Synaptics’ Core IoT business continued to become a substantially larger part of the semiconductor company’s revenue mix during fiscal 2026, with product sales surging 43% year-over-year to approximately $389.7 million and representing 33% of total company sales.
Core IoT revenue increased from $272.4 million in fiscal 2025, significantly outpacing Synaptics’ overall revenue growth. Total fiscal 2026 revenue increased 11% to approximately $1.2 billion, marking the company’s second consecutive year of double-digit growth.
The shift in revenue mix was particularly pronounced compared with Synaptics’ more mature Mobile business. Mobile product revenue declined to $166.4 million from $191.8 million, while Enterprise and Automotive revenue increased to $641.1 million from $610.1 million.
Core IoT momentum continued during the fiscal fourth quarter, when sales increased 24% year-over-year. Total quarterly revenue increased 9% to $308 million.
The stronger mix also contributed to improving profitability. Synaptics’ Q4 non-GAAP operating margin reached 20%, its highest level in 13 quarters and approximately 300 basis points higher than a year earlier. Non-GAAP diluted EPS reached $1.23 for the quarter.
For the full year, non-GAAP diluted EPS increased 27% to $4.58. Synaptics also repurchased approximately 1.3 million shares for $92.7 million during fiscal 2026.
Synaptics is increasingly positioning its Core IoT portfolio around Physical AI and Edge AI applications. Management said customer engagements and design wins increased during Q4 across markets including Physical AI and robotics.
The company’s product roadmap includes its AI-native Astra SR-Series microcontrollers, which are expected to begin sampling in the fall for emerging Edge AI applications. Synaptics’ broader Astra platform combines AI-native embedded computing with wireless connectivity and multimodal sensing technology.
Synaptics is also preparing for its pending acquisition by onsemi. The companies entered into an all-stock merger agreement in June 2026. Because of the pending transaction, Synaptics did not provide forward-looking financial guidance with its fiscal fourth-quarter results.
KEY QUOTES:
“Synaptics completed another strong fiscal year, with sustained growth and momentum across the business. We delivered solid financial results in fiscal 2026, with revenue increasing 11%, driven by 43% growth in our Core IoT portfolio.”
“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.”
Rahul Patel, President and Chief Executive Officer of Synaptics
