A designer of AI-enabled edge chips and human-interface technology, Synaptics makes the touchpads, fingerprint sensors, and wireless connectivity components found in laptops, phones, and cars. Its product lines include Astra AI-native processors, Veros wireless solutions, and Natural ID fingerprint sensors. The company designs its chips but outsources manufacturing to foundries, and in January 2025 it bought Wi-Fi technology assets from Broadcom to expand its wireless lineup.
10-K · Fiscal year ended Jun 27, 2026 · SEC filing ↗
Synaptics' FY2026 net loss widened to $490.8M on a $411.4M tax charge, while revenue rose 11.4% to $1.20B and a merger with onsemi is pending.
The year's defining event was a $425.3M non-cash against U.S. , which turned an operating improvement into a $490.8M net loss. rose 11.4% to $1,197.2M, led by Core IoT up 43.1% to $389.7M, while held flat at 44.7% and operating loss narrowed to $67.1M from $94.1M. Synaptics enters fiscal 2027 under a merger agreement with onsemi, with closing expected in mid-2027.
Key takeaways
The $490.8M net loss was driven by a $411.4M income tax provision, including a $425.3M non-cash charge to establish a full against U.S. federal .
rose 11.4% to $1,197.2M, led by Core IoT growth of 43.1% to $389.7M, including the Broadcom Wi-Fi asset contribution.
Enterprise and Automotive rose 5.1% to $641.1M on higher unit sales, better mix, and increased IP license revenue, while Mobile fell 13.2% to $166.4M on lower ASPs and license revenue.
Section summaries
Business
Synaptics designs AI-native edge silicon and software across IoT, enterprise/automotive, and mobile markets, with a pending merger into onsemi.
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Synaptics operates across three primary markets: Core IoT (wireless connectivity, Edge AI processors, integrated solutions), Enterprise and Automotive (biometric fingerprint, video interface, robotics/Physical AI, automotive), and Mobile (touch solutions).
The company entered into a merger agreement with ON Semiconductor on June 25, 2026, under which each Synaptics share converts into 1.350 onsemi shares, with closing expected in mid-2027 subject to stockholder and regulatory approvals.
stayed flat at 44.7% despite growth, as the model makes margin largely insensitive to shipment volume.
Operating expenses rose to $602.5M, driven by higher , personnel costs, and $10.9M in professional fees tied to the pending onsemi merger.
Cash and equivalents rose $51.0M to $442.5M, with $149.4M from operations partly offset by $92.7M in share repurchases.
What changed
Core IoT growth decelerated from 53% in FY2025 to 43.1% in FY2026, settling the question of whether the Broadcom-driven increase would hold; it did, but at a lower rate.
stabilized at 44.7% after declining from 45.8% in FY2024 to 44.7% in FY2025, as Broadcom intangible pressure was offset by favorable product mix and a customer rebate release in Q3.
The operating loss narrowed to $67.1M from $94.1M in FY2025, continuing the multi-year improvement from the $101.6M loss in FY2024.
fell 52.4% to $397.7M from $834.8M, reflecting repayment of the Term Loan Facility and the shift to the $450M convertible notes structure.
The pending onsemi merger, announced June 25, 2026, is a new development with no prior-year comparison; it introduces a $235.0M Synaptics termination fee and a fixed 1.350 share exchange ratio.
What to watch
Whether the onsemi merger closes in mid-2027 as expected, and whether the fixed 1.350 exchange ratio holds or is renegotiated given onsemi's stock decline.
Core IoT in Q1 FY2027 to see if the 43.1% annual growth rate holds or decelerates further as Broadcom integration matures.
next quarter to see if the 44.7% level holds or reverts as and IP licensing compare against prior bases.
Cash balance trajectory given $397.7M , the $450M convertible notes due 2031, and ongoing share repurchases.
In January 2025, Synaptics acquired certain Wi-Fi technology assets and non-exclusive licenses from Broadcom to accelerate its Edge AI strategy and expand its wireless roadmap with Wi-Fi 8, GPS, GNSS, and Wi-Fi 7 combo products.
Synaptics employs a manufacturing model, partnering with third-party foundries and backend processors, which it states reduces and requirements.
As of June 2026, the company held 2,344 active patents and 661 pending patent applications, and employed approximately 1,700 people across 15 countries.
Customers include many of the world's largest mobile and PC OEMs, Edge AI IoT OEMs, and automotive manufacturers, typically served through contract manufacturers, ODMs, and distributors.
The dominant risk is the pending onsemi merger, followed by cyclical end-market, trade/tariff, and supply-chain exposures.
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The proposed merger with onsemi may be delayed or fail, with a $235.0M Synaptics termination fee or $320.0M onsemi regulatory termination fee in specified scenarios, and a fixed 1.350 share exchange ratio that has already lost value as onsemi's stock declined.
is heavily concentrated in cyclical Core IoT, Enterprise, Automotive, and Mobile markets, where demand swings, price erosion, and customer order cancellations can sharply affect results.
New U.S. tariffs, including a January 2026 25% tariff on certain imported semiconductors, plus China trade tensions and Middle East conflict, threaten supply chains, component costs, and customer demand.
The company depends on a concentrated base of OEM/ODM customers and outsourced Asian manufacturing without long-term supply or volume commitments, exposing it to forecasting errors, imbalances, and component shortages.
Fiscal 2026 included a $6.8M and a $5.0M cost-method investment , showing acquisition-related risk.
Debt obligations, including 4.000% Senior Notes due 2029 and 0.75% Convertible Senior Notes due 2031, limit financial flexibility and create potential liquidity and risk.
Our principal executive offices, as well as our principal research and development, sales, marketing and administrative functions, are located in San Jose, California, where we lease office space of approximately 111,000 square feet. We also have other U.S.-based research and de…
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Our principal executive offices, as well as our principal research and development, sales, marketing and administrative functions, are located in San Jose, California, where we lease office space of approximately 111,000 square feet.
We also have other U.S.-based research and development functions in other leased facilities in California and Georgia.
Our principal facilities outside of the United States include leased facilities for research and development in India, Israel, Japan and Taiwan. The facilities in Japan and Taiwan also accommodate sales and administrative functions. We have leased facilities in Taiwan and Hong Kong for logistics operations. Other leased facilities are located in China, Korea, and Switzerland for sales and support and in France, Germany, Poland and the U.K. for research and development.
We are party to various litigation matters and claims arising from time to time in the ordinary course of business. While the results of such matters cannot be predicted with certainty, we believe that the final outcome of such matters will not have a material adverse effect on…
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We are party to various litigation matters and claims arising from time to time in the ordinary course of business. While the results of such matters cannot be predicted with certainty, we believe that the final outcome of such matters will not have a material adverse effect on our business, financial condition, results of operations or cash flows.
For further information regarding current legal proceedings, see “Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 12. Commitments and Contingencies.”
Fiscal 2026 revenue rose 11.4% to $1,197.2M, but a $411.4M tax charge drove a $490.8M net loss.
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Net rose 11.4% to $1,197.2M, led by Core IoT growth of 43.1% to $389.7M, including the Broadcom transaction contribution.
Enterprise and Automotive rose 5.1% to $641.1M on higher unit sales, better mix, and increased IP license revenue, while Mobile fell 13.2% to $166.4M on lower ASPs and license revenue.
stayed flat at 44.7% despite growth, as the company's fabless model makes margin largely insensitive to shipment volume.
Operating expenses rose to $602.5M, driven by higher , personnel costs, and $10.9M in professional fees tied to the pending onsemi merger.
A $411.4M income tax provision, mainly from a full against U.S. , produced a net loss of $490.8M versus a $47.8M loss in fiscal 2025.
Cash and equivalents rose $51.0M to $442.5M, with $149.4M from operations partly offset by $92.7M in share repurchases; the company expects to close its merger with onsemi in mid-2027.
Quantitative and Qualitative Disclosures About Market Risk
Company faces foreign-currency cost risk and modest interest-rate sensitivity, with fixed-rate debt limiting rate exposure.
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Foreign-currency-denominated costs were about 17% of total costs in fiscal 2026 and 2025, while all net was in U.S. dollars.
A hypothetical 10% adverse currency move would have increased operating loss and net loss by roughly $22.0 million for fiscal 2026, assuming no hedges.
Foreign-currency rose to about 5% of total accounts payable as of June 2026, from 3% a year earlier.
A 50-basis-point change in interest rates on cash, cash equivalents, and short-term investments would change interest income by about $2.0 million.
Outstanding carried fixed interest rates as of June 2026, so interest-rate risk on and cash flows is minimal.
The company notes its currency sensitivity analysis has limitations because exchange rates can move in opposite directions and gains in one currency may not offset losses in another.
KPMG issued unqualified opinions on Synaptics' FY2026 financials and internal controls, with inventory valuation flagged as a critical audit matter.
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KPMG audited the consolidated financial statements for the three fiscal years ended June 27, 2026 and issued unqualified opinions on both the financial statements and .
The sole was valuation of inventories, which totaled $156.4 million as of June 27, 2026 and required subjective judgments about excess, obsolete, or unmarketable .
Total assets declined to $2,102.0 million from $2,584.4 million, while total fell to $929.5 million from $1,394.9 million.
Net grew to $1,197.2 million in fiscal 2026 from $1,074.3 million in fiscal 2025, but the company reported a net loss of $490.8 million versus a $47.8 million loss in the prior year.
The fiscal 2026 net loss was driven primarily by a $411.4 million income tax provision, including a $425.3 million non-cash charge to establish a full against U.S. federal .
The company entered into a merger agreement with ON Semiconductor Corporation on June 25, 2026, under which each Synaptics share would convert into 1.350 shares of onsemi common stock, with closing expected in mid-2027.