Cirrus Logic Q3 Earnings & Revenues Surpass Estimates, Rise Y/Y

Cirrus Logic, Inc. CRUS reported third-quarter fiscal 2026 adjusted earnings per share (EPS) of $2.97, which surpassed the Zacks Consensus Estimate of $2.42. The company reported adjusted EPS of $2.83 in the prior-year quarter.

Cirrus Logic generated revenues of $580.6 million for the December quarter, up 24.7% year over year. The figure exceeded the company’s guidance ($500-$560 million), driven by strong demand components supplied to smartphones, along with a favorable mix of end devices. Sequentially, revenues increased 4%, reflecting higher shipments of smartphones. Year over year, sales rose 4%, mainly due to increased smartphone volumes. The top line beat the Zacks Consensus Estimate by 8.3%.

Also, the company made solid progress in executing its strategy to expand its addressable market and diversify its product portfolio. Key initiatives included sampling a new component designed to enable and enhance voice-based interfaces for future AI-enabled PCs, ramping its latest-generation amplifiers and codecs across mainstream PC platforms, and adding new product families aimed at prosumer and automotive markets. Looking ahead, the company expects to leverage its extensive intellectual property portfolio and deep engineering expertise to support sustained growth and long-term success.

Segment Details

This Texas-based company rearranged its reportable segments and created separate categories — High-Performance Mixed-Signal and Audio — in 2021.
Cirrus Logic’s High-Performance Mixed-Signal segment includes a few of its non-audio products. It contributed 41% to total revenues in the fiscal third quarter. Revenues from the same division grew 12.8% year over year to $236.2 million. We estimated the metric to be $190.6 million.

The Audio segment’s sales were down marginally by 0.5% to $344.5 million and contributed 59% to total revenues. Our estimate was $340.5 million for the segment.

Margins

Non-GAAP gross margin contracted to 53.1% from 53.6% in the prior-year quarter, mainly due to pricing reductions, including anticipated declines that are even more pronounced. The company is focused on offsetting this pressure through cost reductions and improved efficiencies across its supply chain and operations.

CRUS reported non-GAAP operating expenses of $133 million for the third quarter, near the high end the company’s guidance ($128-$134 million). Sequentially, OpEx increased by $5.3 million, primarily reflecting higher employee-related costs. This increase was partially offset by lower product development expenses, largely driven by the timing of tape-outs. Year over year, operating expenses jumped by $3.8 million, mainly due to higher employee-related costs and, to a lesser extent, increased professional fees, partially offset by lower product development expenses, reflecting reduced wafer and tape-out costs.

Cirrus Logic, Inc. Price, Consensus and EPS Surprise

Cirrus Logic, Inc. price-consensus-eps-surprise-chart | Cirrus Logic, Inc. Quote

Non-GAAP operating income of $175.1 million grew 3.7% year over year.

Non-GAAP operating profit margin decreased to 30.2% from 30.4%.

Balance Sheet and Cash Flow

The company exited the fiscal third quarter with cash and marketable securities of $822.4 million compared with $564 million as of Dec. 28, 2024.

As of Dec. 27, 2025, accounts receivable were $279 million.

In the fiscal third quarter, CRUS generated $290.8 million of net cash from operations compared with $92.2 million in the previous-year quarter. Free cash flow was $285.7 million in the quarter under review.

The company repurchased 591,000 shares worth $70 million in the reported quarter. As of Dec. 27, 2025, it had $344.1 million worth of shares under its existing share repurchase authorization.

Fiscal Q4 2026 Outlook

For the fourth quarter of fiscal 2026, Cirrus Logic provided a revenue outlook between $410 million and $470 million.

The GAAP gross margin is expected to be in the range of 51-53%.

Combined GAAP R&D and SG&A are anticipated to be between $147 million and $153 million.

Non-GAAP operating expenses are estimated to be in the band of $124-$130 million.

CRUS’ Zacks Rank

Cirrus Logic currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Performance of Other Companies

Lam Research LRCX reported second-quarter fiscal 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.
LRCX reported second-quarter non-GAAP earnings of $1.27 per share, which beat the Zacks Consensus Estimate by 8.5%. The bottom line increased 39.6% on a year-over-year basis.

In the second quarter of fiscal 2026, LRCX reported revenues of $5.34 billion, which surpassed the consensus mark by 2.1%. The top line rose 22% from the year-ago quarter’s $4.38 billion.

Teradyne TER reported fourth-quarter 2025 non-GAAP earnings of $1.8 per share, which beat the Zacks Consensus Estimate by 32.22% and surged 89.5% year over year.

Revenues of TER came at $1.08 billion beat the Zacks Consensus Estimate by 11.82% and increased 43.7% year over year.

KLA Corporation KLAC reported second-quarter fiscal 2026 non-GAAP earnings of $8.85 per share, beating the Zacks Consensus Estimate by 0.36%. The figure increased 7.9% year over year.

KLAC reported revenues increase of 7.2% year over year to $3.3 billion, surpassing the Zacks Consensus Estimate by 1.02%.

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