Cirrus Logic

Cirrus Logic reported Q1 FY2027. EPS came in at $1.84 against a $1.81 consensus, beat by 1.7%. Revenue was $459.7M versus $460.3M expected, in line. Gross margin was 52.6%, down 40 bps from last quarter.

Cirrus Logic reported a solid Q4 FY2026, with revenue and EPS both beating street estimates, driven by strong demand in smartphones and PCs. The company's guidance for Q1 FY2027 indicates continued momentum, with a focus on R&D investment and share repurchases.

Cirrus Logic printed a cleaner upside quarter than the stock is likely to get credit for: revenue beat by +8.6% and EPS beat by +22.7%, yet the setup is not just “better iPhone seasonality,” it is evidence that mix and working-capital release can protect economics even as Q4 revenue guides to $410 million to $470 million. The variant view is that investors may fade the Q4 sequential decline too mechanically, while the print shows 53.1% gross margin, $290.8 million of operating cash flow, and inventory down to $189.5 million, all pointing to a business earning through the handset cycle rather than merely riding it.

Cirrus Logic was priced for a seasonal smartphone quarter, yet the print shows a cleaner mix-and-cost setup than the revenue surprise alone implies. The market may be underweighting that the $2.83 EPS beat came with 52.5% gross margin, lower-than-guided OpEx, falling inventory, and a Q3 guide that preserves the margin band even as revenue guidance tops out below the September quarter.

Cirrus Logic missed Street revenue by -20.2%, but beat EPS by +41.1%, which is exactly the disconnect the market may underprice: the company is being valued as a smartphone-unit derivative while the quarter showed operating leverage, margin durability, and product-cycle content can overwhelm a noisy top line.