Synaptics Incorporated

Good day and thank you for standing by. Welcome to the Synaptics third quarter fiscal 2026 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 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your first speaker today, Munjal Shah. Please go ahead.

Good afternoon, and thank you for joining us today on Synaptic's third quarter fiscal 2026 conference call. My name is Munjal Shah, and I'm the Vice President of Investor Relations. With me on today's call are Rahul Patel, a 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 and in response to your questions may contain forward looking statements. These forward looking statements give our current expectations and projections relating to our financial condition results of operation plan 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 reports on Form 10-Q, were 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 the date year-off. Except as required by law, Synaptics 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 third quarter 2026 earnings call. Fiscal third quarter marked our sixth consecutive quarter of double-digit year-over-year revenue growth driven by 31% year-over-year increase in our core IoT products. We are seeing improving momentum and delivering consistent performance across the business. Our non-GAAP gross margin was above the midpoint of our guidance range and non-GAAP earnings per share of $1.09 was at the high end of the guidance and increased 21% year over year. Let me start by highlighting the accelerating adoption we are seeing in physical AI and edge AI with customer engagements continuing to expand. Last quarter, we announced our first humanoid design with a leading OEM for our touch controller and interface solutions. Since then, we have sampled silicon to three additional OEMs and our robotics pipeline has grown to more than 35 customers globally, including a leading generative AI OEM. Customers are adopting our AI enabled touch controllers for tactile sensing. Our capacitive sensing technology measures subtle changes in compressible layer to detect force, slip, and proximity, enabling robots to handle objects, maintain grip, and respond in real time. This capability extends beyond the hand to other contact surfaces, including the feet. These tactile controllers can pair with our Astra processors to aggregate sensor inputs and run AI locally, enabling real-time decision-making, improving response time and reducing the load on the robot's central compute. In addition, our wireless portfolio, including wifi, Bluetooth, and GPS GNSS supports reliable connectivity as robots move and coordinate with one another and the network. Further, Our interface technology enables high bandwidth transport within a robotic system. For example, one of our customers is using it to interconnect multiple displays in a humanoid. Our content opportunity in robotics is substantially higher than in our other markets. Synaptics' broad and differentiated portfolio across processing, connectivity, sensing, and interface solutions uniquely positions us to address this opportunity. New use cases continue to emerge, and our engagements are expanding with a growing set of customers. While still early, I am excited about this promising growth vector for Synaptics. This quarter, we also made solid progress in our partnership with Google, which continues to be a key driver of our Edge AI strategy. We launched Next Generation Coral Board powered by our Astra SL2610 processor and featuring the industry's first implementation of Google's Coral NPU integrated with Synaptics' Torque NPU architecture. The Coral board provides developers with a turnkey platform to move quickly from prototyping to production and bring generative AI directly onto the device. In the coming weeks, we and our partner will showcase Astra processor technology powering Google Gemma and other leading AI models at a high-profile industry event. At this event, we will also make the platform available to developers, system architects, and OEMs looking to build real-world edge AI applications. Next, let me update you on the next generation of our Astra SR series microcontrollers, a semi-custom AI-native platform targeting emerging variable applications. We successfully taped our PSOC last month and expect to begin sampling in the fall. The platform includes SynapticSys PIMIC and a microcontroller that integrates Advanced Power Management, Google's Coral NPU, our torque MPU, and a flexible memory architecture to deliver high-performance, low-power edge AI processing. For the initial variable application, our solution delivers up to two times battery life and reduces bill of materials by roughly 50%. Beyond this initial design, the SR series represents a new class of AI-native microcontrollers that can extend across variable platforms and into a broad range of AIGI applications. Turning to design traction, we are securing Astra processor wins across multiple applications in various end markets. Notably, our processors are designed into a new class of medical devices that bring diagnostic imaging to a patient's home, extending access to healthcare in rural and underserved regions. This customer selected Astra for its price performance, design flexibility, ease of software and hardware integration, and for the ability to run AI models locally on the device. We also secured a win in industrial with a leading North American fleet management OEM. There are ultra low power vision platform provides intelligent asset monitoring. Our pipeline continues to expand across consumer and industrial markets with increasing traction in IoT hubs, gesture-driven streaming devices, industrial gateways, UAV navigation and positioning, and smart home systems. Our key differentiation lies in tightly integrating compute and connectivity into a solution-oriented, software developer-friendly platform designed to reduce system complexity while enabling scalable and high-performance edge AI deployments. Finally, we had a successful launch of our Astra enabled connected MCU at Embedded World, where it received a best in show award in the microcontrollers, microprocessors, and IP category. This device is industry's first to integrate Wi-Fi 7 and Bluetooth 6 connectivity with edge AI compute in a monolithic SOC delivering a highly differentiated solution. Customers are particularly attracted to its ability to concurrently host Bluetooth and Wi-Fi stacks, as well as the host application, enabling greater integration and efficiency. In addition, the integrated NPU in this SoC allows customers to develop and deploy differentiated AI features. We are currently sampling the product with multiple customers across a range of applications including industrial power, home appliances, and security cameras. Turning to enterprise and mobile touch, demand from our enterprise customers continue to improve steadily. We remain focused on the premium tier of the market and will continue to closely monitor demand trends. In mobile touch, while some customers are navigating near-term challenges related to memory supply, we believe that we remain well-positioned with some leading OEMs that are gaining share. we are currently shipping into the majority of flagship phones at a leading Korean OEM. We are also encouraged by our design wins in foldable smartphones and expect customers to launch new products in the second half of the calendar year. While still early, broader adoption of foldable smartphones by major OEMs has the potential to drive overall market growth. To summarize, We are gaining strong traction in physical AI and expanding our presence across a broad set of edge AI markets. We are executing on our product roadmap, delivering highly differentiated products and solutions, and deepening our engagement with customers and ecosystem partners. These efforts position Synaptics for long-term growth and value creation. I will now turn the call over to Ken to review our third quarter financial results and outlook for our fiscal 2026 fourth quarter.