Synaptics Lifts Fiscal 2026 Revenue as Core IoT Sales Jump 43%

Key Takeaways

• Synaptics increased fiscal 2026 revenue 11% to $1.2 billion, while non-GAAP earnings per share rose 27%.
• Core IoT generated $389.7 million, representing 33% of total sales after growing 43% year over year.
• Synaptics withheld forward guidance as its all-stock acquisition moves toward an expected mid-2027 closing.

Synaptics ended fiscal 2026 with a clearer growth story than the headline revenue figure alone might suggest. Revenue increased 11% year over year to $1.2 billion, supported by a sharp expansion in Core IoT sales. Non-GAAP earnings per share rose 27%, indicating that the stronger top line also translated into improved adjusted profitability.

Core IoT was the standout. Sales in the segment climbed 43% to $389.7 million and accounted for 33% of total fiscal-year revenue, according to earnings coverage from StockTitan. That mix matters because it places connected-device products at the center of Synaptics' business rather than at the edge of a portfolio historically associated with human-interface technologies.

The results also included a $425.3 million non-cash tax item. Because the charge was non-cash, business buyers and investors may focus more heavily on operating performance and adjusted earnings when assessing the fiscal year. Still, the size of the item complicates the reported profit picture and warrants attention when comparing GAAP and non-GAAP results.

Synaptics is reporting this progress as its future as a standalone public company is in transition. onsemi agreed on June 25, 2026, to acquire Synaptics through an all-stock transaction. The deal is expected to close in mid-2027, subject to regulatory reviews, shareholder approval, and other customary conditions.

Synaptics did not issue forward guidance because of the pending transaction. That removes one of the usual tools investors use to judge near-term momentum, especially after a year in which Core IoT expanded considerably faster than overall revenue. It also shifts attention toward quarterly execution, customer demand, and the acquisition process.

Why is Core IoT strategically important to onsemi? Connected systems increasingly combine sensing, local processing, wireless connectivity, and power management. Synaptics brings technologies associated with edge compute and device connectivity, while the acquiring company has a substantial position in intelligent power and sensing. The combination could give customers a broader set of components for industrial equipment, smart buildings, consumer devices, automotive systems, and AI-enabled edge products.

There is a data-center angle too. The buyer reported Q1 2026 revenue of $1.513 billion and said its AI data-center business grew more than 30% sequentially. That business remains distinct from many embedded IoT applications, but the engineering requirements overlap in useful ways. More computation creates demand for efficient power delivery, thermal management, sensing, and faster movement of data.

The market backdrop helps explain the timing. WSTS projected global semiconductor sales of $697 billion in 2025, while IDC forecast worldwide IoT spending would reach $1.1 trillion in 2026. Those estimates cover broad categories, so they should not be read as direct forecasts for Synaptics. They do, however, point to sustained spending around connected infrastructure and semiconductor content.

Interoperability will shape how much of that opportunity suppliers can capture. Matter is intended to reduce fragmentation in connected-device environments, while MQTT remains widely used for lightweight messaging between devices and applications. Support for familiar protocols can shorten product-development cycles and make silicon platforms easier to integrate into enterprise deployments.

Competition remains active. NXP Semiconductors and other diversified chip suppliers are also pursuing demand across edge computing, industrial connectivity, automotive electronics, and smart-device markets. Scale helps, but customers also weigh software support, power efficiency, security capabilities, protocol compatibility, and long-term product availability.

Deal execution now sits alongside operating execution. Reuters reported the acquisition agreement and its expected mid-2027 closing timetable, underscoring the long interval before completion. During that period, Synaptics will need to maintain customer confidence and product investment without public forward guidance. For the acquiring company, meanwhile, the fiscal 2026 results offer evidence that the asset it plans to acquire has a growing IoT engine rather than merely a collection of mature interface products.