Cirrus Logic (CRUS) AI Stock Analysis

• Market Cap: $6.18B
• Dividend Yield: N/A
• Average Volume (3M): 495.23K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.42
• Revenue Growth: 2.19%
• EPS Growth: 19.22%
• Country: US
• Employees: 1,609
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 2.83
• Shares Outstanding: 51,030,388
• 10 Day Avg. Volume: 444,428
• 30 Day Avg. Volume: 495,234
• PEG Ratio: 0.68
• Price to Book (P/B): 2.71
• Price to Sales (P/S): 2.79
• P/FCF Ratio: 12.72
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 3.18
• Enterprise Value/Gross Profit: 5.99
• Enterprise Value/Ebitda: 11.56
• 1Y Price Target: $140.00
• Price Target Upside: 15.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 7.26
• Revenue Forecast (FY): $1.88B

• Rating: 79 Outperform
• Price Target: $142.00 ▲(17.22% Upside)

Cirrus Logic's strong financial performance and positive earnings call are the primary drivers of its stock score. Technical indicators suggest a neutral outlook, while valuation metrics indicate moderate pricing. The company's strategic expansion into new markets and robust demand in existing ones support a favorable growth trajectory.

Positive Factors

Revenue Growth

Record revenue indicates strong demand for Cirrus Logic's products, supporting long-term growth and market expansion.

Market Expansion

Entering the PC market diversifies revenue streams and positions Cirrus Logic for growth in emerging sectors.

Cash Position

A strong cash position enhances Cirrus Logic's ability to invest in R&D and strategic initiatives, supporting future growth.

Negative Factors

Cost Pressures

Decreasing EBIT margins suggest rising cost pressures, which could impact profitability if not managed effectively.

Higher Inventory Reserves

Higher inventory reserves may indicate potential inefficiencies or demand forecasting challenges, affecting margins.

Softness in Android Market

Weak demand in the Android market could limit growth opportunities and affect revenue from non-flagship customers.

Cirrus Logic Business Overview & Revenue Model

Company Description

Cirrus Logic, Inc., a fabless semiconductor company, provides low-power and high-precision mixed-signal processing solutions in the United States and internationally. It offers portable products, including codecs components that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single integrated circuit (IC); smart codecs, a codec with digital signal processer; boosted amplifiers; digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, hearing augmentation, and active noise cancellation. The company's audio products are used in smartphones, tablets, wireless headsets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. It also provides high-performance mixed-signal products, such as haptic driver and sensing solutions, camera controllers, power conversion, and control ICs and fast-charging ICs used in various industrial and energy applications comprising digital utility meters, power supplies, energy control, energy measurement, and energy exploration. The company markets and sells its products through direct sales force, external sales representatives, and distributors. Cirrus Logic, Inc. was incorporated in 1984 and is headquartered in Austin, Texas.

How the Company Makes Money

Cirrus Logic primarily generates revenue through the sale of its integrated circuit (IC) products, which are utilized in consumer electronics. The company's revenue model is largely based on the volume of chips sold to original equipment manufacturers (OEMs) in the audio and voice processing markets. Key revenue streams include sales from audio codecs and amplifiers, which are essential components in smartphones and other portable devices. Additionally, Cirrus Logic benefits from long-term partnerships with major customers, including leading smartphone manufacturers, which helps secure a stable demand for its products. The company also invests in research and development to innovate new technologies, which can lead to increased sales and market share in emerging sectors such as smart home devices and automotive audio systems.

Cirrus Logic Financial Statement Overview

Summary

Cirrus Logic demonstrates strong profitability with consistent margins and a solid balance sheet. Despite a slowdown in revenue growth, the company maintains effective cash flow management and low leverage, positioning it well for future opportunities.

Income Statement

Cirrus Logic shows strong profitability with a consistent gross profit margin above 50% and a net profit margin around 17% in the TTM. Revenue growth is positive, albeit modest, indicating stable demand. The EBIT and EBITDA margins are healthy, reflecting efficient operations. However, the revenue growth rate has slowed compared to previous years, which could indicate market saturation or increased competition.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of approximately 0.07, indicating conservative leverage. Return on equity is strong at around 17%, showcasing effective use of equity capital. The equity ratio is healthy, suggesting a strong asset base relative to liabilities. However, the slight increase in debt over the years warrants monitoring.

Cash Flow

Cirrus Logic demonstrates robust cash flow management with a significant free cash flow growth rate of 8.6% in the TTM. The operating cash flow to net income ratio is strong, indicating efficient cash conversion. The free cash flow to net income ratio is close to 1, reflecting good cash profitability. However, the cash flow growth has been inconsistent over the years, which could pose risks in less favorable market conditions.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.95B	1.90B	1.79B	1.90B	1.78B	1.37B
Gross Profit	1.03B	996.04M	916.07M	956.98M	923.64M	707.30M
EBITDA	535.08M	496.76M	413.14M	316.44M	431.67M	285.70M
Net Income	379.56M	331.51M	274.57M	176.70M	326.36M	217.34M
Balance Sheet
Total Assets	2.43B	2.33B	2.23B	2.06B	2.12B	1.83B
Cash, Cash Equivalents and Short-Term Investments	645.90M	595.78M	526.54M	480.76M	380.42M	497.86M
Total Debt	140.47M	143.72M	155.22M	141.07M	177.84M	142.46M
Total Liabilities	387.24M	377.62M	414.56M	405.68M	523.58M	441.61M
Stockholders Equity	2.04B	1.95B	1.82B	1.66B	1.60B	1.39B
Cash Flow
Free Cash Flow	540.92M	415.61M	384.02M	302.85M	94.74M	330.69M
Operating Cash Flow	557.32M	444.37M	421.67M	339.57M	124.75M	348.94M
Investing Cash Flow	-66.39M	-124.28M	-163.01M	-33.33M	-18.37M	-77.67M
Financing Cash Flow	-343.21M	-283.23M	-201.68M	-230.27M	-178.73M	-121.22M

Cirrus Logic Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 121.14
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRUS, the sentiment is Neutral. The current price of 121.14 is below the 20-day moving average (MA) of 121.44, below the 50-day MA of 123.05, and above the 200-day MA of 109.80, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 48.32 is Neutral, neither overbought nor oversold. The STOCH value of 12.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CRUS.

Cirrus Logic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRUS	79 Outperform	$6.18B	17.21	19.12%	―	2.19%	19.22%
SWKS	70 Outperform	$9.62B	21.03	7.89%	4.36%	-2.18%	-16.84%
AMKR	69 Neutral	$9.98B	32.55	7.27%	0.82%	0.13%	-16.17%
SMTC	69 Neutral	$6.75B	239.88	13.39%	―	20.60%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SITM	61 Neutral	$9.57B	-123.76	-7.88%	―	59.04%	28.50%
ALGM	52 Neutral	$4.94B	-173.04	-3.02%	―	-7.23%	-15.69%

Cirrus Logic Corporate Events

Cirrus Logic Reports Record Q2 Revenue of $561 Million

On November 4, 2025, Cirrus Logic announced record revenue of $561 million for the second quarter of fiscal year 2026, driven by strong demand for smartphone components. The company also reported progress in expanding into new markets, such as the PC sector, and highlighted increased interest in their products across various industries including professional audio, industrial, automotive, and imaging. The financial results showed a GAAP and non-GAAP gross margin of 52.5% and earnings per share of $2.48 and $2.83, respectively. Looking ahead, Cirrus Logic expects third-quarter revenue to range between $500 million and $560 million, with a GAAP gross margin between 51% and 53%.