SYNAPTICS Inc (SYNA) · Nov 5, 2026 · Earnings

Synaptics earnings miss revenue as smartphone softness hits AI pivot

Miss — Non-GAAP EPS $1.26 vs ~$1.25 consensus; revenue $294.0M vs ~$315.6M

Synaptics earnings showed a narrow EPS beat, but revenue missed consensus as smartphone weakness and supply constraints offset improving Edge AI margins.

Synaptics is in a transition: its established touch and wireless businesses are softening while it tries to build a higher-growth Edge AI and Physical AI platform around Astra processors, sensing, wireless connectivity, and robotics. That pivot is now happening under a pending all-cash acquisition by onsemi, which means management has stopped providing forward guidance. The published Q1 fiscal 2027 expectation was roughly $315.6 million of revenue and $1.25 of non-GAAP diluted EPS.

The quarter missed where the business is most exposed: revenue. Revenue was $294.0 million, up only 0.5% year over year and about 6.8% below the published consensus, while management attributed the shortfall to supply constraints, memory-related demand dynamics, and smartphone softness affecting touch and wireless products. 〔0〕

Q1 FY2027Q1 FY2026Consensus
Revenue (Financial Statements)$294.0M (-6.8% vs. consensus)$292.5M$315.6M
Non-GAAP diluted EPS (Reconciliation)$1.26 (+0.8% vs. consensus)$1.09$1.25
GAAP diluted EPS (Income Statement)$(0.45)$(0.53)
Non-GAAP operating income (Reconciliation)$62.0M (+20.4%)$51.5M
Operating cash flow (Cash Flow statement)$(15.5)M$30.2M

Profitability improved despite the top-line miss. Non-GAAP EPS narrowly exceeded expectations, helped by non-GAAP operating income rising to $62.0 million from $51.5 million and adjusted gross margin improving to 54.3% from 53.2%. That shows the company is extracting more profit from its current mix, but the improvement does not offset the weaker-than-expected demand signal.

The Edge AI narrative gained validation, but not yet material scale. Synaptics said its tactile sensing module and Astra processors now work with NVIDIA Isaac Sim and Holoscan, and described broader robotics customer engagement. Those platform connections support the strategic pivot, but the filing gives no revenue contribution, backlog, or outlook showing that Edge AI is yet large enough to overcome weakness in the legacy businesses. 〔1〕

Cash generation deteriorated materially. Operating cash flow swung to a $15.5 million use from $30.2 million of cash provided a year earlier, while cash fell to $367.7 million from $442.5 million at the June quarter-end. Working-capital investment and a $25.0 million intangible-asset purchase were the main uses shown, making this a weaker cash quarter even though adjusted operating profit improved.

The merger limits the forward read-through. Because the onsemi transaction is pending, Synaptics is not hosting an earnings call or issuing financial outlook; the filing therefore gives investors no new management benchmark for the next quarter. The operating result is best read as a modestly negative update: margins and adjusted EPS held up, but revenue demand came in well below expectations and cash conversion weakened.

Bottom line: Synaptics is executing the Edge AI transition with better margins, but this quarter says the existing business is weaker than expected and the new growth engine has not yet filled the gap. The result is a mixed quarter leaning negative, with the pending onsemi deal now more important than standalone guidance.

What to watch next

Onsemi merger vote and closing process

Original filing on SEC EDGAR

More SYNAPTICS Inc news

Synaptics earnings miss revenue as smartphone softness hits AI pivot | SYNA Stock News
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