CIRRUS LOGIC, INC. Q2 FY2026 earnings call

Key Areas of Progress

• Flagship Smartphone Audio: Strong demand for latest generation custom-boosted amplifier and 22-nanometer smart codec. Custom silicon business offers long-term visibility and revenue contribution.
• Mixed-Signal Solutions: Strong customer engagement on camera controllers. R&D programs focused on battery performance and health.
• New Markets (PC): Strong design activity in PC portfolio. Secured first mainstream consumer design. First product with voice technology for AI-enabled PCs to sample in Dec quarter. Deepened engagement across PC platform vendors.
• General Market: Gained design momentum with prosumer and automotive customers on latest ADCs, DACs, etc. Increased engagement with automotive and professional audio customers on timing products. Sampling high-performance analog front-end components for imaging applications.

In Q2 fiscal 2026, Cirrus Logic delivered record revenue of $561 million, driven by demand for components shipping into smartphones. Non-GAAP gross profit was $294.7 million with a non-GAAP gross margin of 52.5%. The revenue was toward the top end of the guidance range. On a sequential basis, revenue was up 38% due to higher smartphone unit volumes. On a year-over-year basis, sales were up 4%, primarily driven by higher smartphone unit volumes and sales associated with latest generation products.

Q3 Fiscal 2026 Guidance

• Revenue expected in the range of $500 million to $560 million.
• Gross margin expected to range from 51% to 53%.
• Non-GAAP operating expense expected to range from $128 million to $134 million.
• Fiscal year non-GAAP effective tax rate expected to range from approximately 16% to 18%.

Risks

• Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from projections. Refer to press release, shareholder letter, and SEC filings for risk factors that could cause actual results to differ.

Q: Congratulations on the results. Could you share thoughts on seasonality going forward?

A: Jeff Woolard mentioned change in seasonality shape driven by camera content being a bigger portion, with shape pushed into first half. View for the year remains as change played out between results and guidance, with no change seen for rest of fiscal year.

Q: Any updates on power/battery side in smartphone market?

A: John Forsyth stated they're excited about power/battery area with valuable IP, but no concrete design wins to report yet.

Q: On OpEx side, is OpEx expected in Q2 pushed into Q3?

A: Jeff Woolard said OpEx was below guide due to timing issues, with product development cost lumpy and some expenses avoided, mostly a timing push.

Q: Any changes to smartphone unit outlook?

A: Jeff Woolard stated they see seasonality looking like historically has, with no changes to unit outlook view.

Q: More on new products for AI PCs?

A: John Forsyth mentioned interest in voice-related features for AI PCs, with SAM expansion. First device focused on enabling these features sampled in last quarter, with road map for features but time until in end products.