Start here if you're new
what it is
Synaptics sells chips and software that let your devices sense touch, move data, and handle audio.
how it gets paid
Last year Synaptics made $1.1B in revenue. Touch and display controllers was the main engine at $0.40B, or 36% of sales.
why it's growing
Revenue grew 12.0% last year. The $595M revenue print mattered most because it nearly doubled vs. prior year.
what just happened
$595M in revenue was the headline, but EPS still came in at -$0.91.
At a glance
B+ balance sheet — decent shape, but not bulletproof
40/100 earnings predictability — expect surprises
20.6x trailing p/e — priced about right
9.5% return on capital — nothing to write home about
xvary composite: 55/100 — below average
What they do
Synaptics sells chips and software that let your devices sense touch, move data, and handle audio.
Your laptop maker does not swap out touch parts for fun. It has to retest firmware, drivers, and support. Synaptics also has 1,700 employees and $1.1B in annual revenue, so it is small enough to move fast and big enough to be hard to replace.
How they make money
$1.1B
annual revenue · their business grew +12.0% last year
Touch and display controllers
$0.40B
Audio and voice
$0.20B
Connectivity chips
$0.18B
IoT and edge sensing
$0.17B
Licensing and other
$0.15B
The products that matter
designs and sells interface chips
Human Interface Semiconductors
$1.1B revenue · effectively the whole company
it's the whole $1.1B business in the snapshot data. revenue grew 4.2% last year, but the latest quarter still showed a -4.4% margin. that gap is the investment case in one sentence.
one engine
Key numbers
$95
vl target
You have about $20.56 of upside from $74.44 if the target sticks.
$1.1B
annual sales
That is real revenue for a $3B company, not a story stock with a logo.
43.1%
gross margin
For every $100 of sales, Synaptics kept $43 before overhead.
20.6x
price-to-earnings
You pay $20.60 for each $1 of trailing profit, so the stock is not cheap.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- long-term debt $836M (22% of capital)
- net profit margin 12.9% — keeps 13 cents of every dollar in revenue
- return on equity 14% — $0.14 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in SYNA 3 years ago → it's now worth $6,730.
The index would have given you $14,540.
source: institutional data · total return
What just happened
missed estimates
$595M in revenue was the headline, but EPS still came in at -$0.91.
Revenue jumped 97% vs. prior year, and gross margin reached 43.1%. The catch is simple: the business sold more, but the bottom line stayed negative.
$595M
revenue
$0.91
eps
43.1%
gross margin
the number that mattered
The $595M revenue print mattered most because it nearly doubled vs. prior year, while profit still missed the mark.
-
fiscal 2026 (year ends june 30, 2026) is proving to be a solid one for synaptics, thus far.during the second quarter, sales and earnings both progressed at a double-digit pace, to $302.5 million and $1.21 a share, respectively. over the remainder of this year and in fiscal 2027, the top and bottom lines should advance at double-digit rates as well. heightened demand in the internet of things (iot) category will likely remain the company’s main near-term growth driver. compelling characteristics of this category include interconnectivity features across networks of smart devices, including computers, watches, and navigational tools. iot offerings are not only geared toward consumer-centric industries such as electronics, but also encompass devices used within market-serving industries such as agriculture, transportation, and engineering. synaptics’ already diverse and expansive reach should be further expanded through the pursuit of additional growth avenues.
-
the company intends to keep pace with evolving technologies.investments into artificial intelligence (ai) arenas have already been beneficial to operations, and should continue to provide advantages for the foreseeable future. synaptics’ strategy to keep pace and participate in newer technology trends ought to allow the business to remain competitive. the appeal is multifaceted here, but mainly, connectivity allows consumers and customers to be equipped with moreefficient networking systems.
-
added technologies and value-added options ought to allow margin expansion, as well.
-
broader market trends may be favorable to synaptics.
-
the need to upgrade systems is somewhat necessary.and although the overall economic picture continues to ebb and flow, consumer confidence appears to be on the rise, for now.
source: company earnings report, 2026
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What could go wrong
the #1 risk is iot and connected-device demand recovering without restoring margins.
med
the rebound may be more inventory cycle than durable reset
annual revenue was $1.1B, but the fy2026 estimate sits closer to $1B. that is the market admitting recovery exists and still refusing to call it durable.
if revenue settles near the current quarterly run rate without a better profit profile, the $4.50 EPS setup starts to look high.
med
profitability is doing too much improvising
full-year operating margin was 31.5%. the latest quarterly margin was -4.4%. same company. very different economics.
that spread is why the stock gets a 40 / 100 predictability score and why the multiple stays ordinary.
med
institutions are still withholding the all-clear
big holders were net sellers for 2 consecutive quarters. in 4q2025, there were 95 buyers versus 104 sellers. that is not panic. it is still a vote of caution.
continued selling keeps pressure on a stock with 20 / 100 price stability and little room for disappointment.
med
the finances work until misses stack up
a B+ balance sheet and $836M of long-term debt equal 22% of capital. manageable, yes. a free pass for repeated weak quarters, no.
if the earnings reset slips again, debt matters more and valuation support matters less.
the combined risk picture exposes a $1.1B revenue base to margin swings from 31.5% for the full year to -4.4% in the latest quarter. until that spread narrows, the $95 midpoint target is a possibility, not an entitlement.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
next earnings print
this story needs a cleaner quarter. revenue near $302M matters, but margin and EPS quality matter more.
metric
fy2026 revenue versus the $1B estimate
if the business cannot at least hold around that level, the recovery narrative thins out fast.
trend
margin normalization
31.5% full-year operating margin versus -4.4% in the latest quarter is the whole debate. you want that gap closing, not widening.
risk
institutional flow
95 buyers versus 104 sellers is a small gap. two straight quarters of net selling is the part that matters.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a stock acting mostly like the market until the business gives them a cleaner reason to re-rate it.
risk profile
average
stability score 3 — not especially safe, not especially reckless, but the 20 / 100 price stability tells you the ride still gets rough.
chart momentum
top 5%
technical score 1 — the chart looks much better than the earnings smoothness. welcome to a market that buys recoveries before they are fully proven.
earnings predictability
40 / 100
earnings are harder to forecast here than in steadier chip names. the spread between 31.5% full-year margin and -4.4% quarterly margin is your explanation.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 95 buyers vs. 104 sellers in 4q2025. total institutional holdings: 37.0M shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$49
$141
$74
current price
$95
target midpoint · +28% from current · 3-5yr high: $150 (+100% · 19% ann'l return)
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