net income for fiscal 2026
Fiscal 2026 non-GAAP diluted EPS
$4.58
Non-GAAP diluted earnings per share; increased 27% year-over-year
Non-cash tax valuation allowance
$425.3 million
Non-cash tax expense to establish full valuation allowance against U.S. deferred tax assets
Q4 2026 net revenue
$308.0 million
Fiscal fourth quarter 2026 net revenue; up 9% year-over-year
Share repurchases fiscal 2026
$92.7 million
Common stock repurchased, approximately 1.3 million shares, during fiscal 2026
Key Terms
valuation allowance, Non-GAAP net income, Core IoT product applications, convertible senior notes, +2 more
6 terms
valuation allowance financial
"a $425.3 million non-cash tax expense related to the establishment of a full valuation allowance"
A valuation allowance is a reserve set aside to reduce the value of certain assets on a company's financial records when there is uncertainty about whether they will generate the expected benefits. It acts like a caution sign, indicating that some assets might not be fully recoverable or worth their recorded amount. This matters to investors because it provides a more realistic picture of a company's financial health and potential risks.
Non-GAAP net income financial
"Non-GAAP net income for the recently completed fiscal year was $185.9 million"
Non-GAAP net income is a company's profit figure that excludes certain costs or income that are included in standard accounting methods. Companies often use it to show what their earnings might look like without one-time expenses or other unusual items, helping investors see the company's core performance more clearly.
Core IoT product applications technical
"Core IoT product sales grew by 43% year-over-year"
convertible senior notes financial
"Proceeds from issuance of convertible senior notes, net of issuance costs"
Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.
capped call transactions financial
"capped call transactions entered by the Company in conjunction with our 2031 Notes"
Capped call transactions are agreements where investors buy options that give them the chance to benefit if a stock's price goes up, but with a limit on how much they can gain. This helps protect them from paying too much if the stock's price rises a lot, similar to having a maximum limit on a reward. They matter because they help investors manage risk while still allowing some upside potential.
Physical AI technical
"advance our leadership in Physical AI and Edge AI"
Physical AI combines artificial intelligence with physical devices or environments, enabling machines to interact with and adapt to the real world in a human-like way. It matters to investors because it can lead to smarter robots, autonomous vehicles, or advanced sensors that improve efficiency and open new markets, potentially creating significant business opportunities and competitive advantages.
Earnings Snapshot
Q4 2026 net revenue: $308.0 million · Guidance included
Fiscal fourth quarter and full fiscal year 2026 ended June 27, 2026
Q4 2026 net revenue
$308.0 million
+9% year-over-year
Fiscal 2026 net revenue
$1.2 billion
+11% year-over-year
Fiscal 2026 Core IoT revenue
$389.7 million
+43% year-over-year
Fiscal 2026 non-GAAP diluted EPS
$4.58
+27% year-over-year
Guidance
The company did not provide a forward-looking financial outlook due to the pending onsemi acquisition.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Synaptics (SYNA) perform financially in fiscal 2026?
Synaptics generated $1.2 billion in net revenue for fiscal 2026, an 11% year-over-year increase. Growth was driven by strong Core IoT demand, modestly higher non-GAAP gross margins, and non-GAAP net income of $185.9 million with diluted EPS of $4.58.
What were Synaptics (SYNA) fourth-quarter 2026 results?
For Q4 2026, Synaptics reported $308.0 million in net revenue, up 9% year-over-year. GAAP net loss was $447.4 million, or $11.53 per basic share, while non-GAAP net income was $50.1 million, or $1.23 per diluted share.
How did Synaptics (SYNA) Core IoT business perform in 2026?
Core IoT product sales reached $389.7 million in fiscal 2026, a 43% year-over-year increase. Core IoT represented 33% of total sales, and fiscal fourth-quarter Core IoT revenue grew 24% year-over-year, reflecting strong momentum in this portfolio.
Why did Synaptics (SYNA) report a large GAAP loss in 2026?
The fiscal 2026 GAAP net loss of $490.8 million mainly reflects a $425.3 million non-cash tax expense. This charge relates to establishing a full valuation allowance against U.S. deferred tax assets and significantly impacted both full-year and fourth-quarter GAAP results.
What is the status of the onsemi acquisition of Synaptics (SYNA)?
On June 25, 2026, onsemi and Synaptics signed a definitive agreement for onsemi to acquire Synaptics in an all-stock transaction. The deal remains pending customary closing conditions and approvals, and Synaptics is not providing a forward-looking outlook or hosting an earnings call.
What was Synaptics (SYNA) cash flow and capital return in fiscal 2026?
Synaptics generated $149.4 million in net cash from operating activities in fiscal 2026 and ended with $442.5 million in cash and cash equivalents. The company repurchased shares totaling $92.7 million, or approximately 1.3 million shares, during the year.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________________________________________________________
FORM 8-K
________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 6, 2026
________________________________________________________
(Exact name of Registrant as Specified in Its Charter)
________________________________________________________
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||
Registrant’s Telephone Number, Including Area Code: (408) 904-1100
________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On August 6, 2026, Synaptics Incorporated (the "Company") issued a press release announcing its financial results for the fiscal fourth quarter and full fiscal year ended June 27, 2026. A copy of the press release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
This information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into any registration document or other document filed by the Company.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number | Description | ||||
| 99.1 | Press release from Synaptics Incorporated, dated August 6, 2026, titled “Synaptics Reports Fourth Quarter and Full Year Fiscal 2026 Results” | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| SYNAPTICS INCORPORATED | |||||||||||
| Date: | August 6, 2026 | By: | /s/ Ken Rizvi | ||||||||
| Ken Rizvi SVP and Chief Financial Officer | |||||||||||
 | Exhibit 99.1 | ||||
Synaptics Reports Fourth Quarter and Full Year Fiscal 2026 Results
Fiscal 2026 revenue increased 11%, the second consecutive year of double-digit growth
Fiscal 2026 Core IoT product sales increased 43% year-over-year, representing 33% of total sales
Q4'26 Financial Results
•Revenue of $308.0 million, up 9% year-over-year
•Fiscal fourth quarter Core IoT product sales grew by 24% year-over-year
•GAAP gross margin of 47.3%
•Non-GAAP gross margin of 54.5%
•GAAP loss per share of $11.53
•Non-GAAP diluted earnings per share of $1.23
•Fourth quarter results include 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, which is excluded from non-GAAP results.
Fiscal 2026 Financial Highlights
•Revenue of $1.2 billion, increased 11% year-over-year
•Core IoT product sales grew by 43% year-over-year
•GAAP loss per share of $12.62, which includes the impact of the establishment of a valuation allowance
•Non-GAAP diluted earnings per share increased 27% to $4.58
•Repurchased shares in the amount of $92.7 million (or approximately 1.3 million shares)
SAN JOSE, Calif., – August 6, 2026 – Synaptics Incorporated (Nasdaq: SYNA) today reported financial results for its fourth quarter and full year of fiscal 2026 ended June 27, 2026.
Net revenue for the fourth quarter of fiscal 2026 was $308.0 million. GAAP net loss for the fourth quarter of fiscal 2026 was $447.4 million, or a net loss of $11.53 per basic share. Non-GAAP net income for the fourth quarter of fiscal 2026 was $50.1 million, or $1.23 per diluted share.
For the full year fiscal 2026, net revenue was $1.2 billion. GAAP gross margin for fiscal 2026 at 44.7% was flat compared to the prior year; and non-GAAP gross margin of 53.7% compared to 53.6% in the prior year. GAAP net loss for the recently completed fiscal year was $490.8 million or a net loss of $12.62 per basic share. Non-GAAP net income for the recently completed fiscal year was $185.9 million or $4.58 per diluted share.
“Synaptics completed another strong fiscal year, with sustained growth and momentum across the business," said Rahul Patel, Synaptics' 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. In the fourth quarter, revenue, gross margin, and non-GAAP EPS were all above the mid-point of our guidance, and non-GAAP operating margin reached 20%, our highest level in 13 quarters and an improvement of 300 basis points year-over-year. Performance across all major product categories was in line with expectations, with continued strength in Core IoT driving upside during the quarter."
"Our strategic priorities remain unchanged as we advance our leadership in Physical AI and Edge AI. During the quarter, we expanded customer engagements, increased design wins, and continued to build our pipeline across key growth markets, including Physical AI and robotics. Our product roadmap remains on track, with sampling of our AI-native Astra SR-Series microcontrollers for emerging Edge AI applications expected to begin this fall. We are excited about the pending merger with onsemi, which we believe brings together highly complementary product portfolios and benefits from onsemi's manufacturing scale, global customer relationships, and extensive distribution network, anticipated to expand market opportunities, accelerate growth, and deliver greater value to customers and shareholders."
Pending Acquisition by onsemi
As previously announced, on June 25, 2026, onsemi and Synaptics entered into a definitive agreement under which onsemi agreed to acquire Synaptics in an all-stock transaction. Due to the pending transaction, Synaptics will not host a quarterly earnings conference call or provide a forward-looking financial outlook.
This press release will be available on the company’s website at https://investor.synaptics.com/
About Synaptics Incorporated:
Synaptics (Nasdaq: SYNA) is driving innovation in AI at the Edge, bringing AI closer to end users and transforming how we engage with intelligent connected devices, whether at home, at work, or on the move. As a go-to partner for forward-thinking product innovators, Synaptics powers the future with its cutting-edge Synaptics Astra™ AI-Native embedded compute, wireless connectivity, and multimodal sensing solutions. We’re making the digital experience smarter, faster, more intuitive, secure, and seamless. From touch, display, and biometrics to AI-driven wireless connectivity, video, vision, audio, speech, and security processing, Synaptics is a force behind the next generation of technology enhancing how we live, work, and play.
Follow Synaptics on LinkedIn, Facebook, Instagram, and YouTube, or visit www.synaptics.com.
Use of Non-GAAP Financial Information
In evaluating its business, Synaptics considers and uses Non-GAAP Net Income, which we define as net income excluding share-based compensation, acquisition-related costs, and certain other non-cash or recurring and non-recurring items the company does not believe are indicative of its core operating performance, as a supplemental measure of operating performance. Non-GAAP Net Income is not a measurement of the company’s financial performance under GAAP and should not be considered as an alternative to GAAP Net Income. The company presents Non-GAAP Net Income because it considers it an important supplemental measure of its performance since it facilitates operating performance comparisons from period to period by eliminating potential differences in net income caused by the existence and timing of share-based compensation charges, acquisition and integration-related costs, restructuring costs, and certain other non-cash or recurring and non-recurring items. Non-GAAP Net Income has limitations as an analytical tool and should not be considered in isolation or as a substitute for the company’s GAAP Net Income. The principal limitations of this measure are that it does not reflect the company’s actual expenses and may thus have the effect of inflating its net income and net income per share as compared to its operating results reported under GAAP. In addition, the company presents components of Non-GAAP Net Income, such as Non-GAAP Gross Margin, Non-GAAP operating expenses, Non-GAAP operating margin and Non-GAAP net income per share, for similar reasons.
As presented in the “Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures” tables that follow, Non-GAAP Net Income and each of the other Non-GAAP financial measures excludes one or more of the following items:
Acquisition and integration related costs
Acquisition and integration related costs primarily consist of:
•amortization of purchased intangibles, which include acquired intangibles such as developed technology, customer relationships, trademarks, backlog, licensed technology, patents, and in-process technology when post-acquisition development is determined to be substantively complete;
•inventory fair value adjustments affecting the carrying value of inventory acquired in an acquisition;
•transitory post-acquisition incentive programs negotiated in connection with an acquired business or designed to encourage post-acquisition retention of key employees;
•legal and consulting costs directly associated with acquisitions, potential acquisitions and refinancing costs, including non-recurring acquisition related costs and services; and
•Costs incurred in the period in connection with the proposed merger with onsemi.
These acquisition and integration-related costs are not factored into the company’s evaluation of its ongoing business operating performance or potential acquisitions, as they are not considered as part of the company’s principal operations. Further, the amount of these costs can vary significantly from period to period based on the terms of an earn-out arrangement, revisions to assumptions that went into developing the estimate of the contingent consideration associated with an earn-out arrangement, the size and timing of an acquisition, the lives assigned to the acquired intangible assets, and the maturity of the business acquired. Excluding acquisition related costs from Non-GAAP measures provides investors with a basis to compare Synaptics
against the performance of other companies without the variability and potential earnings volatility associated with purchase accounting and acquisition-related items.
Share-based compensation
Share-based compensation expense relates to employee equity award programs and the vesting of the underlying awards, which includes stock options, deferred stock units, market stock units, performance stock units, phantom stock units and the employee stock purchase plan. Share-based compensation settled with stock, which includes stock options, deferred stock units, market stock units, performance stock units and the employee stock purchase plan, is a non-cash expense, while share-based compensation settled with cash, which includes phantom stock units, is a cash expense. Settlement of all employee equity award programs, whether settled with cash or stock, varies in amount from period to period and is dependent on market forces that are often beyond the company’s control. As a result, the company excludes share-based compensation from its internal operating forecasts and models. The company believes that Non-GAAP measures reflecting adjustments for share-based compensation provide investors with a basis to compare the company’s principal operating performance against the performance of peer companies without the variability created by share-based compensation resulting from the variety of equity-linked compensatory awards used by other companies and the varying methodologies and assumptions used.
Restructuring costs
Restructuring costs are costs incurred to address cost structure inefficiencies of acquired or existing business operations and consist primarily of employee termination, asset disposal and office closure costs, including the reversal of such costs. As a result, the company excludes restructuring costs from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes that Non-GAAP measures reflecting adjustments for restructuring costs provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created by restructuring costs designed to address cost structure inefficiencies of acquired or existing business operations.
Legal settlement accruals and other
Legal settlement accruals and other represent our estimated cost of settling legal claims and any obligations to indemnify a counterparty against third party claims that are unusual or infrequent. As a result, the company will exclude these settlement charges from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes that Non-GAAP measures reflecting an adjustment for settlement charges provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created by unusual or infrequent settlement accruals designed to address non-recurring or non-routine costs.
Intangible asset impairment
Intangible asset impairment charge represents the excess carrying value of an indefinite-lived asset over its fair value. The intangible asset impairment charge is a non-cash charge. The company excludes intangible asset impairment charge from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes that Non-GAAP measures, reflecting adjustments for intangible asset impairment charge, provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created by the intangible asset impairment charge.
Loss on early extinguishment of debt
Loss on early extinguishment of debt represents a non-cash item based on the difference between the carrying value of the debt and the fair value of the debt when extinguished. Loss on early extinguishment of debt is excluded from Non-GAAP results as it is non-cash. Excluding loss on early extinguishment of debt from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability associated with loss on early extinguishment of debt.
Other non-cash items
Other non-cash items include non-cash amortization of debt discount and issuance costs. These items are excluded from Non-GAAP results as they are non-cash. Excluding other non-cash items from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability associated with other non-cash items.
Other miscellaneous income/expense
Other miscellaneous expense, net items include funds previously paid to third parties refunded back to the company and cost method investment impairment charge. These miscellaneous items are excluded from our non-GAAP results because they are not indicative of the company’s core operating performance. Management believes that adjusting for these items enhances investors’ ability to meaningfully compare the company’s ongoing financial performance with that of other companies by removing variability caused by infrequent or non-routine personnel-related costs.
Non-GAAP tax adjustments
The company forecasts its long-term Non-GAAP tax rate in order to provide investors with improved long-term modeling accuracy and consistency across financial reporting periods by eliminating the effects of certain items in our Non-GAAP net income and Non-GAAP net income per share, including the type and amount of share-based compensation, the taxation of post-acquisition intercompany intellectual property cross-licensing or transfer transactions, a non-cash tax expense related to the establishment of a full valuation allowance against U.S. deferred tax assets and the impact of other acquisition items that may or may not be tax deductible.
The company intends to evaluate its long-term Non-GAAP tax rate annually for significant events, including material tax law changes in the major tax jurisdictions in which the company operates, corporate organizational changes related to acquisitions or tax planning opportunities, and substantive changes in our geographic earnings mix.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements reflect the company’s current expectations and projections including those relating to the proposed merger with onsemi, and expectations and projections relating to the company's financial condition, results of operations, plans, objectives, future performance and business, including statements regarding the company’s anticipated business trends and growth drivers in Core IoT and Edge AI, product development and integration activities, strategic and technology investments, operational discipline, backlog, demand conditions, and capital allocation initiatives. Such statements do not relate strictly to historical or current facts and may be identified by words such as “expect,” “anticipate,” “intend,” “believe,” “estimate,” “plan,” “target,” “strategy,” “continue,” “may,” "commit," “will,” “should,” variations of such words, or other words and terms of similar meaning.
All forward-looking statements are based upon the company’s current expectations or various assumptions. The company’s expectations and assumptions are expressed in good faith, and the company believes there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set out in the forward-looking statements include, but are not limited to: risks related to the completion of the proposed merger with onsemi, including the risk that required regulatory approvals or stockholder approval may not be obtained, or that customary closing conditions may not be satisfied, the timing of closing, the parties' ability to consummate the transaction, and the risk of any adverse developments that could affect the likelihood of closing; uncertainties regarding the combined company's ability to achieve the anticipated benefits, synergies, cost savings and expense reductions from the merger; global macroeconomic and geopolitical conditions, including trade tensions, tariffs, inflation, military conflicts (such as those involving the United States, Russia, Ukraine, Israel, Iran and other countries in the Middle East and beyond), and market volatility, any of which may adversely affect customer demand for our products, purchasing behavior, supply chain disruptions, increased costs, and operational adjustments (such as reductions in force); the company’s ability to successfully execute on its strategies, including new product introductions, acquisitions and strategic partnerships; manufacturing and supply chain risks, including the company’s dependence on third parties to maintain satisfactory manufacturing yields and deliverable schedules, constraints or imbalances in the availability of critical components (including memory components used in combination with our products) or delays from third-party foundries and assemblers; risks related to customer concentration, inventory corrections, or changes in end-market adoption trends; the company’s dependence on one or more large customers, including risks relating to the loss or non-renewal of contracts with key customers; the company’s exposure to industry downturns and cyclicality in its target markets; expectations related to our financial performance for the upcoming quarter, including expected revenue contribution, growth, demand, or mix from Core IoT, Enterprise and Automotive markets, and other product categories or end markets; inflationary pressures, fluctuating interest rates, and exchange rate volatility; the company’s ability to execute on its cost reduction initiatives and to achieve expected synergies and expense reductions; the company’s ability to maintain and build relationships with its customers; the company’s indemnification obligations for any third party claims; risks associated with leadership transitions, including continuity and retention of key technical or managerial personnel; risks related to our ability to deliver expected financial or strategic benefits from investing in growth while simultaneously returning capital to stockholders through share repurchases; and other risks as identified in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business” sections of the company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q; and other risks as identified from time to time in the company’s Securities and Exchange Commission reports.
Forward-looking statements contained in this press release are based on information available to the company as of the date of hereof, and the company assumes no obligation to update publicly or revise any forward-looking statements in light of new information or future events, except as required by law.
Synaptics and the Synaptics logo are trademarks of Synaptics in the United States and/or other countries. All other marks are the property of their respective owners.
For more information, please contact:
Munjal Shah
Head of Investor Relations
+1-408-518-7639
munjal.shah@synaptics.com
SYNAPTICS INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
| June 2026 | June 2025 | ||||||||||
| ASSETS | |||||||||||
Current assets: | |||||||||||
| Cash and cash equivalents | $ | 442.5 | $ | 391.5 | |||||||
| Short-term investments | — | 61.0 | |||||||||
| Accounts receivable, net | 164.0 | 130.3 | |||||||||
| Inventories | 156.4 | 139.5 | |||||||||
| Prepaid expenses and other current assets | 24.1 | 29.6 | |||||||||
| Total current assets | 787.0 | 751.9 | |||||||||
| Property and equipment, net | 86.9 | 72.1 | |||||||||
| Goodwill | 872.3 | 872.3 | |||||||||
| Acquired intangible assets | 187.8 | 262.2 | |||||||||
| Deferred tax assets | 6.2 | 408.8 | |||||||||
| Non-current other assets | 161.8 | 217.1 | |||||||||
| Total assets | $ | 2,102.0 | $ | 2,584.4 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 82.6 | $ | 98.5 | |||||||
| Accrued liabilities | 179.1 | 172.4 | |||||||||
| Current portion of debt | 439.6 | — | |||||||||
| Total current liabilities | 701.3 | 270.9 | |||||||||
| Long-term debt | 397.7 | 834.8 | |||||||||
| Other long-term liabilities | 73.5 | 83.8 | |||||||||
| Total liabilities | 1,172.5 | 1,189.5 | |||||||||
Stockholders' equity: | |||||||||||
| Common stock and additional paid-in capital | 1,330.0 | 1,211.9 | |||||||||
| Treasury stock | (1,099.6) | (1,006.9) | |||||||||
| Retained earnings | 699.1 | 1,189.9 | |||||||||
| Total stockholders' equity | 929.5 | 1,394.9 | |||||||||
| Total liabilities and stockholders’ equity | $ | 2,102.0 | $ | 2,584.4 | |||||||
SYNAPTICS INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| June 2026 | June 2025 | June 2026 | June 2025 | ||||||||||||||||||||
| Net revenue | $ | 308.0 | $ | 282.8 | $ | 1,197.2 | $ | 1,074.3 | |||||||||||||||
| Acquisition-related costs (1) | 21.9 | 29.4 | 106.7 | 97.5 | |||||||||||||||||||
| Cost of revenue | 140.3 | 131.9 | 555.1 | 496.4 | |||||||||||||||||||
| Gross margin | 145.8 | 121.5 | 535.4 | 480.4 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research and development | 97.8 | 93.6 | 381.8 | 346.8 | |||||||||||||||||||
| Selling, general, and administrative | 54.7 | 46.1 | 198.3 | 180.3 | |||||||||||||||||||
| Acquired intangibles amortization (1) | 1.9 | 4.6 | 12.3 | 16.7 | |||||||||||||||||||
| Intangible asset impairment charges | 6.8 | — | 6.8 | 13.8 | |||||||||||||||||||
| Restructuring costs (2) | 0.7 | 1.4 | 3.3 | 16.9 | |||||||||||||||||||
| Total operating expenses | 161.9 | 145.7 | 602.5 | 574.5 | |||||||||||||||||||
| Operating loss | (16.1) | (24.2) | (67.1) | (94.1) | |||||||||||||||||||
| Interest expense and other, net | (7.9) | (1.6) | (12.3) | (12.9) | |||||||||||||||||||
| Loss on early extinguishment of debt | — | — | — | (6.5) | |||||||||||||||||||
| Loss before provision (benefit) for income taxes | (24.0) | (25.8) | (79.4) | (113.5) | |||||||||||||||||||
| Provision/(benefit) for income taxes (3) | 423.4 | (21.1) | 411.4 | (65.7) | |||||||||||||||||||
Net loss | $ | (447.4) | $ | (4.7) | $ | (490.8) | $ | (47.8) | |||||||||||||||
Net loss per share: | |||||||||||||||||||||||
| Basic | $ | (11.53) | $ | (0.12) | $ | (12.62) | $ | (1.22) | |||||||||||||||
| Diluted | $ | (11.53) | $ | (0.12) | $ | (12.62) | $ | (1.22) | |||||||||||||||
Shares used in computing net loss per share: | |||||||||||||||||||||||
| Basic | 38.8 | 38.6 | 38.9 | 39.3 | |||||||||||||||||||
| Diluted | 38.8 | 38.6 | 38.9 | 39.3 | |||||||||||||||||||
(1) These acquisition related costs and acquired intangibles amortization consist primarily of amortization associated with certain acquired intangible assets. (2) Restructuring costs primarily include severance and lease related costs associated with operational restructurings. (3) The tax provision for the three months and year ended June 2026 includes a $425.3 million non-cash tax expense related to the establishment of a full valuation allowance against U.S. deferred tax assets. | |||||||||||||||||||||||
SYNAPTICS INCORPORATED
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
(In millions, except per share data)
(Unaudited)
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| June 2026 | June 2025 | June 2026 | June 2025 | ||||||||||||||||||||
| GAAP gross margin | $ | 145.8 | $ | 121.5 | $ | 535.4 | $ | 480.4 | |||||||||||||||
| Acquisition and integration related costs (1) | 21.9 | 29.3 | 106.7 | 97.5 | |||||||||||||||||||
| Share-based compensation | 0.3 | 0.4 | 1.2 | (1.7) | |||||||||||||||||||
| Non-GAAP gross margin | $ | 168.0 | $ | 151.2 | $ | 643.3 | $ | 576.2 | |||||||||||||||
| GAAP gross margin - percentage of revenue (1) | 47.3 | % | 43.0 | % | 44.7 | % | 44.7 | % | |||||||||||||||
| Acquisition and integration related costs - percentage of revenue (1) | 7.1 | % | 10.4 | % | 8.9 | % | 9.1 | % | |||||||||||||||
| Share-based compensation - percentage of revenue (1) | 0.1 | % | 0.1 | % | 0.1 | % | (0.2 | %) | |||||||||||||||
| Non-GAAP gross margin - percentage of revenue (1) | 54.5 | % | 53.5 | % | 53.7 | % | 53.6 | % | |||||||||||||||
| GAAP research and development expense | $ | 97.8 | $ | 93.6 | $ | 381.8 | $ | 346.8 | |||||||||||||||
| Share-based compensation | (22.1) | (20.2) | (86.8) | (68.8) | |||||||||||||||||||
| Non-GAAP research and development expense | $ | 75.7 | $ | 73.4 | $ | 295.0 | $ | 278.0 | |||||||||||||||
| GAAP selling, general, and administrative expense | $ | 54.7 | $ | 46.1 | $ | 198.3 | $ | 180.3 | |||||||||||||||
| Share-based compensation | (11.8) | (10.5) | (61.3) | (45.7) | |||||||||||||||||||
| Acquisition and integration related costs | (10.9) | (4.5) | (11.5) | (10.9) | |||||||||||||||||||
| Legal settlement accruals and other | — | — | — | (3.0) | |||||||||||||||||||
| Non-GAAP selling, general, and administrative expense | $ | 32.0 | $ | 31.1 | $ | 125.5 | $ | 120.7 | |||||||||||||||
| GAAP operating loss | $ | (16.1) | $ | (24.2) | $ | (67.1) | $ | (94.1) | |||||||||||||||
| Acquisition and integration related costs (1) | 34.7 | 38.4 | 130.5 | 125.1 | |||||||||||||||||||
| Share-based compensation | 34.2 | 31.1 | 149.3 | 112.8 | |||||||||||||||||||
| Legal settlement accruals and other | — | — | — | 3.0 | |||||||||||||||||||
| Intangible asset impairment | 6.8 | — | 6.8 | 13.8 | |||||||||||||||||||
| Restructuring costs | 0.7 | 1.4 | 3.3 | 16.9 | |||||||||||||||||||
| Non-GAAP operating income | $ | 60.3 | $ | 46.7 | $ | 222.8 | $ | 177.5 | |||||||||||||||
| GAAP net loss | $ | (447.4) | $ | (4.7) | $ | (490.8) | $ | (47.8) | |||||||||||||||
| Acquisition and integration related costs (1) | 34.7 | 38.4 | 130.5 | 125.1 | |||||||||||||||||||
| Share-based compensation | 34.2 | 31.1 | 149.3 | 112.8 | |||||||||||||||||||
| Restructuring costs | 0.7 | 1.4 | 3.3 | 16.9 | |||||||||||||||||||
| Legal settlement accruals and other | — | — | — | 3.0 | |||||||||||||||||||
| Intangible asset impairment | 6.8 | — | 6.8 | 13.8 | |||||||||||||||||||
| Loss on early extinguishment of debt | — | — | — | 6.5 | |||||||||||||||||||
| Other non-cash items | 0.8 | 0.8 | 3.0 | 2.7 | |||||||||||||||||||
| Other miscellaneous income/expense | 5.0 | — | 2.7 | — | |||||||||||||||||||
| Non-GAAP tax adjustments (2) | 415.3 | (27.5) | 381.1 | (89.1) | |||||||||||||||||||
| Non-GAAP net income | $ | 50.1 | $ | 39.5 | $ | 185.9 | $ | 143.9 | |||||||||||||||
GAAP net loss per share | $ | (11.53) | $ | (0.12) | $ | (12.62) | $ | (1.22) | |||||||||||||||
| Acquisition and integration related costs | 0.89 | 0.99 | 3.35 | 3.19 | |||||||||||||||||||
| Share-based compensation | 0.88 | 0.80 | 3.84 | 2.87 | |||||||||||||||||||
| Restructuring costs | 0.02 | 0.04 | 0.08 | 0.43 | |||||||||||||||||||
| Legal settlement accruals and other | — | — | — | 0.08 | |||||||||||||||||||
| Intangible asset impairment | 0.18 | — | 0.17 | 0.35 | |||||||||||||||||||
| Loss on early extinguishment of debt | — | — | — | 0.17 | |||||||||||||||||||
| Other non-cash items | 0.02 | 0.02 | 0.08 | 0.07 | |||||||||||||||||||
| Other miscellaneous income/expense | 0.13 | — | 0.07 | — | |||||||||||||||||||
| Non-GAAP tax adjustments (2) | 10.70 | (0.70) | 9.80 | (2.27) | |||||||||||||||||||
| Share adjustment | (0.06) | (0.02) | (0.19) | (0.05) | |||||||||||||||||||
| Non-GAAP net income per share - diluted | $ | 1.23 | $ | 1.01 | $ | 4.58 | $ | 3.62 | |||||||||||||||
| Shares used in per share calculation - diluted on GAAP basis | 38.8 | 38.6 | 38.9 | 39.3 | |||||||||||||||||||
| Non-GAAP adjustment (3) | 1.9 | 0.5 | 1.7 | 0.5 | |||||||||||||||||||
| Shares used in per share calculation - diluted on non-GAAP basis | 40.7 | 39.1 | 40.6 | 39.8 | |||||||||||||||||||
(1) Amounts and percentages may not reconcile due to rounding (2) Non-GAAP tax adjustments includes $425.3 million non-cash tax expense for the three months and year ended June 2026 related to the establishment of a full valuation allowance against U.S. deferred tax assets (3) The adjustment represents the net incremental dilutive shares from employee equity programs under the treasury stock method. Dilutive shares from our convertible debt instrument using the if-converted method are excluded from non-GAAP diluted share count as they are expected to be offset by the capped call transactions entered by the Company in conjunction with our 2031 Notes in order to reduce the potential dilution to the Company’s common stock upon the conversion. | |||||||||||||||||||||||
SYNAPTICS INCORPORATED
CONDENSED CONSOLIDATED CASH FLOWS
(In millions)
(Unaudited)
| Year Ended | |||||||||||
| 2026 | 2025 | ||||||||||
| Net loss | $ | (490.8) | $ | (47.8) | |||||||
| Non-cash operating items | 728.3 | 219.0 | |||||||||
| Changes in working capital | (88.1) | (29.2) | |||||||||
| Net cash provided by operating activities | 149.4 | 142.0 | |||||||||
| Acquisition of business, net of cash and cash equivalents acquired | — | (201.1) | |||||||||
| Purchases of short-term investments | — | (61.0) | |||||||||
| Proceeds from maturities of investments | 61.0 | — | |||||||||
| Purchase of intangible assets | — | (10.0) | |||||||||
| Purchases of property and equipment and other | (48.0) | (25.8) | |||||||||
| Net cash provided by (used in) investing activities | 13.0 | (297.9) | |||||||||
| Proceeds from issuance of convertible senior notes, net of issuance costs | — | 439.5 | |||||||||
| Payment of debt issuance costs on convertible senior notes and revolving credit facility | — | (4.4) | |||||||||
| Payments for capped call transactions related to the convertible senior notes | — | (49.9) | |||||||||
| Equity compensation, net | (31.2) | (5.7) | |||||||||
| Repurchases of common stock, exclusive of excise taxes | (92.7) | (128.3) | |||||||||
| Return of deposit from vendor | 14.0 | — | |||||||||
| Repayment of debt | — | (583.5) | |||||||||
| Other | (1.6) | 0.9 | |||||||||
| Net cash used in financing activities | (111.5) | (331.4) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 0.1 | 1.9 | |||||||||
| Net increase (decrease) in cash and cash equivalents | 51.0 | (485.4) | |||||||||
| Cash and cash equivalents, beginning of period | 391.5 | 876.9 | |||||||||
| Cash and cash equivalents, end of period | $ | 442.5 | $ | 391.5 | |||||||
SYNAPTICS INCORPORATED
Revenue By Product Categories
(In millions)
(Unaudited)
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| June 2026 | June 2025 | June 2026 | June 2025 | ||||||||||||||||||||
| Enterprise and Automotive product applications | $ | 164.3 | $ | 149.6 | $ | 641.1 | $ | 610.1 | |||||||||||||||
| Core IoT product applications | 104.6 | 84.2 | 389.7 | 272.4 | |||||||||||||||||||
| Mobile product applications | 39.1 | 49.0 | 166.4 | 191.8 | |||||||||||||||||||
| 308.0 | 282.8 | 1,197.2 | 1,074.3 | ||||||||||||||||||||