Synaptics’ IoT Growth Accelerates Ahead of Pending onsemi Deal
Synaptics posted a second straight year of double-digit revenue growth as Core IoT sales surged, but a large tax-related charge drove a steep GAAP loss. Its pending all-stock sale to onsemi now puts execution and integration risks at the center of the outlook.
Synaptics Reports Fourth Quarter and Full Year Fiscal 2026 Results
Synaptics Q3 2026 presentation: Core IoT revenue jumps 31% YoY
Synaptics Stock Price, News & Analysis
Earnings call transcript: Synaptics beats Q3 2026 forecasts
On-device AI for homes and factories: inside Synaptics at COMPUTEX 2026
Connected-device chips set the pace
Synaptics reported $308 million in fiscal fourth-quarter revenue, up 9% from a year earlier, as sales of its Core IoT products rose 24%. For the year ended June 27, revenue reached $1.197 billion, an 11% increase and the company’s second consecutive year of double-digit growth.manilatimes
The strongest expansion came from Core IoT, which includes wireless connectivity and edge-computing products. Annual sales in that portfolio jumped 43% and accounted for 33% of total revenue, extending the momentum seen in the March quarter, when Core IoT sales grew 31%.manilatimes +1
A wide gap separates reported and adjusted profit
Synaptics posted a fourth-quarter GAAP net loss of $447.4 million, or $11.53 per share, after recording a $425.3 million non-cash charge tied to a valuation allowance against U.S. deferred tax assets. Excluding that charge and other adjustments, the company reported $50.1 million in non-GAAP net income and diluted earnings of $1.23 per share.manilatimes
For the full year, the GAAP net loss was $490.8 million, while non-GAAP net income reached $185.9 million. Adjusted earnings per share increased 27% to $4.58, and the company repurchased $92.7 million of stock. Non-GAAP operating margin reached 20% in the fourth quarter, its highest level in 13 quarters, according to Chief Executive Rahul Patel.manilatimes
The underlying mix has been improving, but it is not free of pressure. In the prior quarter, management said mobile-touch revenue fell 16% year over year and warned that memory constraints, softer consumer demand and supply-chain disruption could weigh on customers. Executives also said newer Astra processor revenue was expected to become meaningful in calendar 2027 rather than immediately.investing
The takeover reshapes what comes next
Synaptics did not issue a forward outlook or schedule an earnings call because of its pending all-stock sale to onsemi, agreed in June. The proposed combination still requires regulatory and Synaptics shareholder approvals, and transaction disclosures warn that delays, integration costs and customer or employee disruption could prevent the companies from realizing expected benefits.stocktitan
The deal is intended to pair Synaptics’ connected-computing, sensing and interface technology with onsemi’s power and automotive semiconductor portfolio. Onsemi has projected about $200 million in annual synergies and expects the transaction to add to adjusted earnings within 18 months of closing, but the buyer’s shares fell about 19% after the announcement as investors weighed execution risk and increased exposure to consumer devices.invezz
For now, Synaptics’ growth case rests on converting design wins in robotics and edge AI into durable sales. The company plans to begin sampling its AI-focused Astra SR-Series microcontrollers this fall, while the takeover shifts attention from quarterly guidance to whether a larger combined supplier can turn that product pipeline into profitable scale.manilatimes