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Cirrus Logic (CRUS)
NASDAQ:CRUS
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Cirrus Logic (CRUS) AI Stock Analysis

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CRUS

Cirrus Logic

(NASDAQ:CRUS)

Rating:79Outperform
Price Target:
$129.00
▲(14.00% Upside)
Cirrus Logic's strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's robust profitability, solid balance sheet, and strategic expansion in smartphone components contribute to a favorable outlook. Technical indicators suggest a bullish trend, though caution is advised due to potential overbought conditions. The valuation is reasonable, supporting the stock's attractiveness to growth investors.
Positive Factors
Diversification Strategy
The diversification strategy is becoming increasingly clear in the revenue contribution outside of the Apple business, which was up 27% YoY and 12% QoQ.
Earnings
Cirrus delivered better-than-expected Q1 results with revenue beating by 12%, and EPS 38% ahead of expectation.
New Product Launches
The company's latest generation of boosted amplifier and its first 22nm smart codec were included in a flagship phone launch.
Negative Factors
Market Dependency
Management called out higher unit shipments of their camera controller, as Cirrus content waterfalls across additional models.
Tariff Impact
Tariff-related pull-ins may have contributed to the strong results and might impact the second half of the fiscal year.

Cirrus Logic (CRUS) vs. SPDR S&P 500 ETF (SPY)

Cirrus Logic Business Overview & Revenue Model

Company DescriptionCirrus 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 MoneyCirrus 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 Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with strong revenue and strategic diversification efforts, though tempered by some sequential declines and forecasting challenges.
Q1-2026 Updates
Positive Updates
Exceeding Revenue Expectations
Cirrus Logic delivered revenue of $407.3 million for the June quarter, surpassing the top end of their guidance range due to strong demand for smartphones.
Year-over-Year Sales Growth
Sales increased by 9% year-over-year, primarily driven by the latest generation products and higher smartphone unit volumes.
Strong Non-GAAP Financial Performance
Non-GAAP operating income was $94.9 million, or 23.3% of revenue, with a non-GAAP gross margin of 52.6%.
Strategic Diversification in PC and Automotive Markets
Cirrus Logic reported increased engagement with laptop customers and new design wins in automotive, indicating progress in diversification efforts.
Strong Cash Position and Share Repurchase
Ended the quarter with $847.8 million in cash and investments, up $12.9 million from the prior quarter, and repurchased approximately 1 million shares for $100 million.
Negative Updates
Sequential Revenue Decline
Revenue decreased by 4% sequentially, primarily due to lower smartphone unit volumes.
Decreased Gross Margin
Gross margin decreased sequentially due to a less favorable product mix and a return to a more typical pricing environment.
Increased Operating Expenses Year-over-Year
Non-GAAP operating expenses increased by $1.5 million year-over-year, largely due to higher employee-related costs.
Challenges in Predicting Customer Demand
The call highlighted difficulty in forecasting demand accurately, with unexpected strong demand impacting financial outlook.
Company Guidance
During the call, Cirrus Logic provided guidance for the second quarter of fiscal 2026, projecting revenue to be between $510 million and $570 million. The company reported first-quarter fiscal 2026 revenue of $407.3 million, which exceeded the top end of their guidance range, primarily driven by strong demand for smartphones incorporating their silicon. Non-GAAP gross profit for the June quarter was $214.3 million, with a gross margin of 52.6%. Operating expenses were $119.5 million, leading to an operating income of $94.9 million, representing 23.3% of revenue. The company expects GAAP gross margin to range from 51% to 53% and non-GAAP operating expenses to be between $131 million and $137 million for the next quarter. Cirrus Logic also highlighted a shift in seasonality, expecting sales to be more weighted towards the first half of the fiscal year.

Cirrus Logic Financial Statement Overview

Summary
Cirrus Logic demonstrates strong financial health with robust profitability, a solid balance sheet, and effective cash flow management. The company maintains healthy margins and low leverage, although revenue growth has slowed, indicating potential market saturation or increased competition.
Income Statement
85
Very Positive
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
80
Positive
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
78
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.93B1.90B1.79B1.90B1.78B1.37B
Gross Profit1.02B996.04M916.07M956.98M923.64M707.30M
EBITDA521.60M496.76M413.14M316.44M431.67M285.70M
Net Income350.11M331.51M274.57M176.70M326.36M217.34M
Balance Sheet
Total Assets2.29B2.33B2.23B2.06B2.12B1.83B
Cash, Cash Equivalents and Short-Term Investments614.79M595.78M526.54M480.76M380.42M497.86M
Total Debt141.35M143.72M155.22M141.07M177.84M142.46M
Total Liabilities364.43M377.62M414.56M405.68M523.58M441.61M
Stockholders Equity1.93B1.95B1.82B1.66B1.60B1.39B
Cash Flow
Free Cash Flow458.07M415.61M384.02M302.85M94.74M330.69M
Operating Cash Flow473.34M444.37M421.67M339.57M124.75M348.94M
Investing Cash Flow-63.94M-124.28M-163.01M-33.33M-18.37M-77.67M
Financing Cash Flow-351.88M-283.23M-201.68M-230.27M-178.73M-121.22M

Cirrus Logic Technical Analysis

Technical Analysis Sentiment
Positive
Last Price113.16
Price Trends
50DMA
107.40
Positive
100DMA
102.91
Positive
200DMA
102.55
Positive
Market Momentum
MACD
2.61
Positive
RSI
56.11
Neutral
STOCH
33.38
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 113.16 is above the 20-day moving average (MA) of 111.24, above the 50-day MA of 107.40, and above the 200-day MA of 102.55, indicating a bullish trend. The MACD of 2.61 indicates Positive momentum. The RSI at 56.11 is Neutral, neither overbought nor oversold. The STOCH value of 33.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRUS.

Cirrus Logic Risk Analysis

Cirrus Logic disclosed 44 risk factors in its most recent earnings report. Cirrus Logic reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Cirrus Logic Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$5.86B17.7218.53%4.52%18.89%
79
Outperform
$7.94B34.7820.30%35.17%0.10%
76
Outperform
$5.19B25.7210.53%15.51%20.31%
75
Outperform
$9.09B291.484.57%-22.15%-83.34%
74
Outperform
$11.12B29.116.61%3.82%-8.24%-48.31%
72
Outperform
$8.40B105.442.33%-8.84%
61
Neutral
$35.09B8.26-10.59%1.90%8.56%-9.51%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CRUS
Cirrus Logic
113.16
-25.38
-18.32%
LSCC
Lattice Semiconductor
66.89
23.57
54.41%
ONTO
Onto Innovation
102.66
-85.22
-45.36%
RMBS
Rambus
73.67
33.01
81.19%
SWKS
Skyworks Solutions
73.56
-25.15
-25.48%
QRVO
Qorvo
90.88
-17.97
-16.51%

Cirrus Logic Corporate Events

Business Operations and StrategyFinancial Disclosures
Cirrus Logic Reports Strong Q1 FY2026 Financial Results
Positive
Aug 5, 2025

On August 5, 2025, Cirrus Logic reported strong financial results for the first quarter of fiscal year 2026, with revenue of $407.3 million, driven by demand for its custom boosted amplifier and new smart codec for smartphones. The company also made progress in diversifying its product and end-market presence, gaining traction in the laptop market and ramping up production in professional audio, automotive, industrial, and imaging sectors. Looking ahead, Cirrus Logic expects second-quarter revenue to range between $510 million and $570 million, with a gross margin forecasted between 51% and 53%.

Executive/Board ChangesShareholder Meetings
Cirrus Logic Holds Annual Stockholders Meeting
Neutral
Jul 30, 2025

On July 29, 2025, Cirrus Logic held its Annual Meeting of Stockholders, where key proposals were voted on. The stockholders elected directors, ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending March 28, 2026, and approved executive officer compensation. These decisions are expected to influence the company’s governance and financial oversight, impacting its strategic direction and stakeholder confidence.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025