Cirrus Logic (CRUS) Q3 2026 earnings summary

Executive summary

• Q3 FY26 revenue reached $580.6 million, surpassing guidance due to strong smartphone demand, favorable product mix, and HPMS growth, with Apple accounting for 94% of sales.

• Achieved record GAAP and non-GAAP earnings per share, with GAAP EPS at $2.66 and non-GAAP EPS at $2.97.

• Progressed on strategic pillars: leadership in smartphone audio, HPMS expansion, and diversification into PCs, automotive, and AI-enabled devices.

• Focused on long-term revenue growth, operating profit expansion, and strong cash flow generation.

Financial highlights

• Q3 FY26 revenue: $580.6 million, up 4% year-over-year and sequentially, with net income of $140.3 million and non-GAAP net income of $156.7 million.

• GAAP and non-GAAP gross margin: 53.1%; GAAP operating margin: 26.3%; non-GAAP operating margin: 30.2%.

• Cash and investments at quarter end: $1.08 billion; cash and cash equivalents: $778.1 million.

• Free cash flow for Q3 FY26: $285.7 million, with a free cash flow margin of 49%.

• Repurchased $70 million in shares during Q3 FY26; $344.1 million remains authorized.

Outlook and guidance

• Q4 FY26 revenue expected between $410 million and $470 million; GAAP gross margin guidance: 51%–53%.

• GAAP R&D and SG&A expenses projected at $147–$153 million; non-GAAP operating expenses at $124–$130 million.

• Fiscal year 2026 non-GAAP effective tax rate expected at 16%–18%.

• Sufficient liquidity expected to meet capital requirements in the short and long term.