Cirrus Logic (CRU) AI Stock Analysis

Cirrus Logic

(BX Swiss:CRU)

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Positive Factors

Strong profitability and cash generationHigh margins and substantial free cash flow indicate strong earnings quality and a business model capable of funding product development internally. This financial strength provides resilience through semiconductor cycles and supports continued investment, buybacks, and strategic expansion.

Negative Factors

High customer concentrationDependence on a major customer leaves revenue exposed to that customer’s product cycles, component decisions, and shipment volumes. A change in one relationship could therefore have an outsized effect on sales, utilization, and profitability, increasing business volatility over the medium term.

Cirrus Logic Business Overview & Revenue Model

Company Description

Cirrus Logic, Inc. (CRUS) is a semiconductor design firm that doesn't operate its own manufacturing plants. It specializes in crafting energy-efficient and highly accurate mixed-signal processing solutions for a worldwide customer base. The company's...

Cirrus Logic Earnings Call Summary

Earnings Call Date:Aug 04, 2026(Q1-2027)|Next Earnings Date:Nov 03, 2026

Earnings Call SentimentPositive

The call presented multiple strong operational and financial highlights: record revenue and non‑GAAP EPS, healthy margins, a $1.2B cash position with no debt, active buybacks, a robust HPMS product pipeline, new product tape‑outs for smart meters, and a secured wafer supply agreement with GlobalFoundries. Offsetting these positives were timing headwinds in the PC business (supply constraints, memory shortages and OEM delays), sequential margin pressure related to anticipated pricing reductions and supply costs, a sequential inventory build (~110 days), and near‑term increases in OpEx as the company invests in R&D and supply‑chain tooling. Management framed many lowlights as timing or investment‑related rather than structural problems and provided constructive guidance for the next quarter. Overall, the positives — record results, strong cash and pipeline, and strategic supply agreements — appear to materially outweigh the transitory and timing challenges discussed.

Positive Updates

Record Quarterly Revenue and Year-over-Year Growth

Reported record Q1 (June quarter) revenue of $460.0M, up 2% sequentially and 13% year-over-year, in line with the midpoint of guidance.

Negative Updates

Near-Term Weakness and Timing Delay in PC Business

Reduced expectations for the PC business this fiscal year due to three timing-related factors: constrained supply of a key industry platform, memory and component shortages with pricing pressure, and OEMs delaying new model introductions—pushing out higher‑content, higher‑volume designs.

Company Guidance

Guidance for Q2 fiscal 2027 calls for revenue of $510–$570 million, GAAP gross margin of 52%–54% (with a temporary benefit from a tranche of favorably priced wafers expected to largely sell through in Q2), non‑GAAP operating expense of $140–$146 million, and a fiscal‑year non‑GAAP effective tax rate of 16%–18%; management also reiterated that full‑year non‑GAAP OpEx will increase as it ramps R&D investment. For context, Cirrus delivered a record Q1 with revenue of $460M, GAAP EPS $1.47 and non‑GAAP EPS $1.84, non‑GAAP gross profit $242.1M (52.7% margin), non‑GAAP OpEx $135.4M, non‑GAAP operating income $106.7M (23.2% of revenue), non‑GAAP net income $96.1M and a Q1 non‑GAAP tax rate of 17.4%; balance sheet and cash metrics included $1.2B cash & investments, $262.7M inventory (~110 days), Q1 cash from operations $64.1M, CapEx $15.5M, Q1 non‑GAAP FCF margin 11% (TTM 28%), and $239.6M remaining on the buyback authorization after ~$85M of repurchases.

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.

Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

0 New Risks

Cirrus Logic Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

CH:CRU against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLAB	65Neutral	$7.42B	-188.28	-3.59%	―	21.71%	63.22%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SWKS	61Neutral	$20.60B	45.14	5.04%	3.24%	0.06%	-22.93%
SYNA	59Neutral	$4.68B	-9.34	-38.70%	―	11.44%	-940.34%
MXL	50Neutral	$6.14B	-192.77	-6.11%	―	56.02%	83.39%

* Technology Sector Average

Performance Comparison

CH:CRU and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MXL	Maxlinear	67.47	51.85	331.95%
SLAB	Silicon Laboratories	222.45	94.49	73.84%
SWKS	Skyworks Solutions	87.58	12.80	17.12%
SYNA	Synaptics	117.86	46.84	65.95%

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.

Cirrus Logic AI Stock Analysis