Can you provide more color on the size and progression of the PC business in FY26 and expectations for FY27, especially given industry-wide memory shortages?

The PC business grew from low tens of millions in FY25 to the $40 million range in FY26, with strong momentum for continued growth in FY27. The company is gaining share in the top 6 laptop vendors, with SDCA revenue tripling in FY26 and expected to be 80% of PC revenue in FY27. Mainstream devices are also expected to contribute over half of PC revenue in FY27. Management believes they can deliver strong growth despite potential PC market pullback due to serving larger OEMs and higher-tier devices. “So if I wind the clock back a little, as you know, we did low tens of millions in fiscal '25. And then that grew into the 40s in fiscal '26. And we, as I said, exited the year with really, really good momentum across our customer base.”

What is the timing for the ramp-up of the new smart power IC for 3D sensing, and can you provide technical details on its function?

From the current design stage, the product is expected to be introduced in a couple of years. It's a highly programmable device combining high-performance power analog circuits with digital, integrating high-efficiency power delivery, precision current drive, and programmable control to enhance the subsystem's functionality and performance. “To answer the first part of your question, from where we are at in the design stage today, I would say that we're looking at a couple of years before that gets introduced.”

Is the commentary on camera controllers indicating an inflection point or just ongoing penetration?

The company is actively designing next-generation camera components, a development that occurred in recent months, and has a rich IP roadmap. While new content impact tends to be linear rather than step-function due to SKU proliferation, the company sees this as an area for continued content growth and value delivery to customers. “You are picking up on something there that we would like our investors to understand for sure, which is that we are in design of next-generation components today. That's a development that happened during the past few months.”

CRUS

Cirrus Logic (CRUS) Q4 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q4 FY26)· Information Technology· May 6, 2026

Source: earnings call transcript

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

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

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

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

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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 range	strong 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	—	—

Product announcements

Product	Type	Timeline
Smart power IC for 3D sensing	roadmap	expected introduction in a couple of years
Next generation camera controllers	roadmap	in design phase
New amplifiers and codecs for PCs	launch	introduced in FY26
General market product families	launch	introduced multiple new product families in FY26

Deals & partnerships

GlobalFoundries Collaboration 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

Pricing reductions Q4 FY26

partially offset Q4 FY26 revenue growth

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

Lower general market sales Q4 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 expenses Q4 FY26

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

Mitigation:Not explicitly stated.

Potential pullback in PC market FY27

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

PC Business Growth

FY27

Current grew into the $40 million range in FY26

Target continued 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.

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Q&A highlights

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 read 5 chapters

Detailed narrative

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.