Cirrus Logic’s (CRUS) Record Quarter Meets PC Headwinds

On August 5, Cirrus Logic (CRUS) announced record first-quarter revenue of $459.7 million, a 13% increase year-over-year. Non-GAAP earnings per share reached $1.84, also a new company record. Smartphone component demand drove the growth, with executives expressing confidence in content growth across cameras, batteries, and power circuits.

However, the company's PC segment outlook for fiscal 2027 was downgraded, a factor investors should consider when assessing the stock's future. High-performance mixed-signal revenue grew 26% year-over-year to $210.7 million, thanks to expansion in camera, battery, and power applications within smartphones. CEO John Forsyth highlighted a multi-generation collaboration with the company's largest customer on camera controllers, as well as progress on a Smart Power IC for 3D sensing.

Audio business grew 3.7% to $249.0 million, driven by demand for custom boosted amplifiers and smart codecs. Cirrus Logic is also venturing into smart meters, with a new family of analog front-end components slated for sampling in September. A wafer supply agreement with GlobalFoundries secures capacity and pricing through 2028, furthering the shift toward domestic manufacturing in Malta.

The company holds $1.2 billion in cash, no debt, and $598.6 million in trailing 12-month operating cash flow. Despite a PC segment outlook reduction, the stock trades at a forward P/E of 12.48, indicating the market has yet to fully accept the company's growth story.