Cirrus Logic (CRUS) AI Stock Analysis

• Market Cap: $6.66B
• Dividend Yield: N/A
• Average Volume (3M): 426.42K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.39
• Revenue Growth: 2.19%
• EPS Growth: 19.22%
• Country: US
• Employees: 1,609
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 2.97
• Shares Outstanding: 51,030,388
• 10 Day Avg. Volume: 683,307
• 30 Day Avg. Volume: 426,415
• 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: 0.97
• Enterprise Value/Revenue: 3.26
• Enterprise Value/Gross Profit: 6.16
• Enterprise Value/Ebitda: 12.34
• 1Y Price Target: $143.60
• Price Target Upside: 15.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 7.99
• Revenue Forecast (FY): $1.89B

• Rating: 77 Outperform
• Price Target: $141.00 ▲(13.18% Upside)

Overall score reflects strong financial performance (margins, cash conversion, and a conservative balance sheet) as the main positive, tempered by earnings-call risks around customer concentration and a steep sequential revenue decline implied by Q4 guidance. Technicals are neutral-to-mixed and valuation is moderate, supporting a solid but not top-tier score.

Positive Factors

Cash generation

Sustained, high free cash flow and a sizable cash balance provide durable financial flexibility. Robust FCF funds R&D, product ramps, buybacks and cushions semiconductor cyclicality, enabling strategic investments and capital returns without relying on external financing.

Conservative balance sheet

Extremely low leverage and a growing equity base reduce financial risk and preserve optionality during downturns. This conservatism supports continued investment in new product development and M&A, while minimizing interest-cost sensitivity that could amplify cycle-driven earnings volatility.

High profitability

Consistently high gross and operating margins reflect structural competitive advantages in analog and mixed-signal design. Strong margins enable reinvestment in R&D and higher returns on incremental revenue, making margins a durable buffer against pricing and volume swings in end markets.

Negative Factors

Customer concentration

Extremely high reliance on one customer creates persistent revenue and bargaining-power risk. A single-account downturn, design-win loss, or pricing concession could materially impact top-line and margins, limiting predictability and forcing strategic tradeoffs between diversification and core-customer priorities.

Revenue cyclicality

Large quarter-to-quarter swings driven by seasonality, end-of-life unwind and customer ordering patterns indicate structural volatility. This cyclicality complicates capacity planning, R&D timing and fixed-cost absorption, and can mute long-term growth visibility despite solid trailing margins.

Pricing pressure & product transitions

Ongoing pricing normalization and legacy product EOL require sustaining cost discipline or higher-margin new products to preserve profitability. If new PC/automotive ramps are slower or ASP improvements don’t materialize, margins could face structural compression over multiple quarters.

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

High-quality fundamentals: strong profitability (TTM ~53% gross margin, ~19% net margin, ~25% EBIT margin), conservative balance sheet (very low leverage and strong ROE ~19%), and excellent cash generation (TTM FCF ~$615M with ~0.97x FCF-to-net income). Main risk is cyclicality and historical variability in revenue and cash flows.

Income Statement

TTM (Trailing-Twelve-Months) results show strong profitability with ~53% gross margin and ~19% net margin, alongside solid operating leverage (EBIT margin ~25%). Revenue is also higher versus the most recent annual period ($1.97B TTM vs. $1.90B FY2025). The key weakness is growth volatility: annual revenue declined in FY2024 before re-accelerating into FY2025/TTM, indicating the top line can be cyclical.

Balance Sheet

The balance sheet is conservative, with very low leverage (debt-to-equity ~0.07 in TTM (Trailing-Twelve-Months)) and a growing equity base over the past several years. Returns are strong for the capital structure, with return on equity around ~19% in TTM. Main watch-out is that performance is still tied to earnings swings typical of semiconductors, but leverage is not amplifying that risk.

Cash Flow

Cash generation is a clear strength: TTM (Trailing-Twelve-Months) operating cash flow (~$630M) and free cash flow (~$615M) are high relative to earnings, with free cash flow close to net income (~0.97x). Cash conversion has improved meaningfully versus earlier periods (notably FY2022’s weaker cash flow), and TTM free cash flow growth is strong. The main weakness is historical variability in cash flow, which suggests working-capital and cycle effects can materially impact year-to-year cash results.

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

Cirrus Logic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 124.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRUS, the sentiment is Positive. The current price of 124.58 is below the 20-day moving average (MA) of 126.70, above the 50-day MA of 123.34, and above the 200-day MA of 114.18, indicating a bullish trend. The MACD of 2.34 indicates Negative momentum. The RSI at 63.98 is Neutral, neither overbought nor oversold. The STOCH value of 41.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRUS.

Cirrus Logic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRUS	77 Outperform	$6.66B	17.70	19.12%	―	2.19%	19.22%
SMTC	69 Neutral	$8.12B	288.07	13.39%	―	20.60%	―
AMKR	66 Neutral	$11.91B	38.84	7.27%	0.81%	0.13%	-16.17%
ALGM	66 Neutral	$6.94B	-536.41	-1.39%	―	-7.23%	-15.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SWKS	61 Neutral	$8.52B	18.47	7.89%	4.37%	-2.18%	-16.84%
SITM	61 Neutral	$9.77B	-118.65	-7.88%	―	59.04%	28.50%

Cirrus Logic Corporate Events

Cirrus Logic Posts Strong Q3 Results, Guides Lower Q4

On February 3, 2026, Cirrus Logic reported financial results for its third quarter of fiscal 2026, which ended on December 27, 2025, posting revenue of $580.6 million, above the high end of its guidance, driven by stronger-than-expected demand for components used in smartphones and a favorable device mix. The company delivered a GAAP and non-GAAP gross margin of 53.1%, GAAP operating expenses of $155.2 million, non-GAAP operating expenses of $133.0 million, and earnings per share of $2.66 on a GAAP basis and $2.97 on a non-GAAP basis, while also emphasizing the use of non-GAAP metrics alongside GAAP results for internal management and investor analysis. Management highlighted strategic progress in diversifying its portfolio, including sampling a new voice-interface component for AI-enabled PCs, ramping its latest-generation amplifier and codec in mainstream PC platforms, and introducing new product families for prosumer and automotive markets, moves that are intended to expand its addressable market and strengthen its positioning across a broader range of applications. For the fourth quarter of fiscal 2026, Cirrus Logic projected revenue between $410 million and $470 million, gross margin between 51% and 53%, and non-GAAP operating expenses of $124 million to $130 million, signaling expectations of a sequential revenue decline after the seasonally strong December quarter but continued disciplined cost management and margin resilience.

The most recent analyst rating on (CRUS) stock is a Hold with a $130.00 price target. To see the full list of analyst forecasts on Cirrus Logic stock, see the CRUS Stock Forecast page.