Synaptics Incorporated

Good day and thank you for standing by. Welcome to Synaptic's second quarter fiscal year 2026 financial results conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please advise that today's conference is being recorded. I would like to hand the conference over to your first speaker today, Manjal Shah, Vice President and Head of Investor Relations. Please go ahead.

Good afternoon, and thank you for joining us today on Synaptic's second quarter fiscal 2026 conference call. My name is Manjal Shah, and I'm the Vice President of Investor Relations. With me on today's call are Rahul Patel, our president and CEO, and Ken Rizvi, our CFO. This call is being broadcast live over the web and can be accessed from the investor relations section of the company's website at synaptics.com. In addition to a copy of our earnings press release detailing our quarterly results, a supplemental slide presentation and a copy of these prepared remarks have been posted on our investor relations website. Today's discussion of financial results is presented on a GAAP financial basis along with supplementary results on a non-GAAP basis, which excludes share-based compensation, acquisition-related costs, and certain other non-cash or recurring or non-recurring items. All non-GAAP financial metrics discussed are reconciled to the most directly comparable GAAP financial measures in our earnings press release and supplemental materials available on our investor relations website. As a reminder, the matters we are discussing today in our prepared remarks, in our supplemental materials, in response to your questions, may contain certain forward-looking statements. These forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance, and business. Although Synaptics believes the estimates and assumptions underlying these forward-looking statements to be reasonable, the statements are subject to a number of risks and uncertainties beyond our control. Synaptics cautions that actual results may differ materially from any future performance suggested in the company's forward-looking statements. Therefore, we refer you to the company's earnings release issued today. and our current and periodic reports filed with the SEC, including our most recent annual report on Form 10-K and quarterly report on Form 10-Q for important risk factors that could cause actual results to differ materially from those contained in any forward-looking statement. All forward-looking statements speak only as of the date they are off. Except as required by law, Synapsex expressly disclaims any obligation to update this forward-looking information. I will now turn the call over to Rahul.

Thank you, Munjal. Good afternoon, everyone, and thank you for joining our fiscal second quarter 2026 earnings call. We delivered another solid quarter with strong results and continued momentum across our business. Total company revenue increased 13% year-over-year marking our fifth consecutive quarter of double-digit year-over-year growth. This performance was driven by 53% year-over-year growth in our core IoT products. Disciplined execution helped deliver strong earnings growth with non-GAAP earnings per share increasing 32% year-over-year to $1.21. The Consumer Electronics Show in January was a successful event for Synaptics. We saw meaningful engagement with customers and partners as we showcased the breadth of our latest technologies and solutions. We demonstrated several use cases across our portfolio, including Google's Gemma 3 model running natively on our multimodal processors highlighted our differentiated Wi-Fi sensing and Bluetooth channel sounding capabilities, and one of our partners, Grin, demonstrated a robotic hand built using synaptics, processors, connectivity, and sensing products. We want to thank the analysts and investors who visited our booth. A defining theme at CES and across the industry is the accelerating shift towards physical and edge AI. as intelligence moves closer to the device. This evolution aligns directly with Synaptics' strategic focus and core product strengths. Our portfolio is purpose-built to deliver power-efficient, intelligent systems at the edge, and we believe this transition towards physical AI positions Synaptics for sustained long-term growth. We are seeing early but meaningful traction in robotics where synaptics brings differentiated capabilities across processing, connectivity, and sensing. One example is humanoids. Synaptics is actively engaged in sampling products with an industry leader that is building a lineup of advanced humanoids. These humanoids incorporate multiple synaptics touch controllers designed to enable tactile sensing as well as our interface bridge product to support high bandwidth data transport. Touch sensing is critical for humanoids to perform physical tasks, including sensing force, proximity, and surface characteristics. Our touch controllers integrate MLAI algorithms that enable this level of dexterity, allowing a humanoid to modulate grip force ranging from delicate glassware to solid metal objects, while distinguishing subtle pressure variations between plastic and paper cups. As we expand into new markets, we see growing applications for our intelligent sensing portfolio at the deep sensor edge. More broadly in robotics, we are engaging with a growing set of new customers and entering new markets. These engagements span multiple applications that tend to benefit from physical AI and leverage our portfolio of sensing, video interface, processors, and connectivity technologies. Our recently introduced Astra multimodal microprocessors are seeing strong interest from both customers and partners. They are choosing Synaptics Astra over competing platforms because of its open source architecture developer-ready software, power efficiency, and differentiated AI capabilities enabled by Synaptics' torque neural processing architecture developed in collaboration with Google. We are engaging with customers across a wide range of industries. For example, a leading security and controls company is evaluating our Astra processors along with our connectivity technology as a complete solution, citing our differentiation in AI and power efficiency. Smart home appliance manufacturers are also showing strong interest in Astra for its low-power AI-native design. As physical AI continues to gain momentum, we expect customers to embed increasing levels of intelligence across their devices. Our partner ecosystem for processors continues to expand across industrial markets. We are collaborating with Toradex, a leader in single board compute solutions, serving industrial automation, healthcare, transportation, agriculture, smart city, and aerospace markets. This quarter, we also added another European partner focused on industrial applications. In addition to our Linux-based Astra microprocessors, we are gaining meaningful traction with our high-performance AI-native Astra microcontroller portfolio. During the quarter, we secured a design with a Tier 1 consumer electronics OEM that selected Astra for its differentiated vision capabilities, enabling gesture-based system control in smart televisions. While this is one example, the Astra MCU supports a broad range of vision modalities, including presence, object detection, and security. Customer engagements are continuing to broaden across multiple end markets, and we expect to share additional design wins in the coming quarters. As our current Astra products continue to gain traction, we are executing with discipline and advancing our roadmap. This quarter, we are further expanding our AGI portfolio by sampling two new products. First, our Astra MCU with connectivity that combines our low-power microcontroller, neural processing technology, and latest connectivity into a single monolithic system on a chip. Importantly, it is the only solution in its class to support Wi-Fi 7, Bluetooth 6, and thread, while competing solutions remain anchored to Wi-Fi 6. This device also uniquely integrates front-end touch and voice interfaces, delivering a true system-level solution, enabling meaningful bill-of-material savings for customers. Second, Synaptics Connectivity SoC is our latest device that supports Wi-Fi 7, Bluetooth, BLE, and thread. It is a stand-alone connectivity solution that can be easily integrated into systems using non-Astra compute platforms, furthering our participation in the broader edge IoT market. We are seeing strong interest for these products from home appliance manufacturers, security camera customers, drones, robotics, and broad-based IoT module makers. And we expect revenue contribution beginning in calendar 2027. Turning to enterprise and mobile touch, we continue to focus on premium tier of the market. In enterprise, we have seen steady improvement as customers gradually upgrade their infrastructure to support return to office initiatives and replace an aging installed base. In MobileTouch, we secured another foldable design with a leading OEM in China, reinforcing the technology leadership we bring to this market with our next-generation touch architecture and building on the momentum established by last quarter's win with a leading Korean OEM. As we have noted previously, our content is more than two times higher in foldables. We are actively engaged engaged with additional smartphone OEMs and remain confident in being able to scale this technology to other large display applications. As we continue to focus the company on edge AI solutions, I am combining our processors and connectivity teams into a single organization. This better aligns our resources and accelerates our roadmap to more efficiently deliver world-class integrated processor and wireless system solutions. To summarize, we are seeing continued improvement in our financial performance with double-digit year-over-year revenue growth and operating profit growing at nearly twice the rate of revenue. We are accelerating our innovation and product roadmap to capitalize on growing physical and agile opportunity. With a differentiated platform, an expanding pipeline, and growing customer engagement, we believe Synaptics is well positioned for sustained long-term growth. I will now turn the call over to Ken to review our second quarter financial results and outlook for our fiscal 2026 third quarter.