Cirrus Logic (CRUS) AI Stock Analysis

• Market Cap: $6.09B
• Dividend Yield: N/A
• Average Volume (3M): 509.38K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 1.43
• 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: 656,408
• 30 Day Avg. Volume: 509,377
• 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: 1.02
• Enterprise Value/Revenue: 4.06
• Enterprise Value/Gross Profit: 7.67
• Enterprise Value/Ebitda: 14.49
• 1Y Price Target: $140.00
• Price Target Upside: 18.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 7.26
• Revenue Forecast (FY): $1.86B

• Rating: 78 Outperform
• Price Target: $136.00 ▲(14.63% Upside)

Cirrus Logic's strong financial performance and positive earnings call are significant strengths, reflecting robust profitability and strategic growth initiatives. While technical indicators suggest short-term caution, the company's solid valuation and long-term support levels provide a balanced outlook.

Positive Factors

Strong Financial Performance

Record revenue indicates robust demand for Cirrus Logic's products, particularly in the smartphone market, supporting long-term growth.

Expansion in PC Market

Entry into the PC market with AI-enabled features diversifies revenue streams and reduces dependency on the smartphone segment.

Solid Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility for strategic investments and growth initiatives.

Negative Factors

Slowing Revenue Growth

Slowing revenue growth may indicate market saturation or increased competition, potentially limiting future expansion opportunities.

Higher Inventory Reserves

Higher inventory reserves can tie up capital and suggest potential overproduction or slower sales, impacting cash flow and profitability.

Softness in Android Market

Weakness in the Android market could affect revenue diversity and growth, increasing reliance on flagship customers like Apple.

Cirrus Logic Business Overview & Revenue Model

Company Description

Cirrus Logic, Inc. is a leading provider of high-precision analog and mixed-signal integrated circuits for a variety of audio and voice signal processing applications. The company operates primarily in the semiconductor sector, focusing on products that enhance audio performance in consumer electronics, including smartphones, tablets, and smart home devices. Cirrus Logic's core offerings include audio converters, amplifiers, and digital signal processors that enable high-quality audio experiences for end-users.

How the Company Makes Money

Cirrus Logic generates revenue primarily through the sale of its semiconductor 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 market. Key revenue streams include sales of audio codecs, amplifiers, and other related integrated circuits. Partnerships with major technology companies, such as Apple, have significantly contributed to its earnings, as a substantial portion of Cirrus Logic's revenue comes from supplying components for Apple's product lineup. Additionally, the company may benefit from licensing agreements and royalties, providing further income opportunities.

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	1.52B	1.90B	1.79B	1.90B	1.78B	1.37B
Gross Profit	806.19M	996.04M	916.07M	956.98M	923.64M	707.30M
EBITDA	427.11M	496.76M	413.14M	316.44M	431.67M	285.70M
Net Income	308.30M	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	413.96M	415.61M	384.02M	302.85M	94.74M	330.69M
Operating Cash Flow	426.93M	444.37M	421.67M	339.57M	124.75M	348.94M
Investing Cash Flow	-53.28M	-124.28M	-163.01M	-33.33M	-18.37M	-77.67M
Financing Cash Flow	-239.12M	-283.23M	-201.68M	-230.27M	-178.73M	-121.22M

Cirrus Logic Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 118.64
• 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 118.64 is below the 20-day moving average (MA) of 127.41, below the 50-day MA of 123.53, and above the 200-day MA of 107.55, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 37.72 is Neutral, neither overbought nor oversold. The STOCH value of 12.74 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	78 Outperform	$6.09B	16.86	19.12%	―	2.19%	19.22%
AMKR	73 Outperform	$9.03B	29.45	7.27%	2.09%	0.13%	-16.17%
SWKS	71 Outperform	$10.92B	23.85	7.89%	3.62%	-2.18%	-16.84%
SMTC	65 Neutral	$6.06B	296.02	11.57%	―	22.22%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SITM	60 Neutral	$8.84B	―	-7.88%	―	59.04%	28.50%
ALGM	58 Neutral	$5.08B	―	-3.02%	―	-7.23%	-15.69%

Cirrus Logic Corporate Events

Cirrus Logic Reports Record Revenue Amid Market Challenges

Cirrus Logic’s latest earnings call painted a picture of robust financial health and strategic growth, despite facing some market challenges. The sentiment expressed during the call was largely positive, with record revenue and strong financial performance underscoring the company’s resilience and strategic initiatives.

Cirrus Logic Reports Record Revenue and Strategic Growth

Cirrus Logic, Inc., headquartered in Austin, Texas, is a prominent player in the technology sector, specializing in low-power, high-precision mixed-signal processing solutions for mobile and consumer applications. The company is recognized for its innovative products and award-winning corporate culture.

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%.

The most recent analyst rating on (CRUS) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Cirrus Logic stock, see the CRUS Stock Forecast page.

Cirrus Logic’s Earnings Call: Revenue Growth and Market Expansion

Cirrus Logic’s recent earnings call conveyed a generally positive sentiment, underscored by impressive revenue growth and robust financial performance. The company is making strides in expanding into new markets, including PCs and automotive. However, challenges such as sequential revenue decline and shifts in seasonality patterns were also highlighted.

Cirrus Logic Reports Strong Q1 FY26 Earnings

Cirrus Logic is a semiconductor company specializing in audio and high-performance mixed-signal processing solutions, primarily serving the smartphone, laptop, and general market sectors. In its Q1 FY26 earnings report, Cirrus Logic reported a revenue of $407.3 million, exceeding its guidance range, with GAAP and non-GAAP earnings per share at $1.14 and $1.51, respectively. The company highlighted the success of its latest smartphone audio components and its growing presence in the laptop market, alongside advancements in its general market business. Key financial metrics include a 52.6% gross margin and a net income of $60.7 million on a GAAP basis. The company also repurchased over a million shares, reflecting confidence in its financial health. Looking ahead, Cirrus Logic aims to leverage its intellectual property and mixed-signal expertise to drive growth across existing and new markets, with expected revenue for the next quarter ranging from $510 million to $570 million.