Key Highlights

  • Sales for the fiscal second quarter that ended September 26, 2026 landed at USD 559.5 million, almost unchanged from USD 561.0 million a year earlier, a USD 1.5 million dip.
  • Diluted EPS dropped to USD 2.23 from USD 2.48, while Net Income fell to USD 114.7 million from USD 131.6 million, a decline of about 12.8% (calculated).
  • Gross Margin rose to 53.7% from 52.5%, but Operating Income slid to USD 132.4 million from USD 144.8 million as research spending climbed to USD 123.3 million.
  • On October 26, 2026 the board approved up to USD 500 million of extra repurchases, on top of roughly USD 114.1 million still open under the March 2025 program.

Flat Revenue and Lower Per-Share Earnings in Fiscal Q2

Cirrus Logic (NASDAQ:CRUS) lodged its Quarterly Report on November 4, 2026, covering fiscal second quarter 2027. Top-line sales held steady at USD 559.5 million against USD 561.0 million. Audio product revenue shrank USD 3.7 million as general market sales weakened, while high-performance mixed-signal revenue added USD 2.2 million on components headed into smartphones, although pricing reductions that had been anticipated offset part of that gain. Diluted EPS landed at USD 2.23 compared with USD 2.48, and net income was USD 114.7 million against USD 131.6 million. Across six months, sales grew 5% to USD 1.02 billion from USD 968.2 million, and diluted EPS came to USD 3.69 versus USD 3.61. The extract contains no adjusted results and no forward guidance.

Rising Apple Share and Heavier Operating Costs

Cirrus Logic designs low-power, high-precision mixed-signal chips for phones and other consumer gadgets. A single end customer, Apple, which buys through several contract manufacturers, supplied about 93% of net sales this quarter, compared with 90% a year earlier, and the ten largest end customers together represented about 97%. Gross margin improved to 53.7% thanks to a richer product mix, smaller inventory reserves and a short-lived advantage from wafers purchased under older GlobalFoundries agreements, while freight and Supply chain expenses pushed the other way. Research and Development rose USD 13.3 million to USD 123.3 million, partly reflecting acquisition-related Bonus and retention payments, and selling, general and administrative costs reached USD 44.8 million. The effective tax rate moved up to 19.2% from 14.2%.

INVENTVM Purchase, Buyback Activity and Cash Flow Pressure

Cirrus Logic (NASDAQ:CRUS) completed its Acquisition of INVENTVM Semiconductor on October 6, 2026. INVENTVM is a privately owned Italian fabless designer of power management and audio chips, and the company characterized the transaction as not material. Quarter-end cash and equivalents were USD 720.1 million, down from USD 800.9 million at the start of the fiscal year. Six-month Operating Cash Flow dropped to USD 115.0 million from USD 208.3 million, weighed down by a USD 148.3 million unfavorable swing in working capital, while Buybacks totaled USD 160.0 million. Unconditional Manufacturing purchase commitments of USD 273.6 million also sit on the books. Reliance on a single customer and wafer obligations are the chief risks.

Where Things Stand

Flat revenue and higher costs explain the drop, not a collapse in demand. Cirrus Logic (NASDAQ:CRUS) held sales close to USD 560 million and lifted gross margin, but operating income fell 8.6% (calculated) as research and deal-related costs grew. With Apple at 93% of sales, customer concentration is still the main exposure. Next, watch INVENTVM's contribution from the third fiscal quarter, how the new USD 500 million buyback authority is used and how Working Capital and cash flow evolve.