Synaptics Revenue Edges Up 1% — Operations Consume Cash As Onsemi Takeover Remains Pending
Margins improved, but Synaptics will skip its earnings call and financial outlook because of the pending all-cash acquisition.
Synaptics, which designs chips and software for on-device AI, wireless connections and sensing, reported first-quarter revenue of $294.0 million, up 1% from a year earlier, in results released Thursday with an SEC filing. Operations consumed $15.5 million in cash, compared with $30.2 million generated a year earlier, even as profit margins improved.
Better Margins, Cash Outflow
The fiscal 2027 first quarter ended September 26, 2026. Revenue a year earlier was $292.5 million; gross margin under standard accounting rose to 47.8% from 42.6%, while the adjusted margin increased to 54.3% from 53.2%.
Synaptics posted a net loss of $17.7 million, or $0.45 per share, compared with a $20.6 million loss, or $0.53 per share, a year earlier. Its adjusted net income was $51.5 million, or $1.26 per diluted share, up from $43.3 million, or $1.09 per diluted share.
The adjusted result excludes $37.0 million of non-cash stock compensation, $29.6 million of acquisition and integration costs, and $8.1 million of restructuring expenses, along with other items and tax adjustments. Operating losses narrowed to $12.7 million from $23.2 million; adjusted operating income increased to $62.0 million from $51.5 million.
Cash and equivalents fell to $367.7 million from $442.5 million in June. Beyond the operating cash outflow, Synaptics spent $25.0 million on intangible assets and $3.1 million on property and equipment, while net equity-compensation payments consumed $30.9 million.
Smartphone Weakness Meets Robotics Interest
Rahul Patel, Synaptics’ president and chief executive officer, attributed the revenue constraints to supply shortages and memory-related changes in demand across markets. Smartphone weakness hurt the company's touch and wireless products.
Robotics offered a different picture. Patel said customers were showing “growing interest in our processor and wireless technologies,” alongside opportunities for tactile sensing controllers and video-interface products.
Synaptics supplies device makers with processors, Wi-Fi and Bluetooth connectivity, touch controllers, fingerprint sensors and display connectivity. Its technology serves smart-home and industrial devices, robotics, cars, PCs and smartphones, and outside factories manufacture its chips.
During the quarter, Synaptics licensed its automotive LCD display-and-touch technology. Patel linked the agreement to the company's focus on higher-value businesses and AI that runs locally or interacts with the physical world.
Its new Astra SR200 microcontrollers support larger AI models and workloads combining different inputs entirely on devices. Synaptics also made the Coralboard ecosystem generally available through partners in collaboration with Google Research. NVIDIA’s Isaac Sim and Holoscan platforms now support its tactile sensing module and Astra processors for processing multiple kinds of sensory input.
Onsemi Deal Switches To Cash
The earnings update arrives with the onsemi takeover still pending. The companies agreed to an all-stock transaction on June 25, 2026, then restructured the deal as an all-cash acquisition through an amended merger agreement on October 1, 2026.
Because of the pending acquisition, Synaptics will not hold its quarterly earnings call or issue a forward-looking financial outlook.
Sources
- 8-K Filing — SYNAPTICS Inc (SYNA) — SEC EDGAR
- Exhibit syna-q1278kexx991.htm — SYNAPTICS Inc 8-K exhibit — SEC EDGAR
- Synaptics (SYNA) Tops Q1 Earnings Estimates — Yahoo Finance
