Cirrus Logic Q2 Revenue Flat as Q3 Guidance Centers on $540 Million

Cirrus Logic reported fiscal second-quarter 2027 revenue of $559.5 million, roughly flat with $561 million a year earlier, while issuing fiscal third-quarter revenue guidance of $510 million to $570 million. The results continued to reflect substantial customer concentration, with the company’s largest customer accounting for 93% of quarterly revenue.

Revenue increased from $460 million in the first quarter of fiscal 2027. Audio products represented 56% of second-quarter revenue, compared with 54% in the preceding quarter and 57% a year earlier. High-performance mixed-signal, or HPMS, products contributed the remaining 44%, versus 46% in the first quarter and 43% in the prior-year period.

GAAP gross margin was 53.7% for the quarter, above the 51% to 53% range Cirrus Logic expects for the third quarter. GAAP operating expenses totaled $168.2 million in the second quarter and are projected to rise to between $184 million and $190 million in the current quarter.

The third-quarter expense outlook includes approximately $21 million of stock-based compensation, $9 million of acquisition-related costs and $2 million of amortization of acquisition intangibles. At the midpoint of its guidance, Cirrus Logic expects third-quarter revenue of about $540 million.

On a trailing-12-month basis, GAAP gross margin was 53.1% and non-GAAP gross margin was 53.2%. Trailing-12-month GAAP operating margin was 22.5%, while non-GAAP operating margin was 27.0%.

Product and Market Expansion

Cirrus Logic’s growth strategy remains centered on maintaining its position in smartphone audio, increasing HPMS content in smartphones and extending its audio and mixed-signal technology into additional markets. Its HPMS portfolio includes camera controllers, haptic and sensing products, and battery and power-management integrated circuits.

The company identified PCs, AI-enabled gadgets, augmented- and virtual-reality devices, gaming products, wearables, professional audio, industrial imaging and automotive applications as expansion areas. In PCs, Cirrus Logic is targeting audio, always-on voice processing, haptic trackpads and power efficiency. Its broader industrial and automotive efforts include precision measurement, imaging, in-cabin multimedia, telematics and haptic controls.

Based on third-party market data and company estimates as of May 6, 2026, Cirrus Logic expects its serviceable available market to expand from $7.4 billion in 2026 to $9.0 billion in 2030. More than 75% of the projected increase is expected to come from markets outside smartphones, while the HPMS serviceable market is projected to grow 26% over that period. These estimates are subject to uncertainty and have not been independently verified.

Cash Generation and Capital Allocation

Cirrus Logic ended the second quarter with $1.1 billion in cash and investments. Cash from operations was $51 million for the quarter, while trailing-12-month free cash flow totaled $526 million. The company said it generated $2.0 billion in operating cash flow over the previous five fiscal years.

The chipmaker repurchased about 992,000 shares for $126 million during the quarter at an average price of $126.51 per share. After the quarter ended, it bought back approximately 171,000 additional shares for about $19 million at an average price of $108.67. Roughly $614 million remained under its repurchase authorization, including a new $500 million authorization.

Management listed research and development as its first capital-allocation priority, followed by acquisitions that strengthen its technology portfolio or broaden its end-market exposure and returns of capital through share repurchases.

The company’s outlook remains exposed to its dependence on a limited number of customers and distributors. Its 93% revenue concentration with its largest customer makes product demand, launch timing and purchasing decisions at that customer particularly important to future results. Cirrus Logic also cautioned that its market projections and expectations for new products and applications are forward-looking and could differ materially from actual outcomes.