CIRRUS LOGIC, INC. (CRUS): Results of Operations and Financial Condition
CIRRUS LOGIC, INC. (CRUS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 FINANCIAL NEWS Cirrus Logic Reports Record Fiscal First Quarter Revenue of $460 Million AUSTIN, Texas – August 5, 2026 – Cirrus Logic, Inc. (NASDAQ: CRUS) posted on its website at investor.cirrus.com the quarterly Shareholder Letter that contains the complete financi
How this was made
The 30-second read
Why it matters
Traders can update models using the disclosed Q1 FY27 results (revenue, GAAP and non-GAAP EPS, gross margin) and the September-quarter guidance ranges for revenue and gross margin, plus the stated PC headwind drivers.
Market read
Fresh quarterly results and explicit forward guidance for revenue and gross margin are likely to drive immediate estimate revisions and positioning.
What to watch
One customer contributes about 90% of revenue, so any change in that customer’s design activity or shipment schedule could dominate the quarter-to-quarter outcome despite record headline numbers.
Cirrus Logic reported record first-quarter revenue of $460 million and record first-quarter GAAP and non-GAAP diluted EPS of $1.47 and $1.84, while guiding September-quarter revenue to $510 million to $570 million.
June-quarter revenue grew sequentially and year over year on smartphone demand, and gross margin held broadly stable year over year. However, GAAP and non-GAAP EPS declined sequentially, operating expenses increased, the company lowered FY27 PC revenue expectations, and September-quarter revenue guidance is down year over year at the midpoint.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $459.7 million | up two percent quarter over quarter | up thirteen percent year over year |
| Gross profitGAAP | $241.9 million | – | – |
| Gross profitnon-GAAP | $242.1 million | – | – |
| Gross marginGAAP | 52.6% | decrease | flat |
| Gross marginnon-GAAP | 52.7% | – | – |
| Operating expenseGAAP | $157.4 million | increased by $10.1 million | increased by $15.8 million |
| Operating expensenon-GAAP | $135.4 million | up $9.3 million | up $15.9 million |
| Operating incomeGAAP | $84.4 million | – | – |
| Operating incomenon-GAAP | $106.7 million | – | – |
| Operating profitGAAP | 18.4% | – | – |
| Operating profitnon-GAAP | 23.2% | – | – |
| Interest incomeGAAP | $10.1 million | – | – |
| Interest incomenon-GAAP | $10.1 million | – | – |
| Other expenseGAAP | $(0.4) million | – | – |
| Other expensenon-GAAP | $(0.4) million | – | – |
| Pre-tax incomeGAAP | $94.2 million | – | – |
| Pre-tax incomenon-GAAP | $116.4 million | – | – |
| Income tax expenseGAAP | $17.3 million | – | – |
| Income tax expensenon-GAAP | $20.3 million | – | – |
| Effective tax rateGAAP | 18.4% | – | – |
| Effective tax ratenon-GAAP | 17.4% | – | – |
| Net incomeGAAP | $76.9 million | – | – |
| Net incomenon-GAAP | $96.1 million | – | – |
| Diluted EPSGAAP | $1.47 | – | – |
| Diluted EPSnon-GAAP | $1.84 | – | – |
| Stock-based compensation included in GAAP operating expenseGAAP | $20.4 million | – | – |
| Amortization of acquisition intangibles included in GAAP operating expenseGAAP | $1.6 million | – | – |
| Total headcount exiting Q1other | 1,717 | – | – |
| Inventoryother | $262.7 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Audio product linesStrong demand for custom products shipping into smartphones, including boosted amplifiers and smart codecs. | 54 percent of total revenue | – | – |
| HPMS product linesThe company is developing a next-generation camera controller and a smart power IC for 3D sensing applications. | 46 percent of total revenue | – | – |
September quarter / Q2 FY27 outlook
- Revenue$510 million to $570 million
- Gross margin52 percent to 54 percent
- Operating expensesCombined GAAP R&D and SG&A expenses of $163 million to $169 million; non-GAAP operating expense of $140 million to $146 million
- NoteRevenue guidance is up 17 percent sequentially and down four percent year over year at the midpoint.
- NoteGuidance includes approximately $21 million in stock-based compensation expense and $2 million in amortization of acquisition intangibles.
- NoteFY27 non-GAAP effective tax rate is expected to range from approximately 16 percent to 18 percent.
Capital returns
- Repurchased 211,099 shares at an average price of $163.43, returning $34.5 million of cash to shareholders in the form of buybacks.
- Had $239.6 million remaining in its share repurchase authorization at the end of Q1 FY27.
- Subsequent to Q1 FY27, utilized $50.5 million to repurchase 359,350 shares at an average price of $140.53 under a Rule 10b5-1 trading plan.
What drove it
- Revenue growth reflected higher sales of components shipping in smartphones.
- Year-over-year sales growth was partially offset by previously anticipated pricing reductions.
- Sequential gross-margin pressure reflected previously anticipated pricing reductions, partially offset by cost reductions.
- Year-over-year GAAP gross margin was flat as favorable product mix was partially offset by higher freight and supply chain costs.
- The company reported strong customer interest and design activity for its low-power, always-on smart codec for AI-enabled PCs.
- Multiple customers announced new PCs based on NVIDIA’s RTX Spark™ platform that are expected to ship later this year with Cirrus Logic amplifiers and codecs.
- The company taped out a high-performance analog front-end component for metrology applications and expects to begin sampling it in the September quarter.
Concerns
- The company lowered its FY27 revenue expectations for PCs because of constrained supply of a key industry platform, memory and component shortages, and OEMs delaying certain new model introductions.
- One customer contributed approximately 90 percent of total revenue in Q1 FY27.
- GAAP operating expense increased by $10.1 million sequentially and $15.8 million year over year, primarily reflecting higher employee-related expenses.
- The company expects R&D investment to grow in FY27.
- Gross margin is expected to receive a temporary Q2 benefit from wafers purchased under prior agreements with GlobalFoundries at favorable pricing, and the company expects this tranche to largely sell through in Q2.
What to watch
- September-quarter revenue execution within the $510 million to $570 million guidance range.
- The extent and duration of the temporary Q2 gross-margin benefit from favorably priced GlobalFoundries wafers.
- PC demand and the timing of new model introductions following supply constraints and component shortages.
- Sampling progress for the metrology analog front-end component in the September quarter.
- Design activity and product development for the next-generation camera controller, smart power IC for 3D sensing, and additional battery and power products.
- Customer concentration, as one customer contributed approximately 90 percent of Q1 FY27 revenue.
Balance sheet and cash flow
- Cash and investment balance at the end of Q1 FY27 was $1.2 billion, up slightly from fiscal year-end.
- Cash flow from operations for the June quarter was $64.1 million.
- Q1 FY27 inventory was $262.7 million, up from $240.9 million in Q4 FY26.
Analysis
Cirrus Logic delivered record first-quarter revenue of $460 million, with revenue up two percent quarter over quarter and thirteen percent year over year. The company attributed both comparisons to higher sales of smartphone components, although year-over-year sales were partially offset by previously anticipated pricing reductions. Audio represented 54 percent of total revenue and HPMS represented 46 percent, while one customer contributed approximately 90 percent of revenue.
Profitability was stable year over year but lower sequentially at the gross-margin level. GAAP gross margin was 52.6%, compared with 53.0% in Q4 FY26 and 52.6% in Q1 FY26, while non-GAAP gross margin was 52.7%. GAAP operating expense rose by $10.1 million sequentially and $15.8 million year over year, and non-GAAP operating expense rose by $9.3 million sequentially and $15.9 million year over year. GAAP diluted EPS was $1.47, below $1.56 in the prior quarter but above $1.14 in Q1 FY26. Non-GAAP diluted EPS was $1.84, versus $1.95 in Q4 FY26 and $1.51 in Q1 FY26.
The company generated $64.1 million of cash flow from operations and ended Q1 FY27 with a $1.2 billion cash and investment balance. It returned $34.5 million through buybacks during the quarter and subsequently used $50.5 million for further repurchases under a Rule 10b5-1 trading plan. Inventory increased to $262.7 million from $240.9 million in Q4 FY26. Management also stated that R&D investment is expected to grow in FY27 as opportunities increase across the business.
For the September quarter, Cirrus Logic guided revenue to $510 million to $570 million, described as up 17 percent sequentially and down four percent year over year at the midpoint. Gross margin is expected to be 52 percent to 54 percent, with a temporary Q2 benefit from favorably priced GlobalFoundries wafers that are expected to largely sell through during the quarter. The company lowered FY27 PC revenue expectations because of key-platform supply constraints, memory and component shortages, and delayed OEM model introductions, while maintaining that these issues represent timing rather than a fundamental change to the underlying opportunity.
Not in the filing
stated, not guessed- Period-end date
- Debt balance
- Free cash flow
- Dividend amount or dividend policy
- Prior-period dollar values for revenue, gross profit, operating income, net income, and operating expenses where only changes were reported
- Dollar revenue by audio and HPMS product lines
- Previous outlook for comparison
- Named executive quotations
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The SEC 8-K includes Item 2.02 results of operations and financial condition, with an Exhibit 99.2 Q1 FY27 letter to shareholders.
Ticker impact
Cirrus Logic reports Q1 FY27 record revenue of $460M and EPS of $1.47 GAAP, plus September-quarter revenue guidance of $510M to $570M.
Near-term volatility likely around the guided September-quarter revenue range and gross margin outlook, with smartphone strength offset by PC timing pressure.
This is a primary SEC 8-K shareholder letter disclosure with explicit revenue, EPS, gross margin, and guidance ranges, which typically drives immediate repricing versus prior expectations.
Market effects
Signals demand strength in smartphone custom components and AI-enabled PC codecs, while highlighting supply-chain constraints affecting PC-related revenue timing.
No explicit regional demand or regulatory impacts disclosed.
Mentions customer PC announcements based on NVIDIA’s RTX Spark platform, linking Cirrus content to broader AI PC ecosystem momentum.
Counterpoint
PC revenue weakness is framed as timing, but the magnitude of the lowered FY27 expectations could indicate a more durable demand or supply mismatch.
Key entities
- companyCirrus Logic, Inc.
CRUS reports Q1 FY27 record revenue and EPS, and provides September-quarter revenue and gross margin guidance in its shareholder letter.
- supplierGlobalFoundries
Company expects a temporary gross margin benefit in Q2 from wafers purchased under prior agreements at favorable pricing.
- technology partnerNVIDIA
Letter cites multiple customers announcing new PCs based on NVIDIA’s RTX Spark platform, expected to ship later this year with Cirrus amplifiers and codecs.
