Synaptics Q1 2027: Revenue Miss and onsemi Deal Leave Investors in Limbo

Synaptics posted non-GAAP diluted EPS of $1.26 for its fiscal first quarter of 2027, meeting expectations and extending a streak of beating earnings expectations to four consecutive quarters, but the top line fell short.

Revenue came in at $294 million, missing the $315.68 million consensus. CEO Rahul Patel attributed the weakness directly to supply constraints and memory-related demand dynamics across multiple markets, with softness in the smartphone segment dragging on touch and wireless products specifically.

On a GAAP basis operating income was negative $12.7 million, weighed down by acquisition and integration costs tied in part to the pending onsemi deal, share-based compensation, and restructuring charges. Non-GAAP operating income did improve, climbing to $62 million from $51.5 million a year earlier.

The dominant story for holders right now is the pending all-cash acquisition by onsemi, which was entered under an Amended and Restated Merger Agreement dated October 1, 2026. Because that deal still awaits regulatory and stockholder approvals, Synaptics skipped its earnings call entirely and offered no financial outlook for the coming quarter, leaving investors without the usual forward guidance to price the stock on its own fundamentals.

Patel did note growing design activity in Edge AI and Physical AI, including new robotics customers showing interest in Synaptics processor and wireless technologies, and the company entered a licensing agreement for its automotive LCD TDDI technology during the quarter. With no outlook issued, the near-term stock price is effectively a referendum on whether the onsemi deal closes.