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    CRUS
    Earnings call· Jun 2026(Q1 FY27)

    CIRRUS LOGIC Q1 FY27 earnings call CRUS

    Aug 5, 2026 Source

    Executive summary

    Cirrus Logic Q1 FY27 — Record Revenue and Strong HPMS Pipeline

    Cirrus Logic delivered record first-quarter results, driven by strong demand in its flagship smartphone audio business and expanding high-performance mixed-signal content. The company is actively pursuing growth in new markets like smart meters and AI-enabled PCs, leveraging its core expertise. Despite near-term headwinds in the PC market, management remains confident in its long-term strategy and robust opportunity pipeline, supported by strategic investments in R&D and manufacturing capacity.

    Highlights

    5

    • Reported record first quarter revenue of $460 million, up 13% year-over-year.

    • Achieved record June quarter non-GAAP earnings per share of $1.84.

    • Maintained a strong balance sheet with $1.2 billion in cash and investments and no debt.

    • Secured dedicated wafer capacity and pricing for CY27 and CY28 through a new agreement with GlobalFoundries.

    • Identified a strong pipeline of opportunity in core audio and high-performance mixed-signal (HPMS) business for smartphones.

    Concerns

    3

    • PC business expectations for FY27 have come down due to constrained supply of a key industry platform, memory/component shortages, and OEM delays in new model introductions.

    • Non-GAAP operating expense increased $9.3 million sequentially and $15.9 million year-over-year due to higher employee-related costs and R&D investments.

    • Gross margin was impacted sequentially by previously anticipated pricing reductions, partially offset by cost reductions.

    Guidance & targets

    5
    CategoryTargetConfidence
    Revenue
    $510 million to $570 million
    high materiality
    High
    GAAP Gross Margin
    52% to 54%
    medium materiality
    High
    Non-GAAP Operating Expense
    $140 million to $146 million
    medium materiality
    High
    Full year FY27 operating expenses
    increase
    medium materiality
    High
    Non-GAAP Effective Tax Rate
    16% to 18%
    low materiality
    High

    Operational metrics

    19
    Non-GAAP gross profit
    $242.1 million
    Q1 FY27

    Non-GAAP gross profit for the first quarter fiscal year 2027.

    Non-GAAP gross margin
    52.7%decreased sequentially, increased YoY
    Q1 FY27

    Non-GAAP gross margin for the first quarter fiscal year 2027. Sequential decrease partially offset by cost reductions. Year-over-year increase partially offset by higher freight and supply chain costs.

    Non-GAAP operating expense
    $135.4 millionup $9.3 million sequentially, up $15.9 million YoY
    Q1 FY27

    Non-GAAP operating expense for the first quarter fiscal year 2027, reflecting increased R&D investment.

    Non-GAAP operating income
    $106.7 million
    Q1 FY27

    Non-GAAP operating income for the first quarter fiscal year 2027.

    Non-GAAP operating margin
    23.2%
    Q1 FY27

    Non-GAAP operating margin for the first quarter fiscal year 2027.

    Non-GAAP tax rate
    17.4%
    Q1 FY27

    Non-GAAP tax rate for the first quarter fiscal year 2027.

    Non-GAAP net income
    $96.1 million
    Q1 FY27

    Non-GAAP net income for the first quarter fiscal year 2027.

    Non-GAAP EPS
    $1.84
    Q1 FY27

    Non-GAAP earnings per share for the first quarter fiscal year 2027, a record for the June quarter.

    Cash and investments balance
    $1.2 billionup $13.5 million from prior quarter
    Q1 FY27

    Cash and investments balance at the end of the first quarter fiscal year 2027. Cash generated from operations was partially offset by share repurchases.

    Inventory
    $262.7 millionup from $240.9 million in prior quarter
    Q1 FY27

    Inventory balance at the end of the first quarter fiscal year 2027.

    Days of inventory
    110 daysup sequentially
    Q1 FY27

    Days of inventory at the end of the first quarter fiscal year 2027.

    CapEx
    $15.5 million
    Q1 FY27

    Capital expenditures for the first quarter fiscal year 2027.

    Non-GAAP free cash flow margin
    11%
    Q1 FY27

    Non-GAAP free cash flow margin for the first quarter fiscal year 2027.

    CapEx
    $27.6 million
    TTM

    Capital expenditures for the trailing 12-month period.

    Non-GAAP free cash flow margin
    28%
    TTM

    Non-GAAP free cash flow margin for the trailing 12-month period.

    Share repurchases
    $34.5 million
    Q1 FY27

    Amount utilized for share repurchases in Q1 fiscal year 2027.

    Share repurchase authorization remaining
    $239.6 million
    Q1 FY27

    Remaining amount on the share repurchase authorization at the end of Q1 fiscal year 2027.

    Share repurchases
    $50.5 million
    Subsequent to Q1 FY27

    Amount utilized for share repurchases subsequent to Q1 fiscal year 2027.

    Headcount
    taken a step upmore or less flat for the last 10, 12 quarters
    Q1 FY27

    Headcount has increased this quarter, primarily in engineering, reflecting high confidence in current opportunities.

    Industry KPIs

    3
    MetricValueDetails
    Design wins socket pipelineStrong pipeline
    Inventory channel inventory$262.7 millionUSD
    Node platform ramp scheduleProgressing

    Product announcements

    2
    ProductTypeDetails
    High-performance analog front-end components for smart metersmilestone
    NVIDIA RTX Spark platform integrationlaunch

    Deals & partnerships

    1
    GlobalFoundriesCapacity reservation and wafer supply agreementcalendar years 2027 and 2028

    Cirrus Logic signed a new capacity reservation and wafer supply agreement with GlobalFoundries, building on their long-standing partnership. This agreement secures dedicated wafer capacity and pricing for CY27 and CY28 and supports collaboration on next-generation process technologies and manufacturing in Malta, New York.

    Capital programs

    1
    Investment in testers for OSATsunderway
    Period spend: planning purchases for this year
    Funding: Company-funded

    Benefit: Greater flexibility in the supply chain, better financial return for the company.

    The company is investing in testers for its OSATs, a new element of CapEx for FY27, to gain greater flexibility and better financial returns compared to OSATs purchasing them.

    Risks & headwinds

    5
    PC market headwindsFY27

    Expectations for FY27 PC business have come down

    Mitigation: Customer engagement, design win momentum, and competitive standing remain encouraging; long-term opportunity undiminished, especially with AI-enabled PCs.

    Supply chain constraints and component shortages in PC marketFY27

    Constrained supply of a key industry platform; memory and component shortages and pricing pressure

    Mitigation: Management characterizes these factors as timing rather than fundamental; design win momentum remains strong.

    OEM delays in new PC model introductionsFY27

    Delaying some new model introductions and extending the life of existing platforms

    Mitigation: New models generally represent higher content per system and higher volume designs, so their delayed introduction pushes out growth rather than eliminating it.

    Pricing reductions impacting gross marginQ1 FY27 (sequential impact)

    Previously anticipated pricing reductions

    Mitigation: Partially offset by cost reductions; company will aggressively work on cost reductions and look at targeted price increases.

    Increased operating expensesQ1 FY27 and full year FY27

    Non-GAAP operating expense up $9.3 million sequentially and $15.9 million YoY

    Mitigation: Primarily due to higher employee-related costs and increased R&D investments to support a broad range of opportunities and pipeline.

    What to watch in Q2 FY27

    4

    PC Business Recovery

    Next quarter
    CurrentExpectations for FY27 have come down due to supply constraints and OEM delays.
    TargetImprovement in supply chain, new model introductions, and increased content/volume.

    Why it matters

    The PC market is a key near-term growth opportunity outside of smartphones, and its recovery is crucial for overall growth.

    Our expectations for our PC business this fiscal year have come down since we spoke in May... I would characterize these factors as timing rather than anything fundamental.

    Q&A highlights

    8

    How is seasonality different this year, and what is the outlook for future seasonality?

    Seasonality is different this year, with Q1 results significantly higher than historical averages. Future quarters are expected to be much tighter together than historically.

    “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 the results that hit guidance were significantly higher than what the historical average would be. And we gave a peak into the rest of the year that seasonality would be much tighter. The quarters would be a lot tighter together than historical, and you're seeing that with our results and our guide that, yes, it is different this year and the quarters are a lot tighter from a historical perspective.”

    asked by Christopher Rolland · answered by Jeffrey Woolard

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Pillars for Growth

    Cirrus Logic's long-term growth strategy is built on three core principles: maintaining leadership in smartphone audio, expanding high-performance mixed-signal (HPMS) solutions in smartphones, and leveraging expertise to grow in new markets. The company reported continued progress across all these areas, reinforcing confidence in its future opportunities. This strategic framework guides R&D investments and market expansion efforts.

    02

    Smartphone Audio Business Strength

    The flagship smartphone audio business experienced continued strong demand for custom boosted amplifiers and smart codecs, benefiting from a robust product cycle from its largest customer. These components deliver exceptional audio performance and efficiency gains. Management anticipates these products will continue to be adopted in multiple future generations of customer products, providing solid long-term visibility and sustained revenue contribution.

    03

    HPMS Expansion in Smartphones

    Progress in the June quarter reinforced confidence in expanding HPMS content across camera, battery, and power applications within smartphones and related products. The company is executing a roadmap for next-generation camera products through close engineering collaboration. Additionally, development of the smart power IC for 3D sensing continued on schedule, alongside other power and battery products aimed at expanding content over time⏳, contributing to a strong pipeline of opportunity.

    04

    PC Market Opportunities and Headwinds

    While the PC market remains the largest near-term growth opportunity outside of smartphones, FY27 expectations have been tempered. This is attributed to constrained supply of a key industry platform, memory and component shortages, and OEM delays in new model introductions. Despite these timing-related📎 factors, customer engagement, design win momentum, and competitive standing remain encouraging, particularly with interest in voice technology solutions for AI-enabled PCs.

    05

    New Market Expansion and GlobalFoundries Agreement

    Cirrus Logic is expanding into new applications, highlighted by the tape-out of high-performance analog front-end components for smart meters, with sampling expected in the September quarter and market entry in CY28. These products leverage mixed-signal IP for applications like energy storage and EV charging. The company also signed a new capacity reservation and wafer supply agreement with GlobalFoundries for CY27-28, supporting future growth and collaboration on next-generation process technologies.

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