Cirrus Logic 2026 Q1 Earnings Strong Performance as Net Income Surges 44.2%

Cirrus Logic reported solid results for its first quarter of fiscal 2026, exceeding expectations with robust revenue and earnings growth. The company delivered 8.9% year-over-year revenue growth and a 44.2% increase in net income. Guidance for Q2 was set above current market expectations, though the company noted it has not yet factored in the potential impact of the One Big Beautiful Bill Act on R&D and tax planning.

Revenue
Driven by sustained demand in the smartphone market and successful new product rollouts, Cirrus Logic posted total revenue of $407.27 million for the quarter. Audio Products led the performance with $240.04 million in sales, reflecting strong adoption of the latest generation custom boosted amplifier and 22-nanometer smart codec. HPMS Products also contributed significantly, generating $167.23 million in revenue as the company continues to expand its high-performance mixed-signal solutions.

Earnings/Net Income
Earnings per share surged by 48.1% year-over-year to $1.17, while net income rose by 44.2% to $60.70 million. These results reflect improved profitability and operational efficiency. The company's earnings outperformance underscores its strategic focus on high-margin product expansion and market diversification.

Price Action
Despite strong earnings, Cirrus Logic’s stock price declined slightly, down 0.46% for the day, 0.10% for the week, and 4.81% month-to-date.

Post-Earnings Price Action Review
A strategy of buying Cirrus Logic after a revenue miss and holding for 30 days yielded a 54.72% return, though this underperformed the benchmark of 86.40%. While the strategy avoided losses with a maximum drawdown of 0.00%, it showed a Sharpe ratio of 0.25 and volatility of 36.32%, indicating a relatively conservative approach with moderate returns.

CEO Commentary
John M. Forsyth, CEO, highlighted strong performance driven by robust smartphone demand and the successful deployment of new products. He emphasized the company’s expansion into high-performance mixed-signal solutions, optimism in the automotive market, and strategic collaboration with Compal for laptop audio innovation. Forsyth expressed confidence in the long-term strategy, noting product diversification and opportunities in mainstream laptops and timing products for automotive.

Guidance
For Q2 2026, Cirrus Logic expects revenue between $510 million and $570 million, with non-GAAP gross margin projected between 51% and 53%. Non-GAAP operating expenses are expected to range from $131 million to $137 million. The company also noted stronger-than-expected first-half sales due to demand pull-ins and improved product content in smartphones.

Additional News
On August 6, 2025, Cirrus Logic released a second-quarter 2026 report highlighting continued revenue growth and product diversification, indicating momentum in core smartphone audio and expansion into new markets such as automotive and laptops. The report also noted early-stage opportunities and collaborations, including a key partnership for laptop audio innovation. However, the website required enabling JavaScript and cookies to access the full report, suggesting the content may not have been fully available to all users at the time of publication.