We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cirrus Logic, Inc. (CRUS - Free Report) stock has gained 39.3% in the past six months, outperforming the Zacks Computer & Technology sector and the S&P 500 composite growth of 20.1% and 15.2%, respectively. The Zacks Electronics - Semiconductors industry increased 40.9% over the same time frame. The company’s shares have soared 14.2% in the past three months.
CRUS has outpaced its peer, Qualcomm Incorporated (QCOM - Free Report) , which climbed 22.6% during the same interval. It underperformed Analog Devices, Inc. (ADI - Free Report) and Monolithic Power (MPWR - Free Report) , which grew 84.9% and 68.2%, respectively.
Qualcomm develops AI, high-performance computing and connectivity technologies that power a smarter, interconnected world.
ADI is an original equipment manufacturer of semiconductor devices, specifically, analog, mixed signal and digital signal processing (DSP) integrated circuits.
Monolithic Power Systems designs, develops and markets high-performance power solutions focused on analog and mixed-signal integrated circuits.
Image Source: Zacks Investment Research
However, shares of Cirrus Logic lost 4.9% in the past month. The company recently reported fourth-quarter fiscal 2026 results, wherein its top and bottom lines surpassed the Zacks Consensus Estimate and increased year over year. Revenue declined 23% sequentially due to weaker smartphone unit shipments.
Following the company’s results, investors may wonder whether CRUS has upside or if expectations have outpaced fundamentals. Let’s unpack the company’s fundamentals and challenges to ascertain the best course of action.
Key Growth Catalysts for Cirrus Logic
Cirrus Logic is gaining from strong demand for components used in smartphones and higher PC sales, which helped it deliver record fiscal 2026 revenue of $2 billion. The company continued to strengthen its flagship smartphone audio business through robust demand for its latest-generation custom-boosted amplifiers and 22-nanometer smart codecs. These products are designed to provide meaningful system-level improvements and enhanced performance, while their advanced designs are expected to support longer product life cycles and sustained revenue contribution over time.
The company is also benefiting from growth in its high-performance mixed-signal portfolio. Demand for camera controllers remained strong, while customer engagement around the future product roadmap continued to increase. Cirrus Logic stated that it is actively developing next-generation camera-related technologies aimed at improving smartphone camera functionality and differentiation. In addition, the company advanced its battery and power applications business by validating new technologies and intellectual property in silicon to improve battery performance, health, longevity and power efficiency.
Cirrus Logic is further expanding its opportunities through advanced power solutions and new application areas. During the year, the company introduced new high-performance power solutions for accessory and tablet devices and highlighted collaboration efforts related to Face ID implementations in future products. The company is currently designing its first smart power IC for 3D sensing, integrating high-efficiency power delivery, precision current drive and programmable control. On the last earnings call, management also stated that ongoing investments in advanced mixed-signal IP and power technologies continue to create additional opportunities in the broader power market.
Cirrus Logic, Inc. Price, Consensus and EPS Surprise
The company is additionally gaining momentum in the PC market, supported by share gains across all PC segments and increasing adoption of SDCA-related designs. Cirrus Logic introduced new amplifiers and codecs targeting mainstream and AI-enabled PCs, while management highlighted strong design momentum across its PC portfolio. Beyond PCs, the company expanded its general market product portfolio with new offerings targeting professional audio, automotive, industrial and imaging applications. Cirrus Logic also continued efforts to diversify its supply chain and develop next-generation process technologies in collaboration with GlobalFoundries to support future growth opportunities and improved product performance.
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.
Image Source: Zacks Investment Research
Cirrus Logic is grappling with higher freight expenses, pricing reductions and rising operating costs. The company highlighted that fourth-quarter gross margin declined year over year primarily due to increased freight expenses, while revenue growth was partially offset by pricing reductions and lower general market sales. Operating expenses also increased mainly because of higher employee-related costs. Cirrus Logic expects fiscal 2027 operating expenses to rise further as it increases R&D investments to pursue future growth opportunities. Management also highlighted concerns surrounding the broader PC market, including the possibility of industry pullbacks related to memory shortages.
A Look at CRUS’ Valuation
CRUS is trading at a forward 12-month price/earnings ratio of 19.94, lower than the Electronic-Semiconductors sector’s multiple of 33.96.
Image Source: Zacks Investment Research
Its peers, ADI, QCOM and MPWR, are trading at a forward 12-month price/earnings ratio of 34.78, 25.5 and 70.74, respectively.
Should You Buy or Hold Now?
With strong momentum across smartphones, PCs and power applications, supported by solid demand trends and a reasonable valuation, Cirrus Logic appears well-positioned for further growth despite near-term margin and cost pressures. Those who own the stock can hold onto it.
View the Zacks #1 Rank List
Image: Bigstock
Cirrus Logic Up 39% in 6 Months: Should Investors Buy, Hold or Fold?
Key Takeaways
Cirrus Logic, Inc. (CRUS - Free Report) stock has gained 39.3% in the past six months, outperforming the Zacks Computer & Technology sector and the S&P 500 composite growth of 20.1% and 15.2%, respectively. The Zacks Electronics - Semiconductors industry increased 40.9% over the same time frame. The company’s shares have soared 14.2% in the past three months.
CRUS has outpaced its peer, Qualcomm Incorporated (QCOM - Free Report) , which climbed 22.6% during the same interval. It underperformed Analog Devices, Inc. (ADI - Free Report) and Monolithic Power (MPWR - Free Report) , which grew 84.9% and 68.2%, respectively.
Qualcomm develops AI, high-performance computing and connectivity technologies that power a smarter, interconnected world.
ADI is an original equipment manufacturer of semiconductor devices, specifically, analog, mixed signal and digital signal processing (DSP) integrated circuits.
Monolithic Power Systems designs, develops and markets high-performance power solutions focused on analog and mixed-signal integrated circuits.
Image Source: Zacks Investment Research
However, shares of Cirrus Logic lost 4.9% in the past month. The company recently reported fourth-quarter fiscal 2026 results, wherein its top and bottom lines surpassed the Zacks Consensus Estimate and increased year over year. Revenue declined 23% sequentially due to weaker smartphone unit shipments.
Following the company’s results, investors may wonder whether CRUS has upside or if expectations have outpaced fundamentals. Let’s unpack the company’s fundamentals and challenges to ascertain the best course of action.
Key Growth Catalysts for Cirrus Logic
Cirrus Logic is gaining from strong demand for components used in smartphones and higher PC sales, which helped it deliver record fiscal 2026 revenue of $2 billion. The company continued to strengthen its flagship smartphone audio business through robust demand for its latest-generation custom-boosted amplifiers and 22-nanometer smart codecs. These products are designed to provide meaningful system-level improvements and enhanced performance, while their advanced designs are expected to support longer product life cycles and sustained revenue contribution over time.
The company is also benefiting from growth in its high-performance mixed-signal portfolio. Demand for camera controllers remained strong, while customer engagement around the future product roadmap continued to increase. Cirrus Logic stated that it is actively developing next-generation camera-related technologies aimed at improving smartphone camera functionality and differentiation. In addition, the company advanced its battery and power applications business by validating new technologies and intellectual property in silicon to improve battery performance, health, longevity and power efficiency.
Cirrus Logic is further expanding its opportunities through advanced power solutions and new application areas. During the year, the company introduced new high-performance power solutions for accessory and tablet devices and highlighted collaboration efforts related to Face ID implementations in future products. The company is currently designing its first smart power IC for 3D sensing, integrating high-efficiency power delivery, precision current drive and programmable control. On the last earnings call, management also stated that ongoing investments in advanced mixed-signal IP and power technologies continue to create additional opportunities in the broader power market.
Cirrus Logic, Inc. Price, Consensus and EPS Surprise
Cirrus Logic, Inc. price-consensus-eps-surprise-chart | Cirrus Logic, Inc. Quote
The company is additionally gaining momentum in the PC market, supported by share gains across all PC segments and increasing adoption of SDCA-related designs. Cirrus Logic introduced new amplifiers and codecs targeting mainstream and AI-enabled PCs, while management highlighted strong design momentum across its PC portfolio. Beyond PCs, the company expanded its general market product portfolio with new offerings targeting professional audio, automotive, industrial and imaging applications. Cirrus Logic also continued efforts to diversify its supply chain and develop next-generation process technologies in collaboration with GlobalFoundries to support future growth opportunities and improved product performance.
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.
Image Source: Zacks Investment Research
Cirrus Logic is grappling with higher freight expenses, pricing reductions and rising operating costs. The company highlighted that fourth-quarter gross margin declined year over year primarily due to increased freight expenses, while revenue growth was partially offset by pricing reductions and lower general market sales. Operating expenses also increased mainly because of higher employee-related costs. Cirrus Logic expects fiscal 2027 operating expenses to rise further as it increases R&D investments to pursue future growth opportunities. Management also highlighted concerns surrounding the broader PC market, including the possibility of industry pullbacks related to memory shortages.
A Look at CRUS’ Valuation
CRUS is trading at a forward 12-month price/earnings ratio of 19.94, lower than the Electronic-Semiconductors sector’s multiple of 33.96.
Image Source: Zacks Investment Research
Its peers, ADI, QCOM and MPWR, are trading at a forward 12-month price/earnings ratio of 34.78, 25.5 and 70.74, respectively.
Should You Buy or Hold Now?
With strong momentum across smartphones, PCs and power applications, supported by solid demand trends and a reasonable valuation, Cirrus Logic appears well-positioned for further growth despite near-term margin and cost pressures. Those who own the stock can hold onto it.
CRUS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.