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    CRUS
    Earnings call· Mar 2026(Q4 FY26)

    CIRRUS LOGIC Q4 FY26 earnings call CRUS

    May 6, 2026 Source

    Executive summary

    Cirrus Logic Q4 FY26 — Record Revenue and EPS Driven by Smartphone and PC Demand

    Cirrus Logic delivered record financial results for fiscal year 2026, driven by robust demand in smartphones and significant growth in the PC market. The company is expanding its high-performance mixed-signal content in smartphones and diversifying into new markets, including a new smart power IC for 3D sensing and increased PC adoption. Management plans to accelerate R&D investment in FY27 to capitalize on a strong pipeline of opportunities, expecting continued growth and shareholder value creation.

    Highlights

    5

    • Record full fiscal year 2026 revenue of $2 billion, up 5% from prior year.

    • Record GAAP and non-GAAP earnings per share for FY26, with non-GAAP EPS reaching $9.26, up from $7.54 in FY25.

    • Q1 FY27 revenue guidance of $430 million to $490 million, up 13% year-over-year at the midpoint, exceeding typical seasonality.

    • PC business revenue grew into the $40 million range in FY26, up from low tens of millions in FY25, with strong momentum for continued growth in FY27.

    • Ended FY26 with $1.2 billion in cash and investments, up $319 million from the prior year, with no debt outstanding.

    Concerns

    3

    • Q4 FY26 revenue was partially offset by pricing reductions and lower general market sales.

    • Non-GAAP gross margin declined year-over-year in Q4 FY26 due to higher freight expenses.

    • Potential for some pullback in the overall PC market during FY27, though management expects to deliver strong growth despite this.

    Guidance & targets

    8
    CategoryTargetConfidence
    Q1 FY27 Revenue
    $430 million to $490 million
    high materiality
    High
    Q1 FY27 Non-GAAP Gross Margin
    51% to 53%
    medium materiality
    High
    Q1 FY27 Non-GAAP Operating Expense
    $132 million to $138 million
    medium materiality
    High
    FY27 Non-GAAP Tax Rate
    approximately 16% to 18%
    medium materiality
    High
    FY27 R&D Investment
    increase throughout fiscal '27
    high materiality
    High
    PC Business Growth
    continued strong growth in fiscal '27
    medium materiality
    High
    SDCA Revenue Share in PC Business
    closer to 80% of our revenue
    low materiality
    High
    Mainstream PC Devices Revenue Share
    more than half of our revenue
    low materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Smartphones
    Strong demand for components shipping into smartphones was a primary driver of Q4 FY26 and full fiscal year 2026 revenue growth. The latest generation audio products are expected to have extended life cycles, providing long-term visibility.
    Demand for latest generation custom-boosted amplifier and 22-nanometer smart codec: robustExpected product life cycles: extended
    		—driver of 6% YoY revenue growth in Q4 FY26——
    PCs
    The PC business delivered strong growth in FY26, reaching the $40 million range, up from low tens of millions in FY25. Design momentum is robust, with increased adoption of SDCA and higher content per device expected to drive strong growth in FY27. The company is gaining share in mainstream PC devices.
    FY25 revenue: low tens of millionsFY26 revenue: grew into the $40 million rangeSDCA revenue in FY26: almost 60% of total PC revenueSDCA revenue in FY27 (expected): closer to 80% of total PC revenueMainstream devices revenue in FY27 (expected): more than half of total PC revenueCustomer base: top 6 laptop vendors
    		$40 million rangestrong year-over-year growth in FY26——
    General Market Products
    Lower general market sales partially offset revenue growth in Q4 FY26. However, the company made meaningful progress expanding its general market product portfolio in FY26, introducing new product families for professional audio, automotive, industrial, and imaging end markets.
    		—lower sales partially offset Q4 FY26 revenue growth——

    Operational metrics

    26
    Revenue
    $448.5 milliondown 23% sequentially, up 6% year-over-year
    Q4 FY26

    Above the midpoint of guidance range.

    Revenue
    $2 billionup 5% from prior year
    FY26

    Record revenue for the full fiscal year.

    Non-GAAP Gross Profit
    $237.9 million
    Q4 FY26
    Non-GAAP Gross Margin
    53%decline year-over-year
    Q4 FY26
    Non-GAAP Gross Profit
    $1.1 billion
    FY26
    Non-GAAP Gross Margin
    52.8%increase year-over-year
    FY26
    Non-GAAP Operating Expenses
    $126.1 milliondown $6.9 million sequentially
    Q4 FY26
    Non-GAAP Operating Income
    $111.8 million
    Q4 FY26
    Non-GAAP Operating Margin
    24.9%
    Q4 FY26
    Non-GAAP Operating Expenses
    $506.4 millionup $12.3 million
    FY26
    Non-GAAP Operating Income
    $548.8 million
    FY26
    Non-GAAP Operating Margin
    27.5%up from 26.5% in prior year
    FY26
    Non-GAAP Tax Rate
    16%
    Q4 FY26
    Non-GAAP Effective Tax Rate
    16.4%
    FY26
    Non-GAAP Net Income
    $102.3 million
    Q4 FY26
    Non-GAAP EPS
    $1.95
    Q4 FY26
    Non-GAAP Net Income
    $489.3 million
    FY26
    Non-GAAP EPS
    $9.26up from $7.54 in fiscal year 2025
    FY26

    Record earnings per share for the full fiscal year.

    Cash and investments balance
    $1.2 billionup $319 million from prior year
    end FY26

    Primarily from cash from operations, partially offset by share repurchases. No debt outstanding.

    CapEx
    $2.4 million
    Q4 FY26
    Non-GAAP Free Cash Flow Margin
    33%
    Q4 FY26
    CapEx
    $14.8 million
    FY26
    Non-GAAP Free Cash Flow Margin
    32%
    FY26
    Share buyback amount executed
    $70 million
    Q4 FY26
    Share buyback amount executed
    $280 million
    FY26

    Total cash returned to shareholders during the fiscal year.

    Remaining share repurchase authorization
    $274.1 million
    end Q4 FY26

    Industry KPIs

    5
    MetricValueDetails
    Fab capacity utilization—
    Design wins socket pipelinerobust
    Inventory channel inventory$240.9 millionUSD
    Node platform ramp schedulenew process technologies
    End market segment revenue mixSmartphones: primary driver; PCs: strong growth; General Market: lower sales

    Product announcements

    4
    ProductTypeDetails
    Smart power IC for 3D sensingroadmap
    Next generation camera controllersroadmap
    New amplifiers and codecs for PCslaunch
    General market product familieslaunch

    Deals & partnerships

    1
    GlobalFoundriesCollaboration on American manufacturing program and process technology development

    Cirrus Logic is working with its largest customer and GlobalFoundries to develop new process technologies and manufacture products at the GlobalFoundries facility in Malta, New York. This focuses on high-voltage products (e.g., amplifiers, power conversion chips) to deliver higher performance, power efficiency, and cost-effectiveness, and to support U.S.-based semiconductor fabrication.

    Risks & headwinds

    4
    Pricing reductionsQ4 FY26

    partially offset Q4 FY26 revenue growth

    Mitigation: Not explicitly stated, but offset by strong demand in other areas.

    Lower general market salesQ4 FY26

    partially offset Q4 FY26 revenue growth

    Mitigation: Company is expanding general market product portfolio and expects growth in this area long-term.

    Higher freight expensesQ4 FY26

    caused year-over-year decline in Q4 FY26 non-GAAP gross margin

    Mitigation: Not explicitly stated.

    Potential pullback in PC marketFY27

    discussed_not_quantified

    Mitigation: Management believes their business can deliver strong growth in FY27 due to serving largest OEMs, skew towards upper-tier devices, and strong design momentum, which may insulate them from broader market trends.

    What to watch in Q1 FY27

    5

    PC Business Growth

    FY27
    Currentgrew into the $40 million range in FY26
    Targetcontinued strong growth in fiscal '27

    Why it matters

    PC business is a key diversification area; continued strong growth would validate the strategy despite potential market headwinds🌐.

    So we showed strong growth in fiscal '26 and exited the year with really good momentum, meaning we expect to see continued strong growth in fiscal '27, and we continue to be excited about the long-term contribution that this can make to our business.

    Q&A highlights

    6

    How should investors think about seasonality and the June quarter guidance, especially looking towards the fall quarter?

    The June quarter guidance is stronger than typical, reflecting continued strength of current products and earlier content ramp. This dynamic suggests a smaller sequential delta between the June and September quarters than historically observed.

    “We believe that reflects the continued strength of our customers' current products, along with some of the dynamics that we've talked about regarding a greater proportion of our content being ramped a little earlier than in the past. And yes, we do only guide 1 quarter. But we think that those dynamics likely contribute to a smaller delta between the June and September quarters than what we've seen in the past.”

    asked by Yash Shah · answered by Jeffrey Woolard

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Growth Pillars and FY26 Progress

    Cirrus Logic's growth strategy is built on three pillars: maintaining leadership in flagship smartphone audio, expanding high-performance mixed-signal (HPMS) content in smartphones, and leveraging expertise for new markets. In FY26, the company saw robust demand for its custom-boosted amplifier and 22nm smart codec in smartphones, which are expected to have extended life cycles. Significant progress was also made in HPMS, with strong demand for camera controllers and advancements in battery and power applications, including a new smart power IC for 3D sensing.

    02

    PC Market Expansion and SDCA Transition

    The PC business delivered strong year-over-year revenue growth in FY26, driven by share gains and new product introductions addressing mainstream and AI-enabled PCs. The transition from legacy HDA to SDCA audio interfaces is a key driver, with SDCA revenue tripling in FY26 to almost 60% of PC revenue, and expected to reach 80% in FY27. The company is also increasing its penetration into mainstream PC devices, expecting over half of its PC revenue to come from this segment in FY27.

    03

    Diversification into General Market Products

    Cirrus Logic made meaningful progress expanding its general market product portfolio in FY26, introducing multiple new product families. These products target professional audio, automotive, industrial, and imaging end markets, leveraging the company's advanced IP. Examples include ultra high-performance audio ADCs, DACs, codecs, prosumer audio converters, and industrial imaging components for high-precision scanning systems. These products are characterized by long life cycles and higher margins.

    04

    Supply Chain Diversification and Process Technology

    The company advanced its geographic supply chain diversification and process technologies in FY26. This included joining its largest customer's American manufacturing program, collaborating with GlobalFoundries to develop new process technologies, and working towards manufacturing products at the GlobalFoundries facility in Malta, New York. This collaboration focuses on high-voltage products, such as amplifiers and power conversion chips, aiming for higher performance, power efficiency, and cost-effectiveness.

    05

    R&D Investment and Financial Discipline

    Cirrus Logic plans to increase its R&D investment throughout fiscal year 2027 to capitalize on a strong pipeline of opportunities. Management emphasized its track record of operational discipline and confidence that these investments will generate substantial long-term returns and drive shareholder value creation. This strategic R&D acceleration is a key component of the company's future growth strategy.

    AI-generated summary of the company’s earnings call. Not investment advice.