Synaptics Incorporated Q1 FY2026 earnings call

• Launched next-generation Synaptics Astra Edge AI processors, which are AI-native silicon built for Edge devices. • Core IoT portfolio saw 74% YOY revenue growth in processors and wireless connectivity. • Enterprise & Automotive PC products showed steady improvement, enterprise portfolio recovering; automotive had softness but investing in new solutions. • Mobile Touch had strong customer traction with next-gen touch controller, secured design wins with a top Android phone OEM. • Partnership with Google Research integrated Coral NPU for energy-efficient Edge AI.

In the first quarter of fiscal 2026, revenue was $292.5 million. The revenue mix was 35% Core IoT, 51% Enterprise and Automotive, and 14% Mobile Touch. Core IoT product revenues increased 74% year-over-year. Enterprise & Automotive product revenues were flat YOY with strength in enterprise offset by softness in Automotive. Mobile Touch product revenues were lower than expected due to supply chain constraints during the quarter.

For Q2 2026, expected revenues ~$300M (±$10M). Non-GAAP gross margin expected ~53.5% (±1%). Non-GAAP operating expenses expected ~$106M (±$2M). Non-GAAP net interest and other expenses ~$1M. Non-GAAP tax rate 13-15%. Non-GAAP net income per diluted share anticipated ~$1.15 (±$0.15) on ~40.4M fully diluted shares.

• Uncertainties in macroeconomic global trade and tariff environment which could impact actual results. • Risks that actual results may differ materially from forward-looking statements due to various factors beyond control.

Q: Could you give idea on metrics to track Astra platform success?

A: Rahul Patel mentioned tracking design wins and pipeline development, expecting to update on funnel size in a couple of quarters.

Q: What drove Core IoT upside and Mobile Touch downside?

A: Ken Rizvi said Core IoT growth due to strong processor and connectivity; Mobile Touch down due to supply constraints. Guidance for Q2 reflects these dynamics.

Q: Possibilities for more mobile handset OEMs using Synaptics combo chips?

A: Rahul Patel said opportunity exists as OEMs build own apps processors, Synaptics can provide differentiated wireless connectivity.

Q: Update on expansion into industrial markets?

A: Rahul Patel mentioned demos on YouTube showing industrial applications, industrial designs lagging consumer but engagement underway.

Q: Core technologies needed for Edge AI portfolio?

A: Rahul Patel stated focus on open-source strategy, open to inorganic growth opportunities to fuel IoT growth.