Record Q1 FY27 results at Cirrus Logic (NASDAQ: CRUS) with $459.7M revenue
Rhea-AI Filing Summary
Cirrus Logic reported record first quarter fiscal 2027 results, with revenue of $459.7 million, up two percent sequentially and thirteen percent year over year, driven by strong demand for custom components in smartphones. GAAP gross margin was 52.6%; non-GAAP gross margin was 52.7%.
GAAP net income was $76.9 million, or $1.47 diluted EPS, while non-GAAP net income was $96.1 million, or $1.84 diluted EPS. Audio products represented 54% of revenue and High-Performance Mixed-Signal 46%, with one customer contributing about 90% of total revenue.
Cash and investments totaled $1.2 billion, and free cash flow was $48.6 million. The company repurchased 211,099 shares for $34.5 million in Q1 and a further $50.5 million of shares after quarter end. For Q2 FY27, revenue is expected between $510–$570 million, GAAP gross margin 52–54%, and non-GAAP operating expenses $140–$146 million.
Positive
- Record Q1 FY27 revenue of $459.7 million, up two percent sequentially and thirteen percent year over year, supported by strong smartphone component demand.
- Record first quarter non-GAAP diluted EPS of $1.84, with non-GAAP operating profit of 23.2%.
- Robust liquidity with cash and investments of $1.2 billion and Q1 free cash flow of $48.6 million.
- Significant capital return through share repurchases totaling $34.5 million in Q1 plus $50.5 million after quarter end.
Negative
- Management lowered FY27 PC revenue expectations due to constrained supply of a key industry platform, component shortages, and OEMs delaying new model introductions, tempering near-term growth in a key expansion market.
Filing Explained
The filing adds a signed 2027–2028 wafer-capacity agreement, while PC timing constraints led management to lower FY27 PC revenue expectations.
This Form 8-K, dated
The agreement is signed, so the disclosed effect is a capacity-and-pricing commitment for those calendar years, not a completed product shipment or revenue result.
The shareholder letter says PC FY27 revenue expectations were lowered after constrained supply, memory and component shortages, and delayed product introductions affected timing; this is management's forward-looking explanation, not a reported change to Q1 revenue.
The company expects its new analog front-end component to begin sampling in the September quarter, leaving that milestone prospective rather than completed in this filing.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
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
Revenue Q1 FY27: $459.7 million
GAAP Net Income Q1 FY27: $76.9 million
GAAP Diluted EPS Q1 FY27: $1.47
+5 more
8 metrics
Revenue Q1 FY27
$459.7 million
Net sales for the quarter ended Jun. 27, 2026 (Q1 FY27)
GAAP Net Income Q1 FY27
$76.9 million
GAAP net income for the quarter ended Jun. 27, 2026
GAAP Diluted EPS Q1 FY27
$1.47
GAAP diluted earnings per share for Q1 FY27
Non-GAAP Diluted EPS Q1 FY27
$1.84
Non-GAAP diluted earnings per share for Q1 FY27
GAAP Gross Margin Q1 FY27
52.6%
GAAP gross margin for the quarter ended Jun. 27, 2026
Cash and Investments
$1.2 billion
Cash and investment balance at the end of Q1 FY27
Free Cash Flow Q1 FY27
$48.6 million
Non-GAAP free cash flow for the quarter ended Jun. 27, 2026
Q2 FY27 Revenue Guidance
$510–$570 million
Expected revenue range for the second quarter of fiscal 2027
Key Terms
High-Performance Mixed-Signal, free cash flow margin, MIPI SoundWire® interface, Capacity Reservation and Wafer Supply Agreement, +1 more
5 terms
High-Performance Mixed-Signal financial
"revenue derived from our audio and HPMS product lines represented 54 percent and 46 percent"
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.
MIPI SoundWire® interface technical
"growth opportunity, driven by the transition to the MIPI SoundWire® interface"
Capacity Reservation and Wafer Supply Agreement financial
"signed a new Capacity Reservation and Wafer Supply Agreement with GlobalFoundries"
Rule 10b5-1 trading plan regulatory
"repurchase 359,350 shares at an average price of $140.53 under a Rule 10b5-1 trading plan"
A Rule 10b5-1 trading plan is a pre-arranged schedule that allows company insiders to buy or sell stock at specific times, even if they have inside information. It helps prevent accusations of unfair trading by making these transactions look planned and transparent, rather than sneaky or illegal.
Earnings Snapshot
Revenue: $459.7 million · Guidance included
First quarter fiscal year 2027 (Q1 FY27)
Revenue
$459.7 million
Up two percent quarter over quarter and thirteen percent year over year.
GAAP diluted EPS
$1.47
Compared to $1.56 in the prior quarter and $1.14 in Q1 FY26.
Non-GAAP diluted EPS
$1.84
Versus $1.95 in Q4 FY26 and $1.51 in Q1 FY26.
GAAP gross margin
52.6%
Compared to 53.0% in Q4 FY26 and 52.6% in Q1 FY26.
Guidance
For Q2 FY27, revenue is expected between $510 million and $570 million, GAAP gross margin 52–54%, and non-GAAP operating expenses $140–$146 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Cirrus Logic (CRUS) perform in Q1 FY27?
Cirrus Logic delivered record Q1 FY27 revenue of $459.7 million, up two percent sequentially and thirteen percent year over year. GAAP diluted EPS was $1.47, and non-GAAP diluted EPS was $1.84, driven mainly by strong smartphone component demand.
What guidance did Cirrus Logic (CRUS) give for Q2 FY27?
For Q2 FY27, Cirrus Logic expects revenue between $510 million and $570 million, GAAP gross margin of 52–54%, and non-GAAP operating expenses of $140–$146 million. At the midpoint, this implies 17% sequential growth and a four percent year-over-year revenue decline.
What were Cirrus Logic (CRUS) margins and profitability in Q1 FY27?
In Q1 FY27, GAAP gross margin was 52.6% and non-GAAP gross margin 52.7%. GAAP operating profit was 18.4%, while non-GAAP operating profit reached 23.2%. GAAP net income was $76.9 million and non-GAAP net income was $96.1 million.
What is Cirrus Logic’s (CRUS) cash position and free cash flow?
At the end of Q1 FY27, Cirrus Logic held a cash and investment balance of $1.2 billion. Cash flow from operations was $64.1 million, and non-GAAP free cash flow was $48.6 million, reflecting continued strong cash generation from the business.
How much stock did Cirrus Logic (CRUS) repurchase recently?
During Q1 FY27, Cirrus Logic repurchased 211,099 shares for $34.5 million. After quarter end, it used an additional $50.5 million under a Rule 10b5-1 trading plan to repurchase 359,350 shares, leaving $239.6 million under its authorization at quarter end.
How concentrated is Cirrus Logic’s (CRUS) customer base?
In Q1 FY27, one customer contributed approximately 90% of total revenue. Management describes this relationship as outstanding, with continued strong design activity, but does not disclose further details in line with its policy.
What are the key growth areas for Cirrus Logic (CRUS) beyond smartphones?
Cirrus Logic highlights PCs, especially AI-enabled PCs, and general market products in professional audio, automotive, industrial, and imaging as growth areas. It is also developing high-performance analog front-end components for smart metering and related electrification applications.
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): August 5, 2026
Commission File Number
| (Exact name of Registrant as specified in its charter) | ||||||||
| (State or Other Jurisdiction of Incorporation or Organization) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||||||||
Registrant’s telephone number, including area code: | ||||||||||||||
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:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
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 2.02 Results of Operations and Financial Condition.
On August 5, 2026, Cirrus Logic, Inc. (“Cirrus Logic” or the “Company”) issued a press release announcing its financial results for its first quarter fiscal year 2027. The full text of the press release is furnished as Exhibit No. 99.1 to this Current Report on Form 8-K.
Item 7.01 Regulation FD Disclosure
On August 5, 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 first quarter fiscal year 2027. 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, 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 99.1 Cirrus Logic, Inc. press release dated August 5, 2026
Exhibit 99.2 Cirrus Logic, Inc. shareholder letter dated August 5, 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: | August 5, 2026 | By: | /s/ Jeff Woolard | ||||||||||||||
| Name: | Jeff Woolard | ||||||||||||||||
| Title: | Chief Financial Officer | ||||||||||||||||
Exhibit 99.1
FINANCIAL NEWS
Cirrus Logic Reports Record Fiscal First Quarter Revenue of $460 Million
AUSTIN, Texas – August 5, 2026 – Cirrus Logic, Inc. (NASDAQ: CRUS) posted on its website at investor.cirrus.com the quarterly Shareholder Letter that contains the complete financial results for the first quarter of fiscal year 2027, which ended June 27, 2026, as well as the company’s current business outlook.
“Cirrus Logic delivered record first quarter revenue and earnings per share in the June quarter,” said John Forsyth, Cirrus Logic president and chief executive officer. “During the quarter, we experienced strong demand for custom components shipping into smartphones. The company also made meaningful progress executing on key strategic initiatives. In our PC business, we saw considerable interest in our latest smart codec for AI-enabled PCs and are engaged with multiple customers on designs for next calendar year. We also recently taped out a new high-performance analog front-end component targeting metrology applications, further strengthening our general market portfolio. Looking forward, we remain confident in our ability to leverage our mixed-signal design expertise to drive growth across new applications and markets for years to come.”
Reported Financial Results – First Quarter FY27
•Revenue of $459.7 million;
•GAAP gross margin of 52.6 percent and non-GAAP gross margin of 52.7 percent;
•GAAP operating expenses of $157.4 million and non-GAAP operating expenses of $135.4 million; and
•GAAP earnings per share of $1.47 and non-GAAP earnings per share of $1.84.
A reconciliation of GAAP to non-GAAP financial information is included in the tables accompanying this press release.
Business Outlook – Second Quarter FY27
•Revenue is expected to range between $510 million and $570 million;
•GAAP gross margin is forecasted to be between 52 percent and 54 percent; and
•Combined GAAP R&D and SG&A expenses are anticipated to range between $163 million and $169 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 $140 million and $146 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 statements about our ability to leverage our mixed-signal design expertise to drive growth across new applications and markets for years to come; and our estimates for the second quarter fiscal year 2027 revenue, gross margin, combined research and development and selling, general and administrative expense levels, stock-based compensation expense, amortization of acquisition intangibles, and our resulting non-GAAP operating expense range. 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 second quarter of fiscal year 2027; customer cancellations of orders; the failure to place orders consistent with forecasts; global economic conditions and uncertainty; and our ability to develop and commercialize products and technologies for new markets, along with the risk factors listed in our Form 10-K for the year ended March 28, 2026 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
| CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS | |||||||||||||||||
| (in thousands, except per share data; unaudited) | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| Jun. 27, | Mar. 28, | Jun. 28, | |||||||||||||||
| 2026 | 2026 | 2025 | |||||||||||||||
| Q1'27 | Q4'26 | Q1'26 | |||||||||||||||
| Audio | $ | 249,034 | $ | 257,220 | $ | 240,043 | |||||||||||
| High-Performance Mixed-Signal | 210,689 | 191,303 | 167,229 | ||||||||||||||
| Net sales | 459,723 | 448,523 | 407,272 | ||||||||||||||
| Cost of sales | 217,868 | 210,881 | 193,242 | ||||||||||||||
| Gross profit | 241,855 | 237,642 | 214,030 | ||||||||||||||
| Gross margin | 52.6 | % | 53.0 | % | 52.6 | % | |||||||||||
| Research and development | 115,013 | 107,487 | 102,892 | ||||||||||||||
| Selling, general and administrative | 42,406 | 39,860 | 38,744 | ||||||||||||||
| Total operating expenses | 157,419 | 147,347 | 141,636 | ||||||||||||||
| Income from operations | 84,436 | 90,295 | 72,394 | ||||||||||||||
| Interest income | 10,082 | 10,248 | 8,622 | ||||||||||||||
| Other expense | (363) | (282) | (388) | ||||||||||||||
| Income before income taxes | 94,155 | 100,261 | 80,628 | ||||||||||||||
| Provision for income taxes | 17,304 | 18,456 | 19,931 | ||||||||||||||
| Net income | $ | 76,851 | $ | 81,805 | $ | 60,697 | |||||||||||
| Basic earnings per share | $ | 1.52 | $ | 1.61 | $ | 1.17 | |||||||||||
| Diluted earnings per share: | $ | 1.47 | $ | 1.56 | $ | 1.14 | |||||||||||
| Weighted average number of shares: | |||||||||||||||||
| Basic | 50,550 | 50,822 | 51,727 | ||||||||||||||
| Diluted | 52,353 | 52,369 | 53,319 | ||||||||||||||
| 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 | |||||||||||||||||
| Jun. 27, | Mar. 28, | Jun. 28, | |||||||||||||||
| 2026 | 2026 | 2025 | |||||||||||||||
| Net Income Reconciliation | Q1'27 | Q4'26 | Q1'26 | ||||||||||||||
| GAAP Net Income | $ | 76,851 | $ | 81,805 | $ | 60,697 | |||||||||||
| Amortization of acquisition intangibles | 1,647 | 1,647 | 1,647 | ||||||||||||||
| Stock-based compensation expense | 20,589 | 19,847 | 20,809 | ||||||||||||||
| Adjustment to income taxes | (2,988) | (1,020) | (2,839) | ||||||||||||||
| Non-GAAP Net Income | $ | 96,099 | $ | 102,279 | $ | 80,314 | |||||||||||
| Earnings Per Share Reconciliation | |||||||||||||||||
| GAAP Diluted earnings per share | $ | 1.47 | $ | 1.56 | $ | 1.14 | |||||||||||
| Effect of Amortization of acquisition intangibles | 0.03 | 0.03 | 0.03 | ||||||||||||||
| Effect of Stock-based compensation expense | 0.40 | 0.38 | 0.39 | ||||||||||||||
| Effect of Adjustment to income taxes | (0.06) | (0.02) | (0.05) | ||||||||||||||
| Non-GAAP Diluted earnings per share | $ | 1.84 | $ | 1.95 | $ | 1.51 | |||||||||||
| Operating Income Reconciliation | |||||||||||||||||
| GAAP Operating Income | $ | 84,436 | $ | 90,295 | $ | 72,394 | |||||||||||
| GAAP Operating Profit | 18.4 | % | 20.1 | % | 17.8 | % | |||||||||||
| Amortization of acquisition intangibles | 1,647 | 1,647 | 1,647 | ||||||||||||||
| Stock-based compensation expense - COGS | 238 | 289 | 300 | ||||||||||||||
| Stock-based compensation expense - R&D | 13,245 | 12,327 | 13,072 | ||||||||||||||
| Stock-based compensation expense - SG&A | 7,106 | 7,231 | 7,437 | ||||||||||||||
| Non-GAAP Operating Income | $ | 106,672 | $ | 111,789 | $ | 94,850 | |||||||||||
| Non-GAAP Operating Profit | 23.2 | % | 24.9 | % | 23.3 | % | |||||||||||
| Operating Expense Reconciliation | |||||||||||||||||
| GAAP Operating Expenses | $ | 157,419 | $ | 147,347 | $ | 141,636 | |||||||||||
| Amortization of acquisition intangibles | (1,647) | (1,647) | (1,647) | ||||||||||||||
| Stock-based compensation expense - R&D | (13,245) | (12,327) | (13,072) | ||||||||||||||
| Stock-based compensation expense - SG&A | (7,106) | (7,231) | (7,437) | ||||||||||||||
| Non-GAAP Operating Expenses | $ | 135,421 | $ | 126,142 | $ | 119,480 | |||||||||||
| Gross Margin/Profit Reconciliation | |||||||||||||||||
| GAAP Gross Profit | $ | 241,855 | $ | 237,642 | $ | 214,030 | |||||||||||
| GAAP Gross Margin | 52.6 | % | 53.0 | % | 52.6 | % | |||||||||||
| Stock-based compensation expense - COGS | 238 | 289 | 300 | ||||||||||||||
| Non-GAAP Gross Profit | $ | 242,093 | $ | 237,931 | $ | 214,330 | |||||||||||
| Non-GAAP Gross Margin | 52.7 | % | 53.0 | % | 52.6 | % | |||||||||||
| Effective Tax Rate Reconciliation | |||||||||||||||||
| GAAP Tax Expense | $ | 17,304 | $ | 18,456 | $ | 19,931 | |||||||||||
| GAAP Effective Tax Rate | 18.4 | % | 18.4 | % | 24.7 | % | |||||||||||
| Adjustments to income taxes | 2,988 | 1,020 | 2,839 | ||||||||||||||
| Non-GAAP Tax Expense | $ | 20,292 | $ | 19,476 | $ | 22,770 | |||||||||||
| Non-GAAP Effective Tax Rate | 17.4 | % | 16.0 | % | 22.1 | % | |||||||||||
| Tax Impact to EPS Reconciliation | |||||||||||||||||
| GAAP Tax Expense | $ | 0.33 | $ | 0.35 | $ | 0.37 | |||||||||||
| Adjustments to income taxes | 0.06 | 0.02 | 0.05 | ||||||||||||||
| Non-GAAP Tax Expense | $ | 0.39 | $ | 0.37 | $ | 0.42 | |||||||||||
5
| CONSOLIDATED CONDENSED BALANCE SHEET | ||||||||||||||||||||
| (in thousands; unaudited) | ||||||||||||||||||||
| Jun. 27, | Mar. 28, | Jun. 28, | ||||||||||||||||||
| 2026 | 2026 | 2025 | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 810,666 | $ | 800,930 | $ | 548,870 | ||||||||||||||
| Marketable securities | 80,596 | 86,697 | 65,925 | |||||||||||||||||
| Accounts receivable, net | 253,971 | 220,149 | 214,085 | |||||||||||||||||
| Inventories | 262,746 | 240,871 | 278,984 | |||||||||||||||||
Prepaid assets | 44,449 | 47,587 | 44,243 | |||||||||||||||||
| Prepaid wafers | — | 14,733 | 61,934 | |||||||||||||||||
| Other current assets | 21,040 | 22,741 | 27,081 | |||||||||||||||||
Total current assets | 1,473,468 | 1,433,708 | 1,241,122 | |||||||||||||||||
| Long-term marketable securities | 276,056 | 266,160 | 232,959 | |||||||||||||||||
| Right-of-use lease assets | 117,066 | 120,676 | 123,718 | |||||||||||||||||
| Property and equipment, net | 149,845 | 143,975 | 154,340 | |||||||||||||||||
| Intangibles, net | 19,168 | 20,727 | 25,718 | |||||||||||||||||
| Goodwill | 435,936 | 435,936 | 435,936 | |||||||||||||||||
| Deferred tax assets | 54,443 | 49,824 | 54,037 | |||||||||||||||||
| Other assets | 34,298 | 18,368 | 26,887 | |||||||||||||||||
| Total assets | $ | 2,560,280 | $ | 2,489,374 | $ | 2,294,717 | ||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||
| Accounts payable | $ | 78,090 | $ | 80,645 | $ | 66,321 | ||||||||||||||
| Accrued salaries and benefits | 44,182 | 52,723 | 43,146 | |||||||||||||||||
| Software license agreements | 22,091 | 22,229 | 21,511 | |||||||||||||||||
| Current lease liabilities | 20,761 | 19,872 | 21,075 | |||||||||||||||||
| Other accrued liabilities | 29,176 | 19,187 | 36,625 | |||||||||||||||||
| Total current liabilities | 194,300 | 194,656 | 188,678 | |||||||||||||||||
| Non-current lease liabilities | 109,703 | 114,105 | 120,272 | |||||||||||||||||
| Non-current income taxes | 47,320 | 46,721 | 44,693 | |||||||||||||||||
| Software license agreements | 19,826 | 5,896 | 10,790 | |||||||||||||||||
| Total long-term liabilities | 176,849 | 166,722 | 175,755 | |||||||||||||||||
| Stockholders' equity: | ||||||||||||||||||||
| Capital stock | 1,967,875 | 1,945,958 | 1,881,472 | |||||||||||||||||
Accumulated earnings | 224,213 | 184,881 | 49,035 | |||||||||||||||||
Accumulated other comprehensive loss | (2,957) | (2,843) | (223) | |||||||||||||||||
| Total stockholders' equity | 2,189,131 | 2,127,996 | 1,930,284 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,560,280 | $ | 2,489,374 | $ | 2,294,717 | ||||||||||||||
| Prepared in accordance with Generally Accepted Accounting Principles | ||||||||||||||||||||
6
| CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS | ||||||||||||||
| (in thousands; unaudited) | ||||||||||||||
| Three Months Ended | ||||||||||||||
| Jun. 27, | Jun. 28, | |||||||||||||
| 2026 | 2025 | |||||||||||||
| Q1'27 | Q1'26 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Net income | $ | 76,851 | $ | 60,697 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 13,156 | 13,173 | ||||||||||||
| Stock-based compensation expense | 20,589 | 20,809 | ||||||||||||
| Deferred income taxes | (4,600) | (5,938) | ||||||||||||
| Gain on retirement or write-off of long-lived assets | (67) | — | ||||||||||||
| Other non-cash adjustments | 152 | (16) | ||||||||||||
| Net change in operating assets and liabilities: | ||||||||||||||
| Accounts receivable | (33,822) | 1,924 | ||||||||||||
| Inventories | (21,875) | 20,108 | ||||||||||||
| Prepaid wafers | 14,733 | 6,138 | ||||||||||||
| Other assets | 3,723 | 2,014 | ||||||||||||
| Accounts payable and other accrued liabilities | (7,976) | (8,806) | ||||||||||||
| Income taxes payable | 3,264 | 6,028 | ||||||||||||
Net cash provided by operating activities | 64,128 | 116,131 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Maturities and sales of available-for-sale marketable securities | 47,044 | 22,990 | ||||||||||||
| Purchases of available-for-sale marketable securities | (50,930) | (26,435) | ||||||||||||
| Purchases of property, equipment and software | (15,143) | (2,638) | ||||||||||||
| Investments in technology | (361) | (132) | ||||||||||||
| Net cash used in investing activities | (19,390) | (6,215) | ||||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Debt issuance costs | (2,057) | — | ||||||||||||
Net proceeds from the issuance of common stock | 1,329 | 382 | ||||||||||||
| Repurchase of stock to satisfy employee tax withholding obligations | (2,774) | (1,049) | ||||||||||||
| Repurchase and retirement of common stock | (31,500) | (99,999) | ||||||||||||
| Net cash used in financing activities | (35,002) | (100,666) | ||||||||||||
Net increase in cash and cash equivalents | 9,736 | 9,250 | ||||||||||||
| Cash and cash equivalents at beginning of period | 800,930 | 539,620 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 810,666 | $ | 548,870 | ||||||||||
| 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 | |||||||||||||||||||||||||||||||
| Jun. 27, | Jun. 27, | Mar. 28, | Dec. 27, | Sep. 27, | ||||||||||||||||||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||||||||||||||
| Q1'27 | Q1'27 | Q4'26 | Q3'26 | Q2'26 | ||||||||||||||||||||||||||||
Net cash provided by operating activities (GAAP) | $ | 598,596 | $ | 64,128 | $ | 151,420 | $ | 290,834 | $ | 92,214 | ||||||||||||||||||||||
| Capital expenditures | (27,570) | (15,504) | (2,396) | (5,160) | (4,510) | |||||||||||||||||||||||||||
| Free Cash Flow (Non-GAAP) | $ | 571,026 | $ | 48,624 | $ | 149,024 | $ | 285,674 | $ | 87,704 | ||||||||||||||||||||||
| Cash Flow from Operations as a Percentage of Revenue (GAAP) | 29 | % | 14 | % | 34 | % | 50 | % | 16 | % | ||||||||||||||||||||||
| Capital Expenditures as a Percentage of Revenue (GAAP) | 1 | % | 3 | % | 1 | % | 1 | % | 1 | % | ||||||||||||||||||||||
| Free Cash Flow Margin (Non-GAAP) | 28 | % | 11 | % | 33 | % | 49 | % | 16 | % | ||||||||||||||||||||||
8
| RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION | ||||||||
| (in millions; unaudited) | ||||||||
| (not prepared in accordance with GAAP) | ||||||||
| Q2 FY27 | ||||||||
| Guidance | ||||||||
| Operating Expense Reconciliation | ||||||||
| GAAP Operating Expenses | $163 - 169 | |||||||
| Stock-based compensation expense | (21) | |||||||
| Amortization of acquisition intangibles | (2) | |||||||
| Non-GAAP Operating Expenses | $140 - 146 | |||||||
9
Exhibit 99.2
Q1 FY27
Letter to Shareholders
August 5, 2026
August 5, 2026
Dear Shareholders,
In Q1 FY27, Cirrus Logic delivered record first quarter revenue of $460 million as well as record first quarter GAAP and non-GAAP earnings per share of $1.47 and $1.84, respectively. In Q1, we saw strong demand for our custom products shipping into smartphones. We also made good progress in the development of our next-generation camera controller and new smart power IC for 3D sensing applications. The latter is part of a broader set of power and battery opportunities that we believe will diversify our product portfolio and support long-term growth. Beyond smartphones, the PC market remains our largest near-term growth opportunity. Since our remarks last quarter, we have lowered our FY27 revenue expectations for PCs as we began to see the impact from constrained supply of a key industry platform, memory and component shortages, and OEMs delaying certain new model introductions. We believe these factors reflect a shift in timing rather than a fundamental change to the underlying opportunity. In Q1, we were encouraged by our design win activity and customer engagement, which included interest in our latest smart codec for AI-enabled PCs. Additionally, in June multiple customers announced new PCs based on NVIDIA’s RTX Spark™ platform, which are expected to ship later this year with Cirrus Logic amplifiers and codecs. In our general market business, we also continued to expand across a broad base of customers in the professional audio, automotive, industrial, and imaging markets. Our progress in Q1 included taping out a new high-performance analog front-end (AFE) component for metrology applications, which we expect to begin sampling in the September quarter. While this component will initially be used for smart meters, we believe over time the underlying technology can extend into adjacent applications such as data center DC metrology, energy storage, EV charging, and grid monitoring. We remain optimistic about our opportunities to continue leveraging our mixed-signal design and signal processing expertise to drive growth across new applications and markets in future years.
Figure A: Cirrus Logic Q1 FY27 Results
| Q1 FY27 | GAAP | Adj. | Non-GAAP* | ||||||||
| Revenue | $459.7 | $459.7 | |||||||||
| Gross Profit | $241.9 | $0.2 | $242.1 | ||||||||
| Gross Margin | 52.6% | 52.7% | |||||||||
| Operating Expense | $157.4 | ($22.0) | $135.4 | ||||||||
| Operating Income | $84.4 | $22.2 | $106.7 | ||||||||
| Operating Profit | 18.4% | 23.2% | |||||||||
| Interest Income | $10.1 | $10.1 | |||||||||
| Other Expense | $(0.4) | $(0.4) | |||||||||
| Income Tax Expense | $17.3 | $3.0 | $20.3 | ||||||||
| Net Income | $76.9 | $19.2 | $96.1 | ||||||||
| Diluted EPS | $1.47 | $0.37 | $1.84 | ||||||||
*Complete GAAP to Non-GAAP reconciliations available on page 11
Numbers may not sum due to rounding
$ millions, except EPS
Revenue and Gross Margin
Revenue for the June quarter was $460 million, up two percent quarter over quarter and thirteen percent year over year. The increase in revenue on a sequential and year-over-year basis reflects higher sales of components shipping in smartphones. On a year-over-year basis, sales were partially offset by previously
Q1 FY27 Letter to Shareholders | 2 | ||||
anticipated pricing reductions. In the September quarter, we expect revenue to range from $510 million to $570 million, up 17 percent sequentially and down four percent year over year at the midpoint.
In Q1 FY27, revenue derived from our audio and HPMS product lines represented 54 percent and 46 percent of total revenue, respectively. One customer contributed approximately 90 percent of total revenue in Q1 FY27. Our relationship with our largest customer remains outstanding, with continued strong design activity across a wide range of products. While we understand there is intense interest in this customer, in accordance with our policy, we do not discuss specifics about this business.
Figure B: Cirrus Logic Revenue ($M) Q2 FY25 to Q2 FY27
*Midpoint of guidance as of August 5, 2026
GAAP gross margin in the June quarter was 52.6 percent, compared to 53.0 percent in Q4 FY26 and 52.6 percent in Q1 FY26. The quarter-over-quarter decrease in gross margin reflects previously anticipated pricing reductions, which were partially offset by cost reductions. On a year-over-year basis, gross margin was flat as a favorable product mix was partially offset by higher freight and supply chain costs. Non-GAAP gross margin in the June quarter was 52.7 percent, compared to 53.0 percent in Q4 FY26 and 52.6 percent in Q1 FY26. In the September quarter, we expect gross margin to range from 52 percent to 54 percent. In Q2, we expect gross margin to see a temporary benefit from wafers purchased under prior agreements with GlobalFoundries at favorable pricing. We expect this tranche to largely sell through in Q2, after which gross margin should normalize.
Q1 FY27 Letter to Shareholders | 3 | ||||
Operating Profit, Tax, and EPS
Operating profit for Q1 FY27 was 18.4 percent on a GAAP basis and 23.2 percent on a non-GAAP basis. GAAP operating expense was $157.4 million and included $20.4 million in stock-based compensation and $1.6 million in amortization of acquisition intangibles. On a sequential basis, GAAP operating expense increased by $10.1 million, primarily driven by higher employee-related expenses and, to a lesser extent, increased professional costs and product development expenses. This was partially offset by an increase in R&D incentives. On a year-over-year basis, GAAP operating expense increased by $15.8 million primarily due to higher employee-related costs, which is consistent with our previously communicated increase in R&D expense in support of the range of opportunities we have across the business. To a lesser extent, operating expense also increased due to higher variable compensation, product development, and professional expenses. Non-GAAP operating expense for the quarter was $135.4 million, up $9.3 million sequentially and $15.9 million year over year. The company’s total headcount exiting Q1 was 1,717. As we indicated last quarter, we are seeing an increase in opportunities across our business, therefore, we expect R&D investment to grow in FY27.
Combined GAAP R&D and SG&A expenses for Q2 FY27 are expected to range from $163 million to $169 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 $140 million and $146 million.
Figure C: GAAP R&D and SG&A Expenses ($M)/Headcount Q2 FY25 to Q2 FY27
*Reflects midpoint of combined R&D and SG&A guidance as of August 5, 2026
For the June quarter, GAAP tax expense was $17.3 million on GAAP pre-tax income of $94.2 million, resulting in an effective tax rate of 18.4 percent. Non-GAAP tax expense for the quarter was $20.3 million
Q1 FY27 Letter to Shareholders | 4 | ||||
on non-GAAP pre-tax income of $116.4 million, resulting in a non-GAAP effective tax rate of 17.4 percent. We estimate that our FY27 non-GAAP effective tax rate will range from approximately 16 percent to 18 percent.
GAAP earnings per share for the June quarter was $1.47, compared to earnings per share of $1.56 in the prior quarter and $1.14 in Q1 FY26. Non-GAAP earnings per share for the June quarter was $1.84, versus $1.95 in Q4 FY26 and $1.51 in Q1 FY26.
Balance Sheet
Our cash and investment balance at the end of Q1 FY27 was $1.2 billion, up slightly from our fiscal year-end. Cash flow from operations for the June quarter was $64.1 million. During the quarter, we repurchased 211,099 shares at an average price of $163.43, returning $34.5 million of cash to shareholders in the form of buybacks. At the end of Q1 FY27, the company had $239.6 million remaining in its share repurchase authorization. Subsequent to Q1 FY27, the company utilized $50.5 million to repurchase 359,350 shares at an average price of $140.53 under a Rule 10b5-1 trading plan. Over the long term, we expect strong cash flow generation, and we will continue to evaluate potential uses of this cash, including investing in the business to pursue organic growth opportunities, M&A, and returning capital to shareholders through share repurchases. Q1 FY27 inventory was $262.7 million, up from $240.9 million in Q4 FY26.
Company Strategy
We 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.
Our first strategic priority, maintaining our leadership position in smartphone audio, is largely driven by our custom silicon business, which includes boosted amplifiers and smart codecs. Together, these components deliver exceptional audio performance and meaningful power and efficiency gains, while also enabling greater flexibility in system design. During the quarter, we saw strong demand for these components. We anticipate these products will continue to ship for multiple smartphone generations, providing the company with solid long-term visibility, sustained revenue contribution, and the ability to redeploy R&D resources into new markets and applications.
Within our second strategic priority area, expanding HPMS products in smartphones, we are leveraging our advanced mixed-signal expertise to develop innovative new products for camera, battery, and power applications. Our close engineering collaboration with our largest customer around camera technologies has spanned multiple generations of controllers, and we continue to execute on a roadmap that will enable further advanced camera functionality and improved system performance, including development of our next-generation controller. In the battery and power domains, we remain focused on delivering products that integrate signal processing and control capability to maximize system performance and power efficiency. The design of our smart power IC for 3D sensing is progressing on schedule, and we are continuing to develop additional power and battery products. As we begin to realize the benefits from our investments in these areas, we are pursuing additional opportunities that we believe will contribute to product diversification and support long-term growth across our HPMS portfolio.
Q1 FY27 Letter to Shareholders | 5 | ||||
Outside of smartphones, we continue to make meaningful progress executing on our third strategic priority to expand into new applications and markets. PCs represent the largest near-term growth opportunity, driven by the transition to the MIPI SoundWire® interface, the adoption of AI-enabled PCs, and demand for high-quality audio in thinner, lighter, and more power-efficient devices. We are excited about the opportunity to leverage our technology in AI-enabled PCs, where voice is emerging as a natural and intuitive way for a consumer to interact with their device. However, the user experience today remains constrained as consumers cannot interact with agents in a truly conversational, always-on manner because running wake-word detection on the CPU or NPU can rapidly drain battery life and introduce latency issues. Our latest low-power, always-on smart codec for AI-enabled PCs offloads wake-word detection, noise reduction, and audio buffering to a standalone codec, optimizing the system’s power consumption until the voice engine is triggered. Customer interest in this product was strong in the June quarter, and we are engaged in design activity. In June, we were also pleased to see multiple customers announce new PCs based on NVIDIA’s RTX Spark™ platform, which are expected to ship later this year with Cirrus Logic amplifiers and codecs. With strong engagement across our PC product portfolio, we believe we are well-positioned to capitalize on the many opportunities ahead.
Beyond PCs, we continue to expand our general market business across a broad base of customers in the professional audio, automotive, industrial, and imaging markets. Given these components typically have long lifespans and gross margins above our corporate average, we are investing in new products and refreshing existing components that offer sustained differentiation and support long-term growth in revenue and profitability. Over the past several years, we have introduced new product families that increase our addressable market, including audio converters, imaging components, and timing products. The latest addition to this portfolio is a new family of high-performance AFE components for smart metering in electrification applications. Rising energy demand, aging grid infrastructure, and tightening accuracy and regulatory standards are driving expansion of applications and upgrades to power metering systems worldwide. Our first product targeting this market delivers higher-accuracy voltage and current measurement for residential, commercial, and industrial applications. Additionally, on-chip digital signal processing enables power quality analysis and fault detection while reducing customers' component count and system cost. We expect to begin sampling this product during the September quarter, and believe over time this underlying technology can extend beyond smart meters into other adjacent applications including data center DC metrology, energy storage, EV charging, and grid monitoring. With an innovative roadmap that leverages our extensive intellectual property portfolio and a proven track record of execution, we believe the company is well-positioned to drive further application and market diversification in the coming years.
Finally, we recently signed a new Capacity Reservation and Wafer Supply Agreement with GlobalFoundries. This agreement builds on our existing partnership and secures dedicated wafer capacity and pricing for calendar 2027 and 2028, further supporting the broad range of opportunities we see ahead. We are also continuing to collaborate with GlobalFoundries on next-generation process technologies and progressing towards manufacturing products in the United States at their facility in Malta, New York.
Summary and Guidance
For the September quarter, we expect the following results:
•Revenue to range between $510 million and $570 million;
•GAAP gross margin to be between 52 percent and 54 percent; and
Q1 FY27 Letter to Shareholders | 6 | ||||
•Combined GAAP R&D and SG&A expenses to range between $163 million and $169 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 $140 million and $146 million.
In conclusion, we delivered record first quarter financial results in Q1 FY27 while also continuing to execute on our strategic priorities. During the quarter, we maintained our leadership in smartphone audio, saw positive design momentum with our PC products, and expanded our general market product portfolio that is expected to drive expansion in markets outside of smartphones. With a deep commitment to innovation and outstanding customer relationships, we believe Cirrus Logic is well-positioned for future success.
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.
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
Q1 FY27 Letter to Shareholders | 7 | ||||
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 belief that power and battery opportunities will diversify our product portfolio and support long-term growth; our expectations for PC revenue in FY27; our expectation that the constrained supply of a key industry platform, memory and component shortages, and OEMs delaying certain new model introductions reflect a shift in timing rather than a fundamental change to the underlying opportunity; our expectation that multiple customers will ship new PCs that feature NVIDIA’s RTX Spark™ platform later this year with Cirrus Logic amplifiers and codecs; our expectation that our new AFE component for metrology applications will begin to sample in the September quarter; our belief that over time our underlying AFE technology can extend into adjacent applications such as data center DC metrology, energy storage, EV charging, and grid monitoring; our ability to leverage our mixed-signal design and signal processing expertise to drive growth across new applications and markets in future years; our expectation that our R&D investment will grow in FY27; our ability to maintain our leadership position in smartphone audio; our ability to increase HPMS content in smartphones; our ability to leverage our strength in audio and HPMS to expand into additional applications and markets with both new and existing components; our expectation that our boosted amplifiers and smart codecs will continue to ship for multiple smartphone generations, providing solid long-term visibility, sustained revenue contribution, and the ability to redeploy R&D resources into new markets and applications; our ability to leverage our advanced mixed-signal expertise to develop innovative new products for camera, battery, and power applications; our ability to execute on a roadmap that will enable further advanced camera functionality and improved system performance; our ability to develop our next-generation camera controller, smart power IC for 3D sensing, and additional power and battery products; our ability to deliver products that integrate signal processing and control capability to maximize system performance and power efficiency; our ability to pursue additional opportunities that will contribute to product diversification and support long-term growth across our HPMS portfolio; our ability to leverage our technology in AI-enabled PCs; our ability to capitalize on the many PC opportunities ahead; our ability to invest in new products and refresh existing components that offer sustained differentiation and support long-term growth in revenue and profitability; our ability to collaborate with GlobalFoundries on next-generation process technologies and make progress towards manufacturing products in the United States; our belief that Cirrus Logic is well-positioned for future success; our expectations for strong cash flow generation over the long term; our ability to drive further application and market diversification in the coming years; our non-GAAP effective tax rate for the full fiscal year 2027; and our forecasts for the second quarter of fiscal year 2027 revenue, gross margin, combined research and development and selling, general and administrative expense levels, stock-based compensation expense, amortization of acquisition intangibles, and non-GAAP operating expense range. 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 second quarter of fiscal year 2027, customer cancellations of orders, or the failure to place orders consistent with forecasts; changes in government trade policies, including the imposition of tariffs and export restrictions; global economic conditions and uncertainty; and the risk
Q1 FY27 Letter to Shareholders | 8 | ||||
factors listed in our Form 10-K for the year ended March 28, 2026 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.
Q1 FY27 Letter to Shareholders | 9 | ||||
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(in thousands, except per share data; unaudited)
| Three Months Ended | |||||||||||||||||
| Jun. 27, 2026 | Mar. 28, 2026 | Jun. 28, 2025 | |||||||||||||||
| Q1'27 | Q4'26 | Q1'26 | |||||||||||||||
| Audio | $ | 249,034 | $ | 257,220 | $ | 240,043 | |||||||||||
| High-Performance Mixed-Signal | 210,689 | 191,303 | 167,229 | ||||||||||||||
| Net sales | 459,723 | 448,523 | 407,272 | ||||||||||||||
| Cost of sales | 217,868 | 210,881 | 193,242 | ||||||||||||||
| Gross profit | 241,855 | 237,642 | 214,030 | ||||||||||||||
| Gross margin | 52.6 | % | 53.0 | % | 52.6 | % | |||||||||||
| Research and development | 115,013 | 107,487 | 102,892 | ||||||||||||||
| Selling, general and administrative | 42,406 | 39,860 | 38,744 | ||||||||||||||
| Total operating expenses | 157,419 | 147,347 | 141,636 | ||||||||||||||
| Income from operations | 84,436 | 90,295 | 72,394 | ||||||||||||||
| Interest income | 10,082 | 10,248 | 8,622 | ||||||||||||||
| Other expense | (363) | (282) | (388) | ||||||||||||||
| Income before income taxes | 94,155 | 100,261 | 80,628 | ||||||||||||||
| Provision for income taxes | 17,304 | 18,456 | 19,931 | ||||||||||||||
| Net income | $ | 76,851 | $ | 81,805 | $ | 60,697 | |||||||||||
| Basic earnings per share | $ | 1.52 | $ | 1.61 | $ | 1.17 | |||||||||||
| Diluted earnings per share: | $ | 1.47 | $ | 1.56 | $ | 1.14 | |||||||||||
| Weighted average number of shares: | |||||||||||||||||
| Basic | 50,550 | 50,822 | 51,727 | ||||||||||||||
| Diluted | 52,353 | 52,369 | 53,319 | ||||||||||||||
Prepared in accordance with Generally Accepted Accounting Principles
Q1 FY27 Letter to Shareholders | 10 | ||||
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 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 | |||||||||||||||||
| Jun. 27, 2026 | Mar. 28, 2026 | Jun. 28, 2025 | |||||||||||||||
| Net Income Reconciliation | Q1'27 | Q4'26 | Q1'26 | ||||||||||||||
| GAAP Net Income | $ | 76,851 | $ | 81,805 | $ | 60,697 | |||||||||||
| Amortization of acquisition intangibles | 1,647 | 1,647 | 1,647 | ||||||||||||||
| Stock-based compensation expense | 20,589 | 19,847 | 20,809 | ||||||||||||||
| Adjustment to income taxes | (2,988) | (1,020) | (2,839) | ||||||||||||||
| Non-GAAP Net Income | $ | 96,099 | $ | 102,279 | $ | 80,314 | |||||||||||
| Earnings Per Share Reconciliation | |||||||||||||||||
| GAAP Diluted earnings per share | $ | 1.47 | $ | 1.56 | $ | 1.14 | |||||||||||
| Effect of Amortization of acquisition intangibles | 0.03 | 0.03 | 0.03 | ||||||||||||||
| Effect of Stock-based compensation expense | 0.40 | 0.38 | 0.39 | ||||||||||||||
| Effect of Adjustment to income taxes | (0.06) | (0.02) | (0.05) | ||||||||||||||
| Non-GAAP Diluted earnings per share | $ | 1.84 | $ | 1.95 | $ | 1.51 | |||||||||||
| Operating Income Reconciliation | |||||||||||||||||
| GAAP Operating Income | $ | 84,436 | $ | 90,295 | $ | 72,394 | |||||||||||
| GAAP Operating Profit | 18.4 | % | 20.1 | % | 17.8 | % | |||||||||||
| Amortization of acquisition intangibles | 1,647 | 1,647 | 1,647 | ||||||||||||||
| Stock-based compensation expense - COGS | 238 | 289 | 300 | ||||||||||||||
| Stock-based compensation expense - R&D | 13,245 | 12,327 | 13,072 | ||||||||||||||
| Stock-based compensation expense - SG&A | 7,106 | 7,231 | 7,437 | ||||||||||||||
| Non-GAAP Operating Income | $ | 106,672 | $ | 111,789 | $ | 94,850 | |||||||||||
| Non-GAAP Operating Profit | 23.2 | % | 24.9 | % | 23.3 | % | |||||||||||
| Operating Expense Reconciliation | |||||||||||||||||
| GAAP Operating Expenses | $ | 157,419 | $ | 147,347 | $ | 141,636 | |||||||||||
| Amortization of acquisition intangibles | (1,647) | (1,647) | (1,647) | ||||||||||||||
| Stock-based compensation expense - R&D | (13,245) | (12,327) | (13,072) | ||||||||||||||
| Stock-based compensation expense - SG&A | (7,106) | (7,231) | (7,437) | ||||||||||||||
| Non-GAAP Operating Expenses | $ | 135,421 | $ | 126,142 | $ | 119,480 | |||||||||||
| Gross Margin/Profit Reconciliation | |||||||||||||||||
| GAAP Gross Profit | $ | 241,855 | $ | 237,642 | $ | 214,030 | |||||||||||
| GAAP Gross Margin | 52.6 | % | 53.0 | % | 52.6 | % | |||||||||||
| Stock-based compensation expense - COGS | 238 | 289 | 300 | ||||||||||||||
| Non-GAAP Gross Profit | $ | 242,093 | $ | 237,931 | $ | 214,330 | |||||||||||
| Non-GAAP Gross Margin | 52.7 | % | 53.0 | % | 52.6 | % | |||||||||||
| Effective Tax Rate Reconciliation | |||||||||||||||||
| GAAP Tax Expense | $ | 17,304 | $ | 18,456 | $ | 19,931 | |||||||||||
| GAAP Effective Tax Rate | 18.4 | % | 18.4 | % | 24.7 | % | |||||||||||
| Adjustments to income taxes | 2,988 | 1,020 | 2,839 | ||||||||||||||
| Non-GAAP Tax Expense | $ | 20,292 | $ | 19,476 | $ | 22,770 | |||||||||||
| Non-GAAP Effective Tax Rate | 17.4 | % | 16.0 | % | 22.1 | % | |||||||||||
| Tax Impact to EPS Reconciliation | |||||||||||||||||
| GAAP Tax Expense | $ | 0.33 | $ | 0.35 | $ | 0.37 | |||||||||||
| Adjustments to income taxes | 0.06 | 0.02 | 0.05 | ||||||||||||||
| Non-GAAP Tax Expense | $ | 0.39 | $ | 0.37 | $ | 0.42 | |||||||||||
Q1 FY27 Letter to Shareholders | 11 | ||||
CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands; unaudited)
| Jun. 27, 2026 | Mar. 28, 2026 | Jun. 28, 2025 | |||||||||||||||
| ASSETS | |||||||||||||||||
| Current assets | |||||||||||||||||
| Cash and cash equivalents | $ | 810,666 | $ | 800,930 | $ | 548,870 | |||||||||||
| Marketable securities | 80,596 | 86,697 | 65,925 | ||||||||||||||
| Accounts receivable, net | 253,971 | 220,149 | 214,085 | ||||||||||||||
| Inventories | 262,746 | 240,871 | 278,984 | ||||||||||||||
| Prepaid assets | 44,449 | 47,587 | 44,243 | ||||||||||||||
| Prepaid wafers | — | 14,733 | 61,934 | ||||||||||||||
| Other current assets | 21,040 | 22,741 | 27,081 | ||||||||||||||
| Total current assets | 1,473,468 | 1,433,708 | 1,241,122 | ||||||||||||||
| Long-term marketable securities | 276,056 | 266,160 | 232,959 | ||||||||||||||
| Right-of-use lease assets | 117,066 | 120,676 | 123,718 | ||||||||||||||
| Property and equipment, net | 149,845 | 143,975 | 154,340 | ||||||||||||||
| Intangibles, net | 19,168 | 20,727 | 25,718 | ||||||||||||||
| Goodwill | 435,936 | 435,936 | 435,936 | ||||||||||||||
| Deferred tax assets | 54,443 | 49,824 | 54,037 | ||||||||||||||
| Other assets | 34,298 | 18,368 | 26,887 | ||||||||||||||
| Total assets | $ | 2,560,280 | $ | 2,489,374 | $ | 2,294,717 | |||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
| Current liabilities | |||||||||||||||||
| Accounts payable | $ | 78,090 | $ | 80,645 | $ | 66,321 | |||||||||||
| Accrued salaries and benefits | 44,182 | 52,723 | 43,146 | ||||||||||||||
| Software license agreements | 22,091 | 22,229 | 21,511 | ||||||||||||||
| Current lease liabilities | 20,761 | 19,872 | 21,075 | ||||||||||||||
| Other accrued liabilities | 29,176 | 19,187 | 36,625 | ||||||||||||||
| Total current liabilities | 194,300 | 194,656 | 188,678 | ||||||||||||||
| Non-current lease liabilities | 109,703 | 114,105 | 120,272 | ||||||||||||||
| Non-current income taxes | 47,320 | 46,721 | 44,693 | ||||||||||||||
| Software license agreements | 19,826 | 5,896 | 10,790 | ||||||||||||||
| Total long-term liabilities | 176,849 | 166,722 | 175,755 | ||||||||||||||
| Stockholders' equity: | |||||||||||||||||
| Capital stock | 1,967,875 | 1,945,958 | 1,881,472 | ||||||||||||||
| Accumulated earnings | 224,213 | 184,881 | 49,035 | ||||||||||||||
| Accumulated other comprehensive loss | (2,957) | (2,843) | (223) | ||||||||||||||
| Total stockholders' equity | 2,189,131 | 2,127,996 | 1,930,284 | ||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,560,280 | $ | 2,489,374 | $ | 2,294,717 | |||||||||||
Prepared in accordance with Generally Accepted Accounting Principles
Q1 FY27 Letter to Shareholders | 12 | ||||
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(in thousands; unaudited)
| Three Months Ended | |||||||||||
| Jun. 27, | Jun. 28, | ||||||||||
| 2026 | 2025 | ||||||||||
| Q1'27 | Q1'26 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 76,851 | $ | 60,697 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 13,156 | 13,173 | |||||||||
| Stock-based compensation expense | 20,589 | 20,809 | |||||||||
| Deferred income taxes | (4,600) | (5,938) | |||||||||
| Gain on retirement or write-off of long-lived assets | (67) | — | |||||||||
| Other non-cash adjustments | 152 | (16) | |||||||||
| Net change in operating assets and liabilities: | |||||||||||
| Accounts receivable | (33,822) | 1,924 | |||||||||
| Inventories | (21,875) | 20,108 | |||||||||
| Prepaid wafers | 14,733 | 6,138 | |||||||||
| Other assets | 3,723 | 2,014 | |||||||||
| Accounts payable and other accrued liabilities | (7,976) | (8,806) | |||||||||
| Income taxes payable | 3,264 | 6,028 | |||||||||
| Net cash provided by operating activities | 64,128 | 116,131 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Maturities and sales of available-for-sale marketable securities | 47,044 | 22,990 | |||||||||
| Purchases of available-for-sale marketable securities | (50,930) | (26,435) | |||||||||
| Purchases of property, equipment and software | (15,143) | (2,638) | |||||||||
| Investments in technology | (361) | (132) | |||||||||
| Net cash used in investing activities | (19,390) | (6,215) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Debt issuance costs | (2,057) | — | |||||||||
| Net proceeds from the issuance of common stock | 1,329 | 382 | |||||||||
| Repurchase of stock to satisfy employee tax withholding obligations | (2,774) | (1,049) | |||||||||
| Repurchase and retirement of common stock | (31,500) | (99,999) | |||||||||
| Net cash used in financing activities | (35,002) | (100,666) | |||||||||
| Net increase in cash and cash equivalents | 9,736 | 9,250 | |||||||||
| Cash and cash equivalents at beginning of period | 800,930 | 539,620 | |||||||||
| Cash and cash equivalents at end of period | $ | 810,666 | $ | 548,870 | |||||||
Prepared in accordance with Generally Accepted Accounting Principles
Q1 FY27 Letter to Shareholders | 13 | ||||
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 | ||||||||||||||||||||||||||||
| Jun. 27, | Jun. 27, | Mar. 28, | Dec. 27, | Sep. 27, | |||||||||||||||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||||||||||||||||
| Q1'27 | Q1'27 | Q4'26 | Q3'26 | Q2'26 | |||||||||||||||||||||||||
| Net cash provided by operating activities (GAAP) | $ | 598,596 | $ | 64,128 | $ | 151,420 | $ | 290,834 | $ | 92,214 | |||||||||||||||||||
| Capital expenditures | (27,570) | (15,504) | (2,396) | (5,160) | (4,510) | ||||||||||||||||||||||||
| Free Cash Flow (Non-GAAP) | $ | 571,026 | $ | 48,624 | $ | 149,024 | $ | 285,674 | $ | 87,704 | |||||||||||||||||||
| Cash Flow from Operations as a Percentage of Revenue (GAAP) | 29 | % | 14 | % | 34 | % | 50 | % | 16 | % | |||||||||||||||||||
| Capital Expenditures as a Percentage of Revenue (GAAP) | 1 | % | 3 | % | 1 | % | 1 | % | 1 | % | |||||||||||||||||||
| Free Cash Flow Margin (Non-GAAP) | 28 | % | 11 | % | 33 | % | 49 | % | 16 | % | |||||||||||||||||||
Q1 FY27 Letter to Shareholders | 14 | ||||
| RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION | ||||||||
| (in millions; unaudited) | ||||||||
| (not prepared in accordance with GAAP) | ||||||||
| Q2 FY27 | ||||||||
| Guidance | ||||||||
| Operating Expense Reconciliation | ||||||||
| GAAP Operating Expenses | $163 - 169 | |||||||
| Stock-based compensation expense | (21) | |||||||
| Amortization of acquisition intangibles | (2) | |||||||
| Non-GAAP Operating Expenses | $140 - 146 | |||||||
Q1 FY27 Letter to Shareholders | 15 | ||||