Cirrus Logic, Inc.

Cirrus Logic, Inc. designs low-power chips that process audio and other signals in smartphones, computers and consumer devices. Audio products include amplifiers and codecs; its high-performance mixed-signal products include camera controllers, haptic drivers and power-management components. It relies on outside manufacturers to make its chips. The shares trade on Nasdaq under CRUS.

Results through September 2026

September revenue was essentially flat from a year earlier and up 22% from the preceding June quarter. Audio revenue was $314.5 million and high-performance mixed-signal revenue was $245 million. These are product lines within the company's single operating segment.

Gross margin improved to 53.7% from 52.5%, helped by favorable product mix, lower inventory reserves and a temporary benefit from earlier wafer agreements with GlobalFoundries. Higher operating expenses reduced operating profit despite the improvement in gross profit. Adjusted operating expenses were $141.6 million, up from $127.7 million.

Adjusted earnings exclude stock-based compensation, acquisition-related costs, acquisition-intangible amortization and related tax adjustments. First-half fiscal 2027 revenue was $1.019 billion, up from $968.2 million; reported net income was $191.6 million versus $192.3 million.

Original expectations and the December outlook

In August, Cirrus forecast September-quarter revenue of $510 million to $570 million, gross margin of 52% to 54% and adjusted operating expenses of $140 million to $146 million. Actual results were $559.5 million, 53.7% and $141.6 million, all within those ranges. The earlier outlook already anticipated the temporary favorable wafer-cost effect.

The initial December-quarter revenue forecast is $510 million to $570 million, with a $540 million midpoint about 3% below September and about 7% below the prior December quarter. Management says some December camera-component revenue shipped in September, producing a flatter seasonal pattern, with full-year expectations roughly unchanged.

December gross margin is forecast at 51% to 53%. Adjusted operating expenses are expected at $152 million to $158 million. The corresponding reported expense range is $184 million to $190 million, including approximately $21 million of stock compensation, $9 million of acquisition-related costs and $2 million of acquisition-intangible amortization.

Cash and capital allocation

September-quarter operating cash flow was $50.9 million. Capital spending of $8.6 million, including property, equipment, software and technology investment, left $42.3 million of free cash flow. The cash-flow statement recorded $128.5 million of share repurchases. The separate share-purchase disclosure reports a $125.5 million purchase cost.

Trailing-12-month free cash flow was $525.6 million. At September 26, cash and cash equivalents were $720.1 million, short-term marketable securities were $31.9 million and long-term marketable securities were $324.4 million, totaling about $1.076 billion. The $350 million revolving credit facility was undrawn. Operating lease liabilities were $127.7 million.

The board approved an additional $500 million repurchase authorization on October 26. The earlier authorization had $114.1 million remaining at September 26, and the company separately disclosed $18.6 million of purchases after quarter-end. The new authorization has no expiration date.

Future unconditional purchase commitments totaled $961.7 million at September 26. These include at least approximately $600 million of wafers under the new GlobalFoundries agreement covering calendar 2027 and 2028.

Customers, products and acquisitions

Apple accounted for approximately 93% of quarterly revenue and 92% of first-half revenue, compared with 90% and 88% a year earlier. More Cirrus components per device can support growth, while that concentration makes major product launches and shipment timing especially important.

Management expects wider adoption of existing audio, camera, power and sensing components over forthcoming launch cycles. The fourth-generation camera controller is expected to start production in calendar 2028. PC growth is facing component shortages and delayed new-model introductions, although management says the associated design wins remain in place.

Cirrus acquired 100% of INVENTVM Semiconductor S.r.l. on October 6, 2026. The Italian chip designer specializes in mixed-signal power management and audio. The price was undisclosed, and the acquisition was not material to the consolidated financial statements. It will be included from fiscal Q3; it did not contribute to September revenue.

On October 13, Cirrus had already disclosed that it made acquisition proposals for Synaptics and was no longer pursuing a transaction. Management continues to consider acquisitions alongside internal development and share repurchases.