Synaptics announced a strategic partnership with OriginAI that will embed the company’s award‑winning AI Sensing™ software into Synaptics’ Veros™ family of wireless system‑on‑chip (SoC) products and its Astra™ AI‑native processors, creating a turnkey sensing‑connectivity stack for smart‑home and industrial edge devices.
The deal fits into Synaptics’ broader pivot away from legacy touch controllers toward high‑margin edge‑AI and IoT solutions. Core IoT revenue grew 73.8% year‑over‑year in Q1 FY26, representing 35% of total revenue and up from 23% in the same quarter a year earlier. The Astra platform, which powers the new SoCs, is positioned to capture demand for low‑power, on‑device AI in security, energy management, and home automation markets.
In its Q1 FY26 earnings, Synaptics reported revenue of $292.5 million, a 14% increase from $257.7 million in Q1 FY25, driven largely by the Core IoT segment’s 74% jump to $215 million. Non‑GAAP earnings per share rose to $1.09 from $0.81, a 35% beat over the $1.08 consensus, thanks to disciplined cost management and a favorable product mix. However, GAAP earnings fell to a loss of $0.53 per share, largely attributable to $35.5 million in acquisition and integration charges that were not reflected in the non‑GAAP figure.
Investors reacted cautiously, with the stock slipping modestly after the earnings release. The decline was driven by the GAAP loss, which highlighted the company’s ongoing investment in new technologies and acquisitions, while the strong non‑GAAP performance and robust Core IoT growth mitigated the negative sentiment.
The OriginAI partnership is expected to open a new revenue stream for Synaptics, leveraging Wi‑Fi sensing’s cost‑effective, privacy‑preserving capabilities. The integrated stack will reduce time‑to‑market for OEMs and could accelerate adoption of Synaptics’ edge‑AI solutions. Management emphasized that the partnership aligns with the company’s focus on high‑margin, high‑growth segments and that the Astra platform will continue to drive profitability as the IoT market expands.
Rahul Patel, Synaptics’ President and CEO, said the collaboration “strengthens our position in the rapidly growing smart‑home and industrial IoT markets by combining our low‑power SoCs with OriginAI’s advanced sensing software.” CFO Ken Rizvi added that the partnership “will enhance our product portfolio and create additional revenue opportunities while maintaining disciplined cost control.”
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