Synaptics (SYNA) Q3 FY26 earnings call: guidance and Q&A

What is causing the near-term volatility in Core IoT, and when should we expect meaningful revenue contribution from the Astra platform, especially given the numerous design wins?

Ken explained that Core IoT is performing very strongly for FY26, projected to be north of $385 million with over 40% YoY growth, and quarter-to-quarter movements are normal. Rahul reiterated that meaningful Astra revenue ramp is anticipated in calendar 2027, with a semi-custom solution for a large OEM expected to go into production in H1 CY27 and ramp in H2 CY27. He noted that robotics content is substantially higher but is being cautiously excluded from the '27 plan due to its early stage.

“meaningful ramp in calendar 2027, and that remains.”

asked by Ross Seymore · answered by Rahul Patel

How are customers reacting to memory cost pressures in the PC and Mobile markets, and do you foresee continued market growth or significant headwinds in the coming quarters?

Rahul stated that PC demand is currently reasonable, but potential headwinds in H2 CY26 are possible, though Synaptics' focus on premium products might offer a cushion. For smartphones, memory challenges in China impact shipments, but Synaptics is gaining market share with a Korean OEM that has memory access, which helps offset some of the impact.

“our participation is in the enterprise class products and premium class products. And that potentially presents us with some form of cushion buffer because the affordability is a lot better in that class of products.”

asked by Ross Seymore · answered by Rahul Patel

Can you describe the range of silicon content Synaptics achieves in the robotics market, from capacitive touch only to a full suite including connectivity and processing?

Rahul explained that current majority shipments in robotics are concentrated on tactile sensing and bus interface technologies, with silicon content in the 'few tens of dollars per platform.' Early engagements on Astra processors and wireless connectivity are additive to this content. He emphasized that many platforms will utilize one or more Synaptics capabilities.

“the silicon content in terms of few tens of dollars per platform, largely on backs of those 2 capabilities.”

asked by Kevin Cassidy · answered by Rahul Patel

Which end markets are showing the fastest customer traction for Astra, and will the initial production ramp be concentrated in a few large programs or diversified across many smaller deployments?

Rahul reiterated that consumer markets will ramp first for Astra, followed by industrial, which is now seeing design wins. He confirmed that the revenue profile will include both 'singles and doubles' (diversified smaller deployments) and a 'big home run' customer (the semi-custom design) contributing to the calendar 2027 revenue.

“there are going to be singles and doubles, and there's going to be this big home run that will come into our calendar '27 revenue profile on Astra.”

asked by Neil Young · answered by Rahul Patel

Is the current gradual revenue growth expected to accelerate significantly, and is there gross margin leverage in the model given stable margins despite revenue increases?

Ken explained that past gradual growth was due to working through post-COVID inventory, and now the company is shipping to end demand, which should fuel future growth. For gross margins, he noted that the fabless model makes it mix-dependent, but the operations team has successfully absorbed cost headwinds. Longer-term, the mix shift towards higher-margin processor products like Astra should fuel overall company margins.

“on a longer-term basis, the mix and the mix of some of our products such as in the processor category, those are going to help fuel the long-term margins of the company.”

asked by Sreekrishnan Sankarnarayanan · answered by Ken Rizvi