Synaptics (NASDAQ:SYNA) Issues Quarterly Earnings Results

Key Points

• Synaptics beat quarterly expectations, reporting EPS of $1.09 versus the $1.01 consensus and revenue of $294.2 million versus $290.5 million expected. Revenue rose 10.4% year over year, and the company also reported a positive return on equity of 4.29% despite a negative net margin.
• Management raised guidance for Q4 2026 EPS to a range of $1.05 to $1.35, above the prior market expectation. That suggests continued earnings momentum heading into the next quarter.
• Investors reacted positively, with the stock jumping 18.6% to $125.43 on heavy trading volume. Analysts also turned more constructive after the results, with several firms lifting price targets and maintaining bullish ratings.

Synaptics (NASDAQ:SYNA - Get Free Report) announced its quarterly earnings data on Thursday. The software maker reported $1.09 EPS for the quarter, beating the consensus estimate of $1.01 by $0.08, FiscalAI reports. The business had revenue of $294.20 million during the quarter, compared to the consensus estimate of $290.51 million. Synaptics had a negative net margin of 4.10% and a positive return on equity of 4.29%. The company's revenue was up 10.4% on a year-over-year basis. During the same period in the previous year, the business earned $0.90 earnings per share. Synaptics updated its Q4 2026 guidance to 1.050-1.350 EPS.

Here are the key takeaways from Synaptics' conference call:

• Strong quarterly financials — Q3 revenue $294.2M (+10% YoY), non‑GAAP EPS of $1.09 (+21% YoY), non‑GAAP gross margin 53.6%, and ~$404M cash with $39M of share repurchases in the quarter.
• Product roadmap and partner momentum — Synaptics taped‑out its Astra SR semi‑custom SoC (sampling expected this fall), launched the Coral Dev Board with Google (Astra SL2610 + Coral NPU + Torq NPU), and is sampling an industry‑first Astra MCU with Wi‑Fi7/Bluetooth6; management expects meaningful Astra ramps in calendar 2027.
• Large robotics/physical AI opportunity — pipeline expanded to >35 OEMs (including a leading generative AI OEM) with early sampling and multi‑product cross‑sell potential across tactile sensing, processing, and connectivity, though revenue timing remains cautious.
• Working capital and cash‑flow cautions — operating cash flow was modest at $21.8M in Q3 while receivables rose to $162.5M (DSO up to 50 days) and inventory to $161.3M (106 days), which could weigh on near‑term liquidity and margin conversion.

Synaptics Trading Up 18.6%

Shares of Synaptics stock traded up $19.63 during trading on Friday, hitting $125.43. The company's stock had a trading volume of 2,175,736 shares, compared to its average volume of 876,174. The company has a debt-to-equity ratio of 0.60, a current ratio of 2.93 and a quick ratio of 2.33. Synaptics has a 52 week low of $57.54 and a 52 week high of $129.78. The stock has a market cap of $4.86 billion, a price-to-earnings ratio of -101.15, a price-to-earnings-growth ratio of 4.01 and a beta of 1.86. The stock has a 50-day moving average price of $79.18 and a two-hundred day moving average price of $77.86.

Insider Buying and Selling at Synaptics

In related news, insider Vikram Gupta sold 1,548 shares of the business's stock in a transaction on Monday, April 27th. The shares were sold at an average price of $92.90, for a total value of $143,809.20. Following the sale, the insider owned 87,382 shares of the company's stock, valued at $8,117,787.80. The trade was a 1.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Lisa Bodensteiner sold 1,798 shares of the business's stock in a transaction on Monday, April 20th. The stock was sold at an average price of $81.87, for a total transaction of $147,202.26. Following the completion of the sale, the insider directly owned 65,183 shares in the company, valued at approximately $5,336,532.21. This represents a 2.68% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 7,348 shares of company stock worth $618,827. 0.50% of the stock is currently owned by insiders.

Institutional Trading of Synaptics

Several institutional investors have recently modified their holdings of the business. CIBC Private Wealth Group LLC lifted its holdings in Synaptics by 119.5% in the fourth quarter. CIBC Private Wealth Group LLC now owns 349 shares of the software maker's stock valued at $26,000 after buying an additional 190 shares during the period. Lazard Asset Management LLC acquired a new position in Synaptics in the second quarter valued at $54,000. Kemnay Advisory Services Inc. acquired a new position in Synaptics in the fourth quarter valued at $70,000. PNC Financial Services Group Inc. lifted its holdings in Synaptics by 21.8% in the fourth quarter. PNC Financial Services Group Inc. now owns 1,119 shares of the software maker's stock valued at $83,000 after buying an additional 200 shares during the period. Finally, Globeflex Capital L P acquired a new position in Synaptics in the second quarter valued at $95,000. Institutional investors own 99.43% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have weighed in on SYNA. Susquehanna boosted their target price on shares of Synaptics from $105.00 to $125.00 and gave the stock a "positive" rating in a research note on Friday. JPMorgan Chase & Co. boosted their target price on shares of Synaptics from $100.00 to $115.00 and gave the stock an "overweight" rating in a research note on Friday. Northland Securities set a $123.00 target price on shares of Synaptics in a research note on Friday. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $125.00 target price on shares of Synaptics in a research note on Friday. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Synaptics in a research note on Tuesday, April 21st. Ten analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $114.18.

More Synaptics News

Here are the key news stories impacting Synaptics this week:

• Positive Sentiment: Synaptics reported Q3 adjusted EPS of $1.09, topping estimates, with revenue of $294.2 million also beating consensus; management said core IoT product sales jumped 31% year over year and highlighted multiple design wins in physical AI and robotics. Article: Synaptics Reports Third Quarter Fiscal 2026 Results
• Positive Sentiment: The company issued Q4 EPS guidance of $1.05 to $1.35, above the analyst estimate of $0.95, which suggests better near-term earnings momentum.
• Positive Sentiment: Analysts turned more constructive after the results: JPMorgan raised its target to $115 with an overweight rating, Barclays lifted its target to $110 with an overweight rating, and Susquehanna increased its target to $125 with a positive rating.
• Neutral Sentiment: Synaptics also released an earnings call transcript and follow-up analysis pieces that largely reinforced the upbeat earnings picture rather than adding a new catalyst. Article: Synaptics Incorporated (SYNA) Q3 2026 Earnings Call Transcript Article: Synaptics (SYNA) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates Article: Synaptics (SYNA) Beats Q3 Earnings and Revenue Estimates

Synaptics Company Profile

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.

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