Synaptics (SYNA) Q2 2026 earnings summary

Executive summary

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

• Non-GAAP EPS increased 32% year-over-year to $1.21, while GAAP net loss was $14.8 million (loss per share $0.38).

• Showcased new Edge AI and Physical AI technologies, with growing traction in robotics and humanoids.

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

• Management highlighted strong execution, robust backlog, and continued investment in organic growth initiatives.

Financial highlights

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

• Non-GAAP gross margin was 53.6%; GAAP gross margin was 43.5%, down year-over-year due to higher amortization of acquired intangibles.

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

• Non-GAAP net income was $48.4 million; non-GAAP EPS $1.21, up 32% year-over-year.

• Cash and cash equivalents at quarter end were $437.4 million; $36.4 million returned to shareholders via stock repurchases in Q2.

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.

• Management expects continued exposure to macroeconomic uncertainties, supply chain constraints, and industry cyclicality.