CRUS Q1 Earnings & Sales Top, Rise Y/Y on Diversified Market Tailwinds

Core Insights - Cirrus Logic Inc. reported first-quarter fiscal 2026 adjusted earnings per share (EPS) of $1.51, exceeding the Zacks Consensus Estimate by 41% and up from $1.12 in the prior-year quarter [1][10] - The company generated revenues of $407.3 million, reflecting a 9% year-over-year growth, driven by strong demand for its custom boosted audio amplifier and newly introduced 22-nanometer smart codec [2][10] - The long-term growth strategy focuses on maintaining leadership in smartphone audio, expanding high-performance mixed-signal solutions, and leveraging expertise to enter new markets [3] Revenue Performance - Revenue growth was primarily attributed to strong customer demand, although there was a sequential decline of 4% due to decreased smartphone shipment volumes [2] - The top line exceeded management's guidance of $330-$390 million and the consensus estimate of $364 million [2] Segment Analysis - The High-Performance Mixed-Signal segment contributed 41% to total revenues, growing 7.9% year over year to $167.2 million, while the Audio segment's sales increased 9.6% to $240 million, contributing 59% to total revenues [7] - The company is expanding into applications such as laptops, gaming, tablets, and AR/VR [6] Customer Concentration - The largest customer accounted for 86% of total revenues in the fiscal first quarter, indicating a high level of customer concentration [5] Margin and Expenses - Non-GAAP gross margin was 52.6%, up from 50.6% in the prior-year quarter, but down from 53.5% sequentially [11] - Non-GAAP operating expenses rose 1.2% year over year to $119.5 million, while non-GAAP operating income increased 33.3% year over year to $94.8 million [12] Cash Flow and Share Repurchase - The company ended the fiscal first quarter with cash and marketable securities of $614.8 million, up from $595.8 million [14] - Cirrus Logic repurchased almost 1 million shares worth $100 million during the reported quarter [15] Future Outlook - For fiscal Q2 2026, the company anticipates revenues between $510 million and $570 million, projecting a strong sequential uptick in customer demand, particularly in smartphones [16]