CRUS

A month has gone by since the last earnings report for Cirrus Logic (CRUS). Shares have lost about 8.4% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Cirrus Logic due for a breakout? 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 Beat Estimates Cirrus Logic reported first-quarter fiscal 2027 adjusted earnings of $1.84 per share, up 21.9% year over year and above the Zacks Consensus Estimate of $1.45. Strong demand for custom smartphone components supported the record first-quarter results. Revenue increased 12.9% to $460 million, aligning with the consensus estimate. The strong results were primarily driven by robust shipments of custom components used in premium smartphones, showing that demand from major mobile customers remains healthy despite a competitive consumer electronics market. Quarterly revenues grew 2% sequentially as higher sales of components shipped into smartphones boosted results. Year over year, the gains from increased smartphone component demand were partly offset by previously expected pricing reductions. Demand continued to be strong for custom boosted amplifiers and smart codecs. Cirrus anticipates these products will ship across multiple future smartphone generations. Development of the next-generation camera controller and a smart power IC for 3D sensing also remained on schedule. The company’s largest customer accounted for 90% of total revenues in the fiscal first quarter. High-Performance Mixed-Signal revenues climbed to $210.7 million from $167.2 million a year earlier and represented 46% of net sales. Audio revenues increased 3.7% to $249 million and represented 54% of quarterly sales. Management described the opportunity pipeline across camera, battery and power applications as one of the strongest in the company's history. A power product is already shipping in tablets, while another product for an accessory has yet to reach the market. Additional phone and non-phone programs remain in active development. Non-GAAP gross profit was $242.1 million, with gross margin edging up to 52.7% from 52.6% a year ago. Favorable product mix supported the year-over-year comparison, while higher freight and supply-chain costs limited the improvement. Sequentially, pricing reductions outweighed cost savings. Non-GAAP operating expenses rose 13.3% year over year to $135.4 million. Higher employee-related costs were the main driver, with variable compensation, product development and professional expenses also contributing. Non-GAAP operating income reached $106.7 million, while operating margin slipped to 23.2% from 23.3%. Cirrus lowered its fiscal 2027 PC revenue expectations. Constrained supply of a key industry platform, memory and component shortages and delayed model introductions pushed out expected growth. Management characterized these pressures as timing issues rather than a change in the underlying opportunity. Customer interest remained strong for the company's low-power smart codec for AI-enabled PCs, with multiple designs targeted for next calendar year. Several customers also announced PCs based on NVIDIA's RTX Spark platform that are expected to ship later this year with Cirrus amplifiers and codecs. The company taped out a new high-performance analog front-end family for smart meters and expects to begin sampling during the September quarter. The products combine higher-accuracy voltage and current measurement with on-chip processing for power-quality analysis and fault detection. Cirrus is targeting a calendar 2028 market launch and sees potential applications in data center DC metrology, energy storage, EV charging and grid monitoring. A new GlobalFoundries agreement secures dedicated wafer capacity and pricing for 2027 and 2028 while supporting progress toward U.S. production. Cash and investments totaled $1.2 billion at quarter-end, with no debt outstanding. Operating cash flow was $64.1 million, and free cash flow totaled $48.6 million, translating into an 11% margin. It spent $34.5 million to repurchase about 211,000 shares, leaving $239.6 million under its authorization. After quarter-end, it bought roughly 359,000 additional shares for $50.5 million. Management continues to prioritize organic investment, followed by acquisitions and buybacks, and is not considering a near-term dividend. For the second quarter of fiscal 2027, Cirrus expects revenues of $510-$570 million. The $540 million midpoint implies growth of 17% sequentially and a decline of 4% year over year. GAAP gross margin is projected at 52-54%, including a temporary benefit from favorably priced wafers that should largely sell through during the quarter. Non-GAAP operating expenses are expected at $140-$146 million. Full-year expenses are expected to increase as Cirrus expands R&D investment, while the non-GAAP tax rate is forecast at 16-18%. It turns out, estimates review have trended downward during the past month. The consensus estimate has shifted -8.87% due to these changes. At this time, Cirrus Logic has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy. 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. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Cirrus Logic has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Cirrus Logic belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Qualcomm (QCOM), has gained 5.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Qualcomm reported revenues of $9.95 billion in the last reported quarter, representing a year-over-year change of -4%. EPS of $2.21 for the same period compares with $2.77 a year ago. Qualcomm is expected to post earnings of $2.18 per share for the current quarter, representing a year-over-year change of -27.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.4%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Qualcomm. Also, the stock has a VGM Score of F. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

On August 5, Cirrus Logic (NASDAQ:CRUS) reported record first-quarter revenue of $459.7 million, up 13% year over year, alongside non-GAAP earnings per share of $1.84, a June quarter record for the company. Smartphone component demand carried the print, and executives struck a confident tone about content growth across cameras, batteries and power circuits. But that optimism sat next to a quieter admission: the company's PC segment outlook for fiscal 2027 just got smaller, and the reasons behind that cut matter for anyone weighing this stock's next chapter. High-performance mixed-signal revenue climbed 26% year over year to $210.7 million, as Cirrus Logic expanded its footprint across camera, battery, and power applications inside smartphones. CEO John Forsyth pointed to a multi-generation collaboration with the company's largest customer on camera controllers, plus continued work on a Smart Power IC for 3D sensing that stayed on schedule through the quarter. Audio, the company's flagship business, still grew 3.7% to $249.0 million on demand for custom boosted amplifiers and smart codecs, and Forsyth said those parts should keep shipping across multiple future product generations. The company is also pushing past smartphones. During the quarter, Cirrus Logic taped out a new family of analog front-end components aimed at smart meters, with sampling expected in the September quarter and potential spillover into EV charging, data center metrology and grid monitoring. On the PC side, a new low-power smart codec built for always-on wake word detection drew strong customer interest, and products using Nvidia's RTX Spark platform are expected to ship later in 2026 carrying Cirrus Logic amplifiers and codecs. A fresh wafer supply agreement with GlobalFoundries locks in capacity and pricing through calendar 2028 and advances a shift toward domestic manufacturing in Malta, New York. Underneath it all sits $1.2 billion in cash and investments, no debt, and $598.6 million in trailing 12-month operating cash flow, funding $34.5 million in share buybacks during the quarter and another $50.5 million afterward. The company trimmed its fiscal 2027 PC segment outlook, and Forsyth laid out three specific culprits: constrained supply of a key industry platform, memory and component shortages pressuring pricing across the PC market, and OEMs responding by delaying new model launches and stretching the life of older platforms. Those delayed models typically carry higher content and higher volume for Cirrus Logic, so Forsyth said the slippage "pushes out some of the growth we would otherwise have seen in our PC business this year." Costs are creeping up elsewhere too. CFO Jeffrey Woolard noted that year-over-year gross margin gains were partially offset by higher freight and supply chain costs, and operating expenses rose $135.4 million, up $15.9 million from a year ago on higher R&D headcount, with management expecting full-year opex to climb further. Q2 gross margin guidance of 52% to 54% includes a temporary lift from favorably priced GlobalFoundries wafers that should mostly sell through during the quarter, after which margin is expected to normalize. Inventory days rose to 110 from 104 the prior quarter, and non-GAAP free cash flow margin fell to 11% in the June quarter from 28% over the trailing twelve months, partly because the company is now buying its own testers rather than relying on assembly partners. Android revenue kept shrinking as a share of the total as management leaned toward PC and industrial opportunities instead. Hedge fund ownership of Cirrus Logic rose from 29 funds to 36 quarter over quarter, which points to institutions building rather than trimming their positions. Short interest sits at 8.62% of float, high enough to signal a real bear camp rather than routine hedging. Yet the stock trades at a forward P/E of just 12.48 as of September 3, a modest multiple for a company touting record earnings and multiple new growth avenues. That combination suggests that the market hasn't fully settled on which story about Cirrus Logic to believe yet. Cirrus Logic's quarter captures a company in transition, still leaning on smartphone audio and content growth while planting seeds in smart meters, AI PCs and industrial sensing. The GlobalFoundries agreement and strong cash position give it room to keep investing even as PC timing slips. For the diversification story to keep winning skeptics over, the smart meter and camera pipelines need to convert into revenue on schedule. For the caution to prove out, the PC delays and margin normalization after the wafer benefit fades would need to weigh more heavily than the new markets can offset. While we acknowledge the potential of CRUS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Future Stocks to Buy Under $10 and 12 Best Performing Semiconductor Stocks to Invest In. Disclosure: None. Follow Insider Monkey on Google News.

Cirrus Logic, Inc. CRUS presents a clear trade-off for investors. Its valuation has compressed toward the low end of its five-year range, while forward earnings expectations have weakened. Strong smartphone execution, a debt-free balance sheet and a broader product pipeline provide support. Customer concentration, delayed PC growth and higher research and development spending keep the near-term setup more demanding. CRUS trades at 13.36 times forward 12-month earnings, below the Zacks semiconductor sub-industry multiple of 14.58 times. Its five-year median is 18.75 times, while the five-year low is 12.42 times. That puts the current multiple close to the bottom of its historical range. The discount is visible, but valuation has to be considered alongside the weaker earnings trajectory rather than as a stand-alone reason to buy. Fiscal first-quarter adjusted earnings reached $1.84 per share, up 21.9% year over year and above the Zacks Consensus Estimate of $1.45. Revenues increased 12.9% to about $460 million as smartphone component demand supported results. The Zacks Consensus Estimate for current-fiscal-year earnings is $7.47 per share, below fiscal 2026 earnings of $9.26. The current-fiscal-year EPS estimate has also moved about 5% lower over the past four weeks, showing that the recent quarterly beat has not prevented a broader reset in expectations. Cirrus' largest customer represented about 90% of first-quarter revenues. That concentration leaves the company exposed to changes in product timing, sourcing decisions and pricing, while anticipated selling-price reductions and slower PC growth add execution risk. Texas Instruments Incorporated TXN generated 2025 revenues across industrial, automotive, personal electronics, data center and communications equipment markets. Analog Devices, Inc. ADI reported fiscal second-quarter 2026 growth across all end markets, with industrial representing 50% of revenues. Their broader end-market mixes provide context for how concentrated Cirrus remains while newer businesses scale. Cirrus ended the quarter with $1.2 billion in cash and investments and no debt. Free cash flow totaled $48.6 million, giving the company financial flexibility as it increases research and development spending to support opportunities across audio and high-performance mixed-signal products. Image Source: Zacks Investment Research The company spent $34.5 million to repurchase about 211,000 shares during the quarter and had $239.6 million remaining under its authorization. After quarter-end, it used another $50.5 million for repurchases. Management continues to prioritize organic investment, followed by acquisitions and buybacks. The low valuation improves the stock's price-to-earnings backdrop, but slower earnings expectations, customer concentration and delayed PC growth keep the investment case unsettled. The current discount is more useful as context than as a stand-alone buy signal. CRUS currently carries a Zacks Rank #5 (Strong Sell). It has a Growth Score of B, Momentum Score of B and VGM Score of B, while its Value Score is C. The B scores show favorable characteristics in several styles, but the Style Scores are designed to complement the Zacks Rank. With a #5 Rank and falling earnings estimates, the near-term signal still favors patience. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Texas Instruments Incorporated (TXN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 5:00 p.m. ET Vice President of Investor Relations - Chelsea Heffernan Chief Executive Officer - John Forsyth Chief Financial Officer - Jeffrey L. Woolard Operator: Ladies and gentlemen, thank you for standing by. Welcome to the Cirrus Logic First Quarter fiscal year 27 financial results Q&A session. At this time, all participants are in a listen only mode. After a brief statement, we will open up the call for questions from analysts. Instructions for queuing up will be provided at that time. As a reminder, this conference call is being recorded for replay purposes. I would now like to turn the conference call over to miss Chelsea Heffernan, vice president of investor relations. Miss Heffernan, you may begin. Chelsea Heffernan: Thank you, and good afternoon. Joining me on today's call is John Forsyth, Cirrus Logic's chief executive officer and Jeffrey L. Woolard, our Chief Financial Officer. Today, at approximately 4:00 p.m. Eastern Time, we announced our financial results for the first quarter fiscal year 27. The shareholder letter discussing our financial results the earnings press release, and the webcast of this Q and A session are all available at the company's Investor Relations website. This call will feature questions from the analysts covering our company. Additionally, the results and guidance we will discuss on this call will include non GAAP financial measures that exclude certain items. Reconciliations of these non GAAP measures to their most directly comparable GAAP measures are included in our earnings release and are all available on the company's Investor Relations website. Please note that during this session, we may make projections and other forward looking statements that are subject to risks and uncertainties that may cause actual results to differ materially from projections. By providing this information, the company expressly any obligation to update or revise any projections or forward looking statements. Whether as a result of new developments or otherwise. Please refer to the press release in the shareholder letter issued today which are available on the Cirrus Logic website and the latest Form 10 ks, as well as other corporate filings registered with the Securities and Exchange Commission, for additional discussion of risk factors that could cause actual results to differ materially from current expectations. Now I would like to turn the call over to John. John Forsyth: Thank you, Chelsea, and welcome to everyone joining today's call. As you have seen in the press release, Cirrus Logic reported record first quarter results for the June quarter, delivering revenue of $460 million as well as GAAP and non GAAP earnings per share of $1.47 and $1.84 respectively. In a few moments, I will hand the call over to Jeffrey to discuss our financial results in detail. Along with our outlook for the September quarter. Before we get to that, I would like to provide an update on the progress we have been making across the key pillars of our strategy since our call in May. As I have outlined previously, our long term strategy for growth is based around 3 principles. First, maintaining a strong leadership position in our flagship smartphone audio business. Second, expanding the value and range of high-performance mixed-signal or HPMS solutions with which we serve our customers in smartphones and related products. And third, leveraging our world class expertise and IP in both the audio and high-performance mixed-signal domains to grow and broaden our business in new markets. I want to say a few words now about each of these areas. In our flagship smartphone audio business, we saw a continued strong demand for our custom boosted amplifiers and smart codecs. Together, these components deliver exceptional audio performance, and meaningful power and efficiency gains, and moreover have benefited from an especially strong product cycle from our customer. While we continue to invest in innovations that will raise the bar of future audio solutions, we anticipate that these products will continue to ship for multiple future generations of customer products. This provides the company with solid long term visibility sustained revenue contribution, and the ability to focus R&D resources on new applications that expand the reach of our business and serve our customers in new ways. Which brings me on to our second priority, expanding HPMS content in smartphones and related products at the edge. Our progress in the June quarter reinforced our confidence in the long term opportunity to grow content across camera, battery, and power applications. In the camera area, our close engineering collaboration with our largest customer has spanned multiple generations of controllers to date, and today, we are executing on a road map to deliver the next generation of camera products. In battery and power, our products integrate signal processing and control capability to get the most out of the system in terms of both performance and efficiency in a way that sets us apart from more traditional analog competitors. These capabilities were central to winning the Smart Power IC for 3D sensing we discussed on our last call. The development of which continued on schedule during the quarter. We also saw further close collaboration with our customer on other power and battery products that we think can expand content over time. Across our core audio and HPMS business, see a pipeline of opportunity over the next few years that is as strong as any we can remember. Beyond smartphones, we also made progress on our third strategic priority, expanding into new applications and markets. The PC market remains our largest near term growth opportunity outside of smartphones, where we see potential for growth in volume and attach rates over time of both audio and HPMS content. That said, our expectations for our PC business this fiscal year have come down since we spoke in May, and I want to be clear about the reasons for that. 3 distinct factors have contributed. First, the constrained supply of a key industry platform in which we have content second, memory and component shortages and the pricing pressure that comes with them acting as a headwind for the broader PC market. And third, OEMs responding to these conditions by delaying some new model introductions and extending the life of existing platforms. Those new models generally represent both higher content per system for us and, in many cases, higher volume designs. So their delayed introduction pushes out some of the growth we would otherwise have seen in our PC business this year. I would characterize these factors as timing rather than anything fundamental. Our customer engagement, design win momentum, and competitive standing all remain very encouraging. And our excitement about the opportunity for Cirrus in this space over the coming years is undiminished. In particular, as we partner with our PC OEM customers on AI enabled PCs, we see considerable interest in our voice technology Today, the PC voice experience is often limited. Because running always on wake word detection on the CPU or NPU drains battery life rapidly and introduces latency that adversely affects the user experience. Our latest low power smart codec delivers wake word detection, noise reduction, audio buffering, and other voice features in a standalone device. Keeping system power consumption extremely low until the user engages the conversational interface. Customer interest in this product was strong during the June quarter, and we advanced engagements with multiple customers on designs for next calendar year. Lastly, in this part of our business, during the quarter, several OEMs announced new PCs based on NVIDIA's RTX Spark platform. Products based on RTX Spark from several of our customers are expected to ship later this year with Cirrus Logic amplifiers and codecs onboard. We are excited to be a part of this platform and see these launches as further examples of our PC portfolio broadening its reach along with the benefits our customers experience in being able to use the same voice and audio subsystems across different platform architectures. In our wider general market business, we continued to engage a broad base of customers across the professional audio automotive, industrial, and imaging end markets. A highlight this quarter was the tape out of a new family of high performance analog front end components targeting smart meters. We anticipate sampling these in the September quarter. These new products deliver higher accuracy voltage and current measurement for residential, commercial, and industrial applications. And their on chip digital signal processing enables power quality analysis and fault detection while reducing our customers' overall system cost. We believe the underlying technology developed for these products can also extend beyond smart meters into a number of adjacent applications, including energy storage, data center DC metrology, EV charging, and grid monitoring. These smart meter products represent the latest example of how we can leverage our world class mixed signal IP into markets that can drive sustained and profitable long term growth. They complement launches over the past 2 years of products in timing, professional audio, and industrial imaging segments. Each of these product families should enjoy lifespans and gross margins well above our corporate average and so represent an attractive addition to the rest of our business while broadening our addressable market. Finally, I would also like to note that we recently signed a new capacity reservation and wafer supply agreement with GlobalFoundries. This agreement builds on our long standing partnership with GlobalFoundries and secures dedicated wafer capacity and price for calendar years 2027 and 2028. Further supporting the broad range of opportunities we see ahead. In parallel to executing this agreement, we continue to collaborate with global foundries on next generation process technologies and progressing towards manufacturing products on US soil at their facility in Malta, New York. In summary, we are proud of our progress this quarter during which we continued to execute on our strategy to be the chosen supplier for a range critical audio and HPMS sockets in our core business, diversify our product portfolio, and drive growth in new applications and markets. We are excited about the opportunities ahead of us across all of these fronts. And that concludes the latest update on our long term growth strategy. So let me now turn the call over to Jeffrey to provide an overview of our financial results as well as the outlook. Jeffrey L. Woolard: Thank you, John. Good afternoon, everyone. I will now walk through our Q1 financial results and provide guidance for Q2. In Q1 fiscal 27, we delivered record first quarter revenue of $460 million which was in line with the midpoint of our guidance range. Revenue was up 2% sequentially and 13% year over year. The increase in revenue on a sequential and year over year basis reflects higher sales of components shipping into smartphones. On a year over year basis, sales were partially offset by previously anticipated pricing reductions. Turning to gross profit and gross margin. Non GAAP gross profit in the June quarter was $242.1 million and non GAAP gross margin was 52.7%. On a sequential basis, the decrease in gross margin reflects previously anticipated pricing reductions which were partially offset by cost reductions. On a year over year basis, a slight in gross margin was largely due to a favorable product mix which was partially offset by higher freight and supply chain costs. Now I will turn to operating expenses. Our non GAAP operating expense for the first quarter was $135.4 million On a sequential basis, OpEx was up $9.3 million primarily driven by higher employee related expenses and to a lesser extent, increased professional costs and product development expenses. This was partially offset by an increase in R&D incentives. On a year over year basis, operating expense was up $15.9 million primarily due to higher employee related costs, which is consistent with our previously communicated increase in R&D expense, to support the range of opportunities we have across the business. To a lesser extent, operating expense also increased due to higher variable compensation, product development, and professional expenses. Non GAAP operating income for the quarter was $106.7 million or 23.2% of revenue. Turning now to taxes. For the June quarter, our non GAAP tax rate was 17.4%. And lastly, on the P and L, non GAAP net income was $96.1 million resulting in a record June quarter earnings per share of $1.84 Let me now turn to the balance sheet. Our balance sheet continues to be strong, and we ended the June quarter with $1.2 billion in cash and investments. Our ending cash and investments balance up $13.5 million from the prior quarter as cash generated from operations was partially offset by share repurchases. We continue to have no debt outstanding. Inventory at the end of the first quarter was $262.7 million up from $240.9 million in the prior quarter. Days of inventory were up sequentially and we ended the quarter with approximately 110 days of inventory. Turning to cash flow. Cash flow from operations was $64.1 million in the June quarter and CapEx was $15.5 million resulting in non GAAP free cash flow margin of 11%. For the trailing 12 month period, cash flow from operations $598.6 million and CapEx was $27.6 million This resulted in a non GAAP free cash flow margin of 28%. On the share buybacks, in Q1, we utilized $34.5 million to repurchase approximately 211 thousand shares of our common stock at an average price of $163.43. At the end of Q1 fiscal 27, the company had $239.6 million remaining on its share repurchase authorization. Subsequent to Q1 fiscal year 27, the company utilized $50.5 million to repurchase approximately 359 thousand shares at an average price of $140.53 under a Rule 10b5-1 trading plan. Now on to guidance. For Q2 fiscal 27, we expect revenue in the range of $510 million to $570 million. GAAP gross margins is expected to range from 52% to 54%. In Q2, we expect gross margin to see a temporary benefit from wafers purchased under prior agreements with global foundries at favorable pricing. We expect this tranche to largely sell through in Q2 after which gross margin should normalize. Non GAAP operating expense is expected to range from $140 million to $146 million Additionally, as we indicated last quarter, given the breadth of opportunities ahead of us, expect our full year fiscal 27 operating expenses to increase as we invest in R&D. The fiscal 27 non GAAP effective tax rate is expected to range from 16% to 18%. In closing, we delivered solid results for the June quarter. We remain focused on executing our strategy to drive long term growth across our business and deliver shareholder value. Before we begin the Q and A, I would like to note that while we understand there is intense interest related to our largest customer, accordance with Cirrus Logic company policy, we will not discuss specifics about our business relationship. With that, let me now turn the call over to Chelsea to start the Q&A session. Chelsea Heffernan: Thanks, Jeffrey. We will now start the Q and A portion of our earnings call. Please limit yourself to a single question and 1 follow-up. Operator, we are now ready to take questions. Operator: We will now begin the question and answer As stated, please limit yourself to 1 question and 1 follow-up. If you would like to ask a question, please press 1. To raise your hand. To withdraw your question, press 1 again. We ask that you pick up your handset when asking a question, allow for optimum sound quality If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Christopher Rolland with Susquehanna. Your line is open. Please go ahead. Analyst: Hi, guys. Thank you for the question. It seems like seasonality might be already a little bit different than it has been in the past. I do not know if you are able to talk about that, but also kind of the outlook you know, for perhaps even a year on how seasonality might be different from all the years past. When we try to model Cirrus. Revenue. Thank you. Jeffrey L. Woolard: Yeah. Thanks for the question. This is Jeffrey. Yes. When we gave guidance for this quarter, we made a note that seasonality looks different. Than it had historically. And we came in right at the midpoint of guidance. And as you recall, that was up. So our Q1 results and the results that hit guidance were significantly higher than what the historical average would be. And we gave a peek into the rest of the year that seasonality would be much tighter. The quarters would be a lot tighter together than historical. And you are seeing that. With our results in our guide that, yes, it is different this year, and the quarters are a lot tighter from a historical perspective. Analyst: Excellent. Thank you. Then secondly, in your letter, you talked about this high performance analog front end I think the initial application is smart meters. But you had other applications as well, data center, metrology, energy storage, EV charging, grid monitoring, Can you talk about this early socket? How meaningful you think it could be? And the opportunity for Cirrus here in a in a larger framework, perhaps even including a TAM. How do you see the total market for this product? John Forsyth: Well, I will give a little more color, Chris, for sure. The specific initial target for this IP is in the smart meter segment, as we said, and really reflective of the fact that there is a combination of the rising energy demand that we are all familiar with, the increased strain on grid infrastructure, and changing regulatory requirements that is creating a need for meaningfully more accurate energy monitoring across residential, commercial, industrial applications. So and we have very, very high precision sensing and power IP. That we think can differentiate us in that space. And these products are really our first example or first test of that hypothesis. We certainly think that the combination of our advanced analog and our ability to integrate digital with it is something that can work to our advantage because we can do not only higher precision sensing, but also, integrate power things like power quality monitoring, fault detection, and indeed integrate other parts of the system into our dye. So we are obviously still in the early innings, both of these products and leveraging this kind of into the broader market. These particular products, I think I mentioned in my prepared remarks, we are going to be--we expect to be sampling them widely in the third quarter and the fourth quarter this year. So that will include the top OEMs in the smart metering space, We are currently tracking to an expectation of going to market in calendar 28. And we do think there are other applications, potentially for this IP elsewhere in the power space. You mentioned some of them there. And, yeah, those are all things that we are actively exploring. I think it is a little premature for us to put a TAM or a SAM on that we are excited about where this can go. And I guess I would highlight that I think this is another example of the ways in which we are able to leverage some of the high-performance mixed-signal expertise that we develop in the work we do in our core business into other markets. With comparatively small amounts of incremental R and D investment. So as this moves forward, and obviously we explore some of those other potential market segments for this IP, we will keep you updated. Operator: Your next question comes from the line of Tom O'Malley with Barclays. Your line is open. Please go ahead. Analyst: Hey, guys. This is Kyle Buser on for Tom O'Malley. Thanks for taking our questions. I think you mentioned earlier that you are seeing some of the strongest pipeline in the high-performance mixed-signal segment for Sirius and company history. Can you maybe expand here on what you are targeting where you are in design cycles, just how big of an opportunity this could be for you guys? John Forsyth: Yeah. Thank you. I did make that remark in the script. I think I said it was, as good as we can remember. Which obviously sounds like a it could be taken as an off the cuff expression, but in reality, we have had, you know, highly qualified lawyers at both the human and synthetic variety review that and we are very upbeat about the potential we have in our core business across the high performance mixed signal space. And that really reflective of stuff that our shareholders and the Street is familiar with. So we have a very rich pipeline and road map around the camera space, for example. And earlier this year, we saw the announcement relating to a socket for smart power and sensing. And in addition to that, we have a number of other programs which are in active development. We actually alluded to some of them in the last shareholder letter as well. So over the past year, we have delivered silicon to our customer for power products 1 of those is now shipping in tablets. Another is for an accessory product is yet to hit the market, but again, pushes the boundaries of performance. And innovation. And is another example of us kind of breaking new ground, winning new sockets in the power space. So added to that, there are a number of other programs that we are working on across phone and non phone sockets which we think give us a great setup over the next few years. So we will obviously, you know, give more color about the magnitude and impact of those as we get closer to them, but we think the multiyear setup around that part of our core business is very, very positive right now. Thank you. Analyst: And for my follow-up, I just wanted to ask the gross margin. I think it came in better than your guidance originally for June. So just wondering on some of the moving pieces there. When we think about it long term, are you seeing any pressures either from your largest customer given what is going on in memory or just on input costs across the ecosystem? Jeffrey L. Woolard: Yeah. Thanks for the question. So we continue to maintain our long term gross margin outlook. We realize there is a lot of discussion out there. About input costs in the supply chain. And we, you know, continue to monitor those dynamics closely. Think it is important to note what has showed up on our actuals. A lot of those costs have been agreed upon for quite some time. So they are coming through as predicted. You know, we did note we did have, you know, this next the quarter we are guiding, we do think there is sort of a onetime quarter benefit where some previously agreed wafers will sell through this quarter, and that is a temporary tailwind to gross margin. But we will continue to monitor input costs. We will aggressively work on cost reductions, and, you know, we will look at targeted price increase our targeted price increases as warranted. Operator: Your next question comes from the line of Tore Svanberg with Stifel. Your line is open. Please go ahead. Tore Egil Svanberg: Yes. This is Tore Svanberg at Stifel. Thank you for taking my question. So I just wanted to start kind of high level, I guess, but it seems like your largest customer is increasingly taking more of its silicon in house and adjacent areas while you know, also collaborating with you guys on a new power socket as you just discussed. I am just kinda curious, like, how do you think about you know, where that boundary sits between where they wanna design something internally versus where a merchant partner would add more value. And I appreciate you probably cannot get into too many specifics, but just kind of high level. We would love to hear that. John Forsyth: Yeah. Thanks, Tore. it is a recurring question, and it is useful to be able to talk to it. We have, I think, a very clear idea of where we offer unique value and innovation, and we focus on that. And it is really at the analog digital boundary. And so when, the product has a requirement for very high precision in the analog domain, very tight control loop, incredible power efficiency, very low latency. that is absolutely our wheelhouse. And we tend not to go after sockets that do not look like that. And our goal is to be the best in the world at sockets like And I think that is really reflected in the kind of products we bring to market. I would struggle to recall the last time we brought anything to market that was not absolutely category leading in terms of performance in those areas at the time we brought it to market. So we are very focused on serving our customer as well as possible. In those particular niches, if you like. And, obviously, our customer our largest customer has a million 1 problems to solve to execute on their ambitions. And we like to think we take a bunch of those off the table for them that they do not need to worry about. I would also say that 1 of the other aspects to our business that is well understood by us but is not always immediately obvious from the outside is that you really have to invest on a very long term basis in innovation. Particularly to succeed with our largest customer. Then have a remarkably low tolerance for PowerPoint. You really need to invest in developing very high performance silicon before you can even have a conversation with about, winning a socket. And, of course, that takes, you know, a certain amount of patience from investing. It takes a lot of determination from your engineers, but it then pays off over the long term. And that is very much our approach. So you referenced the power products that I was talking about a few minutes ago. I think we have been talking about and I have been talking about that as an area of investment around the battery for quite some time, and now we are increasingly seeing that bear fruit. Tore Egil Svanberg: Awesome. Thank you. And for my follow-up, I would just wanted to ask a little bit about it seems like the CapEx kind of stepped up a bit this quarter. And curious what is going on there, if you guys can provide some color on that. Jeffrey L. Woolard: Yeah. Thanks for the question. So I would say from a CapEx perspective, kind of think about this in 2 ways. If from you think about it from just a run rate of us operating the business, I would say our CapEx is roughly in line when you think about product and product development cycles. But there is a new element of CapEx, and that is we are investing in testers for our OSATs and that is new. So rather than having the OSATs buy that, we have done some purchases, and we are planning purchases for this year. And the reason for that is, 1, it just gives us some greater flexibility in the supply chain environment. And us actually owning that CapEx actually provides a better financial return for the company. And so that is new. I think that is more of a 27 We will see what happens after that, but that has been a change in what we have done from CapEx. Operator: As a reminder, if you would like to ask a question, please press *1 to raise your hand. Your next question comes from the line of Rick Schafer with Oppenheimer and Co. Your line is open. Please go ahead. Analyst: Hi. This is Wei Mok on for Rick Schafer. Wanted to ask a question about the balance sheet. Looks pretty strong. 1.2 billion in cash. No debt. How would you rank the best uses of cash, and what are your thoughts on the dividend? Jeffrey L. Woolard: Our capital allocation priorities remain unchanged. We want to make sure all of the organic opportunities funded. And as John said, and there are a very broad range of opportunities we have, and that is the reason we have increased some of our R and D investments. The second priority is M&A, and our third priority is buybacks. So, those stay consistent. We realize the balance sheet is very healthy, and we are very comfortable with that position because we believe it does give us more options and more flexibility in those first 2 priorities. And we will go to buybacks third. But at the moment, we are not in the near term considering a dividend. John Forsyth: And I will I will just add 1 additional comment there as we spoke a little bit about this on our last call. About that expansion. To R&D, which is really reflective of the pipeline of opportunity that we have in front of us right now. If you look back over the past several years, you will see we have got a really outstanding track record of discipline on the OpEx side. I think our headcount has been, you know, more or less flat for the last 10, 12 quarters until this quarter. You will see in the shareholder letter, it is taken a step up. The vast majority of those increased heads are engineering related. And we will see some continuation of that as Jeffrey said. But that is that is very much reflecting the high confidence we have in the opportunities that are on the docket right now. Okay. Great. Thanks. And for my follow-up, I wanted to ask about Android. Is there anything noteworthy on the content front with Android, either in, China or Korea? We do not put a huge amount of emphasis or investment in Android for a number of reasons. We think there are just simply more durable growth opportunities for the company elsewhere. We obviously have business in Android with multiple customers. that is been a long running contributor but over time, a smaller and smaller fraction of our overall income. And we expect that trend to continue. And the reason for that, as I said, is we think there are both more attractive long term markets and ones where from a competitive position, there is not a kind of geopolitical overhang. And it is less likely to be a kind of cost oriented bloodbath. So when we are investing I mean, I talked earlier about some of the industrial investment we have been making. Obviously been investing in growing in the PC market as well. And we see a number of other exciting areas in front of us. We certainly think there is gonna be an expansion in AI related consumer end products, and we expect to see OEMs bring devices over the next year and beyond to market with our content in them. We think all of those kind of categories are really more exciting long term for growth and SAM expansion than Android. Operator: And with that, we will end the Q&A session, and I will turn the call back over to John for final remarks. Chelsea Heffernan: Thank you, Chelsea. John Forsyth: So in summary, Cirrus Logic delivered record first quarter results. We also continue to make solid progress across each pillar of our long term strategy. And based on the expanding collaboration with our largest customer in our core business, and the advances we are making in our new markets, we are very excited about what lies ahead of us. I would like to thank you for your continued interest in our progress, and all of our employees around the world for their dedication to innovation and to supporting our customers' success. Before we close, I would also like to note that we will be participating in the KeyBank Technology Leadership Forum on August 11. Please check our investor website for details. And I would like to thank everyone for participating today. Goodbye. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Cirrus Logic, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cirrus Logic wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Cirrus Logic. The Motley Fool has a disclosure policy. Cirrus Logic (CRUS) Q1 2027 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Record June quarter revenue of $460 million was driven by strong demand for custom boosted amplifiers and smart codecs within the flagship smartphone audio business. Management attributes the year-over-year growth to an especially strong product cycle from their largest customer, partially offset by previously anticipated pricing reductions. The company is shifting its R&D focus toward High-Performance Mixed-Signal (HPMS) solutions, citing a multi-year pipeline of opportunities in camera, battery, and power applications that is as strong as any in recent memory. Strategic expansion into the PC market is being leveraged through AI-enabled features, specifically low-power smart codecs that handle wake-word detection and noise reduction without draining CPU/NPU battery life. A new family of high-performance analog front-end components for smart meters represents a strategic pivot to leverage core mixed-signal IP in industrial and energy markets with higher gross margins. Operational efficiency is being addressed through a new capacity reservation agreement with GlobalFoundries to secure wafer supply and pricing for 2027 and 2028. Q2 fiscal 2027 revenue guidance of $510 million to $570 million assumes a tighter seasonal pattern than historical averages, with less volatility between quarters. Gross margins in Q2 are expected to receive a temporary benefit from a specific tranche of wafers purchased under prior favorable pricing agreements before normalizing in subsequent periods. PC market growth expectations for the current fiscal year have been lowered due to industry-wide platform supply constraints, component shortages, and OEM delays in launching new models. Operating expenses are projected to increase throughout fiscal 2027 as the company aggressively hires engineering talent to support the current breadth of R&D opportunities. The company expects to sample new smart meter products in the September quarter, targeting a full market entry by calendar year 2028. Management flagged memory and component shortages as a headwind for the broader PC market, leading to pricing pressure and delayed product introductions. A structural shift in capital expenditure was noted, as the company has begun purchasing its own testers for OSATs to improve supply chain flexibility and financial returns. The company explicitly stated a lack of emphasis on the Android market, citing more durable growth opportunities elsewhere and a desire to avoid geopolitical overhangs and cost-oriented competition. Higher freight and supply chain costs were identified as a year-over-year headwind to gross margins, though partially mitigated by favorable product mix. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that seasonality is significantly different this year, with Q1 results being much higher than historical averages. Revenue across the fiscal year is expected to be 'tighter' together, meaning less dramatic fluctuations between the quarters than investors have seen in the past. Cirrus focuses exclusively on the 'analog-digital boundary' where high precision, low latency, and extreme power efficiency are required. Management believes their value lies in solving complex problems that customers would otherwise have to solve themselves, maintaining a high barrier to entry through long-term R&D investment. The company is now buying testers for its Outsourced Semiconductor Assembly and Test (OSAT) partners rather than having the partners buy them. This change provides greater supply chain control and offers a better financial return for Cirrus Logic compared to traditional arrangements. Initial smart meter applications address rising energy demand and regulatory requirements for higher accuracy in grid monitoring. The underlying technology is designed to be leveraged into adjacent high-growth markets like EV charging, data centers, and energy storage with minimal incremental R&D.

Interested in Cirrus Logic, Inc.? Here are five stocks we like better. Record quarterly performance: Cirrus Logic reported fiscal Q1 revenue of $460 million, up 13% year over year, with record June-quarter GAAP EPS of $1.47 and non-GAAP EPS of $1.84. Smartphone component sales drove growth, though anticipated pricing reductions pressured margins. Positive pipeline, mixed PC outlook: Demand remains strong for smartphone audio products and high-performance mixed-signal solutions, while customer interest is building for Cirrus Logic’s low-power AI-PC voice codec. However, the company lowered current-year PC expectations due to platform supply constraints, component shortages and delayed product launches. Solid guidance and balance sheet: Fiscal Q2 revenue is expected at $510 million to $570 million, with a temporary gross-margin benefit from favorable GlobalFoundries wafer pricing. Cirrus Logic ended the quarter with $1.2 billion in cash, no debt and continued share repurchases, while reserving capacity with GlobalFoundries for 2027 and 2028. Cirrus Logic's 52-Week High is More Than an Apple Story Cirrus Logic (NASDAQ:CRUS) reported record fiscal first-quarter revenue of $460 million for the June quarter, up 2% sequentially and 13% from a year earlier, driven by higher component sales into smartphones. The company posted GAAP earnings per share of $1.47 and non-GAAP earnings per share of $1.84, also a record for a June quarter. Chief Financial Officer Jeff Woolard said revenue landed at the midpoint of the company’s guidance range. He said sales growth from smartphone components was partly offset year over year by previously anticipated pricing reductions. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Cirrus Logic Upgraded After Q3 Earnings Beat—More Gains Ahead? Non-GAAP gross profit totaled $242.1 million, producing a non-GAAP gross margin of 52.7%. Woolard said gross margin declined sequentially because of anticipated pricing reductions, partly offset by cost reductions. Compared with the prior year, gross margin increased slightly due primarily to favorable product mix, although higher freight and supply-chain costs partially offset that benefit. Non-GAAP operating expenses were $135.4 million, up $9.3 million sequentially and $15.9 million year over year. Woolard attributed the increases mainly to employee-related costs and continued research-and-development investment, along with higher variable compensation, product-development and professional expenses. Non-GAAP operating income was $106.7 million, or 23.2% of revenue. → 3 Drone Stocks That Should Soar After the Summer Slump 4 Reasons GlobalFoundries Could Be a Big Winner After Recent Lows For fiscal second-quarter 2027, Cirrus Logic forecast revenue of $510 million to $570 million. The company expects GAAP gross margin of 52% to 54% and non-GAAP operating expenses of $140 million to $146 million. Its full-year non-GAAP effective tax rate is projected at 16% to 18%. Woolard said the September-quarter gross margin should receive a temporary benefit from wafers bought under prior GlobalFoundries agreements at favorable prices. He said that inventory tranche is expected to largely sell through during the quarter, after which margins should normalize. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Management said the company’s quarterly seasonality is tighter than in prior years. Woolard noted that the June-quarter results were significantly higher than historical averages for the period and that the company expects less variation among quarters than it has historically experienced. Management said demand remained strong for its custom-boosted amplifiers and smart codecs used in smartphones. The products have benefited from a strong product cycle at Cirrus Logic’s largest customer, and the company expects them to continue shipping across multiple future product generations. The company also highlighted its high-performance mixed-signal, or HPMS, opportunities in camera, battery and power applications. Management said it is developing the next generation of camera controllers with its largest customer and remains on schedule with a smart power IC for 3D sensing discussed on the prior earnings call. During the question-and-answer session, management said the HPMS opportunity pipeline was “as good as we can remember.” It cited a camera roadmap, power products that have been delivered to customers, and active programs spanning phone and non-phone applications. One power product is now shipping in tablets, while another is intended for an accessory product that has not yet reached the market, according to management. Woolard said Cirrus Logic continues to maintain its long-term gross-margin outlook despite industry discussion around higher supply-chain input costs. He said many costs now appearing in financial results were agreed upon previously, while the company will continue pursuing cost reductions and targeted price increases when warranted. Cirrus Logic said the PC market remains its largest near-term growth opportunity outside smartphones, though it reduced its expectations for the business for the current fiscal year. Management cited constrained supply of a key industry platform, memory and component shortages, associated pricing pressure, and delays in new PC model introductions by original equipment manufacturers. Management characterized the issues as timing-related rather than fundamental changes to the company’s competitive standing or customer engagement. Delayed new models matter because they generally carry higher content per system and, in some cases, higher expected volumes, the company said. The company reported strong customer interest in a low-power smart codec designed for AI-enabled PCs. The device can perform wake-word detection, noise reduction and audio buffering independently, which management said can reduce power use and latency relative to relying on a PC’s CPU or NPU for always-on voice functions. Cirrus Logic advanced discussions with multiple customers on designs expected to arrive next calendar year. Several customers are also expected to ship PCs later this year based on NVIDIA’s RTX Spark platform containing Cirrus Logic amplifiers and codecs, management said. In general markets, Cirrus Logic said it taped out a new family of high-performance analog front-end components for smart meters and expects to begin sampling them in the September quarter. The products are intended to provide higher-accuracy voltage and current measurements, power-quality analysis and fault detection for residential, commercial and industrial uses. Management said it is targeting a calendar 2028 market launch for the smart-meter products and is exploring related applications including energy storage, data-center DC metrology, EV charging and grid monitoring. The company did not provide a market-size estimate. Cirrus Logic ended the quarter with $1.2 billion in cash and investments and no debt. It generated $64.1 million in operating cash flow, spent $15.5 million on capital expenditures, and repurchased $34.5 million of stock during the quarter. After the quarter ended, it repurchased an additional $50.5 million of shares under a Rule 10b5-1 plan. Woolard said the company’s capital priorities remain funding organic growth opportunities first, pursuing acquisitions second and share repurchases third. He said Cirrus Logic was not considering a dividend in the near term. The company also signed a capacity reservation and wafer supply agreement with GlobalFoundries covering dedicated capacity and pricing for calendar years 2027 and 2028. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Cirrus Logic Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: Record first quarter revenue of $460 million, up 2% sequentially and 13% year-over-year. GAAP Earnings per Share: $1.47 for the June quarter. Non-GAAP Earnings per Share: Record June quarter EPS of $1.84. Non-GAAP Gross Profit: $242.1 million in the June quarter. Non-GAAP Gross Margin: 52.7%, with a slight year-over-year increase due to favorable product mix. Non-GAAP Operating Expense: $135.4 million in Q1, up $9.3 million sequentially and $15.9 million year-over-year. Non-GAAP Operating Income: $106.7 million, or 23.2% of revenue. Non-GAAP Net Income: $96.1 million for the June quarter. Non-GAAP Tax Rate: 17.4% for the June quarter. Cash and Investments: $1.2 billion at the end of the June quarter, up $13.5 million from the prior quarter. Cash Flow from Operations: $64.1 million in the June quarter; $598.6 million for the trailing 12-month period. Capital Expenditures: $15.5 million in the June quarter; $27.6 million for the trailing 12-month period. Non-GAAP Free Cash Flow Margin: 11% for the June quarter; 28% for the trailing 12-month period. Inventory: $262.7 million at the end of Q1, up from $240.9 million in the prior quarter, representing approximately 110 days of inventory. Share Repurchases: Utilized $34.5 million to repurchase approximately 211,000 shares at an average price of $163.43 in Q1; $239.6 million remaining on authorization. Q2 Fiscal 2027 Revenue Guidance: Expected in the range of $510 million to $570 million. Q2 Fiscal 2027 GAAP Gross Margin Guidance: Expected to range from 52% to 54%. Q2 Fiscal 2027 Non-GAAP Operating Expense Guidance: Expected to range from $140 million to $146 million. Fiscal 2027 Non-GAAP Effective Tax Rate Guidance: Expected to range from 16% to 18%. Warning! GuruFocus has detected 2 Warning Sign with CARL. Is CRUS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record first quarter revenue of $460 million, up 13% year-over-year, with record EPS of $1.84. Strong demand for flagship smartphone audio products, with expectations for multi-generational shipments providing long-term visibility. Expanding HPMS content in smartphones, including camera, battery, and power applications, with a strong pipeline of opportunities. New product developments, such as high-performance analog front-end for smart meters, targeting new markets with high gross margins. New capacity reservation and wafer supply agreement with GlobalFoundries secures dedicated capacity and pricing for 2027-2028. PC business expectations for fiscal year 2027 reduced due to constrained supply of key industry platforms, memory/component shortages, and OEM delays. Gross margin in Q1 declined sequentially due to previously anticipated pricing reductions, partially offset by cost reductions. Operating expenses increased sequentially and year-over-year due to higher employee-related costs and R&D investments. Inventory levels increased to 110 days, up sequentially, indicating potential overstocking. Android business is expected to continue shrinking as a fraction of overall income, limiting growth in that segment. Q: Can you expand on the high-performance mixed signal (HPMS) pipeline, which you described as one of the strongest in company history? Where are you in the design cycles, and how big could this opportunity be? A: John Forsyth (CEO): The strength is driven by a rich pipeline across camera, battery, and power applications. We have multiple programs in active development, including a smart power IC for 3D sensing that is on schedule, a power product already shipping in tablets, and another for an accessory product yet to hit the market. We are also working on several other programs across phone and non-phone sockets. While we will provide more color on magnitude as we get closer, we believe the multi-year setup for this part of our core business is very positive. Q: How should we think about the boundary where your largest customer chooses to design silicon in-house versus partnering with a merchant supplier like Cirrus Logic? A: John Forsyth (CEO): We have a clear focus on the analog-digital boundary where we offer unique value. We concentrate on sockets requiring high precision, tight control loops, power efficiency, and low latency, aiming to be the best in the world at those. Our approach requires long-term investment in high-performance silicon before conversations about winning sockets, which pays off over time. The recent wins in power products are a direct result of this strategy. Q: You mentioned that seasonality looks different this year. Can you elaborate on how the quarterly revenue pattern might differ from historical trends? A: Jeffrey Woolard (CFO): We noted in our guidance that seasonality is different this year. Our Q1 results came in at the midpoint of guidance, which was significantly higher than the historical average. We provided a peek into the rest of the year, indicating that the quarters will be much tighter together than historical patterns. This is reflected in our results and guidance, confirming that the quarterly distribution is indeed different this year. Q: Can you provide more detail on the new high-performance analog front-end (AFE) products targeting smart meters? How meaningful is this initial socket, and what is the broader opportunity? A: John Forsyth (CEO): The initial target is the smart meter segment, driven by rising energy demand, grid strain, and regulatory changes requiring more accurate monitoring. Our high-precision sensing and power IP, combined with digital integration, differentiates us by enabling power quality monitoring and fault detection. We are sampling these products widely in Q3 and Q4 of this year, tracking to a market entry in calendar 2028. While it's premature to provide a TAM, we see potential in adjacent applications like energy storage, data center DC metrology, EV charging, and grid monitoring, leveraging our mixed-signal expertise with small incremental R&D investment. Q: You mentioned that expectations for the PC business have come down since May. What are the specific reasons for this change, and is it a timing issue or something more fundamental? A: John Forsyth (CEO): The reduction is due to three distinct factors: constrained supply of a key industry platform, memory and component shortages creating pricing pressure, and OEMs delaying new model introductions while extending existing platform lifecycles. These new models represent higher content and volume for us, so their delay pushes out growth. We characterize these as timing issues rather than fundamental problems. Our design win momentum and customer engagement remain encouraging, and we are excited about the opportunity, particularly with AI-enabled PCs where our low-power smart codec for voice features is generating strong interest. Q: Can you discuss the moving pieces behind the gross margin performance and the outlook, especially regarding input costs and pricing pressure? A: Jeffrey Woolard (CFO): We maintain our long-term gross margin outlook. Many input costs have been agreed upon for some time and are coming through as predicted. In Q2, we expect a temporary benefit from wafers purchased under prior agreements with GlobalFoundries at favorable pricing, which will largely sell through in the quarter. After that, gross margin should normalize. We will continue to monitor input costs, aggressively work on cost reductions, and look at targeted price increases as warranted. Q: With a strong balance sheet of $1.2 billion in cash and no debt, how would you rank the best uses of cash, and are you considering a dividend? A: Jeffrey Woolard (CFO): Our capital allocation priorities remain unchanged: first, funding organic opportunities, which is why we are increasing R&D investments; second, M&A and third, share buybacks. We are comfortable with our healthy balance sheet as it provides flexibility for the first two priorities. We are not considering a dividend in the near term. John Forsyth (CEO) added that the increase in R&D expense reflects the high confidence in the pipeline of opportunities, with the vast majority of new hires being engineering-related. Q: Is there anything noteworthy on the content front with Android customers, either in China or Korea? A: John Forsyth (CEO): We do not put a huge amount of emphasis or investment in Android, as we see better and more durable growth opportunities elsewhere. While we have business with multiple Android customers, it represents a smaller fraction of our income over time, and we expect that trend to continue. We prefer markets without geopolitical overhang and less likely to be cost-oriented. We are investing in areas like PC, industrial, and AI-related consumer products, which we believe offer more exciting long-term growth and SAM expansion. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Cirrus Logic, Inc. CRUS reported first-quarter fiscal 2027 adjusted earnings of $1.84 per share, up 21.9% year over year and above the Zacks Consensus Estimate of $1.45. Strong demand for custom smartphone components supported the record first-quarter results. Revenue increased 12.9% to $460 million, aligning with the consensus estimate. The strong results were primarily driven by robust shipments of custom components used in premium smartphones, showing that demand from major mobile customers remains healthy despite a competitive consumer electronics market. Quarterly revenues grew 2% sequentially as higher sales of components shipped into smartphones boosted results. Year over year, the gains from increased smartphone component demand were partly offset by previously expected pricing reductions. Demand continued to be strong for custom boosted amplifiers and smart codecs. Cirrus anticipates these products will ship across multiple future smartphone generations. Development of the next-generation camera controller and a smart power IC for 3D sensing also remained on schedule. Cirrus Logic, Inc. price-consensus-eps-surprise-chart | Cirrus Logic, Inc. Quote The company’s largest customer accounted for 90% of total revenues in the fiscal first quarter. High-Performance Mixed-Signal revenues climbed to $210.7 million from $167.2 million a year earlier and represented 46% of net sales. Audio revenues increased 3.7% to $249 million and represented 54% of quarterly sales. Management described the opportunity pipeline across camera, battery and power applications as one of the strongest in the company's history. A power product is already shipping in tablets, while another product for an accessory has yet to reach the market. Additional phone and non-phone programs remain in active development. Non-GAAP gross profit was $242.1 million, with gross margin edging up to 52.7% from 52.6% a year ago. Favorable product mix supported the year-over-year comparison, while higher freight and supply-chain costs limited the improvement. Sequentially, pricing reductions outweighed cost savings. Non-GAAP operating expenses rose 13.3% year over year to $135.4 million. Higher employee-related costs were the main driver, with variable compensation, product development and professional expenses also contributing. Non-GAAP operating income reached $106.7 million, while operating margin slipped to 23.2% from 23.3%. Cirrus lowered its fiscal 2027 PC revenue expectations. Constrained supply of a key industry platform, memory and component shortages and delayed model introductions pushed out expected growth. Management characterized these pressures as timing issues rather than a change in the underlying opportunity. Customer interest remained strong for the company's low-power smart codec for AI-enabled PCs, with multiple designs targeted for next calendar year. Several customers also announced PCs based on NVIDIA's RTX Spark platform that are expected to ship later this year with Cirrus amplifiers and codecs. The company taped out a new high-performance analog front-end family for smart meters and expects to begin sampling during the September quarter. The products combine higher-accuracy voltage and current measurement with on-chip processing for power-quality analysis and fault detection. Cirrus is targeting a calendar 2028 market launch and sees potential applications in data center DC metrology, energy storage, EV charging and grid monitoring. A new GlobalFoundries agreement secures dedicated wafer capacity and pricing for 2027 and 2028 while supporting progress toward U.S. production. Cash and investments totaled $1.2 billion at quarter-end, with no debt outstanding. Operating cash flow was $64.1 million, and free cash flow totaled $48.6 million, translating into an 11% margin. CRUS spent $34.5 million to repurchase about 211,000 shares, leaving $239.6 million under its authorization. After quarter-end, it bought roughly 359,000 additional shares for $50.5 million. Management continues to prioritize organic investment, followed by acquisitions and buybacks, and is not considering a near-term dividend. For the second quarter of fiscal 2027, Cirrus expects revenues of $510-$570 million. The $540 million midpoint implies growth of 17% sequentially and a decline of 4% year over year. GAAP gross margin is projected at 52-54%, including a temporary benefit from favorably priced wafers that should largely sell through during the quarter. Non-GAAP operating expenses are expected at $140-$146 million. Full-year expenses are expected to increase as Cirrus expands R&D investment, while the non-GAAP tax rate is forecast at 16-18%. Cirrus Logic currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Dolby Laboratories, Inc. DLB reported third-quarter fiscal 2026 non-GAAP earnings of 69 cents per share, down 11.5% year over year but above the Zacks Consensus Estimate of 67 cents by 2.99%. Lower-than-expected operating expenses helped offset softer revenues and higher taxes. Revenues of $305 million fell 3.3% year over year and missed the consensus mark of $314 million by 2.79%. Licensing remained the core business at 93% of sales, while better-than-expected Dolby Atmos, Dolby Vision and imaging patent revenues were offset by deal timing and weaker foundational audio. Sonos, Inc. SONO reported third-quarter fiscal 2026 non-GAAP earnings of 27 cents per share, which soared 52% year over year and topped the Zacks Consensus Estimate of 24 cents. The 12.5% surprise reflected higher sales and disciplined spending despite rising memory costs. Revenues increased 9% to $375 million, beating the $367 million consensus by 2.3%. Speaker demand and international expansion supported growth. Sonos’ installed base exceeded 53 million connected devices across more than 17 million homes. Sony Group Corporation SONY reported earnings of ¥57.82 per share for the first quarter of fiscal 2026, up 35% year over year from ¥42.84. Adjusted net income increased 32.1% to ¥342.2 billion. Quarterly net sales advanced 8.2% to ¥2,837.8 billion. Growth was led by Imaging & Sensing Solutions and Music, while gaming profitability strengthened. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report Dolby Laboratories (DLB) : Free Stock Analysis Report Sonos, Inc. (SONO) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

AUSTIN, Texas, August 05, 2026--(BUSINESS WIRE)--Cirrus Logic, Inc. (NASDAQ: CRUS) posted on its website at investor.cirrus.com the quarterly Shareholder Letter that contains the complete financial results for the first quarter of fiscal year 2027, which ended June 27, 2026, as well as the company’s current business outlook. "Cirrus Logic delivered record first quarter revenue and earnings per share in the June quarter," said John Forsyth, Cirrus Logic president and chief executive officer. "During the quarter, we experienced strong demand for custom components shipping into smartphones. The company also made meaningful progress executing on key strategic initiatives. In our PC business, we saw considerable interest in our latest smart codec for AI-enabled PCs and are engaged with multiple customers on designs for next calendar year. We also recently taped out a new high-performance analog front-end component targeting metrology applications, further strengthening our general market portfolio. Looking forward, we remain confident in our ability to leverage our mixed-signal design expertise to drive growth across new applications and markets for years to come." Reported Financial Results – First Quarter FY27 Revenue of $459.7 million; GAAP gross margin of 52.6 percent and non-GAAP gross margin of 52.7 percent; GAAP operating expenses of $157.4 million and non-GAAP operating expenses of $135.4 million; and GAAP earnings per share of $1.47 and non-GAAP earnings per share of $1.84. A reconciliation of GAAP to non-GAAP financial information is included in the tables accompanying this press release. Business Outlook – Second Quarter FY27 Revenue is expected to range between $510 million and $570 million; GAAP gross margin is forecasted to be between 52 percent and 54 percent; and Combined GAAP R&D and SG&A expenses are anticipated to range between $163 million and $169 million, including approximately $21 million in stock-based compensation expense and $2 million in amortization of acquisition intangibles, resulting in a non-GAAP operating expense range between $140 million and $146 million. Cirrus Logic will host a live Q&A session at 5 p.m. ET today to discuss its financial results and business outlook. Participants may listen to the conference call on the investor relations website at investor.cirrus.com. A replay of the webcast can be accessed on the Cirrus Logic website. About Cirrus Logic, Inc. Cirrus Logic is a leader in low-power, high-precision mixed-signal processing solutions that create innovative user experiences for the world’s top mobile and consumer applications. With headquarters in Austin, Texas, Cirrus Logic is recognized globally for its award-winning corporate culture. Cirrus Logic, Cirrus and the Cirrus Logic logo are registered trademarks of Cirrus Logic, Inc. All other company or product names noted herein may be trademarks of their respective holders. Use of non-GAAP Financial Information To supplement Cirrus Logic's financial statements presented on a GAAP basis, the company has provided non-GAAP financial information, including non-GAAP net income, diluted earnings per share, operating income and profit, operating expenses, gross margin and profit, tax expense, tax expense impact on earnings per share, effective tax rate, free cash flow, and free cash flow margin. A reconciliation of the adjustments to GAAP results is included in the tables below. Non-GAAP financial information is not meant as a substitute for GAAP results but is included because management believes such information is useful to our investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. The non-GAAP financial information used by Cirrus Logic may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP. Safe Harbor Statement Except for historical information contained herein, the matters set forth in this news release contain forward-looking statements including our statements about our ability to leverage our mixed-signal design expertise to drive growth across new applications and markets for years to come; and our estimates for the second quarter fiscal year 2027 revenue, gross margin, combined research and development and selling, general and administrative expense levels, stock-based compensation expense, amortization of acquisition intangibles, and our resulting non-GAAP operating expense range. In some cases, forward-looking statements are identified by words such as "expect," "anticipate," "target," "project," "believe," "goals," "opportunity," "estimates," "intend," and variations of these types of words and similar expressions. In addition, any statements that refer to our plans, expectations, strategies, or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are based on our current expectations, estimates, and assumptions and are subject to certain risks and uncertainties that could cause actual results to differ materially, and readers should not place undue reliance on such statements. These risks and uncertainties include, but are not limited to, the following: the level and timing of orders and shipments during the second quarter of fiscal year 2027; customer cancellations of orders; the failure to place orders consistent with forecasts; global economic conditions and uncertainty; and our ability to develop and commercialize products and technologies for new markets, along with the risk factors listed in our Form 10-K for the year ended March 28, 2026 and in our other filings with the Securities and Exchange Commission, which are available at www.sec.gov. The foregoing information concerning our business outlook represents our outlook as of the date of this news release, and we expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise, unless required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805840521/en/ Contacts Investor Contact: Chelsea HeffernanVice President, Investor RelationsCirrus Logic, Inc.(512) [email protected]

Cirrus Logic (CRUS) came out with quarterly earnings of $1.84 per share, beating the Zacks Consensus Estimate of $1.8 per share. This compares to earnings of $1.51 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.22%. A quarter ago, it was expected that this chipmaker would post earnings of $1.76 per share when it actually produced earnings of $1.95, delivering a surprise of +10.8%. 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 $459.72 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.03%. This compares to year-ago revenues of $407.27 million. The company has topped consensus revenue estimates three 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 12.7% since the beginning of the year versus the S&P 500's gain of 13%. While Cirrus Logic has underperformed 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 unfavorable. 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 #4 (Sell) for the stock. So, the shares are expected to underperform 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 $2.71 on $569.12 million in revenues for the coming quarter and $9.33 on $2.11 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 20% 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. Synaptics (SYNA), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This maker of touch-screen technology is expected to post quarterly earnings of $1.21 per share in its upcoming report, which represents a year-over-year change of +19.8%. The consensus EPS estimate for the quarter has been revised 2.1% lower over the last 30 days to the current level. Synaptics' revenues are expected to be $305 million, up 7.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report Synaptics Incorporated (SYNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research