Cirrus Logic reported fiscal third‑quarter revenue of $580.6 million, a 4.5% year‑over‑year increase that exceeded the upper end of its guidance range and surpassed consensus estimates of $531–$545 million. The growth was driven by robust demand for high‑performance mixed‑signal and audio components shipped into smartphones and other end‑markets, with the company’s high‑margin audio segment contributing 59% ($344.5 million) and the mixed‑signal segment 41% ($236.2 million) of total sales.
Adjusted earnings per share rose to $2.97, beating analyst expectations of $2.42 by $0.55 or 23%. The beat was largely a result of disciplined cost management and a favorable product mix that shifted toward higher‑margin audio and mixed‑signal solutions, offsetting the impact of pricing pressure in some legacy product lines. The company’s operating income increased to $140.3 million, reflecting both revenue growth and maintained operating leverage.
Non‑GAAP gross margin contracted slightly to 53.1% from 53.6% in the same quarter a year earlier, a change attributed to modest pricing pressure in the smartphone market. However, the margin improved sequentially from 52.5% in Q2 FY2026, indicating that the company is managing cost inputs effectively while navigating a competitive environment.
For the fourth quarter of fiscal 2026, Cirrus Logic projected revenue between $410 million and $470 million, with a midpoint of $440 million—well above the consensus estimate of $385.8 million. The guidance signals strong confidence in continued demand for its core products and a positive outlook for its diversification into PC and automotive markets. CEO John Forsyth highlighted progress in sampling new components for AI‑enabled PCs and ramping new amplifier and codec products for mainstream PC platforms, while CFO Jeff Woolard noted that sequential revenue growth of 4% was driven by higher smartphone unit volumes, partially offset by pricing reductions and lower general market sales.
The company’s financial health remains robust, with $1.08 billion in cash and investments and no debt, supporting continued investment in product development and market expansion. Cirrus Logic’s earnings beat, strong guidance, and strategic focus on high‑growth segments underscore its ability to generate consistent shareholder value while navigating a dynamic semiconductor landscape.
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