Synaptics Incorporated

Q3 fiscal 2026 revenue was $294.2 million, up 10% year over year. Non-GAAP gross margin was 53.6%, non-GAAP operating margin was 18.1% (up about 260 basis points year over year), non-GAAP net income was $44.1 million, and non-GAAP EPS was $1.09, up 21% year over year. By segment, Core IoT revenue increased 31% year over year, Enterprise & Automotive revenue rose 9%, and Mobile Touch revenue fell 16%. For Q4, Synaptics guided to revenue of about $305 million plus or minus $10 million, gross margin of 53.5% plus or minus 1%, operating expenses of $105 million plus or minus $2 million, and non-GAAP EPS of $1.20 plus or minus $0.15.

Rahul Patel emphasized that Synaptics is gaining momentum in Physical AI and Edge AI, especially in robotics, where he said the company’s content opportunity is “substantially higher” than in other markets. He pointed to expanding customer engagements, new design wins, and multiple Astra product ramps expected to matter more in calendar 2027 than in the current fiscal year. His tone was upbeat but measured: he repeatedly described the opportunity as early and said some robotics revenue is still “TBD.”

Ken Rizvi highlighted Q3 revenue of $294.2 million, gross margin of 53.6%, operating expenses of $104.6 million, operating margin of 18.1%, and EPS of $1.09. He also noted about $404 million in cash and cash equivalents, $39 million of share repurchases in Q3, $93 million repurchased year to date, and cash flow from operations of $21.8 million. On working capital, he cited receivables of $162.5 million with DSOs of 50 days and inventory of $161.3 million with 106 days of inventory. For Q4, he guided to $305 million of revenue at the midpoint, 53.5% gross margin, $105 million of operating expenses, and EPS of $1.20 at the midpoint.

Analysts focused on the timing and size of the Astra ramp, with management saying meaningful revenue contribution is expected in calendar 2027 and that a semi-custom program is slated to enter production in the first half of calendar 2027, then ramp more meaningfully in the second half. They also asked about whether robotics content could be large and how direct the 35-OEM pipeline is; Rahul said engagements are direct and currently centered on tactile sensing and interface, with early interest in Astra and wireless. On demand risk, management acknowledged possible second-half 2026 headwinds from PC and smartphone memory constraints, but said the premium enterprise exposure may cushion the impact and that Synaptics is benefiting with a Korean OEM where it is gaining share.