Core Insights - Synaptics reported a strong fiscal Q2 2026 with revenue of $302.5 million, representing a 13% year-over-year increase, marking the fifth consecutive quarter of double-digit revenue growth [3][4][6] - The company emphasized a strategic shift towards "Physical and Edge AI," aligning with its focus on delivering power-efficient intelligent systems at the Edge [1][4] - Core IoT revenue surged by 53% year-over-year, primarily driven by robust performance in wireless connectivity products [1][4] Financial Performance - Non-GAAP EPS for Q2 was $1.21, up 32% year-over-year, with non-GAAP net income reported at $48.4 million [2][6] - Non-GAAP gross margin was 53.6%, slightly above the midpoint of guidance, while non-GAAP operating margin improved to 19.2%, up 160 basis points sequentially and 190 basis points year-over-year [2][6] - For fiscal Q3 2026, Synaptics guided revenue to approximately $290 million at the midpoint, with expected non-GAAP EPS of $1.00 [14][15] Product Development and Strategy - The Astra processor and microcontroller portfolio are central to Synaptics' Edge AI strategy, with sampling ahead of schedule and production expected soon [5][10][12] - The company is seeing early traction in robotics and humanoid applications, with product sampling for a major customer planning pilot shipments this year [5][7][9] - Touch sensing technology is highlighted as crucial for humanoid robots, enabling dexterity through integrated ML/AI algorithms [8][9] Market Trends and Guidance - Management noted improving supply conditions, although challenges remain in certain areas, particularly in mobile, which is characterized as stable [16] - The company ended Q2 with $158 million in inventory, reflecting a strategic decision to purchase inventory ahead of demand [17] - Looking ahead, the June quarter is expected to show slight growth compared to March, with a higher starting backlog for Q4 [19]