Cirrus Logic tops Q2 profit estimates, authorizes $500 million buyback

Cirrus Logic (CRUS) posted non-GAAP earnings of $2.70 per share for its fiscal second quarter, topping the $2.47 consensus estimate, the company said on Nov. 4. Revenue of $559.46 million was in line with the $558.37 million estimate.

Cirrus Logic sells low-power, high-precision mixed-signal processing solutions and is headquartered in Austin, Texas.

Here's how the company did:

• Non-GAAP EPS: $2.70 vs. $2.47 expected, and $2.83 a year earlier
• GAAP EPS: $2.23 vs. $2.48 a year earlier
• Revenue: $559.46 million vs. $558.37 million expected, and $560.96 million a year earlier

The quarter ended Sept. 26, 2026. Revenue was flat from a year earlier and up 22% from the prior quarter, according to the company's shareholder letter.

Revenue and margins

The sequential increase reflects higher smartphone unit volumes and increased content shipping into smartphones, the letter said. Partly offsetting that were a decline in PCs and lower sales of general market components nearing end of life.

"Cirrus Logic delivered solid results in the September quarter primarily driven by strong demand and increased content shipping into smartphones," said John Forsyth, Cirrus Logic president and chief executive officer.

One customer contributed approximately 93% of total revenue in the quarter, the letter said. GAAP gross margin was 53.7%, up from 52.5% a year earlier. Non-GAAP gross margin was 53.8%.

Guidance

For the December quarter, the company expects revenue of $510 million to $570 million, the same range it gave on Aug. 5. It expects GAAP gross margin of 51% to 53%.

Combined GAAP research and development and selling, general and administrative expenses are expected to range from $184 million to $190 million. That includes about $21 million in stock-based compensation and $9 million in acquisition-related costs, resulting in a non-GAAP operating expense range of $152 million to $158 million.

Costs and headcount

GAAP operating expense was $168.2 million, including $6.9 million in acquisition-related costs. The company's headcount exiting the quarter was 1,815, up 98 from the prior quarter.

The company said it completed its acquisition of INVENTVM, a fabless semiconductor company based in Pavia, Italy, after the quarter ended.

Share repurchases

The board authorized the repurchase of up to an additional $500 million of common stock on Oct. 26, a regulatory filing showed. At the end of the quarter, $114.1 million remained under the March 2025 authorization.

The company returned $125.5 million to shareholders through buybacks during the quarter. After the quarter, it used $18.6 million to repurchase shares under a 10b5-1 trading plan.

The company said repurchases will be funded from working capital and anticipated cash flow from operations. It is not obligated to repurchase any specific amount of shares.