Abstract
Synaptics will report fiscal results on February 05, 2026 Post Market; this preview compiles consensus forecasts and company guidance to frame expectations for revenue, margins, and adjusted EPS alongside key segment dynamics and analyst sentiment since January 01, 2026.
Market Forecast
For the upcoming quarter, market forecasts indicate Synaptics is expected to generate revenue of $300.29 million, with projected EBIT of $54.58 million and EPS of $1.15; the year-over-year growth rates are expected at 13.07% for revenue, 18.56% for EBIT, and 33.84% for EPS. Based on recent trends, gross profit margin is expected to remain resilient near the low-40% range, while net profitability should improve alongside operating leverage; adjusted EPS is set to rise meaningfully year over year.
Across business lines, enterprise and automotive silicon remains the core revenue anchor with stable demand outlook, while IoT normalization and a cyclical bottoming in mobile provide incremental upside. The most promising segment is enterprise and automotive products at $147.70 million last quarter, and it is positioned for further gains on design-win ramps and content growth year over year.
Last Quarter Review
Synaptics reported last quarter revenue of $292.50 million, gross profit margin of 42.60%, GAAP net profit attributable to the parent company of -$20.60 million with a net profit margin of -7.04%, and adjusted EPS of $1.09, which increased year over year.
A notable highlight was the sequential margin stability despite a mixed product mix, supporting adjusted profitability improvement relative to revenue trends. Main business mix featured enterprise and automotive products at $147.70 million, IoT products at $103.60 million, and mobile products at $41.20 million, reflecting a diversified revenue base.
Current Quarter Outlook (with major analytical insights)
Main business: Enterprise and automotive silicon
Synaptics’ enterprise and automotive category remains the company’s mainstay by revenue, contributing $147.70 million last quarter. This franchise benefits from long product cycles, sticky sockets, and content expansion as display, touch, interface, and connectivity requirements rise across networking, edge compute, and in-cabin automotive systems. With the overall revenue guide implying $300.29 million, incremental growth hinges on the continued ramp of prior design wins and shelf inventory normalization at downstream customers. The financial model suggests modest operating leverage as volumes climb, supporting EBIT growth of $54.58 million, which correlates with healthy conversion of gross margin given a 42.60% baseline from the prior quarter. A key point for this quarter is the mix of higher-value automotive and enterprise parts, which historically price more defensively than consumer IoT, hedging gross margin against macro variability. The risk is timing of automotive program ramps and networking demand digestion, which can deflect quarter-to-quarter linearity, though the company’s book-to-bill should stay constructive if hyperscaler and carrier capex intentions remain intact.
Most promising business: IoT platforms and connectivity
IoT products contributed $103.60 million last quarter and remain positioned to accelerate as channel inventory adjusts and customers resume normal ordering cadence. The forecasted EPS expansion of $1.15, up 33.84% year over year, implies a favorable mix and opex discipline; if IoT demand reaccelerates through home devices, enterprise access points, and industrial modules, it could magnify operating leverage. Relative to the prior year’s trough, year-over-year revenue growth of 13.07% for the quarter signals a broader recovery in connected edge demand, where Synaptics brings competitive advantages in power efficiency and integration. Execution risks include exposure to consumer-facing IoT cycles and competitive pricing in connectivity, which could cap upside to gross margin if promotional activity resurfaces. However, attach rates for advanced Wi‑Fi, Bluetooth, and combo chipsets in premium devices, as well as enterprise refresh cycles, can sustain a mid-40% blended margin profile longer term.
Key stock-price driver this quarter: Mix, operating leverage, and cash-generation trajectory
Investors appear focused on the interplay between product mix and margin delivery, given last quarter’s 42.60% gross margin and negative GAAP net margin of -7.04% that contrasted with improving adjusted EPS. This quarter’s setup, with revenue projected at $300.29 million and EBIT forecast at $54.58 million, points to incremental operating leverage if opex remains contained and higher-margin enterprise/auto shipments lift. The EPS cadence, guided by consensus to $1.15, frames a test of whether the company can translate stable gross margins into consistent GAAP profitability as restructuring and amortization headwinds ease. Cash-generation narratives will hinge on working capital unwinds as inventories normalize; a positive inflection here would validate the earnings quality behind the EPS forecast. Conversely, any sign of slips in automotive ramps or weaker enterprise access point demand could pressure both revenue and mix, narrowing the runway for margin expansion this quarter.
Analyst Opinions
Analyst commentary in recent months has skewed bullish, with a majority expecting sequential revenue improvement and EPS expansion driven by higher-margin mix and disciplined operating expenses; positive views outweigh cautious ones by approximately 3:1. Several well-followed institutions emphasize that Synaptics’ revenue forecast of $300.29 million, up 13.07% year over year, and EPS of $1.15 support a recovery narrative into calendar 2026. The central bullish argument is that enterprise and automotive wins are compounding and IoT demand is stabilizing, lifting EBIT growth to $54.58 million, up 18.56% year over year, which should begin to close the gap between GAAP and non-GAAP performance as non-recurring costs subside. Bulls also note last quarter’s beat versus pre-quarter revenue and EPS estimates and see scope for incremental upside if inventory digestion at customers has ended faster than feared. The contrarian bear case centers on the pace of automotive program ramps and potential lumpiness in enterprise infrastructure spending, but this view remains less prevalent in the current preview window.
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