Synaptics (SYNA) AI Stock Analysis

• Market Cap: $3.16B
• Dividend Yield: N/A
• Average Volume (3M): 725.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.06
• Revenue Growth: 13.24%
• EPS Growth: -129.14%
• Country: US
• Employees: 1,716
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.21
• Shares Outstanding: 38,729,740
• 10 Day Avg. Volume: 584,512
• 30 Day Avg. Volume: 725,891
• PEG Ratio: 0.39
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 2.37
• P/FCF Ratio: 23.97
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 2.98
• Enterprise Value/Gross Profit: 6.91
• Enterprise Value/Ebitda: 37.29
• 1Y Price Target: $102.40
• Price Target Upside: 25.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 4.35
• Revenue Forecast (FY): $1.19B

• Rating: 61 Neutral
• Price Target: $92.00 ▲(12.87% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is held back primarily by weak profitability (loss-making TTM) despite improving cash flow, while supportive technical momentum and a generally positive earnings call (execution and IoT growth) provide offsets. Valuation remains a constraint due to the negative P/E and lack of dividend yield data.

Positive Factors

Sustained Top-Line Growth

Consistent double-digit revenue growth across five consecutive quarters indicates durable demand and improving market traction, reducing execution risk. This trend supports scale benefits and provides a foundation for sustained investment in R&D and go-to-market expansion over the next several quarters.

Core IoT Product Momentum

Rapid Core IoT growth shows successful penetration of higher-value connectivity and edge AI markets. A >50% expansion in this segment diversifies revenue away from cyclical mobile/PC, improving structural end-market exposure and supporting sustainable margin improvement as higher ASP products scale.

Improving Cash Generation

Positive and improving free cash flow provides financial flexibility for R&D, inventory investment, and disciplined buybacks. Strong cash generation relative to recent losses helps fund growth initiatives and reduces reliance on external financing, underpinning longer-term balance-sheet resilience.

Negative Factors

Loss-Making on GAAP Basis

Persistent GAAP losses and negative ROE mean the company is not yet compounding shareholder capital through operating profits. Until operating expenses are sustainably below gross profit, earnings quality and return generation remain constrained, limiting long-term capital reinvestment capacity.

Rising Inventory / Working Capital

A strategic inventory build raises working capital and ties up cash, increasing balance-sheet risk if demand softens. Elevated days of inventory also heighten obsolescence and margin pressure in semiconductors, reducing agility and potentially slowing cash conversion over multiple quarters.

Delayed Revenue from Astra Edge AI

Key product roadmap benefits (Astra multimodal/MCU) are multi-quarter to multi-year drivers, meaning material revenue and margin boosts are backloaded. This timing gap limits near-term earnings leverage from new architecture and extends uncertainty around commercialization and customer design wins.

Synaptics Business Overview & Revenue Model

Company Description

Synaptics Incorporated develops, markets, and sells semiconductor product solutions worldwide. The company offers AudioSmart for voice and audio processing; ConnectSmart for high-speed video/audio/data connectivity; DisplayLink for transmitting compressed video frames across low bandwidth connections; VideoSmart that enables set-top boxes or over-the-top, streaming devices, soundbars, surveillance cameras, and smart displays; and ImagingSmart solutions. It also provides Natural ID, a fingerprint ID product that is used in automobiles, notebook personal computers (PCs), PC peripherals, and other applications; TouchPad, a touch-sensitive pad that senses the position and movement of one or more fingers on its surface; SecurePad that integrates fingerprint sensor directly into the TouchPad area; ClickPad that offers a clickable mechanical design; and ForcePad. In addition, the company offers ClearPad, which enables users to interact directly with the display on mobile smartphones, tablets, and automobiles; ClearView products that provide advanced image processing and low power technology for displays on smartphones and tablets; and TouchView products, a touch controller and display driver integration product. Further, it provides TouchPad with a pointing stick in a single notebook computer enabling users to select their interface of choice; TouchStyk, a self-contained pointing stick module; ultra-low power edge artificial intelligence platform for battery powered wireless devices; wireless connectivity solutions comprising Wi-Fi, Bluetooth, global positioning system, global navigation satellite system, and ULE; and voice over IP and digital enhanced cordless telecommunications solutions. The company sells its products through direct sales, outside sales representatives, distributors, and resellers to mobile and PC OEMs; IoT OEMs; and automotive and consumer electronics manufacturers. The company was incorporated in 1986 and is headquartered in San Jose, California.

How the Company Makes Money

Synaptics generates revenue through the sale of its semiconductor products, which include various components for mobile devices, personal computers, and smart home applications. The company earns money primarily by supplying its touch and display drivers to original equipment manufacturers (OEMs) and original design manufacturers (ODMs). Additionally, Synaptics has established strategic partnerships with major tech companies, allowing it to integrate its technologies into popular devices, thus expanding its market reach. The company also benefits from licensing its intellectual property related to its innovative technologies, providing a supplementary revenue stream. Notably, Synaptics' focus on emerging markets such as IoT and automotive applications further diversifies its revenue sources and drives growth.

Synaptics Financial Statement Overview

Summary

Mixed fundamentals: modest TTM revenue growth and clearly improving free cash flow support stability, but the income statement is the key drag with negative operating and net margins and negative ROE despite a more manageable leverage profile.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up (about +3.2%), showing modest top-line stabilization after prior declines. However, profitability is weak: the company is operating at a loss (negative operating margin and negative net margin in TTM), and results have deteriorated versus the prior year when net income was positive (FY2024). Gross margin remains solid for the group, but the core issue is that operating costs are outweighing gross profit, pressuring earnings quality and visibility.

Balance Sheet

Leverage appears manageable with debt at roughly two-thirds of equity (debt-to-equity around 0.63 in TTM), an improvement from higher leverage in earlier years. Equity is still meaningful relative to total assets, supporting balance-sheet flexibility. The key weakness is returns: return on equity is negative in TTM, reflecting the current loss-making profile and reducing the balance sheet’s ability to compound value until profitability improves.

Cash Flow

Cash generation is a relative bright spot: TTM operating cash flow and free cash flow are both positive, and free cash flow improved sharply versus FY2024 (which was negative). That said, cash conversion is not perfect—operating cash flow is only about 70% of net income in TTM (indicating weaker cash conversion relative to accounting results), and the free-cash-flow-to-net-income figure is less supportive given net income is negative. Overall, liquidity looks better than earnings suggest, but consistency remains a watch item.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.14B	1.07B	959.40M	1.36B	1.74B	1.34B
Gross Profit	493.60M	480.40M	439.80M	715.90M	943.10M	611.20M
EBITDA	91.50M	69.40M	49.90M	339.30M	498.20M	289.90M
Net Income	-61.90M	-47.80M	125.60M	73.60M	257.50M	79.60M
Balance Sheet
Total Assets	2.56B	2.58B	2.83B	2.61B	2.86B	2.23B
Cash, Cash Equivalents and Short-Term Investments	437.40M	452.50M	876.90M	934.30M	876.00M	836.30M
Total Debt	836.00M	880.20M	1.07B	1.03B	1.04B	914.80M
Total Liabilities	1.18B	1.19B	1.36B	1.37B	1.59B	1.26B
Stockholders Equity	1.38B	1.39B	1.47B	1.24B	1.27B	967.20M
Cash Flow
Free Cash Flow	144.80M	106.20M	-31.70M	297.30M	401.60M	298.10M
Operating Cash Flow	190.60M	142.00M	135.90M	331.50M	462.70M	319.20M
Investing Cash Flow	-246.10M	-297.90M	-157.70M	-6.00M	-482.70M	-522.60M
Financing Cash Flow	-104.30M	-331.40M	-25.10M	-221.30M	14.30M	274.10M

Synaptics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 81.51
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYNA, the sentiment is Neutral. The current price of 81.51 is below the 20-day moving average (MA) of 85.30, below the 50-day MA of 83.02, and above the 200-day MA of 71.37, indicating a neutral trend. The MACD of -0.75 indicates Positive momentum. The RSI at 43.97 is Neutral, neither overbought nor oversold. The STOCH value of 21.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SYNA.

Synaptics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DIOD	75 Outperform	$3.31B	50.61	3.60%	―	10.45%	4.37%
FORM	73 Outperform	$7.77B	143.41	5.48%	―	2.29%	-69.81%
SIMO	73 Outperform	$4.39B	35.36	15.25%	2.22%	-2.26%	9.74%
POWI	64 Neutral	$2.79B	122.18	3.11%	2.27%	10.50%	-52.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SYNA	61 Neutral	$3.16B	―	-4.49%	―	13.24%	-129.14%
VSH	55 Neutral	$2.60B	-289.27	-0.44%	2.67%	-0.84%	-189.44%

Synaptics Corporate Events

Synaptics Adds Independent Director to Strengthen Board Oversight

Synaptics has expanded its board of directors from eight to nine members and appointed Venkatesh (Venk) Nathamuni as an independent director and Audit Committee member, effective January 1, 2026, a move announced in a January 5, 2026 press release following the board’s December 29, 2025 decision. Nathamuni, currently Executive Vice President and Chief Financial Officer of Jacobs Solutions and a seasoned semiconductor and finance executive with more than three decades of leadership experience, is deemed an audit committee financial expert under SEC rules and will receive standard non-employee director compensation, reinforcing Synaptics’ financial oversight, governance capabilities, and strategic focus as it pursues its growth plans in AI-driven semiconductor markets.

The most recent analyst rating on (SYNA) stock is a Buy with a $106.00 price target. To see the full list of analyst forecasts on Synaptics stock, see the SYNA Stock Forecast page.