Cirrus Logic (CRUS -7.33%), a semiconductor firm focused on audio and high-performance mixed-signal solutions, released its fiscal first-quarter results on August 5, 2025. The main headline: Non-GAAP earnings and GAAP revenue both outpaced Wall Street expectations. Earnings per share (Non-GAAP) were $1.51, well ahead of the $1.01 non-GAAP estimate. Revenue (GAAP) reached $407.3 million, beating the $376.0 million GAAP consensus. Management pointed to strong demand for new audio components in smartphones and solid results from expanding into laptop and professional audio markets. The period was marked by a sharp year-over-year increase in non-GAAP earnings per share, improved non-GAAP profit margins.
| Metric | Q1 FY26(June 28, 2025) | Q1 Estimate | Q1 FY25(June 29, 2024) | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $1.51 | $1.01 | $1.12 | 34.8% |
| Revenue | $407.3 million | N/A | $374.0 million | 8.9 % |
| Gross Margin (Non-GAAP) | 52.6 % | 50.6 % | 2.0 pp | |
| Operating Expenses (Non-GAAP) | $119.5 million | $118.0 million | 1.3 % | |
| Free Cash Flow (Non-GAAP) | $113.4 million | $5.5 million | 1,961.8 % |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q4 2025 earnings report.
About Cirrus Logic and Key Success Factors
Cirrus Logic is a fabless semiconductor provider, meaning it designs chips but outsources manufacturing. Its main focus is on audio components such as amplifiers and codecs, used in devices like smartphones, laptops, and even automotive systems. It also sells high-performance mixed-signal products, which translate between digital and analog signals in electronics.
The company's success is tightly linked to a handful of major customers, with Apple accounting for about 89% of annual net sales in FY2025. This concentration means shifts in Apple's product plans or demand can have a big impact on results. Cirrus Logic’s strategy centers on sustained investment in research and development, aiming to maintain its edge in audio innovation and break into new product areas like professional audio, laptops, and automotive segments. The ability to turn technology investments into new design wins is critical for future growth.
First Quarter Review: Highlights and Developments
Cirrus Logic’s non-GAAP earnings per share of $1.51 and GAAP revenue of $407.3 million came in well above expectations. Non-GAAP earnings per share of $1.51 beat consensus by $0.50, while revenue (GAAP) of $407.3 million topped analysts’ estimates by $31.28 million. The improvement stemmed from strong demand for its newest audio products, specifically a custom boosted amplifier and a 22-nanometer smart codec shipping in smartphones. These components raised the value of audio content in flagship smartphones and marked important advances in efficiency and sound quality.
Results also reflected traction in Cirrus Logic’s efforts to diversify away from mobile phones. Revenue from audio products (GAAP) came in at $240.0 million, up from $219.0 million in Q1 FY2025. Sales in high-performance mixed-signal chips, used for things such as camera controllers and battery management, hit $167.2 million (GAAP), a year-over-year gain. The balance between the audio and mixed-signal segments was about 60/40, due in part to this generation’s big upgrades for smartphone audio content.
Laptop market expansion continued, with management highlighting that revenue from this sector is set to double in FY2026 compared to FY2025. The company expects to be shipping its technology in well over 150 different laptop models in fiscal 2026. In non-mobile markets, Cirrus Logic added high-performance digital-to-analog converters, an advanced audio codec, and timing chips aimed at professional audio, imaging, and automotive systems. These new offerings mark progress in its goal to make new products a meaningful part of the business mix, even if most revenue still comes from smartphones.
Gross margin (GAAP and non-GAAP) was 52.6%, Gross margin increased by 2.1 percentage points compared to Q1 FY2025. Non-GAAP operating expenses increased slightly in Q4 FY2025. Free cash flow (non-GAAP) jumped to $113.4 million.
Looking Forward: Guidance and Investor Focus
Management has issued guidance for Q2 FY2026, forecasting revenue between $510 million and $570 million. This range suggests strong sequential growth in revenue compared to Q1 FY2026, where GAAP revenue was $407.3 million. Gross margin (GAAP) is expected to stay steady at 51% to 53% for Q2 FY2026, and non-GAAP operating expenses are projected at $131 million to $137 million.
Looking ahead, investors may pay close attention to the rate at which Cirrus Logic can grow its laptop, general market, and automotive businesses. Management indicated that general market revenue could eventually reach 10% of total sales, though this will take time. The company also continues to focus on robust free cash flow and ongoing share repurchases, with a recently authorized $500 million buyback program, approved in March 2025. For now, the pace at which Cirrus Logic lessens its reliance on Apple is a key variable to watch. CRUS does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
