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CIRRUS LOGIC, INC. (CRUS)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY26 revenue of $407.3M and non-GAAP EPS of $1.51 both exceeded the company’s guidance; S&P Global consensus was $365.0M revenue and $1.10 EPS, implying an ~11.6% revenue beat and ~38% EPS beat, driven by stronger-than-expected smartphone unit volumes and the ramp of the 22nm smart codec and custom boosted amplifier . Estimates from S&P Global.*
  • Gross margin of 52.6% declined 80 bps q/q on mix and a normalization of pricing, but improved 210 bps y/y on a more favorable product mix .
  • Q2 FY26 guidance implies a strong seasonal ramp: revenue $510–$570M (up ~33% q/q at the midpoint, ~flat y/y), gross margin 51–53%, and non-GAAP OpEx $131–$137M; management highlighted ongoing traction in laptops and expanding HPMS content (camera controllers, battery/power) .
  • Potential catalysts: above-top-end results and sequentially higher guidance, plus an expanded U.S.-based manufacturing collaboration with GlobalFoundries that bolsters supply-chain resilience and advances next-gen mixed-signal processes (BCD, GaN) .

What Went Well and What Went Wrong

What Went Well

  • Strong product-cycle execution in smartphones: “robust demand for our custom boosted amplifier and first 22-nanometer smart codec shipping in smartphones” drove outperformance in the June quarter .
  • Diversification progress: traction in laptops (next-gen amplifier and codec designed into several new models, initial shipments expected in late CY25) and ramp of new general market ADCs/DACs and an ultra-high-performance codec; timing products began shipping to automotive and pro audio customers .
  • Operating discipline: non-GAAP operating margin of 23.3% and non-GAAP gross margin of 52.6% reflect favorable mix y/y; cash from operations was $116.1M and free cash flow $113.4M in Q1 .

What Went Wrong

  • Sequential margin compression and operating leverage: GAAP gross margin fell to 52.6% from 53.4% q/q due to less favorable mix and a return to a more typical pricing environment; GAAP operating income declined to $72.4M from $85.9M q/q on lower revenue .
  • Customer concentration remains elevated at ~86% of revenue, sustaining dependency risk despite diversification efforts .
  • Inventory remains high at $279.0M (down from $299.1M in Q4), with management continuing to manage wafer purchase commitments under the GlobalFoundries long-term capacity agreement .

Financial Results

P&L vs Prior Periods (GAAP and non-GAAP where disclosed)

MetricQ1 FY25Q4 FY25Q1 FY26
Revenue ($M)$374.0 $424.5 $407.3
GAAP Gross Margin %50.5% 53.4% 52.6%
Non-GAAP Gross Margin %50.6% 53.5% 52.6%
GAAP Operating Income ($M)$46.8 $85.9 $72.4
GAAP Operating Margin %12.5% 20.2% 17.8%
Non-GAAP Operating Income ($M)$71.2 $107.1 $94.9
Non-GAAP Operating Margin %19.0% 25.2% 23.3%
GAAP Diluted EPS ($)$0.76 $1.31 $1.14
Non-GAAP Diluted EPS ($)$1.12 $1.67 $1.51
Cash from Operations ($M)$87.2 $130.4 $116.1
Free Cash Flow ($M, non-GAAP)$77.0 $121.2 $113.4

Q1 FY26 vs S&P Global Consensus

MetricQ1 FY26 ActualQ1 FY26 ConsensusSurprise
Revenue ($M)$407.3 $365.0*Beat
Primary (Non-GAAP) EPS ($)$1.51 $1.10*Beat

Values retrieved from S&P Global.*

Segment Mix and Revenue

SegmentQ1 FY25 ($M)Q4 FY25 ($M)Q1 FY26 ($M)Mix Notes
Audio$219.0 $255.3 $240.0 Q1 FY26: 59% of revenue; Q4 FY25: 60%
High-Performance Mixed-Signal (HPMS)$155.1 $169.1 $167.2 Q1 FY26: 41% of revenue; Q4 FY25: 40%
Total Revenue$374.0 $424.5 $407.3 —

KPIs and Balance Sheet

KPIQ1 FY25Q4 FY25Q1 FY26
Customer Concentration (% of revenue)—88% 86%
Inventory ($M)$232.6 $299.1 $279.0
Cash & Investments ($M)$744.6 (cash+securities) $834.8 $847.8
Headcount—1,660 1,658
Share Repurchases ($M)$41.0 Q1 FY25 $100.0 $100.0

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ2 FY26—$510–$570M New
GAAP Gross MarginQ2 FY26—51–53% New
GAAP R&D + SG&A (OpEx)Q2 FY26—$153–$159M (incl. ~$20M SBC, ~$2M amort.) New
Non-GAAP OpExQ2 FY26$119–$125M (Q1 prior guide) $131–$137M Raised (seq.)

Note: Q2 FY26 guidance is newly introduced this quarter; Q1 FY26 prior guidance shown for context .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2: Q3 FY25)Previous Mentions (Q-1: Q4 FY25)Current Period (Q1 FY26)Trend
Smartphone audio products (boosted amp, 22nm codec)Strong demand; began shipping; above-guide quarter Shipped in FY25 devices; sustained contribution “Robust demand” in June quarter drove results Sustained momentum
HPMS camera controllersIncreased unit shipments; building value; expanding attach Increased shipments YoY; continued engagement Engagement with largest customer remains strong Expanding content/value
LaptopsFeatured in Intel Arrow Lake; sampling next-gen PC amp/codec First high-volume mainstream codec win; shipping to top 5 OEMs Next-gen amp/codec designed into several new laptops; Compal collaboration; initial shipments late CY25 Ramping designs/content
Supply chain/tariffs/macroInventory to peak 1H FY26; manage GF commitments Monitoring tariffs; diversifying supply chain Inventory down q/q; managing wafer commitments Improving execution
R&D/AI & voiceAI-enabled laptop platforms as tailwind Continued investment in HPMS, battery/power Enhancing voice capture as users interact with AI agents Broadening roadmap
Pro Audio/general marketSampling timing products; high-perf converters progressing Added DACs and ultra-high-perf codec Ramped latest-gen ADCs/DACs; shipping timing products Portfolio expansion
Tax/regulatoryCapitalized R&D impacted ETR Capitalized R&D impacted ETR; FY26 non-GAAP ETR 21–23% OBBBA eliminates U.S. R&D capitalization; company evaluating impact Potential ETR tailwind

Management Commentary

  • “Cirrus Logic delivered strong financial results for the June quarter driven by robust demand for our custom boosted amplifier and first 22-nanometer smart codec shipping in smartphones.” — John Forsyth, President & CEO .
  • “Our progress included gaining traction in the laptop market and ramping production of our latest-generation general market components... We also began shipping our recently-introduced timing product to leading automotive and professional audio customers.” .
  • “In the September quarter, we expect revenue to range from $510 million to $570 million, up 33 percent sequentially and approximately flat year over year at the midpoint.” .
  • “Our cash and investment balance at the end of Q1 FY26 was $847.8 million... we repurchased 1,013,613 shares... returning $100.0 million of cash to shareholders.” .

Q&A Highlights

  • The company hosted a live Q&A session alongside the results . Due to a retrieval error, we could not access the Q1 FY26 transcript; we will update this section upon availability.
  • Recent Q&A themes from the prior quarter included: customer concentration and tariff impacts , laptop trajectory and revenue scaling , and HPMS camera controller roadmap/attach rate expansion .

Estimates Context

  • Q1 FY26 vs S&P Global consensus: Revenue $407.3M vs $365.0M*; Primary (non-GAAP) EPS $1.51 vs $1.10* — both beats, aided by stronger-than-expected smartphone volumes . Values retrieved from S&P Global.*
  • Forward consensus (as reference): Q2 FY26 revenue ~$541.4M*, EPS ~$2.38*; Q3 FY26 revenue ~$531.4M*, EPS ~$2.41*. Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Product-cycle tailwind intact: smartphone audio (22nm codec + boosted amp) continues to drive upside; camera controller content expanding — supports durability into the seasonal Q2 ramp .
  • Sequential guide signals strength: Q2 revenue $510–$570M and GM 51–53% underpin robust 2H smartphone seasonality; monitor mix/pricing normalization that pressured Q1 GM q/q .
  • Diversification gaining traction: laptop design-ins broaden across price tiers, with shipments expected to start late CY25; general market audio and timing products ramping add non-smartphone optionality .
  • Operating discipline and cash returns: strong cash generation ($116.1M CFO; $113.4M FCF) and $100M buyback in Q1 provide support in volatile macro/backdrops .
  • Risks: elevated customer concentration (86%) and inventory levels, though inventory declined q/q; watch for macro/tariff and supply chain dynamics .
  • Strategic supply-chain upside: expanded GlobalFoundries partnership enhances U.S. manufacturing optionality (BCD, GaN) and resilience — a medium-term enabler for HPMS roadmaps .
  • Estimate revisions: Expect upward adjustments to near-term revenue/EPS following the Q1 beat and sequentially stronger Q2 outlook, while margin assumptions may reflect mix/pricing commentary .

Values retrieved from S&P Global.*