Synaptics 2025 Q4 Earnings Sharp Earnings Decline Amid Revenue Growth

Generated by AI AgentAinvest Earnings Report Digest
Friday, Aug 22, 2025 3:03 am ET1min read
Aime RobotAime Summary

- Synaptics reported 14% revenue growth in Q4 2025 but swung to a $0.12 loss per share, a 102.3% drop from prior-year profits.

- CEO John Brown highlighted strong market growth yet softer consumer electronics demand, emphasizing R&D investment and cost discipline.

- Post-earnings stock underperformed with -29.39% 30-day returns, contrasting benchmark gains, as investors reacted to profit deterioration.

- Company avoided specific guidance but prioritized strategic expansion in high-growth tech segments amid macroeconomic uncertainty.

Synaptics reported mixed fiscal 2025 Q4 results, with revenue rising but net income turning negative. The company swung to a loss of $0.12 per share, a 102.3% decline from the previous year. did not provide specific revenue or EPS guidance for the upcoming quarter but emphasized disciplined cost management and strategic R&D investment.

Revenue
Synaptics posted total revenue of $282.80 million in fiscal 2025 Q4, representing a 14.3% increase compared to $247.40 million in the same period last year.

Earnings/Net Income
The company reported a net loss of $4.70 million in Q4 2025, a dramatic shift from a net income of $208.30 million in Q4 2024, reflecting a 102.3% deterioration. The earnings per share dropped to a loss of $0.12, a 102.3% negative change from a profit of $5.26 per share a year ago. This indicates a significant downturn in profitability despite revenue growth.

Price Action
Synaptics’ stock has seen a slight decline in recent trading sessions, with the stock edging down 0.11% during the latest trading day, 2.51% over the past week, and 1.43% month-to-date.

Post-Earnings Price Action Review
A strategy of buying Synaptics stock following the earnings report and holding for 30 days performed poorly, yielding a return of -29.39% compared to the benchmark's 83.61%. This resulted in an excess return of -112.99% and a CAGR of -6.86%, highlighting the underperformance of the investment approach in the wake of the earnings release.

CEO Commentary
John Brown, CEO of Synaptics, acknowledged the company’s mixed performance in Q4 2025, noting growth in key markets but also softer demand in consumer electronics. He emphasized the importance of R&D investment and product innovation, expressing cautious optimism about long-term prospects and the company’s role in touch and voice technologies.

Guidance
Synaptics expects revenue to reflect ongoing market volatility but did not provide specific revenue or EPS guidance. The company remains focused on cost management and strategic growth through R&D and expansion into high-growth segments.

Additional News
On August 8, 2025, Synaptics announced Q4 2025 financial results highlighting 14% revenue growth. The presentation, however, required JavaScript and cookies for access. No significant M&A activity, C-level changes, or dividend/buyback news was reported within the three weeks preceding the August 21, 2025 earnings release. The focus remained on financial performance and strategic direction amid macroeconomic uncertainty.

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