Synaptics (SYNA) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 revenue reached $294.2 million, up 10–10.4% year-over-year, driven by a 31% increase in Core IoT product sales and favorable product mix.

• Non-GAAP EPS was $1.09, up 21% year-over-year and at the high end of guidance; GAAP net loss was $8.0 million ($0.21 per share).

• Non-GAAP gross margin was 53.6%, exceeding guidance midpoint; GAAP gross margin improved to 45.3%.

• Strong momentum in Physical AI and Edge AI, with expanding customer engagements, new design wins in robotics, wearables, and medical devices, and partnerships such as the next-gen Coral Dev Board with Google.

• Cash and cash equivalents plus short-term investments totaled $404.4 million at quarter end.

Financial highlights

• Q3 FY2026 revenue: $294.2 million, up 10–10.4% year-over-year, above guidance midpoint.

• Core IoT revenue grew 31% year-over-year; Enterprise & Automotive up 9%; Mobile Touch down 16%.

• Non-GAAP gross margin was 53.6%; non-GAAP operating margin 18.1%, up 260 bps year-over-year.

• Non-GAAP net income was $44.1 million; non-GAAP EPS $1.09, up 21% year-over-year.

• Ended Q3 with $404 million in cash and equivalents; $39 million in share repurchases during Q3.

Outlook and guidance

• Q4 FY2026 revenue expected at $305 million midpoint (±$10 million); non-GAAP gross margin guided at 53.5% midpoint (±1%).

• Q4 non-GAAP EPS expected at $1.20 midpoint (±$0.15) on 40.4 million diluted shares.

• Q4 revenue mix: 33% Core IoT, 54% Enterprise/Automotive, 13% Mobile Touch.

• Full-year FY2026 Core IoT revenue expected to exceed $385 million, up over 40% year-over-year.

• Management anticipates meaningful Astra processor ramp in calendar 2027.