Cirrus Logic Reports Fourth Quarter Revenue of $448.5 Million and Record Full Fiscal Year 2026 Revenue of $2.0 Billion

AUSTIN, Texas--(BUSINESS WIRE)-- Cirrus Logic, Inc. ( 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 ( CRUS ) 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 ( CRUS ) 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 ( CRUS ) website. About Cirrus Logic, Inc. ( CRUS ) Cirrus Logic ( CRUS ) 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 ( CRUS ) is recognized globally for its award-winning corporate culture. Cirrus Logic ( CRUS ), Cirrus and the Cirrus Logic ( CRUS ) logo are registered trademarks of Cirrus Logic, Inc. ( CRUS ) All other company or product names noted herein may be trademarks of their respective holders. Use of non-GAAP Financial Information To supplement Cirrus Logic's ( CRUS ) 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 ( CRUS ) 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. 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 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 ( CRUS ) 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 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 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 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 % 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 View source version on businesswire.com: https://www.businesswire.com/news/home/20260506817821/en/ Source: Cirrus Logic, Inc. ( CRUS )