Did Synaptics beat earnings in Q2 FY2026?

Yes. Synaptics beat revenue estimates by 4.2% ($302.5M vs $290.2M expected) and non-GAAP EPS by 14.2% ($1.21 vs $1.06 expected), driven by 53% YoY growth in Core IoT products.

What did Synaptics say about AI and robotics?

CEO Rahul Patel highlighted the 'accelerating shift toward physical and edge AI' and noted Synaptics is now 'sampling solutions in humanoids,' signaling expansion into robotics markets.

Did Synaptics raise guidance?

Synaptics guided Q3 FY2026 revenue at $290M ± $10M, above consensus of $285.7M, but below Q2's $302.5M. Non-GAAP EPS guidance of $1.00 ± $0.15 was in line with consensus.

SYNAPTICS (SYNA)·Q2 2026 Earnings Summary

Synaptics Beats on Core IoT Strength, Stock Slides After Hours on Q3 Guidance

February 5, 2026 · by Fintool AI Agent

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Synaptics delivered a strong beat on both revenue and earnings in its second quarter of fiscal 2026, with Core IoT product sales surging 53% year-over-year and driving the company's fifth consecutive quarter of double-digit top-line growth. However, shares fell approximately 5% in after-hours trading as guidance implied a sequential revenue decline in Q3, despite remaining above Street expectations.

Did Synaptics Beat Earnings?

Yes — Synaptics beat on both revenue and EPS:

Metric	Q2 FY26 Actual	Consensus	Beat/Miss
Revenue	$302.5M	$290.2M	+4.2% beat
Non-GAAP EPS	$1.21	$1.06	+14.2% beat
GAAP EPS	($0.38)	—	N/A
Non-GAAP Gross Margin	53.6%	—	In-line

The beat was driven by strength in the Core IoT segment, which grew 53% year-over-year to account for an increasing share of total revenue. This marks the eighth consecutive quarter of EPS beats for Synaptics.*

Beat/Miss History (Last 8 Quarters)

Period	EPS Actual	EPS Est.	Beat	Rev Actual	Rev Est.	Beat
Q2 FY26	$1.21	$1.06	+14.2%	$302.5M	$290.2M	+4.2%
Q1 FY26	$1.09	$1.00	+9.0%	$292.5M	$280.2M	+4.4%
Q4 FY25	$1.01	$0.86	+17.4%	$282.8M	$265.0M	+6.7%
Q3 FY25	$0.92	$0.86	+7.0%	$267.2M	$265.6M	+0.6%
Q2 FY25	$0.90	$0.86	+4.8%	$266.6M	$265.0M	+0.6%
Q1 FY25	$0.81	$0.75	+8.0%	$257.7M	$255.2M	+1.0%
Q4 FY24	$0.64	$0.55	+16.4%	$247.4M	$245.2M	+0.9%
Q3 FY24	$0.53	$0.49	+8.2%	$237.3M	$235.2M	+0.9%

*Values retrieved from S&P Global

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What Did Management Guide?

Q3 FY2026 guidance came in above consensus, but below Q2 actuals:

Metric	Q3 FY26 Guide	Consensus	vs. Q2 FY26
Revenue	$290M ± $10M	$285.7M	-4.1% seq.
Non-GAAP EPS	$1.00 ± $0.15	$0.98	-17.4% seq.
Non-GAAP Gross Margin	53.5% ± 1.0%	—	-10 bps seq.

CFO Ken Rizvi emphasized the company "entered the third quarter with a healthy backlog" and that "guidance reflects continued year-over-year growth." Despite sequential softness, the guidance midpoint implies approximately 9% year-over-year revenue growth in Q3 (vs. $267M in Q3 FY25).

Guidance vs. Prior Quarter Guide

Metric	Q2 FY26 Guide (Nov 2025)	Q2 FY26 Actual	Delta
Revenue	$300M ± $10M	$302.5M	+$2.5M vs. midpoint
Non-GAAP EPS	$1.15 ± $0.15	$1.21	+$0.06 vs. midpoint

Management has consistently guided conservatively, beating the high end of guidance for three consecutive quarters.

How Did the Stock React?

Intraday and after-hours performance:

Metric	Value
Regular Close	$87.31
After-Hours	$82.75
AH Change	-5.2%
52-Week High	$94.59
52-Week Low	$41.80

The after-hours decline likely reflects investor disappointment with the sequential revenue decline implied in Q3 guidance. The stock had rallied approximately 6% over the prior two trading sessions in anticipation of results.

What Changed From Last Quarter?

Core IoT Growth Moderated But Remained Strong

Metric	Q1 FY26	Q2 FY26	Change
Core IoT YoY Growth	+74%	+53%	Moderated
Total Revenue YoY Growth	+14%	+13%	Slight deceleration
Core IoT % of Revenue	35%	~33%*	Stable
Non-GAAP Gross Margin	53.2%	53.6%	+40 bps
Non-GAAP Operating Margin	17.6%	19.1%	+150 bps

*Estimated based on mix commentary.

Key Developments This Quarter

Humanoid Robotics in Pilot Phase: CEO Patel revealed Synaptics is sampling silicon for "pilot builds of a humanoid at a major customer" — the industry leader plans to ship pilots this year and enter production in late 2027. Synaptics content includes touch controllers (30+ per robotic hand demonstrated at CES) and interface bridge products for high-bandwidth data transport.
Astra Product Portfolio Expansion: Two new products now in early sampling — an Astra MCU with integrated Wi-Fi 7 + Bluetooth 6 + Thread (only solution in its class with Wi-Fi 7), and a standalone connectivity SoC for non-Astra platforms
Wi-Fi 8 Development Underway: Over 500 engineers working on Wi-Fi 8, with customer sampling planned by year-end
Semi-Custom MCU On Track: Major customer semi-custom MCU tape out expected in April 2026
Organizational Restructuring: Processors and connectivity teams combined into single organization to accelerate integrated solution roadmap
New Design Wins: Secured Astra design with tier-one consumer electronics OEM for gesture-based TV control; added another foldable design with leading China OEM

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Key Management Quotes

On Edge AI and Robotics Opportunity:

"A defining theme at CES and across the industry is the accelerating shift towards Physical and Edge AI as intelligence moves closer to the device. This evolution aligns directly with Synaptics' strategic focus and core product strengths." — Rahul Patel, President & CEO

On Humanoid Robotics Progress:

"We are now sampling silicon for a pilot build to a company that's leading the marketplace, building multiple advanced humanoids to be delivered to the marketplace at the end of this year as pilots." — Rahul Patel, President & CEO

On Competitive Positioning in Wi-Fi:

"I can't think of any microprocessor or MCU company investing in wireless connectivity at the pace at which we are... We have over 500 engineers right now working on Wi-Fi 8 at Synaptics." — Rahul Patel, President & CEO

On June Quarter Outlook:

"The starting backlog for Q4 compared to the same point in time for Q3 is up. Obviously, we need to continue to see progress in those trends in terms of bookings, but that's at least a strong data point for us as we look to June." — Ken Rizvi, CFO

Segment Performance

Revenue Mix

Segment	Q2 FY26 Mix	Q2 FY26 Rev.	Q3 FY26 Guide Mix	YoY Trend
Core IoT	31%	~$94M	32%	+53% YoY
Enterprise & Automotive	53%	~$160M	54%	Modest growth
Mobile Touch	16%	~$48M	14%	+3% YoY

Core IoT continues to be the growth engine, driven by:

Wireless connectivity products (primary driver of 53% YoY growth)
Astra AI-native processors gaining design wins in TVs, appliances, and robotics
New sampling of integrated Wi-Fi 7 MCU and standalone connectivity SoC

Enterprise & Automotive showed modest sequential improvement:

Enterprise PC benefiting from market share gains AND gradual refresh cycle
Automotive remains "range-bound" and is not a strategic focus

Mobile Touch benefited from improving supply:

Supply constraints from Q1 are "starting to ease"
Premium tier insulated from memory shortage pressures
New foldable design win with leading China OEM (2x content vs. regular phones)

Financial Trends

Quarterly Financial Summary

Metric	Q3 FY24	Q4 FY24	Q1 FY25	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26
Revenue ($M)	$237.3	$247.4	$257.7	$267.2	$266.6	$282.8	$292.5	$302.5
Gross Margin (GAAP)	46.5%	45.8%	46.9%	45.7%	43.4%	43.0%	42.6%	43.5%
Operating Cash Flow ($M)	($13.7)	$65.0	($11.4)	$22.8	$73.4	$57.2	$30.2	$29.8*

*Q2 FY26 cash flow estimated from 6-month data.

Balance Sheet Highlights

Metric	Dec 2025	Sep 2025	Commentary
Cash & Equivalents	$437.4M	$459.9M	Down $22.5M QoQ
Share Repurchases	$36.4M	$7.2M	$43.6M YTD
Inventory	$158.0M	$143.0M	+$15M strategic build
Days of Inventory	101	94	+7 days QoQ
Days Sales Outstanding	39	37	+2 days QoQ
Operating Cash Flow	$30.0M	—	Positive generation

CFO Rizvi noted the inventory increase "reflects our strategic decision to purchase inventory slightly ahead of demand" — positioning for expected Astra and connectivity product ramps.

Forward Catalysts

Astra Platform Revenue Ramp (Calendar 2027): Astra microprocessor production expected end of Q3/early Q4 FY2026. CEO confirmed "meaningful revenue contribution in calendar 2027" with "very accretive" gross margin impact.
Integrated MCU + Wi-Fi 7 Product: Now in early sampling phase — the only MCU in its class with Wi-Fi 7, Bluetooth 6, and Thread. Integrates touch and voice interfaces. Revenue contribution expected calendar 2027.
Humanoid Robotics Opportunity: Major customer planning pilot shipments in late 2026, production in late 2027. Synaptics provides touch controllers and bridge solutions. Could expand to broader robotics market from vacuum cleaners to industrial automation.
Semi-Custom MCU Tape Out (April 2026): Major OEM engagement for hybrid compute AI applications — creates reference design for first and third-party products.
Wi-Fi 8 Leadership: 500+ engineers developing Wi-Fi 8; sampling expected by year-end 2026. Positions Synaptics ahead of MCU competitors stuck at Wi-Fi 6.
June Quarter Uptick: Starting backlog for Q4 FY2026 is higher than Q3 at the same point, suggesting sequential revenue recovery after March quarter softness.

Q&A Highlights

On Memory Shortage Impact (Ross Seymore, Deutsche Bank): Management stated the premium tier of mobile and enterprise PC markets appears "immune" to memory supply challenges affecting the broader market. Their focus on high-end segments provides insulation from demand elasticity concerns.

On Astra Revenue Timing (Ross Seymore, Deutsche Bank): CEO Patel confirmed "meaningful revenue contribution in calendar 2027" from Astra products and emphasized they are "very accretive to gross margin" — suggesting both top-line and margin expansion as Astra ramps.

On Channel Inventory (Christopher Roland, Susquehanna): CFO Rizvi noted distribution channel inventory "remains very lean" following the COVID boom/bust cycle. "We're shipping really towards end market demand" — suggesting no inventory overhang risk.

On Competitive Positioning (Kevin Cassidy, Rosenblatt): CEO Patel stated there is no competing MCU or microprocessor with Wi-Fi 7 integrated: "The last thing I saw was Wi-Fi 6." With Wi-Fi 8 sampling planned for year-end, Synaptics maintains a technology lead in wireless connectivity.

On Pipeline Mix (Neil Young, Needham): Consumer pipeline is larger than industrial, which is "expected in our launch of the Astra lineup." However, industrial is "falling right behind consumers" with humanoid and robotics engagements building.

Risks and Concerns

Sequential Revenue Decline: Q3 guidance implies ~4% sequential decline, potentially signaling demand moderation
Tariff Uncertainty: Management explicitly cited "ongoing global trade and tariff uncertainties" in outlook
Automotive Weakness: Automotive remains "range-bound" and a small portion of overall business; more focus on enterprise and Core IoT going forward
GAAP Losses Continue: Despite non-GAAP profitability, GAAP losses persist due to acquisition-related costs and share-based compensation

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Analyst Estimates (Forward)

Period	Revenue Est.	EPS Est.
Q3 FY26	$285.7M	$0.98
Q4 FY26	$302.1M	$1.12
Q1 FY27	$320.2M	$1.26
Q2 FY27	$334.6M	$1.37

*Values retrieved from S&P Global

The Street models continued sequential recovery through fiscal 2027, with expectations of accelerating growth as Astra platform design wins convert to revenue.

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