San Jose, CA – May 7, 2026 – Synaptics Incorporated (Nasdaq: SYNA) has released its financial results for the third quarter of its fiscal year 2026, revealing a solid performance driven by significant growth in its Core IoT product line. The results reflect the company’s strategic focus on emerging technologies such as Physical AI and Edge AI, marking a pivotal moment in its growth trajectory.

1. Financial Highlights

For the third quarter ended March 28, 2026, Synaptics reported a net revenue of $294.2 million, showcasing a double-digit year-over-year increase attributed to a 31% rise in Core IoT product sales. Despite the revenue growth, the company reported a GAAP net loss of $8.0 million, translating to a loss of $0.21 per basic share. In contrast, the non-GAAP net income stood at $44.1 million, or $1.09 per diluted share, underscoring the robust underlying performance of the company.

CEO's Insights

Rahul Patel, President and Chief Executive Officer of Synaptics, expressed confidence in the company’s direction, stating, “Synaptics delivered a solid third quarter of fiscal 2026, with double-digit year-over-year revenue growth driven by a 31% increase in Core IoT product sales. Revenue, non-GAAP gross margin, and non-GAAP EPS all exceeded the midpoints of our guidance, reflecting strong execution.” Patel also highlighted the anticipated full-year fiscal 2026 Core IoT revenue growth, which is expected to surpass $385 million, marking an increase of over 40% year-over-year.

2. Business Outlook

Looking ahead, Chief Financial Officer Ken Rizvi emphasized a healthy backlog and a positive outlook for the upcoming quarter. “As we enter the June quarter, our backlog is healthy and our current outlook reflects expected sequential and year-over-year revenue growth. We remain focused on disciplined execution,” Rizvi noted. He also mentioned that the company’s robust balance sheet provides the flexibility to invest in organic growth initiatives.

Fourth Quarter Fiscal 2026 Outlook

For the upcoming fourth quarter, Synaptics has provided the following guidance:

Revenue: Expected to be $305 million ± $10 million

GAAP Gross Margin: Projected at 46.0% ± 2.0%

Non-GAAP Gross Margin: Estimated at 53.5% ± 1.0%

Operating Expense: Expected to be $146 million ± $4 million (with non-GAAP operating expenses projected at $105 million ± $2 million)

Earnings (Loss) per Share: Projected GAAP loss of ($0.17) ± $0.25 and non-GAAP earnings of $1.20 ± $0.15

It is important to note that these projections include various non-GAAP adjustments related to share-based compensation, restructuring costs, and acquisition expenses, highlighting the company's careful approach to financial reporting.

3. Macroeconomic Considerations

The company’s outlook is not without its challenges, as Rizvi cautioned that the current macroeconomic landscape remains fluid. Ongoing global geopolitical conditions, including trade uncertainties and military conflicts in the Middle East, could impact the company's performance. The management remains vigilant in navigating these complexities while focusing on growth opportunities.

4. Earnings Call and Investor Engagement

Synaptics will hold a teleconference and webcast at 2:00 p.m. PT (5:00 p.m. ET) today to discuss the results further, with executives including Rahul Patel and Ken Rizvi leading the discussion. Investors and analysts are encouraged to participate in the call through a pre-registration process.

5. Conclusion

Synaptics' third quarter results for fiscal 2026 underscore a promising growth trajectory, particularly in the Core IoT segment, which positions the company well for future opportunities in the rapidly evolving landscape of AI and connected devices. As the company continues to adapt to market demands and invest in strategic initiatives, stakeholders will be keenly watching how Synaptics navigates the challenges and capitalizes on its strengths in the upcoming quarters.

Original press release