Cirrus Logic, Inc.

Q1 fiscal 27 revenue was $460 million, up 2% sequentially and 13% year over year. Non-GAAP gross profit was $242.1 million and non-GAAP gross margin was 52.7%; non-GAAP operating income was $106.7 million, or 23.2% of revenue; non-GAAP net income was $96.1 million and non-GAAP EPS was $1.84, while GAAP EPS was $1.47. Cash and investments ended at $1.2 billion, up $13.5 million sequentially, with no debt; inventory was $262.7 million and operating cash flow was $64.1 million. For Q2, Cirrus expects revenue of $510 million to $570 million, GAAP gross margin of 52% to 54%, non-GAAP operating expense of $140 million to $146 million, and a full-year fiscal 27 non-GAAP tax rate of 16% to 18%. Management also said Q2 gross margin should get a temporary benefit from wafers purchased under prior GlobalFoundries agreements at favorable pricing, then normalize after that tranche sells through. Full-year operating expenses are expected to increase as the company invests in R&D.

John Forsyth framed the quarter as validation of Cirrus Logic’s three-part strategy: defend its flagship smartphone audio franchise, expand HPMS content in smartphones, and broaden into new markets. He emphasized sustained demand for custom boosted amplifiers and smart codecs, continued progress in camera and power sockets, and what he called a very strong pipeline across core audio and HPMS opportunities. On the broader market side, he highlighted PC, smart meter, and AI-enabled PC voice experiences as areas where Cirrus can win more content over time.

Jeffrey Woolard said Q1 revenue of $460 million came in at the midpoint of guidance and reflected higher smartphone component sales, partly offset by prior pricing reductions. He detailed non-GAAP gross margin of 52.7%, non-GAAP operating expense of $135.4 million, and strong liquidity of $1.2 billion in cash and investments with no debt. He also noted inventory of $262.7 million and $64.1 million in operating cash flow, plus $34.5 million of share repurchases in Q1 and another $50.5 million after quarter-end. For Q2, he guided to $510 million to $570 million of revenue, 52% to 54% GAAP gross margin, and $140 million to $146 million of non-GAAP operating expense, while reiterating that full-year Opex will rise as R&D investment increases.

Analysts focused first on changing seasonality, and management said the quarter-to-quarter pattern this year will be much tighter than historical norms, making Q1 stronger than average and the rest of the year less spread out. Questions on the new high-performance analog front-end and smart-meter opportunity drew a response that the company is early, expects broader sampling in the third and fourth quarters, and is targeting market launch in calendar 2028, but it declined to size a TAM yet. On capital allocation, management reiterated priorities of funding organic opportunities first, then M&A, then buybacks, and said a dividend is not being considered in the near term. Management also addressed the largest customer by saying Cirrus focuses on sockets where it can add unique value at the analog-digital boundary and expects Android to become a smaller part of the business over time.