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CRUS Q4 Earnings & Sales Top, Up Y/Y as Diversification Gains Momentum
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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.
Cirrus Logic, Inc. Price, Consensus and EPS Surprise
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 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.
Margins
Non-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 Flow
As 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 Stability
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 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%.
Badger 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%.
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CRUS Q4 Earnings & Sales Top, Up Y/Y as Diversification Gains Momentum
Key Takeaways
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.
Cirrus Logic, Inc. Price, Consensus and EPS Surprise
Cirrus Logic, Inc. price-consensus-eps-surprise-chart | Cirrus Logic, Inc. Quote
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 Details
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 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.
Margins
Non-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 Flow
As 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 Stability
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 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 Rank
Cirrus 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 Firms
Badger 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%.