Cirrus Logic Reports Strong Q3 2026 Earnings Driven by Smartphone Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14h ago
0mins
Should l Buy CRUS?
Source: seekingalpha
- Strong Performance: Cirrus Logic reported Q3 fiscal 2026 revenue of $580.6 million, exceeding expectations and reflecting a 4% increase sequentially, driven by robust demand for smartphone components that continues to enhance the company's performance.
- Profitability Improvement: The non-GAAP gross profit reached $308.2 million with a gross margin of 53.1%, and earnings per share hit a record of $2.97, showcasing the company's success in cost control and product mix optimization.
- Market Expansion Opportunities: Significant progress was noted in the PC and automotive markets, particularly with strong OEM interest in AI-driven voice interface products, which are expected to provide momentum for future revenue growth.
- Strategic Investment and Buybacks: Cirrus Logic repurchased approximately 591,000 shares for $70 million in Q3, with total cash and investments reaching $1.08 billion, reflecting a proactive approach to capital management and shareholder returns.
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Analyst Views on CRUS
Wall Street analysts forecast CRUS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRUS is 140.00 USD with a low forecast of 95.00 USD and a high forecast of 155.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 124.580
Low
95.00
Averages
140.00
High
155.00
Current: 124.580
Low
95.00
Averages
140.00
High
155.00
About CRUS
Cirrus Logic, Inc. is a provider of low-power, high-precision mixed-signal processing solutions that enhance user experience in mobile and consumer applications. Its product line categories are Audio and High-Performance Mixed-Signal (HPMS). It is a supplier of low-power, low-latency, high-precision audio components that are used in a variety of applications, including smartphones, laptops, tablets, virtual reality/augmented reality headsets, wearables, home theater systems, automotive entertainment systems and professional audio systems. Additionally, its SoundClear technology consists of a broad portfolio of tools, software and algorithms that help to differentiate its customers’ products by improving the user experience with features such as louder, high-fidelity sound, high-quality audio playback, voice capture, and hearing augmentation. Its portfolio of HPMS products includes camera controllers for automatic focus and optical image stabilization and haptic and sensing solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Cirrus Logic Reports Strong Q3 2026 Earnings Driven by Smartphone Demand
- Strong Performance: Cirrus Logic reported Q3 fiscal 2026 revenue of $580.6 million, exceeding expectations and reflecting a 4% increase sequentially, driven by robust demand for smartphone components that continues to enhance the company's performance.
- Profitability Improvement: The non-GAAP gross profit reached $308.2 million with a gross margin of 53.1%, and earnings per share hit a record of $2.97, showcasing the company's success in cost control and product mix optimization.
- Market Expansion Opportunities: Significant progress was noted in the PC and automotive markets, particularly with strong OEM interest in AI-driven voice interface products, which are expected to provide momentum for future revenue growth.
- Strategic Investment and Buybacks: Cirrus Logic repurchased approximately 591,000 shares for $70 million in Q3, with total cash and investments reaching $1.08 billion, reflecting a proactive approach to capital management and shareholder returns.
See More
Cirrus Logic Exceeds Q3 Expectations Driven by Smartphone Demand
- Strong Apple Demand: Cirrus Logic reported Q3 revenue from Apple at $546 million, reflecting an 8% increase both quarter-over-quarter and year-over-year, which constituted 94% of total revenue, showcasing improved iPhone unit volumes and mix, leading to a 14% surge in stock price during early trading.
- Doubling PC Revenue: Analysts noted that Cirrus Logic's PC-related revenue is expected to double in fiscal 2026, with management highlighting multiple new device launches and AI PC products currently sampling, which are projected to ramp revenue growth in 2027, enhancing competitive positioning.
- Automotive Market Opportunity: Benchmark analysts pointed out significant long-term opportunities for Cirrus Logic in the automotive sector, as the market shifts from centralized transducer designs to Ethernet-based distributed systems, aligning well with the company's portfolio and promising multi-year growth potential.
- Accelerated Design Activity: Stifel analysts mentioned that design activity across Cirrus Logic's PC portfolio is accelerating, with the latest-generation amplifiers and codecs being ramped up in mainstream platforms, while management has begun sampling new components to enhance voice and audio capture capabilities, addressing the rise of AI-enabled PCs.
See More
Cirrus Logic Reports Strong Q3 Earnings and Upbeat Guidance
- Earnings Beat: Cirrus Logic reported Q3 earnings of $2.97 per share, surpassing analyst expectations of $2.44, indicating a robust improvement in profitability that strengthens market confidence in its financial health.
- Sales Growth: The company achieved quarterly sales of $580.62 million, exceeding the analyst consensus of $533.89 million, reflecting strong demand for smartphone components that drove overall performance.
- Optimistic Sales Guidance: Cirrus Logic projects Q4 sales between $410 million and $470 million, significantly above market estimates of $384.29 million, indicating confidence in future demand and a positive market outlook.
- Analyst Target Upgrades: Analysts from Benchmark and Stifel maintained a 'Buy' rating on Cirrus Logic, raising their price targets from $150 to $160 and $163 respectively, reflecting a positive outlook on the company's future performance.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Updates: Top Wall Street analysts have adjusted their ratings on several companies, reflecting the latest market perspectives, although specific company names and rating changes were not detailed.
- Market Reaction Insight: Investors considering buying WDC stock may find analysts' opinions influential in their decision-making, especially in the current market environment where rating changes can trigger stock price fluctuations.
- Impact of Rating Changes: Upgrades and downgrades from analysts typically have a direct effect on a stock's short-term performance, prompting investors to closely monitor these changes to optimize their investment strategies.
- Transparent Information Source: Benzinga provides comprehensive information on analyst rating changes, and while specific ratings were not disclosed, investors can still access more details through their analyst ratings page.
See More
Cirrus Logic Reports Q3 Earnings Beat Expectations
- Earnings Beat: Cirrus Logic reported a non-GAAP EPS of $2.97 for Q3, exceeding expectations by $0.53, which reflects the company's strong profitability and is likely to boost investor confidence moving forward.
- Revenue Growth: The company achieved revenue of $580.6 million, a 4.5% year-over-year increase, surpassing estimates by $46.08 million, indicating robust growth amid recovering market demand and enhancing its competitive position.
- Stock Price Surge: Following the positive earnings report, Cirrus Logic's shares rose by 10.48%, reflecting investor optimism about the company's future growth potential and possibly attracting more institutional investors.
- Operating Expense Guidance: For Q4, Cirrus Logic expects GAAP operating expenses to range from $147 million to $153 million, while non-GAAP operating expenses, after adjusting for stock-based compensation and amortization of acquisition intangibles, are projected to be between $124 million and $130 million, demonstrating the company's focus on cost management.
See More
Cirrus Logic Set to Announce Q3 Earnings on February 3rd
- Earnings Announcement: Cirrus Logic (CRUS) is set to announce its Q3 earnings on February 3rd after market close, with consensus EPS estimate at $2.44, reflecting a 13.8% year-over-year decline, and revenue estimate at $534.52 million, down 4.7% year-over-year, indicating potential market challenges ahead.
- Strong Historical Performance: Over the past two years, Cirrus Logic has consistently beaten both EPS and revenue estimates 100% of the time, showcasing the company's robust financial stability and market confidence, which may positively influence investor sentiment.
- Estimate Revisions: In the last three months, EPS estimates have seen seven upward revisions and no downward adjustments, while revenue estimates experienced five upward revisions and one downward, indicating growing market confidence in Cirrus Logic's future performance, potentially attracting more investor interest.
- Market Environment Impact: Despite Cirrus Logic's strong historical financial performance, analysts have noted that the memory supply crunch could impact the PC, smartphone, and automotive markets, introducing uncertainty into the company's future performance, prompting investors to carefully assess risk versus reward.
See More
Cirrus Logic Reports Strong Q3 2026 Earnings Driven by Smartphone Demand
- Strong Performance: Cirrus Logic reported Q3 fiscal 2026 revenue of $580.6 million, exceeding expectations and reflecting a 4% increase sequentially, driven by robust demand for smartphone components that continues to enhance the company's performance.
- Profitability Improvement: The non-GAAP gross profit reached $308.2 million with a gross margin of 53.1%, and earnings per share hit a record of $2.97, showcasing the company's success in cost control and product mix optimization.
- Market Expansion Opportunities: Significant progress was noted in the PC and automotive markets, particularly with strong OEM interest in AI-driven voice interface products, which are expected to provide momentum for future revenue growth.
- Strategic Investment and Buybacks: Cirrus Logic repurchased approximately 591,000 shares for $70 million in Q3, with total cash and investments reaching $1.08 billion, reflecting a proactive approach to capital management and shareholder returns.
See More
Cirrus Logic Exceeds Q3 Expectations Driven by Smartphone Demand
- Strong Apple Demand: Cirrus Logic reported Q3 revenue from Apple at $546 million, reflecting an 8% increase both quarter-over-quarter and year-over-year, which constituted 94% of total revenue, showcasing improved iPhone unit volumes and mix, leading to a 14% surge in stock price during early trading.
- Doubling PC Revenue: Analysts noted that Cirrus Logic's PC-related revenue is expected to double in fiscal 2026, with management highlighting multiple new device launches and AI PC products currently sampling, which are projected to ramp revenue growth in 2027, enhancing competitive positioning.
- Automotive Market Opportunity: Benchmark analysts pointed out significant long-term opportunities for Cirrus Logic in the automotive sector, as the market shifts from centralized transducer designs to Ethernet-based distributed systems, aligning well with the company's portfolio and promising multi-year growth potential.
- Accelerated Design Activity: Stifel analysts mentioned that design activity across Cirrus Logic's PC portfolio is accelerating, with the latest-generation amplifiers and codecs being ramped up in mainstream platforms, while management has begun sampling new components to enhance voice and audio capture capabilities, addressing the rise of AI-enabled PCs.
See More
Cirrus Logic Reports Strong Q3 Earnings and Upbeat Guidance
- Earnings Beat: Cirrus Logic reported Q3 earnings of $2.97 per share, surpassing analyst expectations of $2.44, indicating a robust improvement in profitability that strengthens market confidence in its financial health.
- Sales Growth: The company achieved quarterly sales of $580.62 million, exceeding the analyst consensus of $533.89 million, reflecting strong demand for smartphone components that drove overall performance.
- Optimistic Sales Guidance: Cirrus Logic projects Q4 sales between $410 million and $470 million, significantly above market estimates of $384.29 million, indicating confidence in future demand and a positive market outlook.
- Analyst Target Upgrades: Analysts from Benchmark and Stifel maintained a 'Buy' rating on Cirrus Logic, raising their price targets from $150 to $160 and $163 respectively, reflecting a positive outlook on the company's future performance.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Updates: Top Wall Street analysts have adjusted their ratings on several companies, reflecting the latest market perspectives, although specific company names and rating changes were not detailed.
- Market Reaction Insight: Investors considering buying WDC stock may find analysts' opinions influential in their decision-making, especially in the current market environment where rating changes can trigger stock price fluctuations.
- Impact of Rating Changes: Upgrades and downgrades from analysts typically have a direct effect on a stock's short-term performance, prompting investors to closely monitor these changes to optimize their investment strategies.
- Transparent Information Source: Benzinga provides comprehensive information on analyst rating changes, and while specific ratings were not disclosed, investors can still access more details through their analyst ratings page.
See More
Cirrus Logic Reports Q3 Earnings Beat Expectations
- Earnings Beat: Cirrus Logic reported a non-GAAP EPS of $2.97 for Q3, exceeding expectations by $0.53, which reflects the company's strong profitability and is likely to boost investor confidence moving forward.
- Revenue Growth: The company achieved revenue of $580.6 million, a 4.5% year-over-year increase, surpassing estimates by $46.08 million, indicating robust growth amid recovering market demand and enhancing its competitive position.
- Stock Price Surge: Following the positive earnings report, Cirrus Logic's shares rose by 10.48%, reflecting investor optimism about the company's future growth potential and possibly attracting more institutional investors.
- Operating Expense Guidance: For Q4, Cirrus Logic expects GAAP operating expenses to range from $147 million to $153 million, while non-GAAP operating expenses, after adjusting for stock-based compensation and amortization of acquisition intangibles, are projected to be between $124 million and $130 million, demonstrating the company's focus on cost management.
See More
Cirrus Logic Set to Announce Q3 Earnings on February 3rd
- Earnings Announcement: Cirrus Logic (CRUS) is set to announce its Q3 earnings on February 3rd after market close, with consensus EPS estimate at $2.44, reflecting a 13.8% year-over-year decline, and revenue estimate at $534.52 million, down 4.7% year-over-year, indicating potential market challenges ahead.
- Strong Historical Performance: Over the past two years, Cirrus Logic has consistently beaten both EPS and revenue estimates 100% of the time, showcasing the company's robust financial stability and market confidence, which may positively influence investor sentiment.
- Estimate Revisions: In the last three months, EPS estimates have seen seven upward revisions and no downward adjustments, while revenue estimates experienced five upward revisions and one downward, indicating growing market confidence in Cirrus Logic's future performance, potentially attracting more investor interest.
- Market Environment Impact: Despite Cirrus Logic's strong historical financial performance, analysts have noted that the memory supply crunch could impact the PC, smartphone, and automotive markets, introducing uncertainty into the company's future performance, prompting investors to carefully assess risk versus reward.
See More
