Cirrus Logic, Inc. (NASDAQ: CRUS) has kicked off fiscal 2027 with its strongest first quarter on record, posting revenue of $459.7 million alongside record earnings per share, as robust demand for custom smartphone components and growing traction in its AI PC codec business fueled the results.
Record Quarter Driven by Smartphone Demand
For the first quarter of fiscal year 2027, ended June 27, 2026, Cirrus Logic reported net sales of $459.7 million, up from $448.5 million in the prior quarter and $407.3 million a year earlier. The Audio segment contributed $249.0 million, while the High-Performance Mixed-Signal segment delivered $210.7 million, its strongest showing in recent quarters.
On a GAAP basis, the company posted gross margin of 52.6 percent and net income of $76.9 million, translating to diluted earnings per share of $1.47. Non-GAAP figures were even stronger, with net income of $96.1 million and diluted EPS of $1.84, both representing meaningful year-over-year gains from $80.3 million and $1.51, respectively, in the same quarter last year.
"We experienced strong demand for custom components shipping into smartphones. The company also made meaningful progress executing on key strategic initiatives."— John Forsyth, President and Chief Executive Officer, Cirrus Logic
Expanding Beyond Mobile: AI PCs and Metrology
Beyond its core smartphone business, Cirrus Logic highlighted growing interest in its latest smart codec for AI-enabled PCs, noting it is now engaged with multiple customers on designs targeting the next calendar year. The company also disclosed that it recently taped out a new high-performance analog front-end component aimed at metrology applications, a move intended to broaden its footprint in general market segments beyond mobile devices.
These initiatives reflect Cirrus Logic's ongoing strategy of applying its mixed-signal design expertise to new categories as it looks to diversify revenue streams beyond its traditional audio and smartphone customer base.
Looking Ahead: Second Quarter Guidance
For the second quarter of fiscal 2027, Cirrus Logic guided revenue in a range of $510 million to $570 million, well above the June-quarter total, reflecting seasonal ramp expectations heading into new product launch cycles. GAAP gross margin is forecast between 52 and 54 percent.
Combined GAAP research and development and SG&A expenses are expected to land between $163 million and $169 million, including roughly $21 million in stock-based compensation and $2 million in amortization of acquisition intangibles, putting non-GAAP operating expenses in a range of $140 million to $146 million.