Synaptics (SYNA) Exceeds Q1 Earnings and Revenue Projections
Earnings Performance: Synaptics (SYNA) reported quarterly earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $1.06 and showing an increase from $0.81 per share a year ago, marking a +2.83% earnings surprise.
Revenue Growth: The company generated revenues of $292.5 million for the quarter, surpassing expectations by 1.08% and up from $257.7 million year-over-year, consistently beating consensus revenue estimates over the last four quarters.
Stock Outlook: Despite underperforming the market with an 8.1% decline since the start of the year, Synaptics holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market, while future stock movements will depend on earnings estimate revisions.
Industry Context: The Electronics - Semiconductors industry, where Synaptics operates, ranks in the top 34% of Zacks industries, suggesting a favorable environment for stock performance, while another industry peer, Silvaco Group, is set to report its results soon.
Trade with 70% Backtested Accuracy
Analyst Views on SYNA
About SYNA
About the author

- Significant Revenue Growth: Synaptics reported Q2 revenue of $302.5 million, reflecting a 13% year-over-year increase, marking the company's fifth consecutive quarter of double-digit growth, underscoring the robust performance of its Core IoT products.
- Core Product Drivers: The Core IoT segment achieved a remarkable 53% year-over-year growth, contributing to the overall performance, while non-GAAP EPS rose to $1.21, indicating the company's increasing competitiveness in the market.
- Strategic Integration: CEO Rahul Patel announced the merger of the processors and connectivity teams to better align resources and accelerate the product roadmap, thereby enhancing the efficiency of delivering integrated processor and wireless system solutions.
- Optimistic Future Outlook: The company anticipates Q3 revenues to be around $290 million, slightly below Q2 actuals, yet management remains confident in the multi-year growth outlook, particularly driven by Astra products and edge AI solutions.
- Revenue Growth: Synaptics reported a 13% year-over-year revenue increase to $302.5 million in Q2 2026, exceeding the $300 million estimate, reflecting strong demand in the AI edge solutions market.
- Earnings Performance: The company posted adjusted earnings per share of $1.21, beating the consensus estimate of $1.15, indicating ongoing improvement in profitability, despite a 3% decline in post-market trading.
- Future Outlook: Synaptics expects third-quarter revenue to range from $280 million to $300 million, with a midpoint of $290 million, surpassing the $285 million estimate, demonstrating confidence in future growth.
- Market Opportunities: CEO Rahul Patel highlighted that the accelerating shift towards physical and edge AI creates opportunities for expansion into new markets such as robotics, showcasing the strategic significance of their differentiated technology portfolio.
- Strong Earnings Performance: Synaptics reported a Q2 non-GAAP EPS of $1.21, beating expectations by $0.06, which reflects the company's robust profitability and enhances investor confidence.
- Significant Revenue Growth: The company achieved revenue of $302.5 million, a 13.2% year-over-year increase, exceeding market expectations by $2.19 million, indicating sustained growth in the IoT market and strong demand.
- Optimistic Future Outlook: For Q3 of fiscal 2026, Synaptics expects non-GAAP revenue to fluctuate around $290 million, with a gross margin projected at 53.5%, reflecting the company's confidence in future performance and positive market expectations.
- Effective Cost Control: Anticipated operating expenses of $150 million demonstrate the company's effective cost management, further enhancing its profitability and competitive position in the market.
- Earnings Announcement: Synaptics is set to release its Q2 earnings on February 5th after market close, with consensus EPS estimates at $1.15, reflecting a 25% year-over-year increase, indicating ongoing improvements in profitability that could positively impact stock prices.
- Revenue Growth Expectations: The revenue estimate for Q2 stands at $300.31 million, representing a 12.4% year-over-year growth, which highlights the company's growth potential in the IoT sector and further solidifies its market position.
- Strong Historical Performance: Over the past two years, Synaptics has beaten both EPS and revenue estimates 100% of the time, demonstrating robust performance stability and market confidence, which may attract more investor interest.
- Estimates Revision Trends: In the last three months, EPS estimates have seen 7 upward revisions and 2 downward, while revenue estimates have experienced 8 upward revisions and 1 downward, indicating analysts' optimistic outlook on the company's future performance, potentially driving stock prices higher.
- Earnings Report Schedule: Synaptics will release its financial results for Q2 FY2026 on February 5, 2026, after market close, reflecting the company's commitment to transparency and investor communication.
- Conference Call Timing: The company will host a conference call at 2:00 p.m. PT (5:00 p.m. ET), requiring analysts and investors to pre-register, ensuring smooth information dissemination.
- Participation Registration Requirements: Participants are encouraged to dial in at least ten minutes before the start time, demonstrating the company's focus on meeting quality and engagement to enhance investor experience.
- Webcast and Archive Availability: A live and archived webcast of the call will be accessible from the
- Stock Performance: Synaptics Inc (SYNA) shares have reached $91.47, surpassing the analyst 12-month target price of $88.45, indicating strong market confidence in the company's future prospects.
- Analyst Reactions: Among the 11 analysts covered by Zacks, target prices range from $65.00 to $106.00, with a standard deviation of $10.792, highlighting significant divergence in market views on the company's valuation.
- Investor Signal: The stock's breach of the target price provides a good signal for investors to reassess the company, prompting them to consider whether to hold or reduce their positions in light of potential valuation risks.
- Wisdom of the Market: The average analyst target price reflects collective wisdom, and investors should pay attention to this metric to determine whether SYNA may continue to rise or is nearing its valuation ceiling.








