Synaptics (NASDAQ:SYNA) Announces Earnings Results, Beats Estimates By $0.06 EPS

Synaptics (NASDAQ:SYNA) released its earnings results on Thursday. The software maker reported $1.21 earnings per share for the quarter, beating the consensus estimate of $1.15 by $0.06, FiscalAI reports. The company had revenue of $302.50 million for the quarter, compared to the consensus estimate of $300.31 million. Synaptics had a positive return on equity of 4.35% and a negative net margin of 4.08%.Synaptics’s quarterly revenue was up 13.2% compared to the same quarter last year. During the same period in the previous year, the business earned $0.92 earnings per share. Synaptics updated its Q3 2026 guidance to 0.850-1.150 EPS.

Here are the key takeaways from Synaptics’ conference call:

• Synaptics reported strong Q2 results with $302.5M revenue (+13% YoY), driven by 53% YoY growth in core IoT and non‑GAAP EPS up 32% to $1.21, with non‑GAAP gross margin ~53.6%.
• The company guided Q3 to roughly $290M revenue (midpoint) and non‑GAAP EPS of about $1.00, implying a sequential decline in revenue and earnings versus Q2.
• Management is ramping its Astra multimodal microprocessors and new Wi‑Fi 7/8 connectivity SoCs (sampling now) and expects Astra to drive meaningful, gross‑margin‑accretive revenue beginning in calendar 2027.
• Synaptics is gaining traction in robotics/humanoids, sampling silicon with a leading humanoid maker for pilot builds this year and targeting production in 2027, expanding addressable markets beyond traditional IoT and consumer segments.
• Balance sheet and cash actions: ending cash ~$437.4M, $36.4M repurchased in Q2 ( $43.6M YTD), while inventory rose to $158M (101 days) from a strategic build — supportive buybacks but inventory increase is a watchpoint.

Synaptics Stock Performance

Shares of NASDAQ SYNA opened at $93.25 on Friday. The firm’s fifty day moving average is $80.21 and its two-hundred day moving average is $72.18. Synaptics has a 52-week low of $41.80 and a 52-week high of $94.59. The company has a market cap of $3.64 billion, a P/E ratio of -80.87, a P/E/G ratio of 3.67 and a beta of 1.72. The company has a debt-to-equity ratio of 0.60, a quick ratio of 2.31 and a current ratio of 2.86.

Trending Headlines about Synaptics

Here are the key news stories impacting Synaptics this week:

• Positive Sentiment: Q2 results beat consensus: Synaptics reported revenue of $302.5M (up 13% Y/Y) and non-GAAP EPS of $1.21, topping estimates; strong gross margins and IoT product growth were highlighted. Synaptics Reports Second Quarter Fiscal 2026 Results
• Positive Sentiment: Upbeat Q3 guidance: Management set Q3 EPS at $0.85–1.15 (well above consensus) and revenue guidance roughly $280–$300M, signaling continued margin leverage and demand — a direct catalyst for investor optimism. Q2 Press Release / Slide Deck
• Positive Sentiment: Rosenblatt raised its target to $125 (buy), implying material upside and signaling increased sell‑side conviction. Rosenblatt price target raise (Benzinga)
• Positive Sentiment: Mizuho raised its target to $103 with an outperform rating, adding further analyst momentum behind the stock. Mizuho price target raise (The Fly)
• Neutral Sentiment: Additional disclosure and detail: Earnings call transcript, slide deck and follow-up analysis are available for deeper review of product mix and margin drivers. Useful for investors assessing sustainability of growth. Earnings call transcript (Yahoo)
• Neutral Sentiment: Partnership news: Synaptics partnered with 42 Technology to push Edge AI adoption in manufacturing — strategic but likely lower impact near term compared with core results and guidance. 42 Technology partnership
• Negative Sentiment: Near-term investor concern: Some reports noted the stock slipped initially as investors parsed guidance nuances despite the beat — a reminder that execution detail and quarter-to-quarter cadence can still pressure shares. Synaptics falls as investors focus on Q3 guidance (Investing.com)

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the company. Rosenblatt Securities boosted their price objective on Synaptics from $95.00 to $125.00 and gave the company a “buy” rating in a research note on Friday. Wall Street Zen lowered shares of Synaptics from a “buy” rating to a “hold” rating in a research report on Monday, January 5th. Susquehanna increased their price objective on shares of Synaptics from $95.00 to $105.00 and gave the stock a “positive” rating in a research note on Thursday, January 22nd. Mizuho raised their price objective on shares of Synaptics from $94.00 to $103.00 and gave the company an “outperform” rating in a research report on Friday. Finally, Oppenheimer reaffirmed a “market perform” rating on shares of Synaptics in a report on Tuesday, December 16th. Nine investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Synaptics currently has an average rating of “Moderate Buy” and an average price target of $102.11.

Insider Transactions at Synaptics

In related news, insider Vikram Gupta sold 694 shares of the business’s stock in a transaction dated Wednesday, December 17th. The stock was sold at an average price of $75.00, for a total value of $52,050.00. Following the sale, the insider directly owned 100,082 shares in the company, valued at approximately $7,506,150. The trade was a 0.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Lisa Bodensteiner sold 7,182 shares of the firm’s stock in a transaction that occurred on Tuesday, December 9th. The shares were sold at an average price of $78.68, for a total value of $565,079.76. Following the transaction, the insider owned 75,542 shares of the company’s stock, valued at $5,943,644.56. This represents a 8.68% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 8,906 shares of company stock valued at $698,177. Company insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Synaptics

Hedge funds have recently bought and sold shares of the business. AQR Capital Management LLC lifted its holdings in shares of Synaptics by 186.2% in the 2nd quarter. AQR Capital Management LLC now owns 443,441 shares of the software maker’s stock worth $28,744,000 after acquiring an additional 288,523 shares during the last quarter. Squarepoint Ops LLC raised its position in Synaptics by 376.6% in the 2nd quarter. Squarepoint Ops LLC now owns 198,269 shares of the software maker’s stock worth $12,852,000 after purchasing an additional 156,671 shares during the period. Two Sigma Investments LP lifted its stake in Synaptics by 322.0% in the third quarter. Two Sigma Investments LP now owns 127,706 shares of the software maker’s stock worth $8,727,000 after purchasing an additional 97,444 shares during the last quarter. Bank of America Corp DE boosted its position in shares of Synaptics by 68.7% during the second quarter. Bank of America Corp DE now owns 238,298 shares of the software maker’s stock valued at $15,446,000 after buying an additional 97,018 shares during the period. Finally, Cubist Systematic Strategies LLC grew its stake in shares of Synaptics by 95.5% during the second quarter. Cubist Systematic Strategies LLC now owns 191,266 shares of the software maker’s stock valued at $12,398,000 after buying an additional 93,428 shares during the last quarter. Hedge funds and other institutional investors own 99.43% of the company’s stock.

About Synaptics

Synaptics Incorporated is a global developer and supplier of human interface solutions for computing, networking, communications, and entertainment devices. The company specializes in the design, development and integration of custom chips and software that enable intuitive, natural user interactions. Synaptics solutions support touch, display, audio and biometrics functions, facilitating seamless human-to-machine interfaces across a broad range of end markets.

Key product offerings include touch controllers for laptops and tablets, capacitive touchscreens and display drivers for mobile devices, fingerprint sensors and secure authentication modules, as well as advanced audio processing and voice enhancement technologies.