Cirrus Logic (CRUS) Q1 2027 earnings summary

Executive summary

• Achieved record Q1 FY27 revenue of $459.7 million, up 13% year-over-year, driven by strong demand for custom smartphone audio components and HPMS solutions, with continued expansion into PCs, industrial, and automotive markets.

• Signed a new wafer supply agreement with GlobalFoundries, securing capacity and pricing for 2027-2028 to support long-term growth and U.S. manufacturing initiatives.

• Largest customer accounted for 90% of Q1 FY27 revenue, highlighting significant customer concentration risk.

• Continued progress on strategic pillars: leadership in smartphone audio, expanding HPMS content, and entering new markets such as PC, industrial, and metrology applications.

• Significant interest in new smart codec for AI-enabled PCs and new analog front-end for metrology applications.

Financial highlights

• Q1 FY27 revenue was $459.7 million, up from $407.3 million year-over-year and $448.5 million sequentially.

• GAAP gross margin was 52.6%; non-GAAP gross margin was 52.7%.

• GAAP net income was $76.9 million; non-GAAP net income was $96.1 million.

• GAAP diluted EPS was $1.47; non-GAAP diluted EPS was $1.84.

• Cash and investments at quarter-end totaled $1.2 billion, with no debt.

Outlook and guidance

• Q2 FY27 revenue expected between $510 million and $570 million.

• GAAP gross margin forecasted between 52% and 54%, with a temporary benefit from favorable wafer pricing.

• Combined GAAP R&D and SG&A expenses anticipated between $163 million and $169 million; non-GAAP operating expenses expected between $140 million and $146 million.

• Fiscal 2027 non-GAAP effective tax rate expected at 16%-18%.