Financial Performance - Net revenue for Q2 fiscal 2026 was $302.5 million, representing a 13% year-over-year increase[2] - GAAP net loss for Q2 fiscal 2026 was $14.8 million, or a loss of $0.38 per basic share[2] - Non-GAAP net income for Q2 fiscal 2026 was $48.4 million, or $1.21 per diluted share[2] - The company has maintained double-digit year-over-year revenue growth for five consecutive quarters[4] - The outlook for Q3 reflects continued year-over-year growth, supported by a healthy backlog[4] - Net loss for the three months ended December 2025 was $(14.8) million, compared to a net income of $1.8 million in the same period of 2024[30] - Net loss for the six months ended December 2025 was $35.4 million, compared to a loss of $21.3 million in the same period of 2024[35] Revenue and Growth - Core IoT product sales grew by 53% year-over-year, significantly contributing to revenue growth[3] - For Q3 fiscal 2026, the company expects revenue of $290 million ± $10 million[6] - Net revenue for the three months ended December 2025 was $302.5 million, a 13.9% increase from $267.2 million in the same period of 2024[30] Margins and Expenses - GAAP gross margin was 43.5%, while non-GAAP gross margin was 53.6%[5] - Projected non-GAAP gross margin for Q3 fiscal 2026 is 53.5% ± 1.0 percent[6] - Gross margin for the three months ended December 2025 was $131.7 million, representing 43.5% of revenue, compared to 45.7% in the same period of 2024[32] - Research and development expenses for the three months ended December 2025 were $95.1 million, an increase of 14.5% from $83.3 million in the same period of 2024[32] Assets and Liabilities - Total current assets as of December 2025 were $771.0 million, up from $751.9 million in June 2025[28] - Total liabilities as of December 2025 were $1,179.5 million, a decrease from $1,189.5 million in June 2025[28] - Total stockholders' equity as of December 2025 was $1,383.8 million, down from $1,394.9 million in June 2025[28] Cash Flow - Cash and cash equivalents increased to $437.4 million as of December 2025, compared to $391.5 million in June 2025[28] - Net cash provided by operating activities rose to $60.0 million, up from $11.4 million in the previous year[35] - Net cash used in investing activities improved to $37.2 million from a usage of $14.6 million in the prior period[35] - Cash and cash equivalents at the end of the period were $437.4 million, down from $596.1 million a year earlier[35] - The company reported a net increase in cash and cash equivalents of $45.9 million, contrasting with a decrease of $280.8 million in the prior year[35] Stock and Financing Activities - Repurchases of common stock amounted to $43.6 million, a decrease from $74.5 million in the same period last year[35] - Net cash used in financing activities was $51.1 million, compared to $278.2 million in the previous year[35] - The company did not acquire any businesses during the period, compared to a cash outflow of $0.8 million in the previous year[35] Non-Cash Items - Non-cash operating items increased to $155.7 million from $97.3 million year-over-year[35] - The effect of exchange rate changes on cash and cash equivalents resulted in a decrease of $0.2 million[35]

Core IoT product sales increased 53% year-over-yearQ2'26 Financial Results Revenue of $302.5 million, up 13% year-over-yearFiscal second quarter Core IoT product sales grew by 53% year-over-yearGAAP gross margin of 43.5%Non-GAAP gross margin of 53.6%GAAP loss per share of $0.38Non-GAAP diluted earnings per share of $1.21 SAN JOSE, Calif., Feb. 05, 2026 (GLOBE NEWSWIRE) -- Synaptics Incorporated (Nasdaq: SYNA) today reported financial results for its second quarter of fiscal 2026 ended December 27, 2025. Ne ...

Core Viewpoint - Synaptics Incorporated will report its financial results for the second quarter of fiscal 2026 on February 5, 2026, after market close, and will host a conference call for analysts and investors to discuss these results [1]. Group 1: Financial Reporting - The financial results for Q2 FY2026 will be announced on February 5, 2026, after the market closes [1]. - A conference call for analysts and investors will take place at 2:00 p.m. PT (5:00 p.m. ET) to discuss the financial results [1]. Group 2: Participation Details - Analysts and investors must pre-register to participate in the live call, receiving dial-in information and a unique passcode [2]. - Participants are encouraged to join the call at least ten minutes before the scheduled start time [2]. - A live and archived webcast of the conference call will be available on the Company's website [2]. Group 3: Company Overview - Synaptics is focused on driving innovation in AI at the Edge, enhancing user engagement with intelligent connected devices [3]. - The company offers advanced solutions such as Synaptics Astra™ AI-Native embedded compute, Veros wireless connectivity, and multimodal sensing [3]. - Synaptics aims to make digital experiences smarter, faster, and more intuitive across various applications including touch, display, biometrics, and AI-driven connectivity [3].

Synaptics Conference Call Summary Company Overview - **Company**: Synaptics (NasdaqGS:SYNA) - **Industry**: Semiconductor, focusing on AI at the edge, connectivity, and sensing solutions - **Founded**: 1986 - **Key Products**: Astra AI native embedded compute, Veros wireless connectivity, multimodal sensing solutions [2][5] Core Points and Arguments Company Evolution and Market Position - Synaptics has transformed from a touch technology company to a leader in edge AI solutions, capitalizing on opportunities in the semiconductor space over nearly 40 years [5][6] - The company holds significant market shares in touch and sensing technologies, with a focus on growth in edge AI [6] Astra Platform - The Astra platform, specifically the 2600 series processor, is designed for AI at the edge, featuring a unique two-core architecture and embedded Google’s Coral RISC-V NPU [9][10] - The platform is differentiated by its low power consumption, eliminating the need for heat sinks or fans, making it suitable for various applications, including industrial and consumer markets [10][11] - Initial customer reception has been positive, with applications in industrial healthcare and consumer-oriented solutions like real-time language translation [15][16] Wireless Connectivity - Synaptics has built a strong wireless connectivity business, growing its IoT segment by over 50% on average, driven by advancements from Wi-Fi 6 to Wi-Fi 7 [29][30] - The company is positioned to leverage its connectivity solutions alongside its processor capabilities, offering comprehensive solutions for IoT and edge AI [30] Partnership with Google - The partnership with Google enhances Synaptics' technology through the integration of the Coral Machine Learning Accelerator, providing a competitive edge in AI processing capabilities [21][25] - This collaboration allows for improved compute performance and lower battery consumption, with claims of 2-3x compute improvement relative to peers [26] Market Outlook - Synaptics anticipates a recovery in enterprise spending and demand for PCs, driven by a refresh cycle and the transition to AI PCs [41][42] - The company is optimistic about growth opportunities in both mature and emerging markets, including foldable phones and smart home devices [42] Financial Strategy - Synaptics prioritizes organic investment in growth engines, potential tuck-in acquisitions, and maintaining a strong balance sheet while returning capital to shareholders [46][47] - The company returned approximately $128 million to shareholders in fiscal 2025 and initiated a $150 million share repurchase program [47] Additional Important Content - Synaptics is committed to an open-source approach in AI, aiming to integrate the best models from the community into its solutions [12] - The company is exploring applications in robotics, utilizing its touch sensing and processing capabilities [18][19] - The development of a wirelessly connected MCU with AI integrated on a single chip is expected to target smart home and wearable markets, enhancing power efficiency and cost-effectiveness [36] Conclusion - Synaptics is well-positioned for growth in the semiconductor industry, particularly in edge AI and IoT, with a strong focus on innovation, strategic partnerships, and market expansion [49][50]

Summary of Key Points from J.P. Morgan's Semiconductor Industry Conference Call Industry Overview - The semiconductor industry is experiencing a strong demand driven by AI spending and data center build-outs, with companies like NVIDIA and Marvell seeing significant visibility and demand growth [1][5] - Concerns about a potential "AI bubble" are present, but companies report no signs of deceleration in customer activity, with many already planning for deployments in 2027 [1][5] Company-Specific Insights NVIDIA Corporation - NVIDIA is deeply engaged with customers for CY27 deployments, indicating a "tremendous" demand curve ahead [9] - The company has added to its previously announced backlog of over $500 billion, with expectations of significant revenue from data center operations [9] - Supply chain readiness for CY26 is confirmed, with confidence in managing the transition to new systems [9] - NVIDIA is focusing on physical AI opportunities, particularly in automotive and other industry verticals [9] - A 90% attach rate for networking products in data centers indicates strong integration of NVIDIA's offerings [9] Marvell Technology Inc. - Marvell's short-term bookings are described as "on fire," with expectations of 25% growth in the datacenter business for CY26 and 40% for CY27 [12] - AI custom ASIC revenues are projected to double to $3.6 billion in CY27, driven by strong demand from major customers [12] - The company is well-positioned in networking products, with significant growth expected in optical networking and switching [12] Analog Devices (ADI) - ADI is experiencing a cyclical recovery, particularly in industrial and communications segments, with a 50% year-over-year growth in the datacenter segment [15] - The company anticipates a return to normalized consumption levels in 2026, with strong momentum in automotive and consumer electronics [15] Micron Technology (MU) - Micron has a $10 billion design win pipeline expected to unfold over the next 4-5 years, with strong demand for DRAM and NAND [21] - The company expects at least 20% growth in bit shipments for both DRAM and NAND in CY26, despite supply constraints [21][23] - Pricing for DRAM is forecasted to increase by nearly 60% year-over-year in CY26 due to ongoing supply-demand tightness [23] Synaptics Inc. - Synaptics is focusing on context window memory management as a growing demand vector for NAND, driven by AI applications [24] - The company expects physical AI and robotics to become significant demand drivers for memory in the future [24] Silicon Laboratories Inc. (SLAB) - SLAB is seeing strong revenue growth from electronic shelf labels and smart metering, with expectations of continued momentum into 2026 [18] - The continuous glucose monitoring business is also expected to contribute significantly to revenue growth [18] Market Trends - The overall tone in the memory market is bullish, with improving demand for DRAM and NAND as AI applications increase memory requirements [1][5] - Companies are actively working on new product introductions and demos to capture opportunities in physical AI and edge AI applications [1][5] Conclusion - The semiconductor industry is poised for strong growth driven by AI and data center demands, with key players like NVIDIA, Marvell, and Micron leading the charge. The cyclical recovery in end markets and the focus on innovative applications in AI and edge computing are expected to sustain momentum through 2026 and beyond [1][5][12][21]

Core Viewpoint - Synaptics (SYNA) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Business Improvement Indicators - The increase in earnings estimates for Synaptics indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [4][9]. - Over the past three months, the Zacks Consensus Estimate for Synaptics has risen by 4.3% [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6][8]. - Synaptics' upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

Core Viewpoint - Synaptics Incorporated is actively participating in the investment community by presenting at the 28th Annual Needham Growth Conference, showcasing its commitment to innovation and engagement with investors [1]. Company Overview - Synaptics (Nasdaq: SYNA) is focused on driving innovation in AI at the Edge, enhancing user interaction with intelligent connected devices across various environments [2]. - The company offers advanced solutions such as Synaptics Astra™ AI-Native embedded compute, Veros™ wireless connectivity, and multimodal sensing technologies, aiming to create smarter, faster, and more intuitive digital experiences [2]. - Synaptics is positioned as a key partner for product innovators, contributing to the next generation of technology that improves daily life, work, and leisure activities [2].

Core Insights - Edgecore Networks and Synaptics have announced a strategic collaboration aimed at advancing scalable Edge AI and AIoT platforms [1] Company Collaboration - The partnership focuses on integrating Edgecore's networking solutions with Synaptics' AI technologies to enhance performance and scalability in edge computing [1] - This collaboration is expected to drive innovation in the AIoT sector, providing more efficient and effective solutions for various applications [1] Market Implications - The strategic alliance positions both companies to capitalize on the growing demand for Edge AI and AIoT technologies, which are increasingly being adopted across multiple industries [1] - By leveraging each other's strengths, the companies aim to accelerate the development of next-generation edge solutions that meet the evolving needs of customers [1]

Core Insights - Synaptics Incorporated appointed Venkatesh Nathamuni to its Board of Directors and Audit Committee, effective January 1, 2026 [1][2] Group 1: Appointment Details - Venkatesh Nathamuni has over 30 years of leadership experience in corporate finance, strategy, mergers and acquisitions, investor relations, and public company governance [2] - Nathamuni has held senior executive roles at Cirrus Logic, Arista Networks, and Maxim Integrated Products, and is currently the CFO of Jacobs Solutions Inc [2] - His educational background includes an MBA in Finance and Strategy from The Wharton School, a Master's in Electrical & Electronics Engineering, and a Bachelor's in Electronics & Communications Engineering [2] Group 2: Board's Perspective - The Chairman of the Board, Nelson Chan, highlighted Nathamuni's semiconductor industry experience and financial leadership as valuable assets for Synaptics [3] - President and CEO Rahul Patel emphasized that Nathamuni's strategic insight and experience will support the company's growth strategy [3] - Nathamuni expressed his honor in joining the Board and his commitment to contributing to Synaptics' focus on disciplined growth and strong governance [3] Group 3: Company Overview - Synaptics is focused on driving innovation in AI at the Edge, enhancing user engagement with intelligent connected devices [4] - The company offers advanced solutions in AI-Native embedded computing, wireless connectivity, and multimodal sensing [4] - Synaptics aims to create smarter, faster, and more intuitive digital experiences across various applications, including touch, display, biometrics, and security processing [4]

Core Viewpoint - Synaptics Incorporated (NASDAQ:SYNA) is recognized as a promising tech stock with an attractive risk/reward profile, particularly as it transitions towards becoming a key player in the Internet of Things (IoT) market [1][3]. Group 1: Analyst Coverage and Ratings - Wells Fargo initiated coverage of Synaptics with an "Overweight" rating and a price target of $95, indicating confidence in the stock's potential through 2026 [3]. - The firm anticipates a valuation re-rating for Synaptics over time, driven by its strategic shifts and product developments [3]. Group 2: Product Development and Market Focus - Synaptics launched the Astra SL2600 Series of multimodal Edge AI processors in October, aimed at various intelligent IoT applications, marking a shift from legacy products to embedded edge compute solutions [4]. - The SL2610 product line targets high-growth markets such as smart appliances, industrial automation, healthcare devices, retail systems, robotics, and autonomous platforms [4]. Group 3: Strategic Collaborations - In November, Synaptics announced a collaboration with Qualcomm Technologies, enhancing its transition from a traditional human-interface supplier to a provider of AI-enabled edge solutions [5]. - This partnership focuses on integrating touch and fingerprint sensing technologies for mobile devices, wearables, and AI PCs, emphasizing the importance of sensing, compute, and security in edge intelligence [5]. Group 4: Future Outlook - Synaptics is well-positioned for further growth in the embedded edge and IoT markets, supported by strong product momentum and strategic partnerships [6]. - The company specializes in mixed-signal semiconductor solutions that facilitate intelligent interactions across various sectors, including consumer, automotive, and enterprise environments [6].