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Cirrus Logic (CRUS) Up 2.3% Since Last Earnings Report: Can It Continue?
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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, outperforming 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? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Cirrus Logic Q2 Earnings & Revenues Beat
Cirrus Logic reported second-quarter fiscal 2026 adjusted earnings per share (EPS) of $2.83, which surpassed the Zacks Consensus Estimate of $2.10. The company reported adjusted EPS of $2.25 in the prior-year quarter.
Cirrus Logic generated revenues of $561 million for the September quarter, hitting the high end of its guidance ($510-$570 million), driven by strong demand in its core smartphone component business. Sequentially, revenues increased 38%, reflecting higher shipments of smartphones. Year over year, sales rose 4%, mainly due to increased smartphone volumes and contributions from its latest generation products. The top line beat the Zacks Consensus Estimate by 3.9%.
The performance reflects continued adoption of its advanced mixed-signal processing technologies that enhance audio and haptic experiences in premium mobile devices. While smartphones remain the primary revenue driver, Cirrus Logic’s progress toward diversification continues to gain momentum. Management highlighted the company’s breakthroughs in the PC market, announcing its first mainstream consumer laptop design and expanding partnerships with leading PC platform vendors.
Additionally, its audio and voice processing chips are being increasingly adopted in laptops and tablets. Beyond PCs, the company reported growing customer engagement across several emerging segments, such as professional audio, industrial, automotive and imaging end markets. These diversification efforts position the company for long-term growth across multiple high-value industries.
The company’s largest customer accounted for 90% of total revenues in the fiscal second quarter.
Segment Details
This Texas-based company rearranged its reportable segments and created separate categories — High-Performance Mixed-Signal and Audio — in 2021.
Cirrus Logic’s High-Performance Mixed-Signal segment includes a few of its non-audio products. It contributed 43% to total revenues in the fiscal second quarter. Revenues from the same division grew 7.8% year over year to $242.8 million.
The Audio segment’s sales inched up 0.5% to $318.2 million and contributed 57% to total revenues.
Margins
Non-GAAP gross margin improved to 52.5% from 52.2% in the prior-year quarter, mainly due to a favorable product mix, partially offset by higher inventory reserves.
It reported non-GAAP operating expenses of $127.7 million for the second quarter, below the guidance ($131-$137 million), driven by lower product development costs from project timeline shifts and reduced employee-related expenses. Sequentially, OpEx increased 6.9%, mainly led by higher variable compensation, product development costs related to tape-outs and facility expenses, partially offset by lower employee-related costs. Year over year, operating expenses rose 0.7%, primarily due to higher employee-related costs from annual merit increases, partially offset by lower product development expenses.
Non-GAAP operating income of $167 million grew 6.9% year over year.
Non-GAAP operating profit margin increased to 29.8% from 28.8%.
Balance Sheet and Cash Flow
The company exited the fiscal second quarter with cash and marketable securities of $645.9 million compared with $478.3 million as of Sept. 28, 2024.
As of Sept. 27, 2025, accounts receivable were $355.4 million.
In the fiscal second quarter, it generated $92.2 million of net cash from operations compared with $8.2 million in the previous-year quarter. Free cash flow was $87.7 million in the quarter under review.
The company repurchased 362,000 shares worth $40 million in the reported quarter. As of Sept. 27, 2025, it had $414.1 million worth of shares under its existing share repurchase authorization.
Fiscal Q3 2026 Outlook: Maintaining Momentum
For the third quarter of fiscal 2026, Cirrus Logic provided a revenue outlook between $500 million and $560 million.
The GAAP gross margin is expected to be in the range of 51-53%.
Combined GAAP R&D and SG&A are anticipated to be between $151 million and $157 million.
Non-GAAP operating expenses are estimated to be in the band of $128-$134 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 8.72% due to these changes.
VGM Scores
Currently, Cirrus Logic has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Cirrus Logic has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Cirrus Logic belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Amkor Technology (AMKR - Free Report) , has gained 20.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Amkor Technology reported revenues of $1.99 billion in the last reported quarter, representing a year-over-year change of +6.7%. EPS of $0.51 for the same period compares with $0.49 a year ago.
For the current quarter, Amkor Technology is expected to post earnings of $0.42 per share, indicating a change of -2.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Amkor Technology has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Cirrus Logic (CRUS) Up 2.3% Since Last Earnings Report: Can It Continue?
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, outperforming 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? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Cirrus Logic Q2 Earnings & Revenues Beat
Cirrus Logic reported second-quarter fiscal 2026 adjusted earnings per share (EPS) of $2.83, which surpassed the Zacks Consensus Estimate of $2.10. The company reported adjusted EPS of $2.25 in the prior-year quarter.
Cirrus Logic generated revenues of $561 million for the September quarter, hitting the high end of its guidance ($510-$570 million), driven by strong demand in its core smartphone component business. Sequentially, revenues increased 38%, reflecting higher shipments of smartphones. Year over year, sales rose 4%, mainly due to increased smartphone volumes and contributions from its latest generation products. The top line beat the Zacks Consensus Estimate by 3.9%.
The performance reflects continued adoption of its advanced mixed-signal processing technologies that enhance audio and haptic experiences in premium mobile devices. While smartphones remain the primary revenue driver, Cirrus Logic’s progress toward diversification continues to gain momentum. Management highlighted the company’s breakthroughs in the PC market, announcing its first mainstream consumer laptop design and expanding partnerships with leading PC platform vendors.
Additionally, its audio and voice processing chips are being increasingly adopted in laptops and tablets. Beyond PCs, the company reported growing customer engagement across several emerging segments, such as professional audio, industrial, automotive and imaging end markets. These diversification efforts position the company for long-term growth across multiple high-value industries.
The company’s largest customer accounted for 90% of total revenues in the fiscal second quarter.
Segment Details
This Texas-based company rearranged its reportable segments and created separate categories — High-Performance Mixed-Signal and Audio — in 2021.
Cirrus Logic’s High-Performance Mixed-Signal segment includes a few of its non-audio products. It contributed 43% to total revenues in the fiscal second quarter. Revenues from the same division grew 7.8% year over year to $242.8 million.
The Audio segment’s sales inched up 0.5% to $318.2 million and contributed 57% to total revenues.
Margins
Non-GAAP gross margin improved to 52.5% from 52.2% in the prior-year quarter, mainly due to a favorable product mix, partially offset by higher inventory reserves.
It reported non-GAAP operating expenses of $127.7 million for the second quarter, below the guidance ($131-$137 million), driven by lower product development costs from project timeline shifts and reduced employee-related expenses. Sequentially, OpEx increased 6.9%, mainly led by higher variable compensation, product development costs related to tape-outs and facility expenses, partially offset by lower employee-related costs. Year over year, operating expenses rose 0.7%, primarily due to higher employee-related costs from annual merit increases, partially offset by lower product development expenses.
Non-GAAP operating income of $167 million grew 6.9% year over year.
Non-GAAP operating profit margin increased to 29.8% from 28.8%.
Balance Sheet and Cash Flow
The company exited the fiscal second quarter with cash and marketable securities of $645.9 million compared with $478.3 million as of Sept. 28, 2024.
As of Sept. 27, 2025, accounts receivable were $355.4 million.
In the fiscal second quarter, it generated $92.2 million of net cash from operations compared with $8.2 million in the previous-year quarter. Free cash flow was $87.7 million in the quarter under review.
The company repurchased 362,000 shares worth $40 million in the reported quarter. As of Sept. 27, 2025, it had $414.1 million worth of shares under its existing share repurchase authorization.
Fiscal Q3 2026 Outlook: Maintaining Momentum
For the third quarter of fiscal 2026, Cirrus Logic provided a revenue outlook between $500 million and $560 million.
The GAAP gross margin is expected to be in the range of 51-53%.
Combined GAAP R&D and SG&A are anticipated to be between $151 million and $157 million.
Non-GAAP operating expenses are estimated to be in the band of $128-$134 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 8.72% due to these changes.
VGM Scores
Currently, Cirrus Logic has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Cirrus Logic has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Cirrus Logic belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Amkor Technology (AMKR - Free Report) , has gained 20.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Amkor Technology reported revenues of $1.99 billion in the last reported quarter, representing a year-over-year change of +6.7%. EPS of $0.51 for the same period compares with $0.49 a year ago.
For the current quarter, Amkor Technology is expected to post earnings of $0.42 per share, indicating a change of -2.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Amkor Technology has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.