California Public Employees Retirement System grew its position in shares of Cirrus Logic, Inc. (NASDAQ:CRUS – Free Report) by 7.5% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 103,804 shares of the semiconductor company’s stock after buying an additional 7,251 shares during the period. California Public Employees Retirement System owned 0.20% of Cirrus Logic worth $15,012,000 at the end of the most recent reporting period.
Several other institutional investors and hedge funds also recently made changes to their positions in the company. Gallacher Capital Management LLC bought a new position in shares of Cirrus Logic during the 1st quarter worth $339,000. Allspring Global Investments Holdings LLC boosted its position in Cirrus Logic by 12.4% during the first quarter. Allspring Global Investments Holdings LLC now owns 67,608 shares of the semiconductor company’s stock worth $9,947,000 after purchasing an additional 7,448 shares during the period. Twin Capital Management Inc. purchased a new position in shares of Cirrus Logic in the first quarter worth about $1,320,000. Bank of New York Mellon Corp increased its stake in shares of Cirrus Logic by 14.7% in the first quarter. Bank of New York Mellon Corp now owns 402,604 shares of the semiconductor company’s stock worth $58,225,000 after purchasing an additional 51,742 shares in the last quarter. Finally, Illinois Municipal Retirement Fund raised its position in shares of Cirrus Logic by 19.0% in the first quarter. Illinois Municipal Retirement Fund now owns 39,136 shares of the semiconductor company’s stock valued at $5,660,000 after purchasing an additional 6,243 shares during the period. Institutional investors own 87.96% of the company’s stock.
Wall Street Analysts Forecast Growth Several research firms recently commented on CRUS. Jefferies Financial Group raised shares of Cirrus Logic to a “buy” rating in a report on Thursday, June 4th. Barclays raised their price target on Cirrus Logic from $120.00 to $140.00 and gave the stock an “equal weight” rating in a report on Thursday, May 7th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Cirrus Logic in a research note on Wednesday, June 24th. Zacks Research cut Cirrus Logic from a “strong-buy” rating to a “hold” rating in a report on Monday, April 27th. Finally, KeyCorp cut their target price on Cirrus Logic from $200.00 to $190.00 and set an “overweight” rating for the company in a research note on Tuesday, July 14th. Five analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $160.29.
Read Our Latest Report on Cirrus Logic
Cirrus Logic Price Performance NASDAQ CRUS opened at $133.53 on Friday. The company’s 50 day simple moving average is $156.93 and its two-hundred day simple moving average is $148.50. Cirrus Logic, Inc. has a 1 year low of $92.02 and a 1 year high of $180.42. The stock has a market capitalization of $6.74 billion, a PE ratio of 17.03 and a beta of 1.17.
Cirrus Logic (NASDAQ:CRUS – Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The semiconductor company reported $1.95 EPS for the quarter, beating analysts’ consensus estimates of $1.76 by $0.19. The firm had revenue of $448.52 million during the quarter, compared to analyst estimates of $442.25 million. Cirrus Logic had a net margin of 20.75% and a return on equity of 20.48%. The business’s revenue for the quarter was up 5.7% on a year-over-year basis. During the same period in the previous year, the business earned $1.67 EPS. On average, research analysts anticipate that Cirrus Logic, Inc. will post 7.86 EPS for the current year.
Insider Activity at Cirrus Logic In other Cirrus Logic news, EVP Jeffrey W. Baumgartner sold 1,458 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $145.97, for a total value of $212,824.26. Following the sale, the executive vice president owned 16,405 shares of the company’s stock, valued at $2,394,637.85. This trade represents a 8.16% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Justin E. Dougherty sold 2,000 shares of Cirrus Logic stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $166.50, for a total value of $333,000.00. Following the sale, the executive vice president owned 4,537 shares of the company’s stock, valued at approximately $755,410.50. This trade represents a 30.60% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 22,299 shares of company stock valued at $3,581,647 in the last ninety days. 1.20% of the stock is currently owned by corporate insiders.
Cirrus Logic Profile (Free Report)
Cirrus Logic, Inc, headquartered in Austin, Texas, is a fabless semiconductor company specializing in high-precision analog and mixed-signal processing solutions. The firm develops low-power, high-performance audio, voice, and power management integrated circuits, serving prominent consumer electronics OEMs. Its semiconductor devices are designed to enhance audio quality, battery life, and system integration in mobile phones, tablets, wireless headsets and other portable devices.
The company’s product portfolio includes digital-to-analog converters (DACs), analog-to-digital converters (ADCs), audio codecs, power management ICs, voice processors and integrated amplifiers.
Further Reading Five stocks we like better than Cirrus Logic Premium Retail’s Stress Test Is Separating Winners From Losers D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? GE Vernova Just Sent a Mixed AI Signal to Investors Alphabet Crushed Earnings, But One Number Spooked the Market Want to see what other hedge funds are holding CRUS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cirrus Logic, Inc. (NASDAQ:CRUS – Free Report).
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[url="]Cirrus Logic[/url] (Nasdaq: CRUS), a leader in high-performance, low-power audio and mixed-signal semiconductor solutions, today announced it has receiv
EDINBURGH, Scotland--(BUSINESS WIRE)--Cirrus Logic (Nasdaq: CRUS), a leader in high-performance, low-power audio and mixed-signal semiconductor solutions, today announced it has received a research and development grant from Scottish Enterprise to support the development of next-generation smart energy technology and expand advanced engineering activities in Scotland. The funding supports development of a new metrology analogue front-end (AFE) platform that delivers high-accuracy energy measure.
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Cirrus Logic (CRUS - Free Report) , which belongs to the Zacks Electronics - Semiconductors industry.
This chipmaker has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 16.76%.
For the most recent quarter, Cirrus Logic was expected to post earnings of $1.76 per share, but it reported $1.95 per share instead, representing a surprise of 10.80%. For the previous quarter, the consensus estimate was $2.42 per share, while it actually produced $2.97 per share, a surprise of 22.73%.
With this earnings history in mind, recent estimates have been moving higher for Cirrus Logic. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Cirrus Logic currently has an Earnings ESP of +1.25%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on August 5, 2026.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Key Takeaways CRUS expects another year of strong PC growth in fiscal 2027 after share gains across all PC categories.Cirrus Logic sees SDCA designs contributing nearly 80% of PC revenue in fiscal 2027 as adoption grows.CRUS guided Q1 fiscal 2027 revenue of $430M-$490M, implying 13% year-over-year growth at midpoint. Cirrus Logic, Inc.'s (CRUS - Free Report) PC business is emerging as an important growth driver, and management expects this momentum to continue into fiscal 2027. During fiscal 2026, the company delivered strong year-over-year revenue growth in its PC segment, supported primarily by share gains across all PC categories. Cirrus Logic expanded its product portfolio by introducing new amplifiers and codecs designed for a broader range of platforms, including mainstream and AI-enabled PCs.
The company also highlighted that voice will play an increasingly important role in enabling agentic interactions across edge devices, including PCs, and plans to leverage its expertise in audio and high-performance mixed-signal technologies to enhance AI-driven user experiences. With robust design momentum across its PC portfolio, management expects increased adoption of the SoundWire Device Class Audio (SDCA) interface and higher content per device to support another year of strong PC business growth in fiscal 2027.
On the last earnings call, management stated that the PC business grew from revenue in the low tens of millions of dollars in fiscal 2025 to the $40 million range in fiscal 2026. The company exited fiscal 2026 with strong momentum and is now shipping products to the top six laptop vendors. Cirrus Logic identified the ongoing transition from the legacy HDA audio interface to SDCA as a key growth driver. During fiscal 2026, SDCA-related revenue tripled and accounted for nearly 60% of total PC revenue after passing an important inflection point. The company expects SDCA-based designs to contribute nearly 80% of its PC revenue in fiscal 2027, reflecting continued customer adoption of the newer interface.
The company also noted that its penetration into mainstream PC devices continues to improve. While this segment represented only a small portion of revenue in previous years, Cirrus Logic expects more than half of its PC revenue in fiscal 2027 to come from mainstream devices. Management stated that customer design activity remains strong and believes the company can deliver another year of solid PC growth even if the broader PC market experiences some moderation. Cirrus Logic added that its focus on leading OEMs and higher-tier devices provides confidence in the continued expansion of its PC business during fiscal 2027.
For the first quarter of fiscal 2027, the company expects revenues between $430 million and $490 million, implying 3% sequential increase and 13% year-over-year growth at the midpoint of the guidance range.
Taking a Look at CRUS’ CompetitorsQualcomm Incorporated (QCOM - Free Report) continues to pivot from a handset-centric model toward a broader connected processor portfolio. Solid traction in the automotive business augurs well, with more than 1 million cars operating ADAS and autonomy on Snapdragon Ride processors. Higher content per vehicle on the Snapdragon Digital Chassis, broader edge AI adoption across devices and data center traction are positives. The Alphawave buyout adds high-speed wired connectivity IP and custom silicon capabilities to help accelerate its expansion into data centers. For the third quarter of fiscal 2026, Qualcomm guided revenues of $9.2-$10.0 billion and non-GAAP earnings of $2.10-$2.30, reflecting expected softness tied to the same memory-driven OEM behavior that shaped the March quarter.
Skyworks Solutions, Inc. (SWKS - Free Report) is gaining momentum in Broad Markets, helped by Wi-Fi 7 adoption, automotive infotainment wins and timing products tied to higher data center data rates. Management cited nine consecutive quarters of Broad Markets growth and expects the segment to rise modestly sequentially in the June quarter. In Mobile, a multi-generational design win with a leading Android OEM extends the premium pipeline and supports a steadier content outlook beyond the next seasonal cycle. For the third quarter of fiscal 2026, Skyworks expects revenues in the range of $900 million to $950 million. Management anticipates mobile to decline low single digits sequentially, consistent with typical seasonality, while Broad Markets is expected to rise modestly sequentially and represent about 43% of sales, up high single digits year over year.
CRUS Price Performance, Valuation and EstimatesShares of CRUS have lost 14.6% in the past month compared with the Electronics-Semiconductors industry’s decline of 4.6%.
Image Source: Zacks Investment Research
CRUS is trading at a forward 12-month price/earnings ratio of 16.76, lower than the Electronic-Semiconductors sector’s multiple of 32.13.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRUS’ earnings for fiscal 2027 has been revised up marginally over the past 60 days.
Image Source: Zacks Investment Research
CRUS currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Stock to Watch: Cirrus Logic (CRUS - Free Report) Headquarterd in Austin, TX, Cirrus Logic is a fabless semiconductor supplier, which develops low-power, high-precision mixed-signal processing solutions.
CRUS is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. CRUS has a Growth Style Score of A, forecasting year-over-year earnings growth of 2.6% for the current fiscal year.
For fiscal 2027, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $9.50 per share. CRUS boasts an average earnings surprise of +23.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CRUS should be on investors' short list.
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Stock to Watch: Cirrus Logic (CRUS - Free Report) Headquarterd in Austin, TX, Cirrus Logic is a fabless semiconductor supplier, which develops low-power, high-precision mixed-signal processing solutions.
CRUS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. CRUS has a Growth Style Score of A, forecasting year-over-year earnings growth of 2.6% for the current fiscal year.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.05 to $9.50 per share. CRUS boasts an average earnings surprise of +23.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CRUS should be on investors' short list.
Cirrus Logic (CRUS - Free Report) came out with quarterly earnings of $1.95 per share, beating the Zacks Consensus Estimate of $1.76 per share. This compares to earnings of $1.67 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +11.00%. A quarter ago, it was expected that this chipmaker would post earnings of $2.42 per share when it actually produced earnings of $2.97, delivering a surprise of +22.73%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Cirrus Logic, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $448.52 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.98%. This compares to year-ago revenues of $424.46 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Cirrus Logic shares have added about 44.5% since the beginning of the year versus the S&P 500's gain of 6%.
What's Next for Cirrus Logic?While Cirrus Logic has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Cirrus Logic was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.52 on $404.41 million in revenues for the coming quarter and $9.45 on $2.07 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Valens Semiconductor, Ltd. (VLN - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 13.
This company is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of -100%. The consensus EPS estimate for the quarter has been revised 11.1% higher over the last 30 days to the current level.
Valens Semiconductor, Ltd.'s revenues are expected to be $16.5 million, down 2% from the year-ago quarter.
Key Takeaways CRUS beat Q4 EPS estimates as revenue rose 6% year over year on strong smartphone demand.Cirrus Logic expanded into camera controllers and smart power ICs to diversify revenue streams.CRUS guided Q1 fiscal 2027 revenue growth of 13% year over year at the midpoint. Cirrus Logic Inc. (CRUS - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings per share (EPS) of $1.95, which surpassed the Zacks Consensus Estimate of $1.76. The company reported adjusted EPS of $1.67 in the prior-year quarter.
Revenue for the quarter came in at $448.5 million, exceeding the midpoint of guidance ($410-$470 million). Revenue declined 23% sequentially due to weaker smartphone unit shipments but increased 6% year over year, mainly driven by robust demand for smartphone components. The growth was partly offset by pricing pressure and softer sales in general markets. The Zacks Consensus Estimate for revenues was pegged at $439.8 million.
Cirrus Logic generated $2 billion in revenue for fiscal 2026, reflecting a 5% increase from the previous year, driven by strong demand for smartphone components and higher component sales for PCs. A key development from the earnings announcement was its expansion into new smartphone silicon categories, including next-generation camera controllers and smart power ICs. Beyond smartphones, Cirrus Logic reported strong year-over-year growth in its PC business. The company’s expansion into laptops and PCs helps reduce concentration risk while opening new long-term revenue streams.
A key theme throughout the earnings report was the importance of diversification. Cirrus Logic has spent several years expanding both its product portfolio and customer base. It highlighted growth in smartphones outside of audio applications, as well as growth in PCs and laptops, general market products and power-related semiconductor solutions. This diversification strategy is important because semiconductor markets can be cyclical. Expanding across multiple end markets can help stabilize revenue and reduce dependence on any single product category.
The company’s largest customer accounted for 92% of total revenues in the fiscal fourth quarter.
The stock has gained 71.9% in the past year compared with the Zacks Electronics-Semiconductors industry’s growth of 118.5%.
Image Source: Zacks Investment Research
Segment DetailsCirrus Logic’s High-Performance Mixed-Signal segment includes a few of its non-audio products. It contributed 43% to total revenues in the fiscal fourth quarter. Revenues from the same division grew 13.1% year over year to $191.3 million. We estimated the metric to be $180 million.
The Audio segment’s sales inched up 0.7% to $257.2 million and contributed 57% to total revenues. Our estimate was $259.5 million for the segment.
MarginsNon-GAAP gross profit for the March quarter was $237.9 million, with a non-GAAP gross margin of 53% compared to $227.1 million and 53.5%, respectively, for the prior-year quarter. The year-over-year decline in gross margin was mainly due to increased freight costs.
Cirrus Logic’s non-GAAP operating expenses rose 5.1% year over year to $126.1 million, mainly due to higher employee-related costs, partly offset by product development expenses tied to tape-out timing. Sequentially, OpEx decreased by $6.9 million, mainly due to lower employee costs and variable compensation.
Non-GAAP operating income of $111.8 million soared 4.4% year over year.
Non-GAAP operating profit margin dropped to 24.9% from 25.2%.
Balance Sheet and Cash FlowAs of March 28, 2026, CRUS had $887.7 million in cash, cash equivalents and marketable securities compared with $822.4 million as of Dec. 27, 2025.
As of March 28, 2026, accounts receivable were $220.2 million.
In the fiscal fourth quarter, CRUS reported $151.4 million of cash flow from operations compared with $130.4 million in the prior-year quarter. Free cash flow was $149 million in the quarter under review.
The company repurchased almost 491,000 shares worth $70 million in the reported quarter. In fiscal 2026, CRUS returned $280 million to shareholders through the repurchase of 2.5 million shares. As of March 28, 2026, it had $274.1 million worth of shares under its existing share repurchase authorization.
Fiscal Q1 Outlook Signals Continued StabilityFor the first quarter of fiscal 2027, Cirrus Logic provided guidance that points to continued healthy demand. The company expects revenue between $430 million and $490 million, implying 3% sequential growth and 13% year-over-year growth at the midpoint of the guidance range.
Combined GAAP R&D and SG&A are anticipated to be between $155 million and $161 million, respectively. Non-GAAP operating expenses are estimated to be in the band of $132-$138 million.
GAAP gross margin is estimated to be between 51% and 53%.
CRUS’ Zacks RankCirrus Logic currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Other FirmsBadger Meter, Inc. (BMI - Free Report) reported EPS of 93 cents for first-quarter 2026, which missed the Zacks Consensus Estimate by 22.5%. The bottom line compared unfavorably with the year-ago quarter’s EPS of $1.30. Quarterly net sales were $202.3 million, down 9% from $222.2 million in the year-ago quarter due to delayed project deployments and weaker-than-expected short-cycle order activity. The Zacks Consensus Estimate was pegged at $230.1 million.
Sensata Technologies Holding plc (ST - Free Report) reported first-quarter 2026 adjusted EPS of 86 cents, up from 78 cents a year ago. The bottom line beat the Zacks Consensus Estimate by 2.4%. Revenues for the quarter reached $934.8 million, up 2.6% from a year ago. The figure came near to the upper end of management’s expectations ($917-$937 million) and beat the consensus estimate by 0.7%. Strength Aerospace, Defense and Commercial Equipment segments drove the top-line performance.
Fortive Corporation (FTV - Free Report) reported first-quarter 2026 adjusted EPS of 70 cents from continuing operations, which surpassed the Zacks Consensus Estimate of 64 cents. The bottom line increased 25.4% year over year. Revenues increased 7.7% year over year to $1069.4 million. The top line beat the Zacks Consensus Estimate by 3.8%.
Cirrus Logic, Inc. is rated Hold with a $154 price target, reflecting limited upside as shares trade near the upper end of historical EV/aEBITDA multiples. CRUS benefits from operational momentum, strong Apple partnership through 2030, and strategic R&D investments targeting industrial automation and AI-enabled devices. Financial flexibility is robust, with $888M in cash, no debt, and active share repurchases, supporting potential R&D expansion or acquisitions.
Apple's (AAPL 1.23%) iPhone sales increased at a solid clip in the first quarter of 2026, driven by a huge installed base of users that are in an upgrade window and the strong demand for the tech giant's smartphones in China.
Market research firm Counterpoint Research notes that Apple's iPhone shipments increased by 5% year over year in the first quarter of 2026. This increase in sales came at a time when the overall smartphone market declined by 6% in Q1 due to a memory shortage and rising component costs. The Magnificent Seven company's resilient growth in Q1 made it the world's top smartphone vendor with a 21% market share.
Cirrus Logic (CRUS +0.66%) has turned out to be a big beneficiary of Apple's improving sales. The semiconductor stock is already up 40% in 2026 as of this writing, and its close ties with Apple suggest it could deliver more upside in the future.
Let's look at the reasons why this Apple supplier's impressive stock market rally is sustainable.
Image source: Getty Images.
Cirrus Logic is delivering healthy growth due to solid iPhone sales Cirrus Logic designs audio chips, camera controllers, haptics and sensing solutions, and power management chips for smartphones, computers, tablets, and wearable devices. Apple is its largest customer, accounting for 92% of its revenue in the fourth quarter of fiscal 2026 (which ended on March 28).
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The healthy growth in iPhone sales rubbed off positively on Cirrus. The chip designer's revenue increased by 6% year over year to $449 million. What's more, its earnings increased by a much more impressive rate of 17% from the year-ago period to $1.95 per share. The full-year earnings growth was also quite solid at 23% to $9.26 per share.
Cirrus noted that its margin profile is improving due to a better product mix, which isn't surprising given that the company has been winning more business from Apple. Cirrus was originally a supplier of audio codecs for Apple's devices, but it has diversified into providing haptics solutions and camera controllers over the past couple of years.
The good news for Cirrus investors is that it is poised to win more content in Apple's devices. Apple announced in March this year that Cirrus Logic is a part of its American Manufacturing Program (AMP), developing "mixed-signal solutions for a number of Apple applications, including advanced ICs to power Face ID systems." The Face ID chip is a new opportunity for Cirrus, as management noted on the latest earnings call.
Cirrus, therefore, seems well-positioned to capitalize on the strong iPhone upgrade cycle. The integration of artificial intelligence (AI) features in iPhones is encouraging users to upgrade quickly to new devices, as noted by Consumer Intelligence Research Partners last year. Moreover, Dan Ives of Wedbush Securities pointed out after the iPhone 17 launch in September 2025 that there are 315 million iPhones that haven't been upgraded in four years.
All this explains why Apple has been able to overcome the broader weakness in the smartphone market. Moreover, Cirrus Logic's guidance for the current quarter indicates its growth is poised to accelerate.
The company expects $460 million in revenue in the current quarter at the midpoint of its guidance range. That would be an improvement of 13% from the year-ago period. Looking ahead, Cirrus Logic's revenue growth could accelerate nicely due to robust iPhone demand and the new chips it will deploy for Apple.
This could pave the way for healthy growth at Cirrus, potentially unlocking more upside.
Analysts may be underestimating its growth potential Cirrus Logic finished fiscal 2026 with $2 billion in revenue, an increase of 5% over the prior year. Analysts are projecting single-digit revenue growth from the company over the next couple of years.
Data by YCharts
However, we have already seen that the company is expecting robust double-digit growth in the current quarter. With the new business that's coming its way, don't be surprised to see Cirrus' growth significantly outpacing analysts' estimates in the future. Assuming it can clock even 10% revenue growth in the current and next fiscal years, its top line could reach $2.42 billion.
Cirrus is trading at just 4.5 times sales right now, a discount to the tech-focused Nasdaq Composite index's price-to-sales ratio of 5.5. Assuming it trades in line with the index's average after a couple of years and achieves $2.42 billion in revenue, its market cap could increase to $13.5 billion. That represents potential upside of 59% from current levels, suggesting it isn't too late for investors to buy this growth stock, even after the healthy jump it has seen this year.
Cirrus Logic (CRUS) delivered record FY26 revenue of $2.0B and robust EPS growth, supported by strong smartphone and PC demand. Apple's inclusion of CRUS for its future vendor lists and green-lighting of battery-enhancing products signals major new product opportunities. Development of smart power ICs for 3D sensing and advanced battery applications positions CRUS for long-term growth beyond core audio.
Key Takeaways Cirrus Logic ended FY 2026 with $1.2B cash, no debt, supporting diversification beyond smartphones.CRUS generated $635.8M free cash flow, supporting higher R&D spend and expansion into new markets.CRUS returned $280 million to its shareholders in fiscal 2026, through the repurchase of 2.5M shares. Cirrus Logic (CRUS - Free Report) ended fiscal 2026 with roughly $1.2 billion in cash and investments with no outstanding debt, underscoring ample financial flexibility. Out of this, cash, cash equivalents and marketable securities stood at $887.7 million.
This financial strength is cushioned by solid cash generation. The company generated $650.6 million, with a free cash flow of $635.8 million in fiscal 2026. Such cash flow provides a solid foundation for increased investment, particularly as Cirrus plans to step up R&D spending to boost innovation in fiscal 2027.
The company’s fortified balance sheet supports a push into new markets, positioning it for long-term diversification. This diversification strategy is important as semiconductor markets tend to be cyclical. Expanding across multiple end markets can help stabilize revenues and reduce dependence on any single product category.
CRUS is focused on expanding HPMS products in smartphones and leveraging its IP to expand into new applications and markets such as industrial, imaging, automotive and professional audio.
Image Source: Zacks Investment Research
A key highlight from the most recent earnings announcement was its expansion into new smartphone silicon categories, including next-generation camera controllers and smart power ICs for 3D sensing.
The company expects its SAM in the mixed-signal market to expand from $7.4 billion in 2026 to $9 billion in 2030, driven by growth in both audio and high-performance mixed-signal segments.
CRUS’ PC business continues to gain traction. The company’s expansion into laptops and PCs helps reduce concentration risk while opening new long-term revenue streams.
At the same time, Cirrus continues to return capital to its shareholders. In fiscal 2026, CRUS returned $280 million to its shareholders through the repurchase of 2.5 million shares. As of March 28, 2026, the company had $274.1 million worth of shares under its existing share repurchase authorization.
With strong momentum in PCs, emerging AI opportunities and a clear roadmap for diversification, Cirrus appears well-positioned to convert its billion-dollar cash pile into a catalyst for sustained growth.
Financial Resources of CompetitorsTexas Instruments (TXN - Free Report) is a leading name in the semiconductor space. As of March 31, 2026, the cash and short-term investment balance was $5.1 billion, while the long-term debt was $12.9 billion. Operating cash flow was approximately $1.52 billion in the first quarter of 2026. During the first quarter, it repurchased stocks worth $158 million and paid $1.29 billion in dividends.
Texas Instruments remains focused on expansion. Growth in the newly classified data center end market has emerged as a compelling development. Texas Instruments also continues to strengthen its dominance in the industrial and automotive sectors.
Qualcomm Incorporated (QCOM - Free Report) is a fabless semiconductor company that designs high-performance, low-power system-on-chips primarily for mobile devices, while expanding into PCs, automotive, IoT, XR and AI.
For the six months ended March 29, 2026, Qualcomm generated $7.4 billion of net cash from operating activities. The company had $5.4 billion in cash and cash equivalents with $14.8 billion of long-term debt. It remains to be seen how Qualcomm manages the huge debt burden in the near future, given the decline in profitability and growing competition.
Qualcomm continues to enhance shareholder returns. During the second quarter of fiscal 2026, it returned $3.7 billion to stockholders, including $2.8 billion in share repurchases and $945 million in dividends.
CRUS Price Performance, Valuation and EstimatesShares of CRUS have lost 4.8% in the past month against the Electronics-Semiconductors industry’s growth of 8.6%.
Image Source: Zacks Investment Research
CRUS is trading at a forward 12-month price/earnings ratio of 16.83, lower than the Electronic-Semiconductors sector’s multiple of 33.96.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRUS’ earnings for fiscal 2027 has been revised up marginally over the past 60 days.
Image Source: Zacks Investment Research
CRUS currently sports a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cirrus Logic (CRUS - Free Report) Headquarterd in Austin, TX, Cirrus Logic is a fabless semiconductor supplier, which develops low-power, high-precision mixed-signal processing solutions.
CRUS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. CRUS has a Growth Style Score of A, forecasting year-over-year earnings growth of 2.4% for the current fiscal year.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.03 to $9.48 per share. CRUS boasts an average earnings surprise of +23.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CRUS should be on investors' short list.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cirrus Logic (CRUS - Free Report) Headquarterd in Austin, TX, Cirrus Logic is a fabless semiconductor supplier, which develops low-power, high-precision mixed-signal processing solutions.
CRUS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Computer and Technology stock. CRUS has a Momentum Style Score of A, and shares are up 0.2% over the past four weeks.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.03 to $9.48 per share. CRUS boasts an average earnings surprise of +23.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CRUS should be on investors' short list.
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GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.
Key Takeaways Cirrus Logic posted record fiscal 2026 revenue of $2B, driven by smartphone and PC demand.CRUS sees growth from mixed-signal, SDCA adoption and future smart power IC opportunities.Skyworks secured a multiyear Android design win expected to generate more than $1B by 2030. Cirrus Logic, Inc. (CRUS - Free Report) and Skyworks Solutions, Inc. (SWKS - Free Report) both are benefiting from rising semiconductor demand tied to premium smartphones, AI-enabled devices and next-generation connectivity technologies. While Cirrus Logic is expanding deeper into mixed-signal, audio and power solutions, Skyworks is strengthening its RF leadership across mobile, Wi-Fi, automotive and data center markets. Recent earnings commentary from both companies highlighted solid execution, improving diversification efforts and confidence in long-term growth opportunities, though each still faces margin pressures, customer concentration risks and broader industry uncertainties.
Cirrus Logic is focused on leveraging its expertise in audio and high-performance mixed-signal technologies to expand beyond its core smartphone business into PCs, imaging, industrial and power-related applications. Skyworks, on the other hand, is emphasizing RF complexity growth, AI-driven connectivity demand and large multiyear design opportunities, while also preparing for its planned merger with Qorvo.
Let’s evaluate their fundamentals, growth prospects, market challenges and valuations to determine which one presents a stronger investment opportunity.
The Case for CRUSCirrus Logic is benefiting from strong demand across its smartphone and PC businesses, helping the company deliver record fiscal 2026 revenue of $2 billion, up 5% year over year. On the last earnings call, management highlighted record earnings, supported by continued execution and a more favorable product mix.
Also, the company’s sustained strength in its core smartphone and mixed-signal portfolio bodes well. CRUS reported robust demand for its custom boosted amplifiers and 22-nanometer smart codecs, which are expected to benefit from extended life cycles and provide longer-term revenue visibility. Cirrus also emphasized strong customer engagement around future camera controller products and highlighted progress in advanced battery and power technologies, including development work tied to smart power ICs for future Face ID-related applications.
Cirrus Logic is also seeing growing diversification beyond smartphones. The company delivered strong PC revenue growth in fiscal 2026 through share gains across all PC segments and rising adoption of SDCA-related designs. On the last earnings call, management noted that SDCA revenue tripled during the year and represented nearly 60% of total PC revenue. The company also pointed to expanding opportunities across professional audio, automotive, industrial imaging and other general market products, while indicating continued momentum heading into fiscal 2027.
For the first quarter of fiscal 2027, Cirrus Logic provided guidance that points to continued healthy demand. The company expects revenue between $430 million and $490 million, implying 3% sequential growth and 13% year-over-year increase at the midpoint of the guidance.
Image Source: Zacks Investment Research
However, Cirrus Logic remains exposed to smartphone market fluctuations and customer concentration risks. The company’s fourth-quarter fiscal 2026 revenue declined 23% sequentially because of lower smartphone unit volumes, underscoring the continued dependence of its business on handset demand patterns and seasonal trends.
Cirrus Logic faces significant customer concentration risk, with approximately 89% of fiscal 2025 revenue tied to Apple’s iPhone business. Any slowdown in iPhone demand or continued weakness in the Android market could materially pressure the company’s revenue growth and profitability.
Margins and expenses also faced pressure during the fourth quarter. Gross margin declined year over year due primarily to higher freight expenses, while operating expenses increased because of higher employee-related costs. Management further stated that operating expenses are expected to rise in fiscal 2027 as the company increases R&D spending to capitalize on future growth opportunities and broaden its product portfolio.
The Case for SWKSSkyworks is benefiting from strong momentum across both its mobile and broad markets businesses. The company exceeded quarterly guidance for both revenue and earnings in second-quarter fiscal 2026, supported by healthy sell-through, strong execution on new product launches and solid demand across mobile, Wi-Fi, data center and automotive markets. On the last earnings call, management noted that channel inventories remain lean and demand trends across customers continue to stay healthy.
Recently, Skyworks secured a multi-generational Android design win, which is expected to generate more than $1 billion in revenue through 2030. Management described the opportunity as an incremental business within the premium smartphone segment and emphasized that the win reflects the company’s RF technology leadership and strong long-term collaboration with the customer.
Skyworks is also gaining from expanding growth opportunities tied to AI, wireless connectivity and infrastructure markets. The company highlighted accelerating Wi-Fi 7 adoption, early engagement in Wi-Fi 8 programs and increasing RF complexity driven by AI workloads, higher data rates and additional wireless bands. On the last earnings call, management highlighted strong growth in automotive and AI data center businesses, while expressing confidence that these trends will continue to support long-term diversification and content expansion.
For the third quarter of fiscal 2026, Skyworks expects revenues in the range of $900 million to $950 million.
Image Source: Zacks Investment Research
However, Skyworks continues to face margin pressure from rising input costs and supply-related expenses. Management acknowledged that higher gold prices, expedited fees and broader cost increases remain headwinds, even as the company pursues selective pricing adjustments, fab optimization and cost-control initiatives to offset some of the pressure.
Skyworks also remains heavily dependent on a small number of large customers. Its largest customer represented approximately 60% of quarterly revenue, highlighting continued concentration risk. In addition, management reiterated that the company remains disciplined about pursuing only business opportunities that provide attractive economics, limiting participation in certain lower-margin Android and China handset segments.
Share Performance for CRUS & SWKSIn the past six months, CRUS stock has surged 48.1% while SWKS has jumped 29%.
Image Source: Zacks Investment Research
Valuation for CRUS & SWKSIn terms of Price/Book, CRUS shares are trading at 4.27X, higher than SWKS’ 2.18X.
Image Source: Zacks Investment Research
How Do Estimates Compare for CRUS & SWKS?Over the past 60 days, analysts have revised their estimates marginally upward for CRUS’ bottom line for the current year.
Image Source: Zacks Investment Research
For SWKS, estimates have been revised upwards over the past 60 days.
Image Source: Zacks Investment Research
CRUS or SWKS: Which Stock is the Better Investment?Both CRUS and SWKS currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both Cirrus Logic and Skyworks are benefiting from strong demand trends in AI, smartphones and connectivity markets. However, Cirrus Logic appears better positioned for long-term growth due to its expanding diversification efforts, stronger momentum and broader product opportunities.
AUSTIN, Texas--(BUSINESS WIRE)--Cirrus Logic (NASDAQ: CRUS) today introduced a new family of nine audio converters designed to deliver stellar performance and new features at an optimized price-to-performance ratio. This new offering includes analog-to-digital converters (ADCs), digital-to-analog converters (DACs) and CODECs built to support a broad range of prosumer and professional audio applications, from musical instruments and podcast interfaces to active speakers, mixing consoles, and ins.
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GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.
Key Takeaways Cirrus Logic launched nine new ADCs, DACs and CODECs for pro and prosumer audio markets.CRUS added hybrid DAC gain control and new driver architecture for broader audio applications.Cirrus Logic says the lineup supports scalable design, faster development and revenue diversification. The professional and prosumer audio industry is evolving rapidly. Against this backdrop, Cirrus Logic (CRUS - Free Report) has recently introduced a new portfolio of nine audio converters, including analog-to-digital converters (ADCs), digital-to-analog converters (DACs) and CODECs, designed to deliver premium audio quality while maintaining an optimized price-to-performance ratio. The initiative aims to expand CRUS’ audio converter portfolio and reinforces its commitment to serving the growing professional and prosumer audio market, estimated to be worth approximately $9 billion globally.
A key aspect of the new converter family is the inclusion of enhanced analog capabilities and hybrid gain control technology. Hybrid gain control was previously available in Cirrus' flagship audio converters and has now been extended to this new family of products. The new lineup adds hybrid DAC gain control and a new voltage output driver architecture, giving designers more flexibility to optimize performance across wider audio applications.
Premium flagship products often feature top-tier components, while mid-range and entry-level products must balance performance with affordability. Cirrus Logic's expanded converter portfolio addresses this by enabling scalable product development. Manufacturers can now use similar architectural approaches across different product lines while choosing converters that meet specific performance and budget needs. This scalability offers several benefits: faster product development cycles, reduced engineering complexity, a consistent user experience across product tiers and improved cost efficiency. As a result, companies can deliver advanced audio features to a broader audience without sacrificing profitability.
While unlikely to drive an immediate revenue surge, the new products strengthen long-term growth by expanding CRUS’ presence in professional audio, content creation and commercial sound systems. The launch broadens its customer base, boosts cross-selling opportunities and supports revenue diversification beyond smartphones.
Competitive Pressure Crowding CRUS’ Pipeline ActivitiesQualcomm Incorporated (QCOM - Free Report) continues to pivot from a handset-centric model toward a broader connected processor portfolio. It is expanding its Oryon CPU and AI capabilities beyond smartphones into PCs, servers and custom silicon. Its 2026 Snapdragon X2 PC platforms are already in production, featuring AI performance of up to 85 TOPS for always-on agentic experiences. QCOM is working with hyperscalers on custom AI chips, creating new revenue streams beyond handsets. Meanwhile, the $2.3 billion Alphawave Semi acquisition strengthens Qualcomm’s high-speed connectivity and custom silicon capabilities, supporting its expansion into AI data centers. OEM caution, intense competition and high investment spending pressure near-term margins, while leverage limits flexibility.
Analog Devices, Inc. (ADI - Free Report) continues to invest in a hybrid manufacturing model that combines internal scale with external partners, enhancing responsiveness as demand ramps. ADI is leaning into automation as onshoring of advanced manufacturing and tighter labor dynamics drive demand for digital factories and next-generation robots. Its higher-value sensing, motion control, power and connectivity solutions enable edge intelligence and real-time communication in content-rich robotics. The company continues to frame humanoids as a longer-term upside, with management forecasting roughly a 10x increase in content per humanoid compared with current mobile robots due to higher sensor and actuator requirements.
CRUS Price Performance, Valuation and EstimatesShares have gained 77.3% in the past year compared with the Electronics-Semiconductors industry’s growth of 108%.
Image Source: Zacks Investment Research
Valuation-wise, CRUS seems attractive, as suggested by the Value Score of A. Regarding the forward 12-month Price/Sales ratio, CRUS is trading at 4.2, lower than the Electronic-Semiconductors industry’s multiple of 9.76.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRUS earnings for fiscal 2026 has been marginally revised up over the past 60 days.
Image Source: Zacks Investment Research
CRUS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DULUTH, Minn. & KNOXVILLE, Tenn.--(BUSINESS WIRE)-- #Aviation--Cirrus (Cirrus Aircraft Ltd.) announced its new SR Series Annual Flight Review Course, a Cirrus Approach™ module designed to promote continuous flight training, pilot proficiency, and safety for all pilots, including the thousands of SR20, SR22, and SR22T pilots worldwide, regardless of current aircraft ownership. The Annual Flight Review consists of three segments—online learning, ground instruction, and flight instruction with a Cirrus Standa.
It has been about a month since the last earnings report for Cirrus Logic (CRUS - Free Report) . Shares have added about 2.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cirrus Logic due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Cirrus Logic, Inc. before we dive into how investors and analysts have reacted as of late.
Cirrus Logic Q1 Earnings & Revenues BeatCirrus Logic reported fourth-quarter fiscal 2026 adjusted earnings per share (EPS) of $1.95, which surpassed the Zacks Consensus Estimate of $1.76. The company reported adjusted EPS of $1.67 in the prior-year quarter.
Revenue for the quarter came in at $448.5 million, exceeding the midpoint of guidance ($410-$470 million). Revenues declined 23% sequentially due to weaker smartphone unit shipments but increased 6% year over year, mainly driven by robust demand for smartphone components. The growth was partly offset by pricing pressure and softer sales in general markets. The Zacks Consensus Estimate for revenues was pegged at $439.8 million.
Cirrus Logic generated $2 billion in revenues for fiscal 2026, reflecting a 5% increase from the previous year, driven by strong demand for smartphone components and higher component sales for PCs. A key development from the earnings announcement was its expansion into new smartphone silicon categories, including next-generation camera controllers and smart power ICs. Beyond smartphones, Cirrus Logic reported strong year-over-year growth in its PC business. The company’s expansion into laptops and PCs helps reduce concentration risk while opening new long-term revenue streams.
A key theme throughout the earnings report was the importance of diversification. Cirrus Logic has spent several years expanding both its product portfolio and customer base. It highlighted growth in smartphones outside of audio applications, as well as growth in PCs and laptops, general market products and power-related semiconductor solutions. This diversification strategy is important because semiconductor markets can be cyclical. Expanding across multiple end markets can help stabilize revenues and reduce dependence on any single product category.
The company’s largest customer accounted for 92% of total revenues in the fiscal fourth quarter.
Segment DetailsCirrus Logic’s High-Performance Mixed-Signal segment includes a few of its non-audio products. It contributed 43% to total revenues in the fiscal fourth quarter. Revenues from the same division grew 13.1% year over year to $191.3 million.
The Audio segment’s sales inched up 0.7% to $257.2 million and contributed 57% to total revenues.
MarginsNon-GAAP gross profit for the March quarter was $237.9 million, with a non-GAAP gross margin of 53% compared with $227.1 million and 53.5%, respectively, for the prior-year quarter. The year-over-year decline in gross margin was mainly due to increased freight costs.
Cirrus Logic’s non-GAAP operating expenses rose 5.1% year over year to $126.1 million, mainly due to higher employee-related costs, partly offset by product development expenses tied to tape-out timing. Sequentially, OpEx decreased by $6.9 million, mainly due to lower employee costs and variable compensation.
Non-GAAP operating income of $111.8 million soared 4.4% year over year.
Non-GAAP operating profit margin dropped to 24.9% from 25.2%.
Balance Sheet and Cash FlowAs of March 28, 2026, it had $887.7 million in cash, cash equivalents and marketable securities compared with $822.4 million as of Dec. 27, 2025.
As of March 28, 2026, accounts receivable were $220.2 million.
In the fiscal fourth quarter, the company reported $151.4 million of cash flow from operations compared with $130.4 million in the prior-year quarter. Free cash flow was $149 million in the quarter under review.
The company repurchased almost 491,000 shares worth $70 million in the reported quarter. In fiscal 2026, management returned $280 million to shareholders through the repurchase of 2.5 million shares. As of March 28, 2026, it had $274.1 million worth of shares under its existing share repurchase authorization.
Fiscal Q1 Outlook Signals Continued StabilityFor the first quarter of fiscal 2027, Cirrus Logic provided guidance that points to continued healthy demand. The company expects revenues between $430 million and $490 million, implying 3% sequential growth and 13% year-over-year growth at the midpoint of the guidance range.
Combined GAAP R&D and SG&A are anticipated to be between $155 million and $161 million, respectively. Non-GAAP operating expenses are estimated to be in the band of $132-$138 million.
GAAP gross margin is estimated to be between 51% and 53%.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 24.71% due to these changes.
VGM ScoresAt this time, Cirrus Logic has a strong Growth Score of A, a score with the same score on the momentum front. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Cirrus Logic has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerCirrus Logic is part of the Zacks Electronics - Semiconductors industry. Over the past month, Lam Research (LRCX - Free Report) , a stock from the same industry, has gained 17.4%. The company reported its results for the quarter ended March 2026 more than a month ago.
Lam Research reported revenues of $5.84 billion in the last reported quarter, representing a year-over-year change of +23.8%. EPS of $1.47 for the same period compares with $1.04 a year ago.
For the current quarter, Lam Research is expected to post earnings of $1.65 per share, indicating a change of +24.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Lam Research. Also, the stock has a VGM Score of F.
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Stock to Watch: Cirrus Logic (CRUS - Free Report) Headquarterd in Austin, TX, Cirrus Logic is a fabless semiconductor supplier, which develops low-power, high-precision mixed-signal processing solutions.
CRUS is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. CRUS has a Growth Style Score of A, forecasting year-over-year earnings growth of 2.6% for the current fiscal year.
For fiscal 2027, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.05 to $9.50 per share. CRUS boasts an average earnings surprise of +23.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CRUS should be on investors' short list.
