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.
Why Is Cirrus Logic (CRUS) Up 2.3% Since Last Earnings Report?
Read MoreHide Full Article
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 Beat
Cirrus 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 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.
The Audio segment’s sales inched up 0.7% to $257.2 million and contributed 57% to total revenues.
Margins
Non-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 Flow
As 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 Stability
For 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 Scores
At 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.
Outlook
Estimates 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 Player
Cirrus 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.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Why Is Cirrus Logic (CRUS) Up 2.3% Since Last Earnings Report?
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 Beat
Cirrus 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 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.
The Audio segment’s sales inched up 0.7% to $257.2 million and contributed 57% to total revenues.
Margins
Non-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 Flow
As 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 Stability
For 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 Scores
At 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.
Outlook
Estimates 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 Player
Cirrus 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.