Synaptics' Q3 2025: Navigating Contradictions in Core IoT Growth and Acquisition Impacts

Impact of Broadcom acquisition on Core IoT segment, expectations from Wi-Fi 7 and Broadcom acquisition opportunities, Wi-Fi 7 and Broadcom acquisition impact, core IoT growth and drivers are the key contradictions discussed in Synaptics' latest 2025Q3 earnings call.



Strong Revenue Growth and Core IoT Performance:
- Synaptics reported revenues of $267 million for Q3, which is 12% higher year-over-year and slightly above the mid-point of their guidance.
- The growth was driven by a 43% increase in Core IoT product sales, fueled by strong momentum in wireless and processor products.

Wi-Fi 7 and Broadcom Acquisition Impact:
- Expansion of the Varis connectivity portfolio with the launch of the first broad market device and the anticipation of $10 million a quarter contribution from the Broadcom acquisition.
- The Wi-Fi 7 solution, designed for IoT applications, and the Broadcom acquisition contributed to the company's growth, with the latter expected to open new serviceable market opportunities.

Enterprise and Automotive Market Gains:
- Enterprise and automotive product revenues improved 14% year-over-year, supported by market share gains and innovations in user presence detection solutions.
- Synaptics continues to penetrate the OEM market with AI-enhanced solutions, driving share gains and higher content opportunities.

Geopolitical and Macroeconomic Environment:
- The company acknowledges the uncertain global trade environment and potential indirect impacts from tariff policies on end demand and supply chains.
- Despite this uncertainty, Synaptics maintains healthy order activity, lean customer and channel inventories, and strong fundamentals that support its financial performance.