Start here if you're new
what it is
Cirrus makes chips that move sound and data inside phones, tablets, headsets, and wearables.
how it gets paid
Last year Cirrus Logic made $1.9B in revenue. smartphone audio was the main engine at $1.1B, or 58% of sales.
why it's growing
Revenue grew 6.0% last year. The advance was driven by stronger-than-anticipated demand for its components from smartphone customers.
what just happened
Revenue of $581 million topped estimates by more than $50 million, and EPS landed at $2.97.
At a glance
A balance sheet — strong enough to weather a downturn
75/100 earnings predictability — reasonably predictable
14.8x trailing p/e — the market's not buying it — or you found a deal
18.5% return on capital — nothing to write home about
xvary composite: 75/100 — average
What they do
Cirrus makes chips that move sound and data inside phones, tablets, headsets, and wearables.
Cirrus sold $581 million in the latest quarter and 94% came from Apple. That is not diversification. It is a one-customer machine with 1,660 employees and a 30.5% operating margin. Leaving is painful when your best customer is doing most of the buying.
How they make money
$1.9B
annual revenue · their business grew +6.0% last year
smartphone audio
$1.1B
tablets and wearables
$0.4B
digital headsets
$0.2B
mass storage and precision data conversion
$0.2B
The products that matter
smartphone audio components
Audio Products
$1.6B · 84% of revenue
it's the core business at $1.6B, and it grew 4% last year. That scale is why Cirrus matters to handset makers, and why customer concentration matters to you.
core profit engine
power and mixed-signal chips
High-Performance Mixed-Signal
$0.3B · 16% of revenue
this segment is only about $0.3B of revenue, but it grew 5% last year. If Cirrus is going to diversify beyond audio, this is where you need to see it happen.
diversification test
Key numbers
$147
18m target
Target price → expected share level → only 10% above $133.96, so the upside is modest.
14.8x
trailing P/E
P/E → price compared with profit → 14.8x is ordinary for a chip company, not a fire sale.
30.5%
operating margin
Operating margin → profit left after running the business → 30.5% is a clean number for a hardware maker.
18.5%
return on capital
Return on capital → profit generated on money invested → 18.5% says the business earns its keep.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 3 — safer than 50% of stocks
- price stability 45 / 100
- net profit margin 22.7% — keeps 23 cents of every dollar in revenue
- return on equity 18% — $0.18 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in CRUS 3 years ago → it's now worth $13,150.
The index would have given you $14,540.
source: institutional data · total return
What just happened
beat estimates
Revenue of $581 million topped estimates by more than $50 million, and EPS landed at $2.97.
Sales rose 4.5% vs. prior year and EPS jumped 18% vs. prior year. Pricing reductions and weaker general market sales were the offset.
$581M
revenue
$2.97
eps
52.7%
gross margin
the number that mattered
The $581 million sales print mattered because it came in more than $50 million above estimate, even with 94% of revenue tied to Apple.
-
sales of $581 million were more than $50 million above our estimate and increased 4.5% compared to the previous-year tally.the advance was driven by stronger-than-anticipated demand for its components from smartphone customers.
-
this was partially offset by pricing reductions and lower general market sales.
-
cirrus’ largest customer, apple, represented 94% of total sales for the period.
-
share earnings of $2.97 were $0.57 higher than our estimate and jumped 18% compared to the prior-year figure.the growth was supported by the higher sales and cost-reduction initiatives, which more than outweighed the decrease in prices.
-
we have raised our fiscal 2025 top- and bottom-line estimates by $120 million and $1.15 per share, respectively, to $1.99 billion and $9.05.
source: company earnings report, 2026
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What could go wrong
the #1 risk is customer concentration in a single smartphone platform. This is not abstract. The current revenue mix already tells you where the business still leans.
med
customer concentration
A single smartphone customer, widely understood to be Apple, drives the majority of Cirrus Logic's $1.9B revenue. When one platform matters this much, every product cycle matters this much.
management already shows you the dependence in the segment mix: $1.6B of revenue comes from audio products. A design loss could cut annual revenue by 30–50%.
med
competitive pressure
Analog Devices beats Cirrus on 10 of 17 competitive factors in the current comparison set. That does not mean Cirrus loses the business. It does mean the market has alternatives.
if competition limits pricing, the 53.1% gross margin becomes harder to defend. For a company growing revenue just 3.9%, margin discipline is the story.
med
diversification still small
High-performance mixed-signal is only 16% of revenue, even after 5% growth. That is progress, but not enough to change the identity of the business yet.
if newer categories stay stuck near $0.3B, CRUS remains tied to smartphone demand and handset refresh cycles. That's a narrower runway than the multiple makes it look.
the combined risk picture is simple: most of a $1.9B revenue base still sits in one core product family and one major customer relationship.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
next earnings report
expected late July 2026. You want to hear whether management is still talking about content gains in upcoming smartphone launches.
metric
mixed-signal share of revenue
It sits at 16% today. If that number does not move up from here, the diversification thesis stays more presentation than reality.
risk
gross margin discipline
53.1% gross margin is healthy. A sustained drop would tell you competitive pressure or customer mix is getting worse.
trend
institutional buying streak
Two straight quarters of net buying helped sentiment. If that flips while fundamentals stay mixed, the stock can lose momentum faster than the business changes.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak, they like the setup more than the average stock.
risk profile
average
stability score 3 — middle-of-the-road risk. Safer than speculative chip names, less durable than the giants.
chart momentum
average
technical score 3 — the tape is constructive, but not euphoric. You are not looking at a runaway momentum stock.
earnings predictability
75 / 100
management tends to keep results inside a reasonable range. That matters because valuation depends on trust in a small number of customer programs.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 198 buyers vs. 149 sellers in 4q2025. total institutional holdings: 50.1M shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$102
$191
$134
current price
$147
target midpoint · +10% from current · 3-5yr high: $240 (+80% · 16% ann'l return)
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