GET DAILY SIGNALSCirrus Logic (CRUS) Delivers Q2 Earnings Beat but Softer Guidance Weighs on Shares
Key Takeaways
- Cirrus Logic reported second quarter fiscal 2027 revenue of $559.5 million, down 0.3% from $561.0 million in the prior-year quarter.
- Adjusted (non-GAAP) earnings per share of $2.70 topped the analyst consensus of roughly $2.43, while GAAP earnings per share came in at $2.23.
- Adjusted gross margin reached 53.8%, supported by strong demand and increased content shipped into smartphones.
- Third quarter revenue guidance of $510 million to $570 million (midpoint $540 million) landed below the consensus of about $563.5 million, weighing on shares after hours.
- The board authorized an additional $500 million share repurchase program in October 2026.
- Audio revenue totaled $314.5 million, while high-performance mixed-signal (HPMS) revenue contributed $245.0 million.
- For more context on the company's Major News, Today's Price Move, Price Targets, and Forecast, explore these dedicated pages for additional insight.
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Putting the Results in Context
Cirrus Logic operates as a fabless semiconductor company focused on low-power, high-precision mixed-signal processing, with the majority of its business tied to smartphones. Apple represents roughly 90% of net sales, so each quarter provides a useful read on both company execution and broader handset demand trends. The second quarter of fiscal 2027 gave a clear view of how audio and HPMS products are performing across flagship and mainstream devices. Profits came in ahead of expectations, yet the lighter third-quarter outlook highlighted uncertainty around near-term smartphone and general-market demand. This makes the report particularly relevant for assessing momentum heading into the important December quarter.
What the Numbers Showed
For the second quarter of fiscal 2027 ended September 26, 2026, CRUS reported revenue of $559.5 million, slightly lower than $561.0 million a year earlier. GAAP net income reached $114.7 million, or $2.23 per diluted share, compared with $131.6 million, or $2.48 per share, in the prior-year period. On an adjusted basis, excluding stock-based compensation and other items, earnings per share came in at $2.70, beating the consensus estimate of about $2.43. Adjusted gross margin stood at 53.8%. Audio revenue was $314.5 million and HPMS contributed $245.0 million. Management guided third-quarter revenue between $510 million and $570 million, with a midpoint of $540 million that fell short of the consensus around $563.5 million. The company also projected GAAP gross margin of 51% to 53% and adjusted operating expenses of $152 million to $158 million.
Market Reaction After the Print
Shares fell roughly 3% in after-hours trading following the release. While the adjusted earnings beat of $0.27 per share was positive, the focus shifted to the softer revenue guidance. Given CRUS’ heavy dependence on a single customer, near-term visibility often matters more than one quarter’s profit surprise. The additional $500 million share repurchase authorization reflected management’s confidence in long-term value, though it did not fully offset concerns about demand heading into the December quarter. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
What to Watch Going Forward
Investors will be monitoring several factors after this report. The December quarter is typically key for smartphone sales, so the pace of flagship and mainstream device demand will determine whether results can meet or exceed the guidance midpoint. Customer concentration remains a notable risk, with Apple accounting for approximately 90% of net sales. Any shifts in content, pricing, or device mix at that customer can have a significant impact. Progress in the high-performance mixed-signal segment, including camera controllers, haptics, and power products, will be worth tracking as a potential diversifier. Momentum in PC and general markets, with recent design wins in mainstream laptops, could help reduce concentration over time, though these efforts are still early. Gross margin trends, operating expense control, and the effects of the share repurchase program will also shape earnings quality through the rest of fiscal 2027. From what I see, these elements together will determine how the story unfolds.
Exploring Tickeron’s AI Tools for Deeper Analysis
In my own research process, I often turn to Tickeron’s AI Screener when evaluating semiconductor names like CRUS. It helps filter for technical patterns, fundamentals, and AI-driven signals across thousands of stocks and ETFs, making it easier to spot ideas and monitor market shifts without manual effort. This kind of tool can surface comparable names or breakout candidates that complement traditional earnings analysis.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CRUS's RSI Indicator recovers from oversold territory
The RSI Oscillator for CRUS moved out of oversold territory on October 13, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 29 similar instances when the indicator left oversold territory. In 22 of the 29 cases the stock moved higher. This puts the odds of a move higher at 76%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 23, 2026. You may want to consider a long position or call options on CRUS as a result. In 65 of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 75%.
The Moving Average Convergence Divergence (MACD) for CRUS just turned positive on October 23, 2026. Looking at past instances where CRUS's MACD turned positive, the stock continued to rise in 30 of 45 cases over the following month. The odds of a continued upward trend are 67%.
CRUS moved above its 50-day moving average on November 04, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +4.05% 3-day Advance, the price is estimated to grow further. Considering data from situations where CRUS advanced for three days, in 217 of 323 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
CRUS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The 10-day moving average for CRUS crossed bearishly below the 50-day moving average on October 09, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 12 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 71%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CRUS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 67%.
The Aroon Indicator for CRUS entered a downward trend on October 21, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 46 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 68 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CRUS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 73 (best 1 - 100 worst), indicating slightly worse than average price growth. CRUS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 82 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 90 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.655) is normal, around the industry mean (5.869). P/E Ratio (13.727) is within average values for comparable stocks, (16.161). Projected Growth (PEG Ratio) (9.345) is also within normal values, averaging (3.803). Dividend Yield (0.000) settles around the average of (0.012) among similar stocks. P/S Ratio (3.028) is also within normal values, averaging (46.468).
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General Information
a developer of high-precision, analog and mixed-signal integrated circuits for audio and energy markets
Industry Semiconductors
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