Cirrus Logic (NASDAQ: CRUS) delivers record FY26 results and adds $350M credit line
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Cirrus Logic, Inc. entered a third amended and restated credit agreement providing a $350 million senior secured revolving credit facility maturing on May 4, 2031, with covenants including a maximum consolidated net leverage ratio of 3.50x and minimum interest coverage of 3.00x.
The company also reported record FY26 revenue of $2.0 billion, up 5% year over year, with GAAP EPS of $7.85 and non-GAAP EPS of $9.26. Q4 FY26 revenue was $448.5 million, GAAP EPS $1.56, and non-GAAP EPS $1.95. FY26 free cash flow reached $635.8 million, and cash and investments were about $1.2 billion with no debt, after $280.0 million in share repurchases. For Q1 FY27, Cirrus Logic guides revenue between $430 million and $490 million, gross margin of 51–53%, and non-GAAP operating expenses of $132–138 million.
Positive
- Record FY26 performance: Revenue reached $1.997 billion (up 5% year over year) with GAAP EPS of $7.85 and non-GAAP EPS of $9.26, reflecting stronger profitability.
- Strong cash generation and balance sheet: FY26 free cash flow was $635.8 million (32% margin), cash and investments were about $1.2 billion, and the company ended the year with no debt.
- Capital returns to shareholders: Cirrus Logic repurchased 2.5 million shares for $280.0 million in FY26, including $70.0 million in Q4 FY26, while maintaining substantial liquidity.
- Added financial flexibility: A new third amended and restated credit agreement provides a $350 million senior secured revolving credit facility maturing in 2031, expanding committed funding options.
Negative
- High customer concentration: One customer accounted for approximately 91% of total revenue in FY26 and 92% in Q4 FY26, exposing results to changes in that customer’s demand or purchasing behavior.
Insights
Record FY26 earnings, strong cash, new $350M revolver and solid Q1 FY27 outlook.
Cirrus Logic delivered FY26 revenue of $1.997B, up 5%, with GAAP EPS of $7.85 and non-GAAP EPS of $9.26, reflecting strong operating leverage and healthy gross margins around the low‑50% range.
Cash generation was robust: FY26 free cash flow was $635.8M, or a 32% margin, lifting cash and investments to roughly $1.2B and funding $280.0M of share repurchases while ending with no debt. A new $350M revolving credit facility adds committed liquidity and financial flexibility, subject to covenants such as a 3.50x consolidated net leverage cap and 3.00x minimum interest coverage.
Customer concentration remains high, with one customer contributing about 91% of FY26 revenue, which is a structural risk if demand or terms change. For Q1 FY27, guidance for revenue of $430–490M and gross margin of 51–53%, alongside non-GAAP opex of $132–138M, suggests continued solid profitability as the company invests more in R&D to support its audio, HPMS, PC and diversified end‑market roadmap.
8-K Event Classification
5 items: 1.01, 2.02, 2.03, 7.01, 9.01
5 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
FY26 Revenue: $1.997B
FY26 GAAP EPS: $7.85
FY26 Non-GAAP EPS: $9.26
+5 more
8 metrics
FY26 Revenue
$1.997B
Full fiscal year 2026 net sales, up 5% year over year
FY26 GAAP EPS
$7.85
Full fiscal year 2026 diluted earnings per share
FY26 Non-GAAP EPS
$9.26
Full fiscal year 2026 non-GAAP diluted earnings per share
Q4 FY26 Revenue
$448.5M
Quarter ended March 28, 2026 net sales
FY26 Free Cash Flow
$635.8M
Full fiscal year 2026 free cash flow (non-GAAP)
Share Repurchases FY26
$280.0M
Cash returned via buybacks; 2.5M shares at $113.91 average
Revolving Credit Facility
$350M
Senior secured revolving credit facility maturing May 4, 2031
Customer Concentration
91%
Portion of FY26 revenue from single largest customer
Key Terms
Revolving Credit Facility, Consolidated Net Leverage Ratio, Consolidated Interest Coverage Ratio, free cash flow margin, +1 more
5 terms
Revolving Credit Facility financial
"The Third Amended Credit Agreement provides for a $350 million senior secured revolving credit facility"
A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
Consolidated Net Leverage Ratio financial
"the ratio of consolidated funded indebtedness ... to consolidated EBITDA ... must not be greater than 3.50 to 1.00 (the “Consolidated Net Leverage Ratio”)"
The consolidated net leverage ratio measures how much debt a company carries compared with the cash it generates from core operations, calculated by taking total borrowings minus cash and dividing by annual operating profit. Like comparing a household’s mortgage balance to its yearly income, it tells investors how many years of operating profit would be needed to pay off net debt and thus gauges financial risk, flexibility to invest, and capacity to weather downturns.
Consolidated Interest Coverage Ratio financial
"the ratio of consolidated EBITDA ... to consolidated interest expense ... must not be less than 3.00 to 1.00 (the “Consolidated Interest Coverage Ratio”)"
A consolidated interest coverage ratio measures how easily a company and all its subsidiaries can pay the interest on their debt from their operating profits. It divides the group’s operating profit (earnings before interest and taxes) by the interest expenses; a higher number is like having more months of income set aside to cover loan payments, which matters to investors because it signals financial stability and lower default risk.
free cash flow margin financial
"Free cash flow margin represents free cash flow divided by revenue."
Free cash flow margin is a measure of how much cash a company generates relative to its sales, showing the percentage of revenue that remains after covering operating expenses and investments in growth. It indicates how efficiently a company turns its sales into available cash that can be used for things like paying dividends, reducing debt, or expanding the business. A higher margin suggests better financial health and more flexibility to invest or return value to shareholders.
non-GAAP operating profit financial
"GAAP and non-GAAP operating profit for the full fiscal year were 23.0 percent and 27.5 percent, respectively."
Non-GAAP operating profit is a company’s operating earnings after removing or adjusting items that management considers unusual, one-time, or not part of regular operations (for example, restructuring costs or stock-based pay). Investors use it like a cleaned-up scorecard to see the company’s core business performance without temporary noise, but because the adjustments aren’t standardized, it’s best compared across peers with caution.
Earnings Snapshot
Q4 FY26 Revenue: $448.5M · Guidance included
Q4 FY26 and FY26
Q4 FY26 Revenue
$448.5M
+6% YoY
FY26 Revenue
$1.997B
+5% YoY
FY26 GAAP EPS
$7.85
increase vs. $6.00 prior year
FY26 Non-GAAP EPS
$9.26
+23% YoY
Guidance
For Q1 FY27, revenue is guided to $430–490M, GAAP gross margin to 51–53%, and non-GAAP operating expenses to $132–138M.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): May 4, 2026
Commission File Number
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01 Entry into a Material Definitive Agreement.
Third Amended and Restated Credit Agreement
On May 4, 2026, Cirrus Logic, Inc. ("Cirrus Logic" or the "Company") entered into a third amended and restated credit agreement (the “Third Amended Credit Agreement”) with Wells Fargo Bank, National Association, as Administrative Agent, and the Lenders party thereto. Capitalized terms used and not defined in this section of Item 1.01 have the meanings given to such terms in the Third Amended Credit Agreement. The Third Amended Credit Agreement provides for a $350 million senior secured revolving credit facility (the “Revolving Credit Facility”). The Revolving Credit Facility matures on May 4, 2031 (the “Maturity Date”). Cirrus Logic must repay any outstanding principal amount of all borrowings, together with all accrued but unpaid interest thereon, on the Maturity Date.
The Revolving Credit Facility is required to be guaranteed by all of Cirrus Logic’s material domestic subsidiaries (the "Subsidiary Guarantors"). The Revolving Credit Facility is secured by substantially all the assets of Cirrus Logic and any Subsidiary Guarantors, except for certain excluded assets. Borrowings under the Revolving Credit Facility may, at Cirrus Logic’s election, bear interest at either (a) a Base Rate plus the Applicable Margin ("Base Rate Loans") or (b) Term SOFR plus the Applicable Margin ("SOFR Rate Loans"). The Applicable Margin ranges from 0% to 0.75% per annum for Base Rate Loans and 1.00% to 1.75% per annum for SOFR Loans based on the ratio of consolidated funded indebtedness to consolidated EBITDA for the most recently ended period of four consecutive fiscal quarters (the “Consolidated Leverage Ratio”).
A Commitment Fee accrues at a rate per annum ranging from 0.175% to 0.275% (based on the Consolidated Leverage Ratio) on the average daily unused portion of the Commitment of the Lenders.
The Third Amended Credit Agreement contains customary affirmative covenants, including, among others, covenants regarding the payment of taxes and other obligations, maintenance of insurance, reporting requirements, and compliance with applicable laws and regulations. Further, the Third Amended Credit Agreement contains customary negative covenants limiting the ability of Cirrus Logic or any Subsidiary to, among other things, incur debt, grant liens, make investments, effect certain fundamental changes, make certain asset dispositions, and make certain restricted payments. The Revolving Credit Facility also contains certain financial covenants providing that (a) the ratio of consolidated funded indebtedness (minus up to $300 million of unrestricted cash and cash equivalents available on such date) to consolidated EBITDA for the prior four consecutive quarters must not be greater than 3.50 to 1.00 (the “Consolidated Net Leverage Ratio”) and (b) the ratio of consolidated EBITDA for the prior four consecutive quarters to consolidated interest expense paid or payable in cash for the prior four consecutive quarters must not be less than 3.00 to 1.00 (the “Consolidated Interest Coverage Ratio”).
The foregoing summary of the Third Amended Credit Agreement and the transactions contemplated thereby does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Third Amended Credit Agreement, which is attached as Exhibit 10.1 to this Current Report on Form 8-K, and such exhibit is incorporated herein by reference.
Item 2.02 Results of Operations and Financial Condition.
On May 6, 2026, Cirrus Logic issued a press release announcing its financial results for its fourth quarter and full fiscal year 2026. The full text of the press release is furnished as Exhibit No. 99.1 to this Current Report on Form 8-K.
Item 2.03 Creation of a Direct Financial Obligation or Obligation under an Off Balance Sheet Arrangement of a Registrant.
On May 4, 2026, Cirrus Logic entered into the Third Amended Credit Agreement as described under Item 1.01 above. The description of the Amended Credit Agreement under Item 1.01 above is incorporated into this Item 2.03 by reference.
Item 7.01 Regulation FD Disclosure
On May 6, 2026, in addition to issuing a press release, the Company posted on its website a shareholder letter to investors summarizing the financial results for its fourth quarter and full fiscal year 2026. The full text of the shareholder letter is furnished as Exhibit No. 99.2 to this Current Report on Form 8-K.
Use of Non-GAAP Financial Information
To supplement Cirrus Logic's financial statements presented on a GAAP basis, Cirrus has provided non-GAAP financial information, including non-GAAP net income, diluted earnings per share, diluted share count, operating income and profit, operating expenses, gross margin and profit, tax expense, tax expense impact on earnings per share, effective tax rate, free cash flow and free cash flow margin. A reconciliation of the adjustments to GAAP results is included in the press release below. Non-GAAP financial information is not meant as a substitute for GAAP results, but is included because management believes such information is useful to our investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. The non-GAAP financial information used by Cirrus Logic may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP.
The information contained in Items 2.02, 7.01, and 9.01 in this Current Report on Form 8-K and the exhibits furnished hereto contain forward-looking statements regarding the Company and cautionary statements identifying important factors that could cause actual results to differ materially from those anticipated. In addition, this information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Description
Exhibit 10.1 Third Amended and Restated Credit Agreement, entered into May 4, 2026, among Cirrus Logic, Inc., the Lenders party thereto and Wells Fargo Bank, National Association, as a Lender and Administrative Agent
Exhibit 99.1 Cirrus Logic, Inc. press release dated May 6, 2026
Exhibit 99.2 Cirrus Logic, Inc. shareholder letter dated May 6, 2026
Exhibit 104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| CIRRUS LOGIC, INC. | |||||||||||||||||
| Date: | May 6, 2026 | By: | /s/ Jeff Woolard | ||||||||||||||
| Name: | Jeff Woolard | ||||||||||||||||
| Title: | Chief Financial Officer | ||||||||||||||||
Exhibit 99.1
FINANCIAL NEWS
Cirrus Logic Reports Fourth Quarter Revenue of $448.5 Million and Record Full Fiscal Year 2026 Revenue of $2.0 Billion
AUSTIN, Texas – May 6, 2026 – Cirrus Logic, Inc. (NASDAQ: CRUS) today posted on its website at investor.cirrus.com the quarterly shareholder letter that contains the complete financial results for the fourth quarter and full fiscal year 2026, which ended March 28, 2026, as well as the company’s current business outlook.
“Cirrus Logic delivered record revenue and earnings per share in FY26, primarily driven by demand for our components shipping into smartphones, as well as higher PC sales. We are proud of our accomplishments this past year, especially the meaningful progress we made on our strategy to drive application and market diversification,” said John Forsyth, Cirrus Logic president and chief executive officer. “In smartphones, we began developing next-generation camera controllers and a smart power IC, which represents an exciting new application space for the company. We also gained momentum beyond smartphones, delivering strong year-over-year revenue growth in our PC business and expanding our general market product portfolio. With a consistent track record of execution, and an exceptional range of opportunities ahead of us, we believe the business is well positioned for long-term growth.”
Reported Financial Results – Fourth Quarter FY26
•Revenue of $448.5 million;
•GAAP and non-GAAP gross margin of 53.0 percent;
•GAAP operating expenses of $147.3 million and non-GAAP operating expenses of $126.1 million; and
•GAAP earnings per share of $1.56 and non-GAAP earnings per share of $1.95.
Reported Financial Results – Full Fiscal Year 2026
•Revenue of $2.0 billion;
•GAAP and non-GAAP gross margin of 52.8 percent;
•GAAP operating expenses of $593.8 million and non-GAAP operating expenses of $506.4 million; and
•GAAP earnings per share of $7.85 and non-GAAP earnings per share of $9.26.
A reconciliation of GAAP to non-GAAP financial information is included in the tables accompanying this press release.
Business Outlook – First Quarter FY27
•Revenue is expected to range between $430 million and $490 million;
•GAAP gross margin is forecasted to be between 51 percent and 53 percent; and
•Combined GAAP R&D and SG&A expenses are anticipated to range between $155 million and $161 million, including approximately $21 million in stock-based compensation expense and $2 million in amortization of acquired intangibles, resulting in a non-GAAP operating expense range between $132 million and $138 million.
Cirrus Logic will host a live Q&A session at 5 p.m. ET today to discuss its financial results and business outlook. Participants may listen to the conference call on the investor relations website at investor.cirrus.com. A replay of the webcast can be accessed on the Cirrus Logic website.
About Cirrus Logic, Inc.
Cirrus Logic is a leader in low-power, high-precision mixed-signal processing solutions that create innovative user experiences for the world’s top mobile and consumer applications. With headquarters in Austin, Texas, Cirrus Logic is recognized globally for its award-winning corporate culture.
Cirrus Logic, Cirrus and the Cirrus Logic logo are registered trademarks of Cirrus Logic, Inc. All other company or product names noted herein may be trademarks of their respective holders.
Investor Contact:
Chelsea Heffernan
Vice President, Investor Relations
Cirrus Logic, Inc.
(512) 851-4125
Investor@cirrus.com
2
Use of non-GAAP Financial Information
To supplement Cirrus Logic's financial statements presented on a GAAP basis, the company has provided non-GAAP financial information, including non-GAAP net income, diluted earnings per share, operating income and profit, operating expenses, gross margin and profit, tax expense, tax expense impact on earnings per share, effective tax rate, free cash flow, and free cash flow margin. A reconciliation of the adjustments to GAAP results is included in the tables below. Non-GAAP financial information is not meant as a substitute for GAAP results but is included because management believes such information is useful to our investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. The non-GAAP financial information used by Cirrus Logic may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP.
Safe Harbor Statement
Except for historical information contained herein, the matters set forth in this news release contain forward-looking statements including our statement about our ability to capitalize on the exceptional range of opportunities ahead of us and drive long-term growth;and our estimates for the first quarter fiscal year 2027 revenue, gross margin, combined research and development and selling, general and administrative expense levels, stock-based compensation expense, and amortization of acquired intangibles. In some cases, forward-looking statements are identified by words such as “expect,” “anticipate,” “target,” “project,” “believe,” “goals,” “opportunity,” “estimates,” “intend,” and variations of these types of words and similar expressions. In addition, any statements that refer to our plans, expectations, strategies, or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are based on our current expectations, estimates, and assumptions and are subject to certain risks and uncertainties that could cause actual results to differ materially, and readers should not place undue reliance on such statements. These risks and uncertainties include, but are not limited to, the following: the level and timing of orders and shipments during the first quarter of fiscal year 2027; customer cancellations of orders; the failure to place orders consistent with forecasts; changes in government trade policies, including the imposition of tariffs or export restrictions; and global economic conditions and uncertainty, along with the risk factors listed in our Form 10-K for the year ended March 29, 2025 and in our other filings with the Securities and Exchange Commission, which are available at www.sec.gov. The foregoing information concerning our business outlook represents our outlook as of the date of this news release, and we expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise, unless required by law.
3
Summary Financial Data Follows:
| CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS | |||||||||||||||||||||||||||||
| (in thousands, except per share data; unaudited) | |||||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||
| Mar. 28, | Dec. 27, | Mar. 29, | Mar. 28, | Mar. 29, | |||||||||||||||||||||||||
| 2026 | 2025 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||
| Q4'26 | Q3'26 | Q4'25 | Q4'26 | Q4'25 | |||||||||||||||||||||||||
| Audio | $ | 257,220 | $ | 344,455 | $ | 255,326 | $ | 1,159,933 | $ | 1,137,157 | |||||||||||||||||||
| High-Performance Mixed-Signal | 191,303 | 236,169 | 169,130 | 837,446 | 758,920 | ||||||||||||||||||||||||
| Net sales | 448,523 | 580,624 | 424,456 | 1,997,379 | 1,896,077 | ||||||||||||||||||||||||
| Cost of sales | 210,881 | 272,498 | 197,720 | 943,207 | 900,039 | ||||||||||||||||||||||||
| Gross profit | 237,642 | 308,126 | 226,736 | 1,054,172 | 996,038 | ||||||||||||||||||||||||
| Gross margin | 53.0 | % | 53.1 | % | 53.4 | % | 52.8 | % | 52.5 | % | |||||||||||||||||||
| Research and development | 107,487 | 113,553 | 103,420 | 433,953 | 434,684 | ||||||||||||||||||||||||
| Selling, general and administrative | 39,860 | 41,646 | 37,370 | 159,839 | 150,995 | ||||||||||||||||||||||||
| Total operating expenses | 147,347 | 155,199 | 140,790 | 593,792 | 585,679 | ||||||||||||||||||||||||
| Income from operations | 90,295 | 152,927 | 85,946 | 460,380 | 410,359 | ||||||||||||||||||||||||
| Interest income | 10,248 | 9,276 | 8,604 | 36,841 | 33,086 | ||||||||||||||||||||||||
| Other income (expense) | (282) | 246 | 55 | (487) | 1,469 | ||||||||||||||||||||||||
| Income before income taxes | 100,261 | 162,449 | 94,605 | 496,734 | 444,914 | ||||||||||||||||||||||||
| Provision for income taxes | 18,456 | 22,139 | 23,338 | 82,326 | 113,407 | ||||||||||||||||||||||||
| Net income | $ | 81,805 | $ | 140,310 | $ | 71,267 | $ | 414,408 | $ | 331,507 | |||||||||||||||||||
| Basic earnings per share | $ | 1.61 | $ | 2.75 | $ | 1.35 | $ | 8.10 | $ | 6.24 | |||||||||||||||||||
| Diluted earnings per share: | $ | 1.56 | $ | 2.66 | $ | 1.31 | $ | 7.85 | $ | 6.00 | |||||||||||||||||||
| Weighted average number of shares: | |||||||||||||||||||||||||||||
| Basic | 50,822 | 51,037 | 52,756 | 51,137 | 53,135 | ||||||||||||||||||||||||
| Diluted | 52,369 | 52,698 | 54,324 | 52,822 | 55,241 | ||||||||||||||||||||||||
| Prepared in accordance with Generally Accepted Accounting Principles | |||||||||||||||||||||||||||||
4
| RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||||
| (in thousands, except per share data; unaudited) | ||||||||||||||||||||||||||||||||
| (not prepared in accordance with GAAP) | ||||||||||||||||||||||||||||||||
| Non-GAAP financial information is not meant as a substitute for GAAP results, but is included because management believes such information is useful to our investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. As a note, the non-GAAP financial information used by Cirrus Logic may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP. | ||||||||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
| Mar. 28, | Dec. 27, | Mar. 29, | Mar. 28, | Mar. 29, | ||||||||||||||||||||||||||||
| 2026 | 2025 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||
| Net Income Reconciliation | Q4'26 | Q3'26 | Q4'25 | Q4'26 | Q4'25 | |||||||||||||||||||||||||||
| GAAP Net Income | $ | 81,805 | $ | 140,310 | $ | 71,267 | $ | 414,408 | $ | 331,507 | ||||||||||||||||||||||
| Amortization of acquisition intangibles | 1,647 | 1,648 | 1,647 | 6,590 | 7,130 | |||||||||||||||||||||||||||
| Stock-based compensation expense | 19,847 | 20,558 | 19,491 | 81,811 | 84,146 | |||||||||||||||||||||||||||
| Lease impairment | — | — | — | — | 1,680 | |||||||||||||||||||||||||||
| Adjustment to income taxes | (1,020) | (5,818) | (1,772) | (13,538) | (7,866) | |||||||||||||||||||||||||||
| Non-GAAP Net Income | $ | 102,279 | $ | 156,698 | $ | 90,633 | $ | 489,271 | $ | 416,597 | ||||||||||||||||||||||
| Earnings Per Share Reconciliation | ||||||||||||||||||||||||||||||||
| GAAP Diluted earnings per share | $ | 1.56 | $ | 2.66 | $ | 1.31 | $ | 7.85 | $ | 6.00 | ||||||||||||||||||||||
| Effect of Amortization of acquisition intangibles | 0.03 | 0.03 | 0.03 | 0.12 | 0.13 | |||||||||||||||||||||||||||
| Effect of Stock-based compensation expense | 0.38 | 0.39 | 0.36 | 1.55 | 1.52 | |||||||||||||||||||||||||||
| Effect of Lease impairment | — | — | — | — | 0.03 | |||||||||||||||||||||||||||
| Effect of Adjustment to income taxes | (0.02) | (0.11) | (0.03) | (0.26) | (0.14) | |||||||||||||||||||||||||||
| Non-GAAP Diluted earnings per share | $ | 1.95 | $ | 2.97 | $ | 1.67 | $ | 9.26 | $ | 7.54 | ||||||||||||||||||||||
| Operating Income Reconciliation | ||||||||||||||||||||||||||||||||
| GAAP Operating Income | $ | 90,295 | $ | 152,927 | $ | 85,946 | $ | 460,380 | $ | 410,359 | ||||||||||||||||||||||
| GAAP Operating Profit | 20.1 | % | 26.3 | % | 20.2 | % | 23.0 | % | 21.6 | % | ||||||||||||||||||||||
| Amortization of acquisition intangibles | 1,647 | 1,648 | 1,647 | 6,590 | 7,130 | |||||||||||||||||||||||||||
| Stock-based compensation expense - COGS | 289 | 24 | 360 | 976 | 1,332 | |||||||||||||||||||||||||||
| Stock-based compensation expense - R&D | 12,327 | 13,280 | 13,079 | 51,698 | 59,184 | |||||||||||||||||||||||||||
| Stock-based compensation expense - SG&A | 7,231 | 7,254 | 6,052 | 29,137 | 23,630 | |||||||||||||||||||||||||||
| Lease impairment | — | — | — | — | 1,680 | |||||||||||||||||||||||||||
| Non-GAAP Operating Income | $ | 111,789 | $ | 175,133 | $ | 107,084 | $ | 548,781 | $ | 503,315 | ||||||||||||||||||||||
| Non-GAAP Operating Profit | 24.9 | % | 30.2 | % | 25.2 | % | 27.5 | % | 26.5 | % | ||||||||||||||||||||||
| Operating Expense Reconciliation | ||||||||||||||||||||||||||||||||
| GAAP Operating Expenses | $ | 147,347 | $ | 155,199 | $ | 140,790 | $ | 593,792 | $ | 585,679 | ||||||||||||||||||||||
| Amortization of acquisition intangibles | (1,647) | (1,648) | (1,647) | (6,590) | (7,130) | |||||||||||||||||||||||||||
| Stock-based compensation expense - R&D | (12,327) | (13,280) | (13,079) | (51,698) | (59,184) | |||||||||||||||||||||||||||
| Stock-based compensation expense - SG&A | (7,231) | (7,254) | (6,052) | (29,137) | (23,630) | |||||||||||||||||||||||||||
| Lease impairment | — | — | — | — | (1,680) | |||||||||||||||||||||||||||
| Non-GAAP Operating Expenses | $ | 126,142 | $ | 133,017 | $ | 120,012 | $ | 506,367 | $ | 494,055 | ||||||||||||||||||||||
| Gross Margin/Profit Reconciliation | ||||||||||||||||||||||||||||||||
| GAAP Gross Profit | $ | 237,642 | $ | 308,126 | $ | 226,736 | $ | 1,054,172 | $ | 996,038 | ||||||||||||||||||||||
| GAAP Gross Margin | 53.0 | % | 53.1 | % | 53.4 | % | 52.8 | % | 52.5 | % | ||||||||||||||||||||||
| Stock-based compensation expense - COGS | 289 | 24 | 360 | 976 | 1,332 | |||||||||||||||||||||||||||
| Non-GAAP Gross Profit | $ | 237,931 | $ | 308,150 | $ | 227,096 | $ | 1,055,148 | $ | 997,370 | ||||||||||||||||||||||
| Non-GAAP Gross Margin | 53.0 | % | 53.1 | % | 53.5 | % | 52.8 | % | 52.6 | % | ||||||||||||||||||||||
| Effective Tax Rate Reconciliation | ||||||||||||||||||||||||||||||||
| GAAP Tax Expense | $ | 18,456 | $ | 22,139 | $ | 23,338 | $ | 82,326 | $ | 113,407 | ||||||||||||||||||||||
| GAAP Effective Tax Rate | 18.4 | % | 13.6 | % | 24.7 | % | 16.6 | % | 25.5 | % | ||||||||||||||||||||||
| Adjustments to income taxes | 1,020 | 5,818 | 1,772 | 13,538 | 7,866 | |||||||||||||||||||||||||||
| Non-GAAP Tax Expense | $ | 19,476 | $ | 27,957 | $ | 25,110 | $ | 95,864 | $ | 121,273 | ||||||||||||||||||||||
| Non-GAAP Effective Tax Rate | 16.0 | % | 15.1 | % | 21.7 | % | 16.4 | % | 22.5 | % | ||||||||||||||||||||||
| Tax Impact to EPS Reconciliation | ||||||||||||||||||||||||||||||||
| GAAP Tax Expense | $ | 0.35 | $ | 0.42 | $ | 0.43 | $ | 1.56 | $ | 2.05 | ||||||||||||||||||||||
| Adjustments to income taxes | 0.02 | 0.11 | 0.03 | 0.26 | 0.14 | |||||||||||||||||||||||||||
| Non-GAAP Tax Expense | $ | 0.37 | $ | 0.53 | $ | 0.46 | $ | 1.82 | $ | 2.19 | ||||||||||||||||||||||
5
| CONSOLIDATED CONDENSED BALANCE SHEET | ||||||||||||||||||||
| (in thousands; unaudited) | ||||||||||||||||||||
| Mar. 28, | Dec. 27, | Mar. 29, | ||||||||||||||||||
| 2026 | 2025 | 2025 | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 800,930 | $ | 778,083 | $ | 539,620 | ||||||||||||||
| Marketable securities | 86,697 | 44,280 | 56,160 | |||||||||||||||||
| Accounts receivable, net | 220,149 | 278,989 | 216,009 | |||||||||||||||||
| Inventories | 240,871 | 189,483 | 299,092 | |||||||||||||||||
Prepaid assets | 47,587 | 54,373 | 48,236 | |||||||||||||||||
| Prepaid wafers | 14,733 | 32,873 | 52,560 | |||||||||||||||||
| Other current assets | 22,741 | 31,268 | 28,057 | |||||||||||||||||
| Total current Assets | 1,433,708 | 1,409,349 | 1,239,734 | |||||||||||||||||
| Long-term marketable securities | 266,160 | 259,564 | 239,036 | |||||||||||||||||
| Right-of-use lease assets | 120,676 | 123,432 | 126,688 | |||||||||||||||||
| Property and equipment, net | 143,975 | 148,352 | 159,900 | |||||||||||||||||
| Intangibles, net | 20,727 | 22,619 | 27,461 | |||||||||||||||||
| Goodwill | 435,936 | 435,936 | 435,936 | |||||||||||||||||
| Deferred tax asset | 49,824 | 38,247 | 48,150 | |||||||||||||||||
| Long-term prepaid wafers | — | — | 15,512 | |||||||||||||||||
| Other assets | 18,368 | 19,021 | 34,656 | |||||||||||||||||
| Total assets | $ | 2,489,374 | $ | 2,456,520 | $ | 2,327,073 | ||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||
| Accounts payable | $ | 80,645 | $ | 68,863 | $ | 63,162 | ||||||||||||||
| Accrued salaries and benefits | 52,723 | 49,769 | 52,075 | |||||||||||||||||
Software license agreements | 22,229 | 26,803 | 26,745 | |||||||||||||||||
| Lease liability | 19,872 | 19,713 | 21,811 | |||||||||||||||||
| Other accrued liabilities | 19,187 | 19,043 | 31,395 | |||||||||||||||||
| Total current liabilities | 194,656 | 184,191 | 195,188 | |||||||||||||||||
| Non-current lease liability | 114,105 | 117,599 | 121,908 | |||||||||||||||||
| Non-current income taxes | 46,721 | 46,033 | 44,040 | |||||||||||||||||
| Other long-term liabilities | 5,896 | 5,468 | 16,488 | |||||||||||||||||
| Total long-term liabilities | 166,722 | 169,100 | 182,436 | |||||||||||||||||
| Stockholders' equity: | ||||||||||||||||||||
| Capital stock | 1,945,958 | 1,925,238 | 1,860,281 | |||||||||||||||||
| Accumulated earnings | 184,881 | 178,693 | 90,351 | |||||||||||||||||
| Accumulated other comprehensive loss | (2,843) | (702) | (1,183) | |||||||||||||||||
| Total stockholders' equity | 2,127,996 | 2,103,229 | 1,949,449 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,489,374 | $ | 2,456,520 | $ | 2,327,073 | ||||||||||||||
| Prepared in accordance with Generally Accepted Accounting Principles | ||||||||||||||||||||
6
| CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS | ||||||||||||||
| (in thousands; unaudited) | ||||||||||||||
| Three Months Ended | ||||||||||||||
| Mar. 28, | Mar. 29, | |||||||||||||
| 2026 | 2025 | |||||||||||||
| Q4'26 | Q4'25 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Net income | $ | 81,805 | $ | 71,267 | ||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 13,346 | 13,150 | ||||||||||||
| Stock-based compensation expense | 19,847 | 19,491 | ||||||||||||
| Deferred income taxes | (10,947) | (7,497) | ||||||||||||
| Loss on retirement or write-off of long-lived assets | — | 1 | ||||||||||||
| Other non-cash charges | (213) | (33) | ||||||||||||
| Net change in operating assets and liabilities: | ||||||||||||||
| Accounts receivable, net | 58,840 | 45,934 | ||||||||||||
| Inventories | (51,388) | (23,534) | ||||||||||||
| Prepaid wafers | 18,140 | 21,061 | ||||||||||||
| Other assets | 6,333 | 11,341 | ||||||||||||
| Accounts payable and other accrued liabilities | 10,080 | (17,937) | ||||||||||||
| Income taxes payable | 5,577 | (2,858) | ||||||||||||
| Net cash provided by operating activities | 151,420 | 130,386 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Maturities and sales of available-for-sale marketable securities | 34,158 | 9,392 | ||||||||||||
| Purchases of available-for-sale marketable securities | (86,172) | (13,322) | ||||||||||||
| Purchases of property, equipment and software | (2,396) | (3,429) | ||||||||||||
| Investments in technology | — | (5,752) | ||||||||||||
| Net cash used in investing activities | (54,410) | (13,111) | ||||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Issuance of common stock, net of shares withheld for taxes | 875 | — | ||||||||||||
| Repurchase of stock to satisfy employee tax withholding obligations | (5,038) | (4,099) | ||||||||||||
| Repurchase and retirement of common stock | (69,999) | (100,000) | ||||||||||||
| Net cash used in financing activities | (74,162) | (104,099) | ||||||||||||
| Net increase in cash and cash equivalents | 22,848 | 13,176 | ||||||||||||
| Cash and cash equivalents at beginning of period | 778,082 | 526,444 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 800,930 | $ | 539,620 | ||||||||||
| Prepared in accordance with Generally Accepted Accounting Principles | ||||||||||||||
7
| RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||||
| (in thousands; unaudited) | ||||||||||||||||||||||||||||||||
| Free cash flow, a non-GAAP financial measure, is GAAP cash flow from operations (or cash provided by operating activities) less capital expenditures. Capital expenditures include purchases of property, equipment and software as well as investments in technology, as presented within our GAAP Consolidated Condensed Statement of Cash Flows. Free cash flow margin represents free cash flow divided by revenue. | ||||||||||||||||||||||||||||||||
| Twelve Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||
| Mar. 28, | Mar. 28, | Dec. 27, | Sep. 27, | Jun. 28, | ||||||||||||||||||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | ||||||||||||||||||||||||||||
| Q4'26 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | ||||||||||||||||||||||||||||
| Net cash provided by operating activities (GAAP) | $ | 650,599 | $ | 151,420 | $ | 290,834 | $ | 92,214 | $ | 116,131 | ||||||||||||||||||||||
| Capital expenditures | (14,836) | (2,396) | (5,160) | (4,510) | (2,770) | |||||||||||||||||||||||||||
| Free Cash Flow (Non-GAAP) | $ | 635,763 | $ | 149,024 | $ | 285,674 | $ | 87,704 | $ | 113,361 | ||||||||||||||||||||||
| Cash Flow from Operations as a Percentage of Revenue (GAAP) | 33 | % | 34 | % | 50 | % | 16 | % | 29 | % | ||||||||||||||||||||||
| Capital Expenditures as a Percentage of Revenue (GAAP) | 1 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||||||||||||||
| Free Cash Flow Margin (Non-GAAP) | 32 | % | 33 | % | 49 | % | 16 | % | 28 | % | ||||||||||||||||||||||
8
| RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION | ||||||||
| (in millions; unaudited) | ||||||||
| (not prepared in accordance with GAAP) | ||||||||
| Q1 FY27 | ||||||||
| Guidance | ||||||||
| Operating Expense Reconciliation | ||||||||
| GAAP Operating Expenses | $155 - 161 | |||||||
| Stock-based compensation expense | (21) | |||||||
| Amortization of acquisition intangibles | (2) | |||||||
| Non-GAAP Operating Expenses | $132 - 138 | |||||||
9
Exhibit 99.2
Q4 and Full Fiscal Year 2026
Letter to Shareholders
May 6, 2026
May 6, 2026
Dear Shareholders,
Cirrus Logic reported record full fiscal year revenue of $2.0 billion for FY26. GAAP and non-GAAP operating profit for the full fiscal year were 23.0 percent and 27.5 percent, respectively. We also delivered record GAAP and non-GAAP earnings per share in FY26 of $7.85 and $9.26, respectively. Revenue increased five percent year-over-year, while non-GAAP earnings per share increased 23 percent. Q4 FY26 revenue was $448.5 million and GAAP and non-GAAP earnings per share were $1.56 and $1.95, respectively. Additionally, we returned $280.0 million to shareholders through share repurchases during the year. With an outstanding balance sheet that includes approximately $1.2 billion in cash and investments and no debt, we believe the company is well-positioned to pursue new opportunities that will support long-term value creation.
In FY26, we continued to execute on our three-pronged strategy to grow Cirrus Logic by maintaining our leadership in smartphone audio, increasing high-performance mixed-signal (HPMS) content in smartphones, and leveraging our audio and HPMS expertise and intellectual property to expand into additional applications and markets.
In smartphones, we experienced robust demand for our latest custom boosted amplifier and 22-nanometer smart codec, both of which deliver meaningful system-level improvements and exceptional audio performance. The company advanced our HPMS strategy by beginning the development of next-generation camera controller components and technologies. We also made excellent progress in advanced battery and power applications, where we validated multiple new technologies and intellectual property in silicon. Our achievements were underscored by a recent announcement from our largest customer that highlights our collaboration on a solution to support Face ID implementations in future products. We are designing our first product in this area, a smart power IC, which represents an exciting new application space for Cirrus Logic. Additionally, we recently joined our largest customer’s American Manufacturing Program and are working with both our customer and GlobalFoundries to develop new process technologies for our products, including efforts to manufacture for the first time in their Malta, New York facility.
Beyond smartphones, we made considerable progress in FY26 implementing our strategy to expand into new applications and markets. We achieved strong year-over-year revenue growth in PCs as we gained share across all PC segments. The introduction of new amplifiers and codecs that target a wider range of platforms and AI-enabled PCs has positioned the company well for strong growth in FY27. And in our general market business, we developed multiple new product families that broaden our presence in the professional audio, automotive, industrial, and imaging end markets.
In conclusion, we are extremely proud of our execution in FY26. We delivered record financial results, broadened our engagement with our largest customer, advanced our plan to drive application and market diversification, and positioned the company for an exciting future across many fronts. We would like to thank all of our employees worldwide for the hard work, customer focus and commitment to excellence they show daily, and all of our customers for the trust and support they place in Cirrus Logic.
Q4 and Full Fiscal Year 2026 Letter to Shareholders | 2 | ||||
Figure A: Cirrus Logic Q4 FY26 and Full Fiscal Year 2026 Results
| Q4 FY26 | GAAP | Adj. | Non-GAAP* | ||||||||
| Revenue | $448.5 | $448.5 | |||||||||
| Gross Profit | $237.6 | $0.3 | $237.9 | ||||||||
| Gross Margin | 53.0% | 53.0% | |||||||||
| Operating Expense | $147.3 | ($21.2) | $126.1 | ||||||||
| Operating Income | $90.3 | $21.5 | $111.8 | ||||||||
| Operating Profit | 20.1% | 24.9% | |||||||||
| Interest Income | $10.2 | $10.2 | |||||||||
| Other Expense | $(0.3) | $(0.3) | |||||||||
| Income Tax Expense | $18.5 | $1.0 | $19.5 | ||||||||
| Net Income | $81.8 | $20.5 | $102.3 | ||||||||
| Diluted EPS | $1.56 | $0.39 | $1.95 | ||||||||
| FY26 | GAAP | Adj. | Non-GAAP* | ||||||||
| Revenue | $1,997.4 | $1,997.4 | |||||||||
| Gross Profit | $1,054.2 | $1.0 | $1,055.1 | ||||||||
| Gross Margin | 52.8% | 52.8% | |||||||||
| Operating Expense | $593.8 | ($87.4) | $506.4 | ||||||||
| Operating Income | $460.4 | $88.4 | $548.8 | ||||||||
| Operating Profit | 23.0% | 27.5% | |||||||||
| Interest Income | $36.8 | $36.8 | |||||||||
| Other Expense | $(0.5) | $(0.5) | |||||||||
| Income Tax Expense | $82.3 | $13.5 | $95.9 | ||||||||
| Net Income | $414.4 | $74.9 | $489.3 | ||||||||
| Diluted EPS | $7.85 | $1.42 | $9.26 | ||||||||
*Complete GAAP to Non-GAAP reconciliations available on page 12
Numbers may not sum due to rounding
$ millions, except EPS
Revenue and Gross Margin
Cirrus Logic reported revenue for FY26 of $2.0 billion, up five percent year over year. The increase in full year revenue was primarily driven by demand for components shipping into smartphones, as well as higher PC sales. Revenue for the March quarter was $448.5 million, down 23 percent quarter over quarter and up six percent year over year. The sequential decline in revenue was largely driven by lower smartphone unit volumes. On a year-over-year basis, the increase in revenue was primarily driven by strong demand for components shipping into smartphones. This was partially offset by pricing reductions and, to a lesser extent, lower general market sales. In the June quarter, we expect revenue to range from $430 million to $490 million, up three percent sequentially and up 13 percent year over year at the midpoint.
In FY26, revenue derived from our audio and HPMS product lines represented 58 percent and 42 percent of total revenue, respectively. In Q4 FY26, revenue derived from our audio and HPMS product lines represented 57 percent and 43 percent of total revenue, respectively. One customer contributed approximately 91 percent of total revenue in FY26 and 92 percent of total revenue in Q4 FY26.
Q4 and Full Fiscal Year 2026 Letter to Shareholders | 3 | ||||
Figure B: Cirrus Logic Revenue ($M) Q1 FY25 to Q1 FY27
*Midpoint of guidance as of May 6, 2026
FY26 GAAP gross margin was 52.8 percent, compared to 52.5 percent in FY25. Non-GAAP gross margin for the full fiscal year was 52.8 percent, compared to 52.6 percent the prior year. The year-over-year increase in gross margin was due to a more favorable product mix. GAAP gross margin in the March quarter was 53.0 percent, compared to 53.1 percent in Q3 FY26 and 53.4 percent in Q4 FY25. Non-GAAP gross margin in the March quarter was 53.0 percent, compared to 53.1 percent in Q3 FY26 and 53.5 percent in Q4 FY25. On a year-over-year basis, the decline in gross margin is primarily due to higher freight expense. In the June quarter, we expect gross margin to range from 51 percent to 53 percent.
Operating Profit, Tax, and EPS
For FY26, Cirrus Logic delivered GAAP operating profit of 23.0 percent, compared to 21.6 percent the prior year. Non-GAAP operating profit was 27.5 percent, compared to 26.5 percent in FY25. GAAP operating expense for the full fiscal year was $593.8 million and included $80.8 million in stock-based compensation and $6.6 million in amortization of acquisition intangibles. GAAP operating expense in FY25 was $585.7 million and included $82.8 million in stock-based compensation, $7.1 million in amortization of acquisition intangibles, and $1.7 million in lease impairments. On a year-over-year basis, GAAP operating expense increased by $8.1 million primarily due to higher employee-related expenses. This was partially offset by a reduction in product development costs, largely due to the timing of new products. Non-GAAP operating expense for the full fiscal year was $506.4 million, up $12.3 million from $494.1 million in FY25.
Q4 and Full Fiscal Year 2026 Letter to Shareholders | 4 | ||||
Operating profit for Q4 FY26 was 20.1 percent on a GAAP basis and 24.9 percent on a non-GAAP basis. GAAP operating expense for the quarter was $147.3 million and included $19.6 million in stock-based compensation and $1.6 million in amortization of acquisition intangibles. On a sequential basis, GAAP operating expense decreased by $7.9 million primarily due to a reduction in variable compensation and employee-related expenses. On a year-over-year basis, GAAP operating expense increased by $6.6 million largely due to higher employee-related expenses. This was partially offset by a reduction in product development costs, primarily associated with the timing of new products. Non-GAAP operating expense for the quarter was $126.1 million, down $6.9 million sequentially and up $6.1 million year over year. The company’s total headcount exiting Q4 was 1,668.
Combined GAAP R&D and SG&A expenses for Q1 FY27 are expected to range from $155 million to $161 million, including approximately $21 million in stock-based compensation expense and $2 million in amortization of acquisition intangibles, resulting in a non-GAAP operating expense range between $132 million and $138 million. Given the considerable range of opportunities across our business discussed elsewhere in this letter, we expect R&D investment to grow in FY27.
Figure C: GAAP R&D and SG&A Expenses ($M)/Headcount Q1 FY25 to Q1 FY27
*Reflects midpoint of combined R&D and SG&A guidance as of May 6, 2026
GAAP tax expense for FY26 was $82.3 million on GAAP pre-tax income of $496.7 million, resulting in a full-year GAAP effective tax rate of 16.6 percent. Non-GAAP tax expense for FY26 was $95.9 million on non-GAAP pre-tax income of $585.1 million, resulting in a full year non-GAAP effective tax rate of 16.4 percent. For the March quarter, GAAP tax expense was $18.5 million on GAAP pre-tax income of $100.3 million, resulting in an effective tax rate of 18.4 percent. Non-GAAP tax expense for the quarter was $19.5 million on non-GAAP pre-tax income of $121.8 million, resulting in a non-GAAP effective tax rate of 16.0 percent. The GAAP and non-GAAP effective tax rates for the full fiscal year and the current quarter reflect the beneficial impact of the One Big Beautiful Bill Act’s reinstatement of immediate tax deductions for
Q4 and Full Fiscal Year 2026 Letter to Shareholders | 5 | ||||
U.S. R&D expenditures. We estimate that our FY27 non-GAAP effective tax rate will range from approximately 16 percent to 18 percent.
We delivered record GAAP and non-GAAP earnings per share in FY26. GAAP earnings per share was $7.85, compared to $6.00 the prior year. Non-GAAP earnings per share for the full fiscal year was $9.26, versus $7.54 in FY25. GAAP earnings per share for the March quarter was $1.56, compared to earnings per share of $2.66 the prior quarter and earnings per share of $1.31 in Q4 FY25. Non-GAAP earnings per share for the March quarter was $1.95, versus $2.97 in Q3 FY26 and $1.67 in Q4 FY25.
Balance Sheet
Our cash and investment balance at the end of FY26 was $1.2 billion, up from $834.8 million the prior year and $1.1 billion in Q3 FY26. For the full fiscal year, cash flow from operations was strong at $650.6 million. In FY26, we returned $280.0 million of cash to shareholders as we repurchased 2.5 million shares at an average price of $113.91. Cash flow from operations for the March quarter was $151.4 million. During the quarter, we repurchased 491,104 shares at an average price of $142.54, returning $70.0 million of cash to shareholders. At the end of Q4 FY26, the company had $274.1 million remaining in its share repurchase authorization. Q4 FY26 inventory was $240.9 million, up from $189.5 million in Q3 FY26.
Company Strategy
We continue to believe that our long-term growth is best served by the successful execution of three core strategic priorities: first, maintaining our leadership position in smartphone audio; second, increasing HPMS content in smartphones; and third, leveraging our strength and intellectual property in audio and HPMS to expand into additional applications and markets with both existing and new components. In FY26, we made significant progress across each of these areas.
Our stated goal of maintaining our leadership position in smartphone audio chiefly centers around the custom silicon side of our business. In FY26, we continued to experience strong demand for the latest-generation custom boosted amplifier and 22-nanometer smart codec that were first launched in customer products in FY25. Designed to deliver significant system-level improvements, including power and efficiency gains and greater architectural flexibility, we expect these components to enjoy extended product lifecycles and deliver sustained revenue contribution.
In the second of our strategic priority areas — expanding HPMS products in smartphones — we made considerable positive progress in FY26. Customer demand for our camera controllers remained strong, and engagement around our roadmap for future camera controllers was equally robust. These products continue to enhance a core part of the smartphone experience, and we are actively designing the next-generation components that will bring advanced functionality and differentiation to the camera performance of future smartphones.
We are also very pleased with our progress this year in advanced battery and power applications. In FY26, we validated new technologies and intellectual property in silicon that demonstrate our ability to enhance battery performance, health, and longevity, as well as improve efficiency for application-specific power management solutions. Moreover, our goal to expand HPMS content in smartphones has frequently been advanced by demonstrating our capabilities in components designed for other end-products, and in the past year we were excited to deliver new high-performance power solutions for both accessory and tablet devices. While we continue to pursue multiple opportunities in power, our progress in this area was
Q4 and Full Fiscal Year 2026 Letter to Shareholders | 6 | ||||
exemplified by our largest customer’s recent announcement that highlights our collaboration in the development of advanced mixed-signal process technologies for key applications in their future products, including Face ID. This collaboration with our largest customer is representative of the deep engineering partnership that we have cultivated over the past 20 years, which is built on outstanding execution, innovation, and trust. It also marks an exciting new application space for Cirrus Logic and we are in the design phase of our first product, a smart power IC for 3D sensing that integrates high-efficiency power delivery, precision current drive, and programmable control.
Outside of smartphones, we made significant advances in FY26 in the execution of our strategy to expand into new applications and markets. We leveraged our best-in-class intellectual property and engineering expertise to develop new general market products that are expected to enable Cirrus Logic to capture a higher share of our serviceable addressable market (SAM). In PCs, we delivered strong year-over-year revenue growth, largely driven by share gains across all platforms. Demand for our components is fueled by several industry trends: the desire for high-quality audio in thinner, lighter, and more power-efficient devices; the transition to the MIPI SoundWire® interface (SDCA); and the adoption of AI-enabled PCs. To capitalize on these opportunities in FY26, we launched our latest-generation amplifier and codec, which address a wider range of platforms and support content growth in mainstream devices. Additionally, we started production on a new codec with enhanced voice functionality and sampled another new smart codec with integrated, ultra-low-power processing to support voice as an interface for AI-enabled PCs. We believe voice will be a critical enabler for agentic interaction across many different types of edge device, including PCs, and we will continue to leverage our expertise and intellectual property in this area to deliver significant enhancements to the AI user experience. Finally, we increased our collaboration with leading PC platform vendors, which contributed to share gains in both commercial and consumer devices and positioned the company to address a larger portion of our PC SAM. Looking ahead to FY27, we are encouraged by the customer engagement and design activity across our PC business, and we anticipate strong growth to continue as the transition to SDCA accelerates and our content per device increases.
Beyond PCs, we made meaningful progress expanding our general market product portfolio in FY26 and are encouraged by the momentum we are building in this area of our business. We introduced multiple new product families that target a broad range of customers across the professional audio, automotive, industrial, and imaging end markets. These components typically benefit from long lifecycles and gross margins that are well above our corporate average, making them an attractive and strategically important contributor to our business. As we continue ramping production of our ultra-high performance audio ADCs, DACs, and codec in both professional audio and automotive applications, we are excited to have started sampling our latest family of high-performance audio converters in the December quarter. This new product family broadens our addressable market by delivering solutions that span more tiers and categories of our customers’ devices. More recently, we announced a new series of industrial imaging components that are designed for high-precision scanning systems. These new components provide advanced imaging capabilities that enable faster scan times, improve efficiency, and lower system costs. We continue to leverage our extensive intellectual property portfolio and advanced mixed-signal expertise as we execute on our vision to drive application and market diversification.
Finally, during FY26 we were delighted to be included as a part of our largest customer’s American Manufacturing Program, through which we are collaborating with both our customer and GlobalFoundries to develop new process technologies, including efforts to manufacture products for the first time at the GlobalFoundries facility in Malta, New York. Participation in this program was one of several important steps we took over the past year to advance both process and geographic diversification across our supply chain.
Q4 and Full Fiscal Year 2026 Letter to Shareholders | 7 | ||||
Summary and Guidance
For the June quarter we expect the following results:
•Revenue to range between $430 million and $490 million;
•GAAP gross margin to be between 51 percent and 53 percent; and
•Combined GAAP R&D and SG&A expenses to range between $155 million and $161 million, including approximately $21 million in stock-based compensation expense and $2 million in amortization of acquisition intangibles, resulting in a non-GAAP operating expense range between $132 million and $138 million.
In conclusion, we are extremely pleased to have delivered record revenue and earnings per share in FY26. This past year we made excellent progress in both our core business and market expansion initiatives. As we look ahead to FY27 and beyond, we see the strongest pipeline of opportunities in front of us in recent history, and we are excited at the potential for continued delivery of outstanding results and long-term growth.
Sincerely,
 | John Forsyth President & Chief Executive Officer |  | Jeff Woolard Chief Financial Officer | ||||||||
Conference Call Q&A Session
Cirrus Logic will host a live Q&A session at 5 p.m. ET today to answer questions related to its financial results and business outlook. Participants may listen to the conference call on the Cirrus Logic website. A replay of the webcast can be accessed on the Cirrus Logic website.
Use of Non-GAAP Financial Information
To supplement Cirrus Logic's financial statements presented on a GAAP basis, Cirrus has provided non-GAAP financial information, including non-GAAP net income, diluted earnings per share, operating income and profit, operating expenses, gross margin and profit, tax expense, tax expense impact on earnings per share, effective tax rate, free cash flow, and free cash flow margin. A reconciliation of the adjustments to GAAP results is included in the tables below. We are also providing guidance on our expected non-GAAP effective tax rate. We are not able to provide guidance on our GAAP effective tax rate or a related reconciliation without unreasonable efforts since our future GAAP effective tax rate depends on our future stock price and related stock-based compensation information that is not currently available.
Q4 and Full Fiscal Year 2026 Letter to Shareholders | 8 | ||||
Non-GAAP financial information is not meant as a substitute for GAAP results but is included because management believes such information is useful to our investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. The non-GAAP financial information used by Cirrus Logic may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP.
Safe Harbor Statement
Except for historical information contained herein, the matters set forth in this shareholder letter contain forward-looking statements, including statements about our ability to pursue new opportunities that will support long-term value creation; our ability to develop new process technologies for our products and advance geographic diversification across our supply chain; our ability to develop new process technologies and manufacture products for the first time at GlobalFoundries’ Malta, New York facility; our ability to grow PC revenue in FY27; our ability to execute on our strategic priorities: maintaining our leadership position in smartphone audio; increasing HPMS content in smartphones; and leveraging our strength and intellectual property in audio and HPMS to expand into additional applications and markets with both existing and new components; our expectation that our latest-generation custom boosted amplifier and 22-nanometer smart codec will have extended product lifecycles and deliver sustained revenue contribution; our ability to design next-generation camera controllers and technology that bring enhanced functionality and differentiation to the camera performance of future smartphones; our ability to enhance battery performance, health, and longevity, as well as improve efficiency for application-specific power management solutions; our ability to develop a smart power IC for 3D sensing that integrates high-efficiency power delivery, precision current drive, and programmable control; our expectation that our new general market products will enable Cirrus Logic to capture a higher share of our serviceable addressable market; our belief that voice will be a critical enabler for agentic interaction across many different types of edge device, including PCs, and our ability to leverage our expertise and intellectual property in this area to deliver significant enhancements to the AI user experience; our expectation that our content per PC will increase; our expectation that the transition to SDCA and increased content per device will drive strong growth in FY27; our expectation that our general market business will have long lifecycles and gross margins that are well above our corporate average; our belief that our latest family of high-performance audio converters broadens our addressable market; our ability to leverage our extensive intellectual property portfolio and advanced mixed-signal expertise to drive application and market diversification and long-term revenue growth; our expectation for continued delivery of outstanding results and long-term growth; our expectation that our R&D investment will grow in FY27; our non-GAAP effective tax rate for the full fiscal year 2027; and our forecasts for the first quarter of fiscal year 2027 revenue, gross margin, combined research and development and selling, general and administrative expense levels, stock-based compensation expense, and amortization of acquisition intangibles. In some cases, forward-looking statements are identified by words such as “emerge,” “expect,” “anticipate,” “foresee,” “target,” “project,” “believe,” “goals,” “opportunity,” “estimates,” “intend,” “will,” and variations of these types of words and similar expressions. In addition, any statements that refer to our plans, expectations, strategies, or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are based on our current expectations, estimates, and assumptions and are subject to certain risks and uncertainties that could cause actual results to differ materially, and readers should not place undue reliance on such statements. These risks and uncertainties include, but are not limited to, the following: the level and timing of orders and shipments during the first quarter of fiscal year 2027, customer cancellations of orders, or the failure to place orders consistent with forecasts; or changes in government trade policies, including the imposition of tariffs and export restrictions, could have an adverse impact on our business operations and sales; changes with respect to our current expectations of future smartphone unit
Q4 and Full Fiscal Year 2026 Letter to Shareholders | 9 | ||||
volumes; and the risk factors listed in our Form 10-K for the year ended March 29, 2025 and in our other filings with the Securities and Exchange Commission, which are available at www.sec.gov. The foregoing information concerning our business outlook represents our outlook as of the date of this news release, and we expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.
Cirrus Logic, Cirrus and the Cirrus Logic logo are registered trademarks of Cirrus Logic, Inc. All other company or product names noted herein may be trademarks of their respective holders.
Q4 and Full Fiscal Year 2026 Letter to Shareholders | 10 | ||||
Summary of Financial Data Below:
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(in thousands, except per share data; unaudited)
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||
| Mar. 28, 2026 | Dec. 27, 2025 | Mar. 29, 2025 | Mar. 28, 2026 | Mar. 29, 2025 | |||||||||||||||||||||||||
| Q4'26 | Q3'26 | Q4'25 | Q4'26 | Q4'25 | |||||||||||||||||||||||||
| Audio | $ | 257,220 | $ | 344,455 | $ | 255,326 | $ | 1,159,933 | $ | 1,137,157 | |||||||||||||||||||
| High-Performance Mixed-Signal | 191,303 | 236,169 | 169,130 | 837,446 | 758,920 | ||||||||||||||||||||||||
| Net sales | 448,523 | 580,624 | 424,456 | 1,997,379 | 1,896,077 | ||||||||||||||||||||||||
| Cost of sales | 210,881 | 272,498 | 197,720 | 943,207 | 900,039 | ||||||||||||||||||||||||
| Gross profit | 237,642 | 308,126 | 226,736 | 1,054,172 | 996,038 | ||||||||||||||||||||||||
| Gross margin | 53.0 | % | 53.1 | % | 53.4 | % | 52.8 | % | 52.5 | % | |||||||||||||||||||
| Research and development | 107,487 | 113,553 | 103,420 | 433,953 | 434,684 | ||||||||||||||||||||||||
| Selling, general and administrative | 39,860 | 41,646 | 37,370 | 159,839 | 150,995 | ||||||||||||||||||||||||
| Total operating expenses | 147,347 | 155,199 | 140,790 | 593,792 | 585,679 | ||||||||||||||||||||||||
| Income from operations | 90,295 | 152,927 | 85,946 | 460,380 | 410,359 | ||||||||||||||||||||||||
| Interest income | 10,248 | 9,276 | 8,604 | 36,841 | 33,086 | ||||||||||||||||||||||||
| Other income (expense) | (282) | 246 | 55 | (487) | 1,469 | ||||||||||||||||||||||||
| Income before income taxes | 100,261 | 162,449 | 94,605 | 496,734 | 444,914 | ||||||||||||||||||||||||
| Provision for income taxes | 18,456 | 22,139 | 23,338 | 82,326 | 113,407 | ||||||||||||||||||||||||
| Net income | $ | 81,805 | $ | 140,310 | $ | 71,267 | $ | 414,408 | $ | 331,507 | |||||||||||||||||||
| Basic earnings per share | $ | 1.61 | $ | 2.75 | $ | 1.35 | $ | 8.10 | $ | 6.24 | |||||||||||||||||||
| Diluted earnings per share: | $ | 1.56 | $ | 2.66 | $ | 1.31 | $ | 7.85 | $ | 6.00 | |||||||||||||||||||
| Weighted average number of shares: | |||||||||||||||||||||||||||||
| Basic | 50,822 | 51,037 | 52,756 | 51,137 | 53,135 | ||||||||||||||||||||||||
| Diluted | 52,369 | 52,698 | 54,324 | 52,822 | 55,241 | ||||||||||||||||||||||||
Prepared in accordance with Generally Accepted Accounting Principles
Q4 and Full Fiscal Year 2026 Letter to Shareholders | 11 | ||||
RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in thousands, except per share data; unaudited)
(not prepared in accordance with GAAP)
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||
| Mar. 28, 2026 | Dec. 27, 2025 | Mar. 29, 2025 | Mar. 28, 2026 | Mar. 29, 2025 | |||||||||||||||||||||||||
| Net Income Reconciliation | Q4'26 | Q3'26 | Q4'25 | Q4'26 | Q4'25 | ||||||||||||||||||||||||
| GAAP Net Income | $ | 81,805 | $ | 140,310 | $ | 71,267 | $ | 414,408 | $ | 331,507 | |||||||||||||||||||
| Amortization of acquisition intangibles | 1,647 | 1,648 | 1,647 | 6,590 | 7,130 | ||||||||||||||||||||||||
| Stock-based compensation expense | 19,847 | 20,558 | 19,491 | 81,811 | 84,146 | ||||||||||||||||||||||||
| Lease impairment | — | — | — | — | 1,680 | ||||||||||||||||||||||||
| Adjustment to income taxes | (1,020) | (5,818) | (1,772) | (13,538) | (7,866) | ||||||||||||||||||||||||
| Non-GAAP Net Income | $ | 102,279 | $ | 156,698 | $ | 90,633 | $ | 489,271 | $ | 416,597 | |||||||||||||||||||
| Earnings Per Share Reconciliation | |||||||||||||||||||||||||||||
| GAAP Diluted earnings per share | $ | 1.56 | $ | 2.66 | $ | 1.31 | $ | 7.85 | $ | 6.00 | |||||||||||||||||||
| Effect of Amortization of acquisition intangibles | 0.03 | 0.03 | 0.03 | 0.12 | 0.13 | ||||||||||||||||||||||||
| Effect of Stock-based compensation expense | 0.38 | 0.39 | 0.36 | 1.55 | 1.52 | ||||||||||||||||||||||||
| Effect of Lease impairment | — | — | — | — | 0.03 | ||||||||||||||||||||||||
| Effect of Adjustment to income taxes | (0.02) | (0.11) | (0.03) | (0.26) | (0.14) | ||||||||||||||||||||||||
| Non-GAAP Diluted earnings per share | $ | 1.95 | $ | 2.97 | $ | 1.67 | $ | 9.26 | $ | 7.54 | |||||||||||||||||||
| Operating Income Reconciliation | |||||||||||||||||||||||||||||
| GAAP Operating Income | $ | 90,295 | $ | 152,927 | $ | 85,946 | $ | 460,380 | $ | 410,359 | |||||||||||||||||||
| GAAP Operating Profit | 20.1 | % | 26.3 | % | 20.2 | % | 23.0 | % | 21.6 | % | |||||||||||||||||||
| Amortization of acquisition intangibles | 1,647 | 1,648 | 1,647 | 6,590 | 7,130 | ||||||||||||||||||||||||
| Stock-based compensation expense - COGS | 289 | 24 | 360 | 976 | 1,332 | ||||||||||||||||||||||||
| Stock-based compensation expense - R&D | 12,327 | 13,280 | 13,079 | 51,698 | 59,184 | ||||||||||||||||||||||||
| Stock-based compensation expense - SG&A | 7,231 | 7,254 | 6,052 | 29,137 | 23,630 | ||||||||||||||||||||||||
| Lease impairment | — | — | — | — | 1,680 | ||||||||||||||||||||||||
| Non-GAAP Operating Income | $ | 111,789 | $ | 175,133 | $ | 107,084 | $ | 548,781 | $ | 503,315 | |||||||||||||||||||
| Non-GAAP Operating Profit | 24.9 | % | 30.2 | % | 25.2 | % | 27.5 | % | 26.5 | % | |||||||||||||||||||
| Operating Expense Reconciliation | |||||||||||||||||||||||||||||
| GAAP Operating Expenses | $ | 147,347 | $ | 155,199 | $ | 140,790 | $ | 593,792 | $ | 585,679 | |||||||||||||||||||
| Amortization of acquisition intangibles | (1,647) | (1,648) | (1,647) | (6,590) | (7,130) | ||||||||||||||||||||||||
| Stock-based compensation expense - R&D | (12,327) | (13,280) | (13,079) | (51,698) | (59,184) | ||||||||||||||||||||||||
| Stock-based compensation expense - SG&A | (7,231) | (7,254) | (6,052) | (29,137) | (23,630) | ||||||||||||||||||||||||
| Lease impairment | — | — | — | — | (1,680) | ||||||||||||||||||||||||
| Non-GAAP Operating Expenses | $ | 126,142 | $ | 133,017 | $ | 120,012 | $ | 506,367 | $ | 494,055 | |||||||||||||||||||
| Gross Margin/Profit Reconciliation | |||||||||||||||||||||||||||||
| GAAP Gross Profit | $ | 237,642 | $ | 308,126 | $ | 226,736 | $ | 1,054,172 | $ | 996,038 | |||||||||||||||||||
| GAAP Gross Margin | 53.0 | % | 53.1 | % | 53.4 | % | 52.8 | % | 52.5 | % | |||||||||||||||||||
| Stock-based compensation expense - COGS | 289 | 24 | 360 | 976 | 1,332 | ||||||||||||||||||||||||
| Non-GAAP Gross Profit | $ | 237,931 | $ | 308,150 | $ | 227,096 | $ | 1,055,148 | $ | 997,370 | |||||||||||||||||||
| Non-GAAP Gross Margin | 53.0 | % | 53.1 | % | 53.5 | % | 52.8 | % | 52.6 | % | |||||||||||||||||||
| Effective Tax Rate Reconciliation | |||||||||||||||||||||||||||||
| GAAP Tax Expense | $ | 18,456 | $ | 22,139 | $ | 23,338 | $ | 82,326 | $ | 113,407 | |||||||||||||||||||
| GAAP Effective Tax Rate | 18.4 | % | 13.6 | % | 24.7 | % | 16.6 | % | 25.5 | % | |||||||||||||||||||
| Adjustments to income taxes | 1,020 | 5,818 | 1,772 | 13,538 | 7,866 | ||||||||||||||||||||||||
| Non-GAAP Tax Expense | $ | 19,476 | $ | 27,957 | $ | 25,110 | $ | 95,864 | $ | 121,273 | |||||||||||||||||||
| Non-GAAP Effective Tax Rate | 16.0 | % | 15.1 | % | 21.7 | % | 16.4 | % | 22.5 | % | |||||||||||||||||||
| Tax Impact to EPS Reconciliation | |||||||||||||||||||||||||||||
| GAAP Tax Expense | $ | 0.35 | $ | 0.42 | $ | 0.43 | $ | 1.56 | $ | 2.05 | |||||||||||||||||||
| Adjustments to income taxes | 0.02 | 0.11 | 0.03 | 0.26 | 0.14 | ||||||||||||||||||||||||
| Non-GAAP Tax Expense | $ | 0.37 | $ | 0.53 | $ | 0.46 | $ | 1.82 | $ | 2.19 | |||||||||||||||||||
Q4 and Full Fiscal Year 2026 Letter to Shareholders | 12 | ||||
CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands; unaudited)
| Mar. 28, 2026 | Dec. 27, 2025 | Mar. 29, 2025 | |||||||||||||||
| ASSETS | |||||||||||||||||
| Current assets | |||||||||||||||||
| Cash and cash equivalents | $ | 800,930 | $ | 778,083 | $ | 539,620 | |||||||||||
| Marketable securities | 86,697 | 44,280 | 56,160 | ||||||||||||||
| Accounts receivable, net | 220,149 | 278,989 | 216,009 | ||||||||||||||
| Inventories | 240,871 | 189,483 | 299,092 | ||||||||||||||
| Prepaid assets | 47,587 | 54,373 | 48,236 | ||||||||||||||
| Prepaid wafers | 14,733 | 32,873 | 52,560 | ||||||||||||||
| Other current assets | 22,741 | 31,268 | 28,057 | ||||||||||||||
| Total current Assets | 1,433,708 | 1,409,349 | 1,239,734 | ||||||||||||||
| Long-term marketable securities | 266,160 | 259,564 | 239,036 | ||||||||||||||
| Right-of-use lease assets | 120,676 | 123,432 | 126,688 | ||||||||||||||
| Property and equipment, net | 143,975 | 148,352 | 159,900 | ||||||||||||||
| Intangibles, net | 20,727 | 22,619 | 27,461 | ||||||||||||||
| Goodwill | 435,936 | 435,936 | 435,936 | ||||||||||||||
| Deferred tax asset | 49,824 | 38,247 | 48,150 | ||||||||||||||
| Long-term prepaid wafers | — | — | 15,512 | ||||||||||||||
| Other assets | 18,368 | 19,021 | 34,656 | ||||||||||||||
| Total assets | $ | 2,489,374 | $ | 2,456,520 | $ | 2,327,073 | |||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
| Current liabilities | |||||||||||||||||
| Accounts payable | $ | 80,645 | $ | 68,863 | $ | 63,162 | |||||||||||
| Accrued salaries and benefits | 52,723 | 49,769 | 52,075 | ||||||||||||||
| Software license agreements | 22,229 | 26,803 | 26,745 | ||||||||||||||
| Lease liability | 19,872 | 19,713 | 21,811 | ||||||||||||||
| Other accrued liabilities | 19,187 | 19,043 | 31,395 | ||||||||||||||
| Total current liabilities | 194,656 | 184,191 | 195,188 | ||||||||||||||
| Non-current lease liability | 114,105 | 117,599 | 121,908 | ||||||||||||||
| Non-current income taxes | 46,721 | 46,033 | 44,040 | ||||||||||||||
| Other long-term liabilities | 5,896 | 5,468 | 16,488 | ||||||||||||||
| Total long-term liabilities | 166,722 | 169,100 | 182,436 | ||||||||||||||
| Stockholders' equity: | |||||||||||||||||
| Capital stock | 1,945,958 | 1,925,238 | 1,860,281 | ||||||||||||||
| Accumulated earnings | 184,881 | 178,693 | 90,351 | ||||||||||||||
| Accumulated other comprehensive loss | (2,843) | (702) | (1,183) | ||||||||||||||
| Total stockholders' equity | 2,127,996 | 2,103,229 | 1,949,449 | ||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,489,374 | $ | 2,456,520 | $ | 2,327,073 | |||||||||||
Prepared in accordance with Generally Accepted Accounting Principles
Q4 and Full Fiscal Year 2026 Letter to Shareholders | 13 | ||||
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(in thousands; unaudited)
| Three Months Ended | |||||||||||
| Mar. 28, | Mar. 29, | ||||||||||
| 2026 | 2025 | ||||||||||
| Q4'26 | Q4'25 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 81,805 | $ | 71,267 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 13,346 | 13,150 | |||||||||
| Stock-based compensation expense | 19,847 | 19,491 | |||||||||
| Deferred income taxes | (10,947) | (7,497) | |||||||||
| Loss on retirement or write-off of long-lived assets | — | 1 | |||||||||
| Other non-cash charges | (213) | (33) | |||||||||
| Net change in operating assets and liabilities: | |||||||||||
| Accounts receivable, net | 58,840 | 45,934 | |||||||||
| Inventories | (51,388) | (23,534) | |||||||||
| Prepaid wafers | 18,140 | 21,061 | |||||||||
| Other assets | 6,333 | 11,341 | |||||||||
| Accounts payable and other accrued liabilities | 10,080 | (17,937) | |||||||||
| Income taxes payable | 5,577 | (2,858) | |||||||||
| Net cash provided by operating activities | 151,420 | 130,386 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Maturities and sales of available-for-sale marketable securities | 34,158 | 9,392 | |||||||||
| Purchases of available-for-sale marketable securities | (86,172) | (13,322) | |||||||||
| Purchases of property, equipment and software | (2,396) | (3,429) | |||||||||
| Investments in technology | — | (5,752) | |||||||||
| Net cash used in investing activities | (54,410) | (13,111) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Net proceeds from the issuance of common stock | 875 | — | |||||||||
| Repurchase of stock to satisfy employee tax withholding obligations | (5,038) | (4,099) | |||||||||
| Repurchase and retirement of common stock | (69,999) | (100,000) | |||||||||
| Net cash used in financing activities | (74,162) | (104,099) | |||||||||
| Net increase in cash and cash equivalents | 22,848 | 13,176 | |||||||||
| Cash and cash equivalents at beginning of period | 778,082 | 526,444 | |||||||||
| Cash and cash equivalents at end of period | $ | 800,930 | $ | 539,620 | |||||||
Prepared in accordance with Generally Accepted Accounting Principles
Q4 and Full Fiscal Year 2026 Letter to Shareholders | 14 | ||||
RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in thousands; unaudited)
Free cash flow, a non-GAAP financial measure, is GAAP cash flow from operations (or cash provided by operating activities) less capital expenditures. Capital expenditures include purchases of property, equipment and software as well as investments in technology, as presented within our GAAP Consolidated Condensed Statement of Cash Flows. Free cash flow margin represents free cash flow divided by revenue.
| Twelve Months Ended | Three Months Ended | ||||||||||||||||||||||||||||
| Mar. 28, | Mar. 28, | Dec. 27, | Sep. 27, | Jun. 28, | |||||||||||||||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | |||||||||||||||||||||||||
| Q4'26 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | |||||||||||||||||||||||||
| Net cash provided by operating activities (GAAP) | $ | 650,599 | $ | 151,420 | $ | 290,834 | $ | 92,214 | $ | 116,131 | |||||||||||||||||||
| Capital expenditures | (14,836) | (2,396) | (5,160) | (4,510) | (2,770) | ||||||||||||||||||||||||
| Free Cash Flow (Non-GAAP) | $ | 635,763 | $ | 149,024 | $ | 285,674 | $ | 87,704 | $ | 113,361 | |||||||||||||||||||
| Cash Flow from Operations as a Percentage of Revenue (GAAP) | 33 | % | 34 | % | 50 | % | 16 | % | 29 | % | |||||||||||||||||||
| Capital Expenditures as a Percentage of Revenue (GAAP) | 1 | % | 1 | % | 1 | % | 1 | % | 1 | % | |||||||||||||||||||
| Free Cash Flow Margin (Non-GAAP) | 32 | % | 33 | % | 49 | % | 16 | % | 28 | % | |||||||||||||||||||
Q4 and Full Fiscal Year 2026 Letter to Shareholders | 15 | ||||
| RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION | ||||||||
| (in millions; unaudited) | ||||||||
| (not prepared in accordance with GAAP) | ||||||||
| Q1 FY27 | ||||||||
| Guidance | ||||||||
| Operating Expense Reconciliation | ||||||||
| GAAP Operating Expenses | $155 - 161 | |||||||
| Stock-based compensation expense | (21) | |||||||
| Amortization of acquisition intangibles | (2) | |||||||
| Non-GAAP Operating Expenses | $132 - 138 | |||||||
Q4 and Full Fiscal Year 2026 Letter to Shareholders | 16 | ||||
FAQ
How did Cirrus Logic (CRUS) perform financially in full fiscal year 2026?
Cirrus Logic delivered record FY26 revenue of $1.997 billion, up 5% year over year. GAAP earnings per share were $7.85 and non-GAAP EPS were $9.26, supported by a 52.8% GAAP gross margin and 27.5% non-GAAP operating profit, indicating strong overall profitability.
What guidance did Cirrus Logic (CRUS) provide for Q1 fiscal 2027?
For Q1 FY27, Cirrus Logic expects revenue between $430 million and $490 million. GAAP gross margin is forecast between 51% and 53%. Combined GAAP R&D and SG&A expenses are anticipated at $155–161 million, implying non-GAAP operating expenses of $132–138 million after stock-based compensation and amortization.
How strong is Cirrus Logic’s cash flow and balance sheet after FY26?
Cirrus Logic generated FY26 operating cash flow of $650.6 million and free cash flow of $635.8 million, a 32% margin. Year-end cash and investments totaled about $1.2 billion, with no debt. The company also returned $280.0 million to shareholders via share repurchases during the year.
What is included in Cirrus Logic’s new $350 million credit facility?
On May 4, 2026, Cirrus Logic entered a third amended and restated credit agreement providing a $350 million senior secured revolving credit facility maturing May 4, 2031. It is guaranteed by material domestic subsidiaries, secured by substantially all assets, and includes leverage and interest coverage covenants.
How concentrated is Cirrus Logic’s customer base in FY26?
Cirrus Logic’s revenue is highly concentrated. One customer contributed approximately 91% of total revenue for FY26 and 92% in Q4 FY26. This concentration creates exposure to that customer’s product cycles, unit volumes, and purchasing decisions.
What non-GAAP metrics does Cirrus Logic (CRUS) emphasize and why?
Cirrus Logic presents non-GAAP metrics such as net income, EPS, operating profit, operating expenses, gross margin, free cash flow, and free cash flow margin. Management believes these measures help investors analyze underlying performance by excluding items like stock-based compensation, amortization of intangibles and certain tax adjustments.