CRUS · Cirrus Logic, Inc.

Cirrus Logic reported record full fiscal year 2026 revenue of $2.0 billion, up 5% year-over-year, driven by strong demand for components shipping into smartphones and higher PC sales. GAAP and non-GAAP gross margin for the year were 52.8%, compared to 52.5% and 52.6% respectively in FY25, with the improvement attributed to a more favorable product mix. GAAP operating profit improved to 23.0% from 21.6%, while non-GAAP operating profit rose to 27.5% from 26.5%. Record GAAP diluted EPS of $7.85 and non-GAAP diluted EPS of $9.26 were achieved, up from $6.00 and $7.54 respectively in the prior year. For Q4 FY26, revenue was $448.5 million, down 23% sequentially due to lower smartphone unit volumes but up 6% year-over-year. GAAP gross margin was 53.0%, slightly down from 53.1% sequentially and 53.4% a year ago, primarily due to higher freight expense. GAAP operating expenses decreased $7.9 million sequentially to $147.3 million, driven by lower variable compensation and employee-related expenses. The company generated strong operating cash flow of $650.6 million for the full year and ended with $1.2 billion in cash and investments and no debt. During FY26, Cirrus Logic returned $280 million to shareholders through share repurchases, buying back 2.5 million shares at an average price of $113.91. Management noted progress in diversifying beyond smartphones, including development of next-generation camera controllers and a smart power IC for 3D sensing, as well as strong PC revenue growth. For Q1 FY27, the company guided revenue between $430 million and $490 million, GAAP gross margin of 51% to 53%, and combined GAAP R&D and SG&A expenses of $155 million to $161 million. Additionally, on May 4, 2026, Cirrus Logic entered into a $350 million senior secured revolving credit facility with Wells Fargo as administrative agent, maturing May 4, 2031. The facility bears interest at either Base Rate plus an Applicable Margin (0% to 0.75%) or Term SOFR plus an Applicable Margin (1.00% to 1.75%), with a commitment fee on the unused portion. It is secured by substantially all assets of the company and its material domestic subsidiaries and includes financial covenants requiring a Consolidated Net Leverage Ratio not exceeding 3.50x and a Consolidated Interest Coverage Ratio of at least 3.00x.