SYNA

Synaptics SYNA reported fourth-quarter fiscal 2026 non-GAAP earnings of $1.23 per share, which increased 21.8% year over year and beat the Zacks Consensus Estimate by 1.65%.Revenues increased 9% year over year to $308 million and surpassed the consensus mark by 0.98%. Core IoT product sales grew 24% year over year in the reported quarter to $104.6 million. Management said continued strength in Core IoT drove upside during the quarter, while performance across all major product categories was in line with expectations.Enterprise and Automotive product applications produced $164.3 million in revenues, up 9.8% year over year. Mobile product application revenues declined 20.2% to $39.1 million, partly offsetting growth in the other two categories. Non-GAAP gross margin expanded 100 basis points (bps) year over year to 54.5%. Synaptics Incorporated price-consensus-eps-surprise-chart | Synaptics Incorporated Quote Non-GAAP research and development expenses increased 3.1% year over year to $75.7 million.On a non-GAAP basis, selling, general and administrative expenses increased 2.9% to $32 million. Non-GAAP operating income increased 29.1% year over year to $60.3 million. Non-GAAP operating margin reached 20%, its highest level in 13 quarters and an improvement of 300 bps year over year. As of June 27, 2026, Synaptics had $442.5 million in cash and cash equivalents. Total debt stood at $837.3 million.For the period ended June 27, 2026, net cash provided by operating activities increased to $149.4 million from $142 million as of June 27, 2025. Synaptics returned capital to shareholders, repurchasing $92.7 million of common stock during the period ended June 27, 2026. Synaptics did not provide forward-looking financial guidance or schedule a quarterly earnings conference call because of its pending acquisition by onsemi. The companies entered into a definitive all-stock merger agreement on June 25, 2026.Management said its strategic priorities remain focused on Physical AI and Edge AI. The company reported expanding customer engagements, increased design wins and a growing pipeline across key markets, including Physical AI and robotics. Synaptics plans to begin sampling its AI-native Astra SR-Series microcontrollers for emerging Edge AI applications this fall. Currently, Synaptics carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader Zacks Computer and Technology sector include Kimball Electronics KE, NVIDIA NVDA and Inuvo INUV. Currently, Kimball Electronics and Inuvo each sport a Zacks Rank #1 (Strong Buy), while NVDA carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Shares of Kimball Electronics have lost 6.1% in the year-to-date period. KE is set to report the fourth quarter of fiscal 2026 results on Aug. 12.Inuvo shares have plunged 58.5% in the year-to-date period. INUV is set to report first-quarter fiscal 2027 results on Aug. 11.Shares of NVIDIA have gained 20.1% in the year-to-date period. NVDA is slated to report second-quarter 2026 results on Aug. 26. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Synaptics Incorporated (SYNA) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Inuvo, Inc (INUV) : Free Stock Analysis Report Kimball Electronics, Inc. (KE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Synaptics (SYNA) came out with quarterly earnings of $1.23 per share, beating the Zacks Consensus Estimate of $1.21 per share. This compares to earnings of $1.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.65%. A quarter ago, it was expected that this maker of touch-screen technology would post earnings of $1.01 per share when it actually produced earnings of $1.09, delivering a surprise of +7.92%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Synaptics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $308 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.98%. This compares to year-ago revenues of $282.8 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Synaptics shares have added about 35.3% since the beginning of the year versus the S&P 500's gain of 12.8%. While Synaptics has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Synaptics was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.27 on $318.16 million in revenues for the coming quarter and $5.34 on $1.32 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Broadcom Inc. (AVGO), has yet to report results for the quarter ended July 2026. This chipmaker is expected to post quarterly earnings of $3.22 per share in its upcoming report, which represents a year-over-year change of +90.5%. The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level. Broadcom Inc.'s revenues are expected to be $29.47 billion, up 84.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Synaptics Incorporated (SYNA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Fiscal 2026 revenue increased 11%, the second consecutive year of double-digit growth Fiscal 2026 Core IoT product sales increased 43% year-over-year, representing 33% of total sales Q4'26 Financial Results Revenue of $308.0 million, up 9% year-over-year Fiscal fourth quarter Core IoT product sales grew by 24% year-over-year GAAP gross margin of 47.3% Non-GAAP gross margin of 54.5% GAAP loss per share of $11.53 Non-GAAP diluted earnings per share of $1.23 Fourth quarter results include a $425.3 million, or $10.96 per share, non-cash charge related to the establishment of a valuation allowance against U.S. deferred tax assets, which is excluded from non-GAAP results. Fiscal 2026 Financial Highlights Revenue of $1.2 billion, increased 11% year-over-year Core IoT product sales grew by 43% year-over-year GAAP loss per share of $12.62, which includes the impact of the establishment of a valuation allowance Non-GAAP diluted earnings per share increased 27% to $4.58 Repurchased shares in the amount of $92.7 million (or approximately 1.3 million shares) SAN JOSE, Calif., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Synaptics Incorporated (Nasdaq: SYNA) today reported financial results for its fourth quarter and full year of fiscal 2026 ended June 27, 2026. Net revenue for the fourth quarter of fiscal 2026 was $308.0 million. GAAP net loss for the fourth quarter of fiscal 2026 was $447.4 million, or a net loss of $11.53 per basic share. Non-GAAP net income for the fourth quarter of fiscal 2026 was $50.1 million, or $1.23 per diluted share. For the full year fiscal 2026, net revenue was $1.2 billion. GAAP gross margin for fiscal 2026 at 44.7% was flat compared to the prior year; and non-GAAP gross margin of 53.7% compared to 53.6% in the prior year. GAAP net loss for the recently completed fiscal year was $490.8 million or a net loss of $12.62 per basic share. Non-GAAP net income for the recently completed fiscal year was $185.9 million or $4.58 per diluted share. “Synaptics completed another strong fiscal year, with sustained growth and momentum across the business," said Rahul Patel, Synaptics' President and Chief Executive Officer. "We delivered solid financial results in fiscal 2026, with revenue increasing 11%, driven by 43% growth in our Core IoT portfolio. In the fourth quarter, revenue, gross margin, and non-GAAP EPS were all above the mid-point of our guidance, and non-GAAP operating margin reached 20%, our highest level in 13 quarters and an improvement of 300 basis points year-over-year. Performance across all major product categories was in line with expectations, with continued strength in Core IoT driving upside during the quarter." "Our strategic priorities remain unchanged as we advance our leadership in Physical AI and Edge AI. During the quarter, we expanded customer engagements, increased design wins, and continued to build our pipeline across key growth markets, including Physical AI and robotics. Our product roadmap remains on track, with sampling of our AI-native Astra SR-Series microcontrollers for emerging Edge AI applications expected to begin this fall. We are excited about the pending merger with onsemi, which we believe brings together highly complementary product portfolios and benefits from onsemi's manufacturing scale, global customer relationships, and extensive distribution network, anticipated to expand market opportunities, accelerate growth, and deliver greater value to customers and shareholders." Pending Acquisition by onsemiAs previously announced, on June 25, 2026, onsemi and Synaptics entered into a definitive agreement under which onsemi agreed to acquire Synaptics in an all-stock transaction. Due to the pending transaction, Synaptics will not host a quarterly earnings conference call or provide a forward-looking financial outlook. This press release will be available on the company’s website at https://investor.synaptics.com/ About Synaptics Incorporated: Synaptics (Nasdaq: SYNA) is driving innovation in AI at the Edge, bringing AI closer to end users and transforming how we engage with intelligent connected devices, whether at home, at work, or on the move. As a go-to partner for forward-thinking product innovators, Synaptics powers the future with its cutting-edge Synaptics Astra™ AI-Native embedded compute, wireless connectivity, and multimodal sensing solutions. We’re making the digital experience smarter, faster, more intuitive, secure, and seamless. From touch, display, and biometrics to AI-driven wireless connectivity, video, vision, audio, speech, and security processing, Synaptics is a force behind the next generation of technology enhancing how we live, work, and play. Follow Synaptics on LinkedIn, Facebook, Instagram, and YouTube, or visit www.synaptics.com. Use of Non-GAAP Financial Information In evaluating its business, Synaptics considers and uses Non-GAAP Net Income, which we define as net income excluding share-based compensation, acquisition-related costs, and certain other non-cash or recurring and non-recurring items the company does not believe are indicative of its core operating performance, as a supplemental measure of operating performance. Non-GAAP Net Income is not a measurement of the company’s financial performance under GAAP and should not be considered as an alternative to GAAP Net Income. The company presents Non-GAAP Net Income because it considers it an important supplemental measure of its performance since it facilitates operating performance comparisons from period to period by eliminating potential differences in net income caused by the existence and timing of share-based compensation charges, acquisition and integration-related costs, restructuring costs, and certain other non-cash or recurring and non-recurring items. Non-GAAP Net Income has limitations as an analytical tool and should not be considered in isolation or as a substitute for the company’s GAAP Net Income. The principal limitations of this measure are that it does not reflect the company’s actual expenses and may thus have the effect of inflating its net income and net income per share as compared to its operating results reported under GAAP. In addition, the company presents components of Non-GAAP Net Income, such as Non-GAAP Gross Margin, Non-GAAP operating expenses, Non-GAAP operating margin and Non-GAAP net income per share, for similar reasons. As presented in the “Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures” tables that follow, Non-GAAP Net Income and each of the other Non-GAAP financial measures excludes one or more of the following items: Acquisition and integration related costs Acquisition and integration related costs primarily consist of: amortization of purchased intangibles, which include acquired intangibles such as developed technology, customer relationships, trademarks, backlog, licensed technology, patents, and in-process technology when post-acquisition development is determined to be substantively complete; inventory fair value adjustments affecting the carrying value of inventory acquired in an acquisition; transitory post-acquisition incentive programs negotiated in connection with an acquired business or designed to encourage post-acquisition retention of key employees; legal and consulting costs directly associated with acquisitions, potential acquisitions and refinancing costs, including non-recurring acquisition related costs and services; and Costs incurred in the period in connection with the proposed merger with onsemi. These acquisition and integration-related costs are not factored into the company’s evaluation of its ongoing business operating performance or potential acquisitions, as they are not considered as part of the company’s principal operations. Further, the amount of these costs can vary significantly from period to period based on the terms of an earn-out arrangement, revisions to assumptions that went into developing the estimate of the contingent consideration associated with an earn-out arrangement, the size and timing of an acquisition, the lives assigned to the acquired intangible assets, and the maturity of the business acquired. Excluding acquisition related costs from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability and potential earnings volatility associated with purchase accounting and acquisition-related items. Share-based compensation Share-based compensation expense relates to employee equity award programs and the vesting of the underlying awards, which includes stock options, deferred stock units, market stock units, performance stock units, phantom stock units and the employee stock purchase plan. Share-based compensation settled with stock, which includes stock options, deferred stock units, market stock units, performance stock units and the employee stock purchase plan, is a non-cash expense, while share-based compensation settled with cash, which includes phantom stock units, is a cash expense. Settlement of all employee equity award programs, whether settled with cash or stock, varies in amount from period to period and is dependent on market forces that are often beyond the company’s control. As a result, the company excludes share-based compensation from its internal operating forecasts and models. The company believes that Non-GAAP measures reflecting adjustments for share-based compensation provide investors with a basis to compare the company’s principal operating performance against the performance of peer companies without the variability created by share-based compensation resulting from the variety of equity-linked compensatory awards used by other companies and the varying methodologies and assumptions used. Restructuring costs Restructuring costs are costs incurred to address cost structure inefficiencies of acquired or existing business operations and consist primarily of employee termination, asset disposal and office closure costs, including the reversal of such costs. As a result, the company excludes restructuring costs from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes that Non-GAAP measures reflecting adjustments for restructuring costs provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created by restructuring costs designed to address cost structure inefficiencies of acquired or existing business operations. Legal settlement accruals and other Legal settlement accruals and other represent our estimated cost of settling legal claims and any obligations to indemnify a counterparty against third party claims that are unusual or infrequent. As a result, the company will exclude these settlement charges from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes that Non-GAAP measures reflecting an adjustment for settlement charges provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created by unusual or infrequent settlement accruals designed to address non-recurring or non-routine costs. Intangible asset impairmentIntangible asset impairment charge represents the excess carrying value of an indefinite-lived asset over its fair value. The intangible asset impairment charge is a non-cash charge. The company excludes intangible asset impairment charge from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes that Non-GAAP measures, reflecting adjustments for intangible asset impairment charge, provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created by the intangible asset impairment charge. Loss on early extinguishment of debtLoss on early extinguishment of debt represents a non-cash item based on the difference between the carrying value of the debt and the fair value of the debt when extinguished. Loss on early extinguishment of debt is excluded from Non-GAAP results as it is non-cash. Excluding loss on early extinguishment of debt from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability associated with loss on early extinguishment of debt. Other non-cash items Other non-cash items include non-cash amortization of debt discount and issuance costs. These items are excluded from Non-GAAP results as they are non-cash. Excluding other non-cash items from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability associated with other non-cash items. Other miscellaneous income/expense Other miscellaneous expense, net items include funds previously paid to third parties refunded back to the company and cost method investment impairment charge. These miscellaneous items are excluded from our non-GAAP results because they are not indicative of the company’s core operating performance. Management believes that adjusting for these items enhances investors’ ability to meaningfully compare the company’s ongoing financial performance with that of other companies by removing variability caused by infrequent or non-routine personnel-related costs. Non-GAAP tax adjustments The company forecasts its long-term Non-GAAP tax rate in order to provide investors with improved long-term modeling accuracy and consistency across financial reporting periods by eliminating the effects of certain items in our Non-GAAP net income and Non-GAAP net income per share, including the type and amount of share-based compensation, the taxation of post-acquisition intercompany intellectual property cross-licensing or transfer transactions, a non-cash tax expense related to the establishment of a full valuation allowance against U.S. deferred tax assets and the impact of other acquisition items that may or may not be tax deductible. The company intends to evaluate its long-term Non-GAAP tax rate annually for significant events, including material tax law changes in the major tax jurisdictions in which the company operates, corporate organizational changes related to acquisitions or tax planning opportunities, and substantive changes in our geographic earnings mix. Cautionary Statement Regarding Forward-Looking Statements This press release contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements reflect the company’s current expectations and projections including those relating to the proposed merger with onsemi, and expectations and projections relating to the company's financial condition, results of operations, plans, objectives, future performance and business, including statements regarding the company’s anticipated business trends and growth drivers in Core IoT and Edge AI, product development and integration activities, strategic and technology investments, operational discipline, backlog, demand conditions, and capital allocation initiatives. Such statements do not relate strictly to historical or current facts and may be identified by words such as “expect,” “anticipate,” “intend,” “believe,” “estimate,” “plan,” “target,” “strategy,” “continue,” “may,” "commit," “will,” “should,” variations of such words, or other words and terms of similar meaning. All forward-looking statements are based upon the company’s current expectations or various assumptions. The company’s expectations and assumptions are expressed in good faith, and the company believes there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set out in the forward-looking statements include, but are not limited to: risks related to the completion of the proposed merger with onsemi, including the risk that required regulatory approvals or stockholder approval may not be obtained, or that customary closing conditions may not be satisfied, the timing of closing, the parties' ability to consummate the transaction, and the risk of any adverse developments that could affect the likelihood of closing; uncertainties regarding the combined company's ability to achieve the anticipated benefits, synergies, cost savings and expense reductions from the merger; global macroeconomic and geopolitical conditions, including trade tensions, tariffs, inflation, military conflicts (such as those involving the United States, Russia, Ukraine, Israel, Iran and other countries in the Middle East and beyond), and market volatility, any of which may adversely affect customer demand for our products, purchasing behavior, supply chain disruptions, increased costs, and operational adjustments (such as reductions in force); the company’s ability to successfully execute on its strategies, including new product introductions, acquisitions and strategic partnerships; manufacturing and supply chain risks, including the company’s dependence on third parties to maintain satisfactory manufacturing yields and deliverable schedules, constraints or imbalances in the availability of critical components (including memory components used in combination with our products) or delays from third-party foundries and assemblers; risks related to customer concentration, inventory corrections, or changes in end-market adoption trends; the company’s dependence on one or more large customers, including risks relating to the loss or non-renewal of contracts with key customers; the company’s exposure to industry downturns and cyclicality in its target markets; expectations related to our financial performance for the upcoming quarter, including expected revenue contribution, growth, demand, or mix from Core IoT, Enterprise and Automotive markets, and other product categories or end markets; inflationary pressures, fluctuating interest rates, and exchange rate volatility; the company’s ability to execute on its cost reduction initiatives and to achieve expected synergies and expense reductions; the company’s ability to maintain and build relationships with its customers; the company’s indemnification obligations for any third party claims; risks associated with leadership transitions, including continuity and retention of key technical or managerial personnel; risks related to our ability to deliver expected financial or strategic benefits from investing in growth while simultaneously returning capital to stockholders through share repurchases; and other risks as identified in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business” sections of the company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q; and other risks as identified from time to time in the company’s Securities and Exchange Commission reports. Forward-looking statements contained in this press release are based on information available to the company as of the date of hereof, and the company assumes no obligation to update publicly or revise any forward-looking statements in light of new information or future events, except as required by law. Synaptics and the Synaptics logo are trademarks of Synaptics in the United States and/or other countries. All other marks are the property of their respective owners. For more information, please contact: Munjal ShahHead of Investor [email protected]

Cirrus Logic (CRUS) came out with quarterly earnings of $1.84 per share, beating the Zacks Consensus Estimate of $1.8 per share. This compares to earnings of $1.51 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.22%. A quarter ago, it was expected that this chipmaker would post earnings of $1.76 per share when it actually produced earnings of $1.95, delivering a surprise of +10.8%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Cirrus Logic, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $459.72 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.03%. This compares to year-ago revenues of $407.27 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Cirrus Logic shares have added about 12.7% since the beginning of the year versus the S&P 500's gain of 13%. While Cirrus Logic has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Cirrus Logic was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.71 on $569.12 million in revenues for the coming quarter and $9.33 on $2.11 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Synaptics (SYNA), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This maker of touch-screen technology is expected to post quarterly earnings of $1.21 per share in its upcoming report, which represents a year-over-year change of +19.8%. The consensus EPS estimate for the quarter has been revised 2.1% lower over the last 30 days to the current level. Synaptics' revenues are expected to be $305 million, up 7.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report Synaptics Incorporated (SYNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. ON Semiconductor has delivered a strong 81.1% gain over the past five years, yet its latest valuation checks suggest the stock no longer looks like a clear bargain, with the Discounted Cash Flow (DCF) estimate sitting close to the current share price while market multiples lean expensive. Over the last 5 years, ON Semiconductor shares are up 81.1%, which puts more weight on whether today’s price already reflects much of that progress. Upcoming earnings and the planned Synaptics acquisition can shape expectations for future cash flows, while any disappointment in growth or integration progress may pressure the valuation investors are currently paying. ON Semiconductor passes only 1 of 6 valuation checks, which points to a stock that leans expensive on the broader measures rather than a clear-value opportunity. For investors, the debate is whether ON Semiconductor’s recent gains and mixed valuation signals leave enough room for further upside from here. ON Semiconductor delivered 70.2% returns over the last year. See how this stacks up to the rest of the Semiconductor industry. The Discounted Cash Flow (DCF) approach estimates what ON Semiconductor might be worth today based on its projected future cash generation. ON Semiconductor has latest twelve month free cash flow of about $744.7 million, and the model assumes that cash flows continue growing from this base rather than shrinking. Under these assumptions, the 2 Stage Free Cash Flow to Equity model points to an intrinsic value of about $74 per share. With the DCF indicating the stock trades around 8.3% above that estimate, ON Semiconductor screens as slightly overvalued on this cash flow view rather than clearly cheap. The upcoming second quarter earnings release and the planned Synaptics acquisition are already part of the story investors are pricing in, which helps explain why the current market price sits above the model’s value. Overall, ON Semiconductor appears roughly fairly valued on the DCF model, with only a mild tilt toward being overvalued at today’s price. ON Semiconductor is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for ON Semiconductor. The P/E ratio is a useful way to judge what you are paying for each dollar of ON Semiconductor earnings. ON Semiconductor currently trades at about 54.5x earnings, which sits slightly above the broader Semiconductor industry average of 52.0x. The fair P/E for ON Semiconductor, based on its profile, is estimated at about 40.0x. That is well below the current 54.5x. This suggests investors are paying a premium to what this framework points to as a more grounded level. ON Semiconductor also trades below a peer group average of 91.9x, although that peer figure can be skewed by companies with very high multiples. On balance, the company screens as priced more richly than the tailored fair P/E even if it is not at the very top of the peer range. Overall, ON Semiconductor appears overvalued on the P/E multiple relative to the fair ratio implied by its fundamentals and industry position. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the ON Semiconductor valuation puzzle leaves off. They set out in plain terms what would need to happen to ON Semiconductor’s revenue, margins and earnings for the stock to be worth meaningfully more or less than today. Rather than rely on a single multiple or DCF output, each narrative lays out the assumptions behind its fair value so you can compare those to the company’s actual results over time on the Community page. One of the top community narratives on ON Semiconductor: 29% undervalued Read one of the top narratives on ON Semiconductor Do you think there's more to the story for ON Semiconductor? Head over to our Community to see what others are saying! For ON Semiconductor, the Discounted Cash Flow (DCF) view points to intrinsic value that sits slightly below the current share price, while the P/E comparison suggests the stock screens as overvalued relative to its tailored fair ratio. That mix, together with a low broader value score, indicates the shares no longer stand out as a clear value opportunity. From here, the key debate is whether ON Semiconductor can deliver the earnings and cash flow progress that would justify the current premium and keep the multiple from slipping back toward more moderate levels. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ON. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Amkor Technology (AMKR) came out with quarterly earnings of $0.7 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +48.94%. A quarter ago, it was expected that this chip packaging and test services provider would post earnings of $0.23 per share when it actually produced earnings of $0.33, delivering a surprise of +43.48%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Amkor Technology, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $1.9 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.25%. This compares to year-ago revenues of $1.51 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Amkor Technology shares have added about 64.5% since the beginning of the year versus the S&P 500's gain of 8.3%. While Amkor Technology has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Amkor Technology was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.62 on $2.07 billion in revenues for the coming quarter and $2.08 on $7.59 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Synaptics (SYNA), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This maker of touch-screen technology is expected to post quarterly earnings of $1.21 per share in its upcoming report, which represents a year-over-year change of +19.8%. The consensus EPS estimate for the quarter has been revised 2.1% lower over the last 30 days to the current level. Synaptics' revenues are expected to be $305 million, up 7.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amkor Technology, Inc. (AMKR) : Free Stock Analysis Report Synaptics Incorporated (SYNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, May 7, 2026 at 5 p.m. ET President and Chief Executive Officer — Rahul Patel Chief Financial Officer — Ken Rizvi Vice President, Investor Relations — Munjal Shah Munjal Shah: Good afternoon, and thank you for joining us today on Synaptics' third quarter fiscal 2026 conference call. My name is Munjal Shah, and I'm the Vice President of Investor Relations. With me on today's call are Rahul Patel, our President and CEO; and Ken Rizvi, our CFO. This call is being broadcast live over the web and can be accessed from the Investor Relations section of the company's website at synaptics.com. In addition to a copy of our earnings press release detailing our quarterly results, a supplemental slide presentation and a copy of these prepared remarks have been posted on our Investor Relations website. Today's discussion of financial results is presented on a GAAP financial basis, along with supplementary results on a non-GAAP basis, which excludes share-based compensation, acquisition-related costs and certain other noncash or recurring or nonrecurring items. All non-GAAP financial metrics discussed are reconciled to the most directly comparable GAAP financial measures in our earnings press release and supplemental materials available on our Investor Relations website. As a reminder, the matters we are discussing today in our prepared remarks, in our supplemental materials and in response to your questions may contain forward-looking statements. These forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. Although Synaptics believes the estimates and assumptions underlying these forward-looking statements to be reasonable, the statements are subject to a number of risks and uncertainties beyond our control. Synaptics cautions that actual results may differ materially from any future performance suggested in the company's forward-looking statements. Therefore, we refer you to the company's earnings release issued today and our current and periodic reports filed with the SEC, including our most recent annual report on Form 10-K and quarterly reports on Form 10-Q for important risk factors that could cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements speak only as the date hereof. Except as required by law, Synaptics expressly disclaims any obligation to update this forward-looking information. I will now turn the call over to Rahul. Rahul Patel: Thank you, Munjal. Good afternoon, everyone, and thank you for joining our fiscal third quarter 2026 earnings call. Fiscal third quarter marked our sixth consecutive quarter of double-digit year-over-year revenue growth, driven by 31% year-over-year increase in our core IoT products. We are seeing improving momentum and delivering consistent performance across the business. Our non-GAAP gross margin was above the midpoint of our guidance range and non-GAAP earnings per share of $1.09 was at the high end of the guidance and increased 21% year-over-year. Let me start by highlighting the accelerating adoption we are seeing in physical AI and Edge AI with customer engagements continuing to expand. Last quarter, we announced our first humanoid design with a leading OEM for our touch controller and interface solutions. Since then, we have sampled silicon to 3 additional OEMs and our robotics pipeline has grown to more than 35 customers globally, including a leading generative AI OEM. Customers are adopting our AI-enabled touch controllers for tactile sensing. Our capacitive sensing technology measures subtle changes in compressible layer to detect force, slip and proximity, enabling robots to handle objects, maintain grip and respond in real time. This capability extends beyond the hand to other contact surfaces, including the feet. These tactile controllers can pair with our Astra processors to aggregate sensor inputs and run AI locally, enabling real-time decision-making, improving response time and reducing the load on the robot central compute. In addition, our wireless portfolio, including Wi-Fi, Bluetooth and GPS GNSS, supports reliable connectivity as robots move and coordinate with one another and the network. Further, our interface technology enables high bandwidth transport within a robotic system. For example, one of our customers is using it to interconnect multiple displays in a humanoid. Our content opportunity in robotics is substantially higher than in our other markets. Synaptics' broad and differentiated portfolio across processing, connectivity, sensing and interface solutions uniquely positions us to address this opportunity. New use cases continue to emerge and our engagements are expanding with a growing set of customers. While still early, I am excited about this promising growth vector for Synaptics. This quarter, we also made solid progress in our partnership with Google, which continues to be a key driver of our Edge AI strategy. We launched next-generation Coralboard powered by our Astra SL2610 processor and featuring the industry's first implementation of Google's Coral NPU integrated with Synaptics' Torq NPU architecture. The Coralboard provides developers with a turnkey platform to move quickly from prototyping to production and bring generative AI directly onto the device. In the coming weeks, we and our partner will showcase Astra processor technology powering Google Gemma and other leading AI models at a high-profile industry event. At this event, we will also make the platform available to developers, system architects and OEMs looking to build real-world edge AI applications. Next, let me update you on the next generation of our Astra SR series microcontrollers, a semi-custom AI native platform targeting emerging wearable applications. We successfully taped out the SoC last month and expect to begin sampling in the fall. The platform includes Synaptics' PMIC and a microcontroller that integrates advanced power management, Google's Coral NPU, our Torq NPU and a flexible memory architecture to deliver high-performance, low-power Edge AI processing. For the initial variable application, our solution delivers up to 2 times battery life and reduces bill-of-materials by roughly 50%. Beyond this initial design, the SR-series represents a new class of AI-native microcontrollers that can extend across wearable platforms and into a broad range of Edge AI applications. Turning to design traction, we are securing Astra processor wins across multiple applications in various end markets. Notably, our processors are designed into a new class of medical devices that bring diagnostic imaging to a patient's home, extending access to healthcare in rural and underserved regions. This customer selected Astra for its price performance, design flexibility, ease of software and hardware integration, and for the ability to run AI models locally on the device. We also secured a win in industrial with a leading North American fleet management OEM, where our ultra-low power vision platform provides intelligent asset monitoring. Our pipeline continues to expand across consumer and industrial markets, with increasing traction in IoT hubs, gesture-driven streaming devices, industrial gateways, UAV navigation and positioning, and smart home systems. Our key differentiation lies in tightly integrating compute and connectivity into a solution-oriented, software developer friendly platform, designed to reduce system complexity while enabling scalable and high-performance Edge AI deployments. Finally, we had a successful launch of our Astra-enabled Connected MCU at Embedded World, where it received a Best in Show award in the Microcontrollers, Microprocessors & IP category. This device is the industry's first to integrate Wi-Fi 7 and Bluetooth 6.0 connectivity with Edge AI compute in a monolithic SoC, delivering a highly differentiated solution. Customers are particularly attracted to its ability to concurrently host Bluetooth and Wi-Fi stacks, as well as the host application, enabling greater integration and efficiency. In addition, the integrated NPU in this SoC allows customers to develop and deploy differentiated AI features. We are currently sampling the product with multiple customers across a range of applications, including industrial power, home appliances, and security cameras. Turning to Enterprise and Mobile Touch, demand from our enterprise customers continues to improve steadily. We remain focused on the premium tier of the market and will continue to closely monitor demand trends. In Mobile Touch, while some customers are navigating near-term challenges related to memory supply, we believe that we remain well positioned with some leading OEMs that are gaining share. We are currently shipping into the majority of flagship phones at a leading Korean OEM. We are also encouraged by our design wins in foldable smartphones and expect customers to launch new products in the second half of the calendar year. While still early, broader adoption of foldable smartphones by major OEMs has the potential to drive overall market growth. To summarize, we are gaining strong traction in Physical AI and expanding our presence across a broad set of Edge AI markets. We are executing on our product roadmap, delivering highly differentiated products and solutions, and deepening our engagement with customers and ecosystem partners. These efforts position Synaptics for long-term growth and value creation. I will now turn the call over to Ken to review our third quarter financial results and outlook for our fiscal 2026 fourth quarter. Ken Rizvi: Thank you, Rahul, and good afternoon, everyone. I will focus my remarks on our non-GAAP results which are reconciled to GAAP financial measures in the earnings release tables found in the investor relations section of our website. Now let me turn to our financial results for the third quarter of fiscal 2026. Revenue for fiscal Q3 was $294.2 million, above the midpoint of our guidance and up 10% on a year-over-year basis driven by strength in our Core IoT products. The revenue mix in the third quarter was 30% Core IoT, 57% Enterprise and Automotive and 13% Mobile Touch products. Core IoT product revenues increased 31% year-over-year, driven primarily by continued strength in our wireless connectivity products. Enterprise & Automotive product revenues were up 9% year-over-year as we are seeing a recovery in our enterprise portfolio. And Mobile Touch product revenues decreased 16% year-over year. Third quarter non-GAAP gross margin was 53.6%, slightly ahead of the mid-point of our guidance. Third quarter non-GAAP operating expenses were $104.6 million, better than the midpoint of our guidance. Our non-GAAP operating margin was 18.1%, up approximately 260 basis points year-over-year and non-GAAP net income in Q3 was $44.1 million. Non-GAAP EPS per diluted share came in toward the higher-end of our guidance at $1.09 per share, an increase of 21% on a year-over-year basis. Now let me turn to the balance sheet. We ended the fiscal third quarter with approximately $404 million in cash and cash equivalents, reflecting $39 million of share repurchases in Q3. Through April of 2026, we have completed $93 million of share repurchases this fiscal year. Cash flow from operations was $21.8 million in the third fiscal quarter. Capital expenditures for the third quarter were $11.9 million and depreciation for the quarter was $7.9 million. Receivables at the end of March were $162.5 million and the days of sales outstanding were 50 days, up from 39 days last quarter. Our ending inventory balance was $161.3 million and days of inventory were 106 days, compared to 101 days at the end of the last quarter. Now, turning to our fiscal 2026 fourth quarter guidance. For Q4, we expect revenues to be approximately $305 million at the mid-point, plus or minus $10 million. Our guidance for the fourth quarter reflects an expected revenue mix from Core IoT, Enterprise & Automotive, and Mobile Touch products of approximately 33%, 54%, and 13%, respectively. We expect our non-GAAP gross margin to be 53.5% at the mid-point, plus or minus 1% and non-GAAP operating expenses in the June quarter are expected to be $105 million at the midpoint of our guidance, plus or minus $2 million. We expect non-GAAP net interest and other expenses to be approximately $2 million and our non-GAAP tax rate to be in the range of 13% to 15% for the fourth quarter. Non-GAAP net income per diluted share is anticipated to be $1.20 per share at the mid-point plus or minus $0.15, on an estimated 40.4 million fully diluted shares. This wraps up our prepared remarks. I would like to turn the call over to the operator to start the Q&A session. Operator? Operator: [Operator Instructions] Our first question comes from the line of Ross Seymore with Deutsche Bank. Ross Seymore: A couple of questions. I guess the first one on the core IoT side of things. In the near term, it looked like it was a little weaker than you expected in the March quarter, but seems to be gaining that back in June. So in the near-term side, what's causing that volatility? And then perhaps more importantly, longer term, you rattled off a whole bunch of good wins and traction in the Astra platform. How should we think about the revenue contribution of that folding in into the second half of this year and into calendar year and into calendar '27 as well? Has that become a meaningful tailwind? And if so, when? Ken Rizvi: So Ross, maybe I'll take -- this is Ken. Thanks for the question. I'll take that first part, and then I'll turn it over to Rahul on the second piece. But on the first piece, if you look -- and if I just step back, Ross, right, for the year and for -- based on our guidance for Q4 for Core IoT, we're going to do north of $385 million for Core IoT at the midpoint. That grows by north of 40% on a year-over-year basis. And so there are always some movements quarter-to-quarter. But if I just step back, look at the business from a 30,000-foot view standpoint, we're seeing still very, very solid performance here throughout 2026 for Core IoT. And there will always be some movements here and there quarter-to-quarter. But in general, really very excited about the performance this year by the team. Rahul Patel: Ross, this is Rahul. Regarding the IoT ramp on Astra processors. Well, I think we have stated in the past that we anticipate meaningful ramp in calendar 2027, and that remains. A couple of things. I indicated on the prepared remarks that we have taped out our semi-custom solution targeted towards end product, that's with a very large OEM. That is anticipated to go into production in the first half of calendar '27 and in the end products sometime about now next year and ramp up very nicely in the second half of '27 as well. And regarding some of the design wins in robotics and physical AI, as you probably know, there's a lot of activity. There's a lot of market forecast. At this point, we are being very cautious in including those numbers in our plan for '27, largely because it's openly talked about as well. I think various research puts the numbers at very large quantities. However, in my opinion, it's still a greenfield. And so we're not taking a lot of that into our '27 plan. What I will reiterate something that was in the remarks as well, that the dollar content is substantially different, materially higher than what we have seen in end products like Synaptics in the past. And so I remain excited about the opportunity in physical AI. I am seeing the conviction in the larger customer base around the capabilities, IP, product and technology that Synaptics brings to some of these platforms by virtue of the acceleration that we are seeing in our engagement and design activity with our customers and how quickly some of these engagements are turning into us shipping silicon. I mean, in one situation, in that case, pilot runs in a couple of other situations, I would be specific, maybe 3, we've shipped samples. And so all of that is TBD in terms of material revenue, but Astra family of products and connectivity, definitely looking on track for '27. Ross Seymore: Perfect. And for my follow-up, just touching on kind of the PC-related and mobile-related side of things. Given the headwinds from the memory costs and all of that, and I fully realize you guys are at the premium end, so you might not be hit as hard. But how are you seeing your customers react to those pressures? Do you think that the market can still grow if we look kind of out over the next few quarters? Or is that something where they're going to eventually feel that pain as well and maybe it's a meaningful headwind? Rahul Patel: Well, I think let me respond in 2 parts, right? PC, we had a good quarter. And where we are in our fiscal Q4, the current quarter, we continue to see reasonable momentum in the demand for our products. However, like you indicated and much of the market is saying as well, right, there could be headwinds in the second half of '26. We haven't seen that just yet. But like with everybody else in the marketplace, we may not be immune to that as well if it comes about. What works, like you said, Ross, favorably for us is that our participation is in the enterprise class products and premium class products. And that potentially presents us with some form of cushion buffer because the affordability is a lot better in that class of products. But you are absolutely right. Like everybody is saying, there could be headwinds in the second half, and we may not be immune to it. Now the size and the impact may be a little different than what everybody is seeing. Regarding smartphones, as you know, there is also this challenge with memory, particularly identified in China, and we see that in our China-based smartphone shipments as a result in our touch products. However, we are gaining market share, and we're doing very well in a Korean OEM who has access to memory. And so we are a beneficiary in that situation. And so even in the Mobile Touch, I think we don't know when the memory situation recovery happens for the China OEMs. However, we are a beneficiary on the other hand, with the Korean OEM where we are gaining market share and they have access to memory. Operator: Our next question comes from the line of Kevin Cassidy with Rosenblatt Securities. Kevin Cassidy: Congratulations on the great results. And congratulations on all the new product and design activity. I just wonder if I could ask a little more about the robotics market, very exciting. But can you describe the attach rate you're getting, just kind of a range of if you had only the capacitive touch versus whether you had all your products through the connectivity products. What would be the range of the content in robotics? Rahul Patel: Yes. Kevin, thank you for the question. I'm really personally very excited about the opportunity for Synaptics in robotics. And think of robotics as from a tactile sensing point of view, as an implementation on the backs of analog design, some localized computation that ultimately transcends the biological sensory capabilities of a human hand to a level that presents tremendous amount of robustness in adverse conditions, tremendous amount of accuracy and dexterity and also the latency of inference basically is at a different level, right? In all these vectors, you see transcending the human hand behavior basically. And so if you kind of sum it up, that is right in the alley of what Synaptics technology is capable of delivering best-in-class touch capabilities that, again, is proven and embraced extremely well in the premium class of smartphone marketplace, our AI-native processing engines and also wireless connectivity. And so being specific to your question about silicon content, currently, majority of our shipments are concentrated on tactile sensing and bus interface technologies. And you can think of the silicon content in terms of few tens of dollars per platform, largely on backs of those 2 capabilities. We are seeing early engagements on Astra and wireless connectivity, and that is additive on top of that. And to be very clear, many platforms would have one or more capabilities from Synaptics in place. And so that's how we should think about it. And so the diversity of our product capabilities and our technology and the leadership capability in each of the categories that we are in, sensing, processing and connecting and interface is what is being appreciated in these platforms. Kevin Cassidy: Great. And maybe on the pipeline you have of 35 OEMs, how does that look geographically? Rahul Patel: It's highly concentrated in advanced stages of engagement in North America, some in China and early stages in Europe. Operator: Our next question comes from the line of Neil Young with Needham & Company. Neil Young: So within Astra, I wanted to ask about the end markets. Are there any particular end markets where customer traction is moving fastest today? And then as those designs move toward production, should we think about the initial ramp as being concentrated in a few larger programs? Or is this more diversified across many smaller edge AI deployments? Rahul Patel: Neil, this is Rahul. I have indicated in the past, and I think that's exactly how it's emerging in our current design activity. Consumer will ramp up first. Industrial will follow. We are seeing industrial design wins now taking shape. I described us getting into medical equipment as well. However, I think of this as equipment that would sit at the far end of the edge in people's homes. In industrial, I highlighted, I mean, one of the many designs, but the design around fleet management. Now industrial takes a lot more in terms of validation, hardening of the platform and ramping through various regulatory "checkpoints" basically. And so it is slower to ramp than consumer and longer to hold than consumer in terms of the revenue time lines. And so that's exactly what we are seeing in our plans. Regarding your question about is it going to be singles and doubles or there's going to be one big home run customer. Clearly, I think I've indicated we have a semi-custom design done for a very large OEM, who we are very closely partnering on multiple fronts from developing the IP around processing in our platforms for neural processing and many other things to engaging in building out the platform for the end product that is targeted for mass market consumer consumption in the first space. And so there are going to be singles and doubles, and there's going to be this big home run that will come into our calendar '27 revenue profile on Astra. Neil Young: Great. That's helpful. And then I wanted to ask about gross margin as core IoT continues to become a larger mix of the business and Astra-related products begin to ramp. Should we think about the current margin level as a reasonable baseline through FY '27? Or are there other factors that can come in? Maybe just talk about where you see that going. Ken Rizvi: Neil, it's Ken. I appreciate that. So we guide 1 quarter ahead, and you can see that margin profiles in that 53.5%, plus/minus 1% for our guide. We've been at this range. I would say behind the scenes, one of the things that we've been doing well and kudos to the operations team is like other semi players, we have seen cost increases, but we've been able to absorb those and maintain very healthy gross margins. On a longer-term basis, as we think about the core IoT business and specifically, as we think about the processing and processor capabilities, those should have a margin profile greater than the corporate average. And therefore, as that scales over time, that will help the overall mix of Synaptics. Operator: Our next question comes from the line of Krish Sankar with TD Cowen. Sreekrishnan Sankarnarayanan: First one, Ken, I had a question for you on revenues and gross margins. It seems like since early '24, your revenues have been growing roughly $10 million a quarter, and I understand it's hard to forecast. I'm just wondering, is there a hockey stick recovery ahead? Or is it going to be gradual? And on the gross margin side, I'm wondering if there's any leverage in the model from a gross margin drop-through standpoint since your gross margins have been remarkably stable around the 16.5% levels over the last several quarters despite revenues inching up slowly. And I have a follow-up for Rahul. Ken Rizvi: Perfect. Okay. Thanks for the question. So if you look at the revenues, I think one of the factors over the last several quarters has been just working through, right, from the COVID boom and coming through a more challenging inventory environment post-COVID, we've worked through that inventory levels. And so inventories in the channel, even for us have been very -- have leaned out. And now over the last couple of quarters, we've been shipping towards end demand and gaining traction, as you've seen on the core IoT piece over the last several quarters. So that should continue to fuel our growth as we think about the outer years. From a margin standpoint, a lot of it is dependent because we are fabless, it is dependent on the mix and in some cases, the mix within the mix. And so as I mentioned on my last -- the last question, one of the things the team has done a really fantastic job on the operations side is there have been headwinds in cost. We've done a great job maintaining that margin profile and absorbing it. I think on a longer-term basis, the mix and the mix of some of our products such as in the processor category, those are going to help fuel the long-term margins of the company. And so that's kind of where we are today. Sreekrishnan Sankarnarayanan: That's very helpful. And then a quick follow-up for Rahul. On the Astra SR series, when will it be deployed? And is Google just partnering with you? Or are they using other silicon designers, too? Rahul Patel: Krishna, thank you for the question. The SR series is our microcontroller -- AI-native microcontroller platform. It is targeting a mass market along with what we are doing for one large semi-custom customer on this program. So I'm not sure whether I'm answering your question, but your ask was very specific to a particular OEM, and I'm not at the liberty of giving you that or divulge into the name of the OEM at this point. Operator: Our next question comes from the line of Christopher Rolland with Susquehanna. Christopher Rolland: And perhaps following up on that last one. Without divulging any customer names or details, if you could update us on the semi-custom chip opportunity. I don't know if you're able to size that or not yet? And then have you received any interest from others for semi-custom chips as well? Rahul Patel: Chris, this is Rahul. That semi-custom -- I mean, I think there was a question from Neil earlier, and I indicated, I think that semi-custom is -- the way we look at semi-custom is one that delivers a home run right off the bat, right? And I think that is how you should think about semi-custom for us. The customer has got material skin in the game, and we will build a product that differentiates their platform and ultimately uniquely takes them to the marketplace across their entire portfolio of products in that class of products, right? And so I think -- we are also in multiple discussions on semi-custom designs. However, there's not much to share at this point. But going back to the portfolio, the IP capabilities that we present, clearly, both in physical AI and edge AI, there is strong customer interest to do semi-custom opportunity. We have a very clear set of OpEx envelope to work with, and we are very judicious in how we go through and evaluate those opportunities and work through them. But there is definitely a tremendous amount of interest in doing semi-custom with Synaptics. Christopher Rolland: Excellent. And I apologize, it's a busy day if questions were asked already. I know you had some details around your Astra products, but you have a pretty extensive road map of new products coming as well, whether it's like MCU or connectivity, different flavors like Wi-Fi 7, for example. I was wondering if you could update us as to not sampling, but revenue ramps for a few of these new products. And then lastly, in the Broadcom IP purchase, I think you had -- maybe it was UWB. There was a technology, I forgot exactly what it was. I think it was UWB, it might have been something else. But you weren't sure if you were going to pursue that and put R&D resources into that. Did you ever and it seems like maybe in robotics, there could be some functionality there. Just curious what you did with that. Rahul Patel: Yes. I think -- so 2 questions, I believe, you have. First one is the Astra revenue ramp. So we've guided this is going to be calendar '27 event. We'll start seeing the ramp towards the end of the year, calendar year and obviously, material as we progress through the year 2027. Regarding various products, we have -- right now in production, 3 Astra products and in multiple customer design engagements. One is in sample stage, which is our microcontroller with NPU or being AI native with Wi-Fi 7 Bluetooth all in a single die, and that is in sample stage. And then later this year, we will, in the fall, sample the semi-custom MCU with the Google Coral NPU embedded in it as well. And so that 3 or 4 products will ramp in calendar 2027, and that will be the Astra revenue in '27. I think you had a second question, I lost track of it. Christopher Rolland: Yes. There was a -- it was a UWB. Rahul Patel: Yes, with the UWB. Yes, we do have that IP in our portfolio. And we are not doing a whole lot with it right now. However, we are consistently evaluating opportunities. UWB presents an interesting use case outside of digital car key in locationing. And so that use case absolutely is something that we constantly evaluate and especially for indoor applications. Operator: Our next question comes from the line of Martin Yang with OpCo. Martin Yang: First question on your engagement with robotics customers. Do you have direct relationship with all those 35 OEMs? Or are you able to leverage certain distributors or channel partners to engage those robotics customers? Rahul Patel: Martin, this is Rahul. All our engagements are direct at this point. And in many situations, it's direct engineering to engineering engagement largely because this is a new frontier in what the end platforms are trying to accomplish. And the depth of technology, engagement, implementation details is not something that is ready to be consumed through traditional channels like distribution. And so we are very mindful of what we do. We also have a partner that we have worked with that can get into a broader marketplace. We've announced and we have indicated that on multiple marketing forums, the partner is Grinn. And we will try to bring up other partners where they can go engage with other customers that we may not be able to scale on our own, and they help us scale. So they are a scaling partner for us. However, a majority of the designs that I described in tactile sensing are direct engagement that tactile sensing and interface are direct engagements with Synaptics. Martin Yang: One more question on robotics. So can you maybe educate us on the advantage of capacitive approach versus other potential sensing solutions, maybe optical, maybe pressure-based. Are the robotics customers taking capacitive as the winning solution? Or are they at this stage, still evaluating different approaches for tactile sensing? Rahul Patel: Yes. I think it's a very good question. And so something I indicated earlier, the performance along the lines of creating equivalency or transcending biological sensory capabilities of what a typical hand does on the dimension of robustness, latency of inference, the accuracy, the grip, all of that working in adverse conditions is going to, at some point, evolve requiring multimodal implementation and inference capabilities, and that's going to require more than one sensing capability. However, all of that probably is a roadmap item on these platforms. Today, majority of them are seeing capacitive sensing in the capability that Synaptics is bringing to the forefront, the signal-to-noise ratio capabilities, the number of channels that we support, the level of accuracy, the latency of inference, the AI-enabled touch controlling implementations. I think those are the areas where Synaptics continues to excel in the eyes of customers when they bring capacitors touch sensing versus other sensing technologies in the platform. Operator: Our next question comes from the line of Peter Peng with JPMorgan. Peter Peng: You guys pointed out just the cross-selling opportunities in the humanoid with your products. Maybe can you point us to some example of other end applications that you guys are working on that you have the opportunity to also cross-sell with your multiple products? Rahul Patel: Yes. So I think, Peter, this is Rahul. No, robotics is a very broad category by itself. Humanoid is one big platform category within robotics. And in -- if you look at the dexterous hand, right, of a robot or a humanoid, you have the opportunity to combine our AI native processing capabilities along with our touch sensing capabilities and also wireless connectivity for peer-to-peer or robot-to-robot communication or robot to the network communication, right? And so I think you can see a lot of these ultimately lends to cross-selling of and pull-through of one product on the backs of the other product because we come in with a system-level solution sale, right? We come in with some pre-integrated software capabilities to the platform. Regarding other platforms in Edge AI, absolutely. Every time there is an Astra sale, it pulls through our connectivity, right? However, I would also highlight our connectivity gets situated on many non-Synaptics processing platforms as well, and that opens the door for us to kind of ultimately bring in Astra to pair up with our connectivity. And so there's a lot of cross-selling across the company in terms of end markets going on right now. Peter Peng: Got it. And then just on the core IoT, I think the June quarter kind of implies kind of in this 20-ish percent year-on-year growth. Is that kind of the rate that we should expect before that big ramp in the first half of 2027? Maybe any color on whether that's a sustainable growth rate or maybe we have to wait for the first half to see further acceleration? Ken Rizvi: Peter, it's Ken. Thanks for the question. So I think if you look at the last year, right, we've actually had very nice growth on a year-over-year basis overall. So based on the midpoint of the guide, if you look at the core IoT segment, should be north of $385 million or so and call it, 40% plus type of growth on a year-over-year basis. There will always be some ebbs and flows quarter-to-quarter. But the goal that we outlined previously was on a longer-term basis, can we drive that core IoT business to be north of that 25% range overall. And so obviously, quarter-to-quarter ebbs and flows. But if you just step back, look on a holistic basis, and you look at this year and even last year, we've had really good performance in that portfolio. Operator: This concludes our question-and-answer session. I would now like to turn it back to Rahul Patel for closing remarks. Rahul Patel: Before we close, I want to thank our global team for their continued focus and execution. Synaptics is making solid progress on strategic priorities and expanding its position in key growth areas. Thank you all for joining us today, and we appreciate your continued support. Have a great rest of the day. Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. 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