Synaptics Agrees to All-Stock Sale to onsemi

The Tip Desk · August 6, 2026 · 3 min read

Fourth-quarter revenue was $308.0 million as Core IoT sales reached $104.6 million and non-GAAP operating margin hit 20%.

Synaptics Incorporated (SYNA) agreed on June 25, 2026, to be acquired by onsemi in an all-stock transaction, a deal that will end the company’s independent earnings cycle: it will not host a quarterly conference call or issue a forward-looking financial outlook.

The semiconductor maker, which designs touch, sensing, wireless and AI-native embedded compute products, still closed fiscal 2026 with a second consecutive year of double-digit revenue growth. Full-year net revenue was $1.2 billion, up 11% from a year earlier.

In the fourth quarter ended June 27, 2026, net revenue was $308.0 million, up 9% from a year earlier, after $294.2 million, up 10% year over year, in the third quarter. The company said revenue, gross margin and non-GAAP earnings per share all came in above the midpoint of the $305 million plus or minus $10 million revenue range and $1.20 plus or minus $0.15 non-GAAP earnings range it had issued in May.

Core IoT product applications were the growth engine. Fourth-quarter Core IoT sales were $104.6 million, up 24% from a year earlier, after 31% year-over-year growth in the third quarter. For the full year, Core IoT sales were $389.7 million, up 43% from $272.4 million, and accounted for 33% of total sales. President and Chief Executive Officer Rahul Patel said the 11% full-year increase was driven by that 43% Core IoT growth.

Enterprise and Automotive product applications contributed $164.3 million in the fourth quarter, versus $149.6 million a year earlier. Mobile product applications were $39.1 million, versus $49.0 million a year earlier.

Profitability improved on a non-GAAP basis. Non-GAAP operating margin reached 20%, which the company described as the highest level in 13 quarters and a 300-basis-point improvement year over year. Non-GAAP diluted earnings were $1.23 a share in the fourth quarter, versus $1.09 in the third quarter. Non-GAAP gross margin was 54.5%, versus 53.6% in the third quarter. GAAP gross margin was 47.3%.

GAAP results were dominated by a tax item. The company recorded a $425.3 million, or $10.96 a share, noncash charge related to the establishment of a valuation allowance against U.S. deferred tax assets, producing a GAAP net loss of $447.4 million, or $11.53 a share. That charge is excluded from non-GAAP results. Non-GAAP net income was $50.1 million.

For the full year, GAAP net loss was $490.8 million, or $12.62 a share, including the valuation allowance. Non-GAAP net income was $185.9 million, or $4.58 a share, up 27%. GAAP gross margin for the year was 44.7%; non-GAAP gross margin was 53.7%.

Cash and cash equivalents were $442.5 million at June 27, 2026. The company repurchased $92.7 million of stock, or about 1.3 million shares, during the year.

Patel said the company expanded customer engagements and design wins in Physical AI and robotics, and that sampling of Astra SR-Series microcontrollers for Edge AI applications is expected to begin this fall. Those product plans sit against the pending onsemi combination, which Patel said brings complementary portfolios and onsemi’s manufacturing scale.

Because of the transaction, Synaptics is not providing next-quarter guidance.