Cirrus Logic Inc (NASDAQ:CRUS) delivered a strong fiscal third quarter, surpassing analyst expectations for both revenue and earnings. The company's performance, driven by robust smartphone component demand, has been met with a positive initial reaction in after-hours trading.
Quarterly Performance Versus Estimates
The semiconductor designer reported revenue of $580.6 million for the quarter ended December 27, 2025. This result comfortably exceeded the consensus analyst estimate of approximately $544.6 million. On the bottom line, the company's non-GAAP earnings per share (EPS) of $2.97 significantly outpaced the estimated $2.48.
The key quarterly figures compared to expectations are:
- Reported Revenue: $580.6 million
- Estimated Revenue: ~$544.6 million
- Reported Non-GAAP EPS: $2.97
- Estimated Non-GAAP EPS: $2.48
Market Reaction and Forward Guidance
The market's immediate response to the earnings beat was positive. Following the release, the stock rose approximately 4.35% in after-hours trading. This uptick suggests investors were encouraged by the stronger-than-anticipated results.
Looking ahead, management provided its outlook for the current fourth fiscal quarter. The company expects revenue to be in the range of $410 million to $470 million. This guidance brackets the current analyst consensus estimate of roughly $388.6 million for Q4 revenue, indicating management's expectations are in line with or potentially above Wall Street's projections. The company forecasts a GAAP gross margin between 51% and 53%.
Strategic Highlights and Business Mix
In the earnings release, CEO John Forsyth highlighted that the quarterly strength was fueled by "stronger-than-anticipated demand for components shipping into smartphones and a favorable mix of end devices." Beyond the current quarter's performance, Forsyth emphasized progress on the company's long-term diversification strategy.
Notable developments include:
- Sampling a new component designed for voice interfaces in future AI-enabled PCs.
- Ramping the latest-generation amplifier and codec in mainstream PC platforms.
- Adding new product families targeting prosumer and automotive markets to broaden its general market offerings.
The company's financial tables show a product mix shift in the quarter. While revenue from its Audio segment saw a sequential decline, High-Performance Mixed-Signal (HPMS) revenue increased, contributing to the overall revenue beat and a stable gross margin of 53.1%.
Financial Snapshot and Year-to-Date Results
For the third quarter, Cirrus Logic reported GAAP net income of $140.3 million, or $2.66 per diluted share. The non-GAAP figures, which exclude items like stock-based compensation, showed net income of $156.5 million, or $2.97 per diluted share.
On a year-to-date basis for the first nine months of fiscal 2026, the company has generated revenue of $1.55 billion and non-GAAP net income of $395.8 million, demonstrating solid growth compared to the prior year period.
For a detailed look at historical earnings, future estimates, and analyst projections, you can review the full earnings data for Cirrus Logic (CRUS).
Disclaimer: This article is for informational purposes only and is not intended as investment advice. The analysis is based on publicly available data and earnings releases. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
