Cirrus Logic (CRUS) Q1 2027 Earnings Call Transcript
Cirrus Logic (CRUS) reported Q1 FY2027 revenue of $459.7M, up 13% year over year, and non-GAAP EPS of $1.84. Non-GAAP gross margin was 52.7%. Q2 revenue guidance is $510M to $570M and GAAP gross margin 52% to 54%. Cash and marketable securities were $1.2B, and the company repurchased shares during and after the quarter.
How this was made
The 30-second read
Why it matters
Traders can reprice CRUS based on the new Q2 revenue and GAAP gross margin ranges, plus the longer-dated wafer capacity agreement through calendar 2028 and the shift to owning testers to improve financial returns. Offsetting factors include higher freight/supply chain costs and a lowered FY2027 PC segment outlook due to component shortages and delayed OEM model introductions.
Market read
This is a full earnings call transcript with quantified guidance and supply-chain/capex updates that can drive near-term estimates and positioning.
What to watch
Inventory days rose to about 110 from 104, and gross margin was offset by higher freight and supply chain costs, which could pressure results if logistics costs normalize upward or demand softens.
Background
Cirrus Logic reported its first quarter fiscal 2027 results and provided Q2 guidance, alongside updates on wafer supply capacity, CapEx strategy, and segment outlook.
Ticker impact
Cirrus Logic guided Q2 revenue to $510M-$570M and GAAP gross margin to 52%-54%, citing seasonality and wafer pricing benefits.
Likely two-way volatility around the Q2 revenue and gross margin range, with upside bias if investors focus on wafer supply through 2028 and margin support.
This is a primary earnings and guidance disclosure with multiple quantified datapoints (revenue, EPS, margin, buybacks, inventory days) and specific operational updates (GlobalFoundries capacity through 2028, tester CapEx). However, the transcript excerpt does not include consensus comparisons or the market’s immediate reaction, limiting precision on magnitude.
Market effects
Signals ongoing strength in high-performance mixed-signal and audio codecs, while PC exposure remains constrained by component shortages and delayed OEM launches.
No explicit regional demand or regulatory drivers beyond supply chain and wafer sourcing.
Wafer supply secured through 2028 with GlobalFoundries can reduce uncertainty for analog/mixed-signal supply chains, relevant to broader semiconductor capacity planning.
Counterpoint
The PC segment outlook was adjusted lower for FY2027, and free cash flow margin is far below the trailing 12-month figure, suggesting the quality of earnings may be less durable than revenue growth implies.
Key entities
- companyCirrus Logic, Inc.
Reported Q1 fiscal 2027 results and issued Q2 revenue and gross margin guidance, plus operational updates on wafer supply and CapEx.
- supplierGlobalFoundries
Signed a multiyear wafer supply agreement securing dedicated capacity and pricing through calendar 2027 and 2028.
- executiveJohn Forsyth
CEO who discussed PC model delays, smart meter analog front-end tape-out, and product pipeline.
- executiveJeffrey L. Woolard
CFO who discussed gross margin drivers, tax rate expectations, and the rationale for owning testers.
