Synaptics (SYNA) Q2 2026 earnings summary

Executive summary

• Achieved 13% year-over-year revenue growth in Q2 FY26 to $302.5 million, marking the fifth consecutive quarter of double-digit growth, driven by 53% growth in Core IoT products.

• Non-GAAP EPS rose 32% year-over-year to $1.21, while GAAP EPS was a loss of $0.38 per share; non-GAAP net income was $48.4 million.

• Showcased new Edge AI and connectivity solutions at CES, with growing traction in robotics, humanoids, and smart home markets.

• Strategic focus on Edge AI and Physical AI aligns with industry trends and positions for long-term growth.

• Expanded customer engagements and design wins across consumer, industrial, and enterprise markets, particularly with Astra processors.

Financial highlights

• Q2 FY26 revenue was $302.5 million, up 13% year-over-year and above guidance midpoint.

• Core IoT product revenues increased 53% year-over-year; enterprise and automotive up modestly; mobile touch up 3%.

• Non-GAAP gross margin was 53.6%; GAAP gross margin was 43.5%.

• Non-GAAP operating margin was 19.2%, up 190 bps year-over-year; GAAP operating margin was -5.0%.

• Ended Q2 with $437.4 million in cash and equivalents; repurchased $36.4 million in shares during the quarter, $43.6 million fiscal year-to-date.

Outlook and guidance

• Q3 FY26 revenue expected at $290 million midpoint (±$10 million), with Core IoT, enterprise/auto, and mobile touch at 32%, 54%, and 14% of mix, respectively.

• Non-GAAP gross margin guided to 53.5% midpoint (±1%); GAAP gross margin expected at 45.0% (±2%).

• Non-GAAP EPS expected at $1.00 midpoint (±$0.15); GAAP EPS guidance is a loss of $0.46 (±$0.25).

• Guidance reflects continued year-over-year growth and a healthy backlog, but is subject to macroeconomic, global trade, and tariff-related uncertainties.