Synaptics Q2 2025: Navigating Contradictions in Broadcom Benefits, Automotive Outlook, and Core IoT Growth

These are the key contradictions discussed in Synaptics' latest 2025 Q2 earnings call, specifically including: Broadcom transaction benefits, automotive market performance, inventory and demand expectations, and Core IoT revenue growth expectations:



Revenue and Product Growth:
- Synaptics reported revenue of $267 million for Q2 FY2025, exceeding the midpoint of guidance, with a 4% sequential and 13% year-over-year increase.
- Growth was driven by strength in Core IoT and Enterprise products, particularly in the processor and wireless sectors.

Core IoT Expansion:
- Core IoT product revenues increased by 63% year-over-year and 3% sequentially, reaching $61 million.
- This growth was attributed to improving processor demand and increased collaborations with content providers for AI use cases.

Enterprise & Automotive Segment:
- Enterprise & Automotive product revenue improved 17% year-over-year and 8% sequentially, topping $159 million.
- Although order and bookings showed improvement, they have not yet indicated a refresh cycle. Contributions from new products are anticipated to drive growth.

Broadcom Transaction and Strategic Acquisitions:
- Synaptics completed a $198 million all-cash acquisition from Broadcom, expected to generate over $40 million in annualized sales.
- The acquisition expanded Synaptics' wireless portfolio and field of use, enabling entry into Android smartphones, AR/VR, and consumer audio markets.