Synaptics (SYNA) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 revenue reached $292.5 million, up 14% year-over-year, driven by a 74% increase in Core IoT revenue, while Enterprise & Automotive was flat and Mobile declined due to supply constraints.

• Non-GAAP EPS rose 35% year-over-year to $1.09, while GAAP EPS was a loss of $0.53 per share.

• Launched next-generation Astra Edge AI processors, marking a major milestone in Edge AI strategy and securing early design wins.

• Strong design win momentum across processors, wireless connectivity, and mobile touch, with new products expected to contribute to revenue in the next fiscal year.

• Cash flow from operations was $30.2 million for the quarter.

Financial highlights

• Q1 FY2026 revenue was $292.5 million, up from $257.7 million in Q1 FY2025.

• Core IoT revenue grew 74% year-over-year to $104 million, representing 35% of total revenue; Enterprise & Automotive was flat at $148 million, and Mobile declined to $41 million.

• Non-GAAP gross margin was 53.2%; GAAP gross margin was 42.6%.

• Non-GAAP operating margin was 17.6%, up 90 basis points year-over-year; non-GAAP net income was $43.3 million.

• Ended Q1 with $459.9 million in cash and equivalents; operating cash flow was $30.2 million.

Outlook and guidance

• Q2 FY2026 revenue expected at $300 million midpoint (±$10 million), with Core IoT at 31%, Enterprise & Automotive at 53%, and Mobile at 16%.

• Non-GAAP gross margin expected at 53.5% midpoint (±1%); non-GAAP EPS guidance at $1.15 per share midpoint (±$0.15).

• FY2026 Core IoT revenue growth expected at 25%-30%.

• Guidance reflects ongoing macroeconomic, trade, and supply chain uncertainties.