CIRRUS LOGIC, INC. Q3 FY2026 earnings call

• Long-term strategy is based on three principles: maintaining leadership in flagship smartphone audio, expanding high-performance mixed-signal solutions, and leveraging IP in new markets.
• In flagship smartphone audio, strong demand for latest generation custom boosted amplifier and 22-nanometer smart codec.
• In high-performance mixed-signal, strong customer engagement around camera controller roadmap, developing next-gen camera products, and investing in battery/power applications.
• In new markets, progress in PCs with ramping amplifier/codec shipments, sampling voice interface product for AI-enabled PCs, and new customer products at CES using Cirrus Logic components; also growth in general market with new prosumer audio and automotive haptic components.

No detailed breakdown of product segments' absolute financial performance and revenue contribution % was provided in the transcript.

• Q4 fiscal 2026 revenue expected in range of $410 million to $470 million.
• GAAP gross margin expected to range from 51% to 53%.
• Non-GAAP operating expense expected to range from $124 million to $130 million.
• Fiscal year 2026 non-GAAP effective tax rate expected to range from 16% to 18%.

No detailed discussion of specific risks provided in the transcript.

Q: Congrats on the record earnings and impressive cash flows. You came in $50 million higher for this quarter and guiding better than seasonal. Any more color on what's going on?

A: Jeff Woolard said from a seasonality perspective, the seasonal shape is the same, but they were further away from the peak than anticipated when giving last quarter's guidance, with peak of units and favorable mix being the story.

Q: John, you mentioned interest in voice as an interface for AI. When should we expect to start seeing revenues from that?

A: John Forsyth said they started sampling a product targeting the PC market for enhanced voice interface with AI, interest is strong, and it's a codec with smart voice features; revenues could be seen in calendar '27 and '28.

Q: Dylan Ollivier asked about general market revenue decline and if it'll tick back up. John Forsyth said general market decline was due to strategic shift away from Android and end of life of old products, but new products in PC, AI devices, etc., will make up for headwinds.

Q: Dylan Ollivier asked about PC revenue opportunity. John Forsyth said PC revenue in fiscal 2026 expected to double from fiscal 2025, mainstream platform revenue to double in fiscal 2027, SDCA interface adoption increasing, and many programs active in PC space.

Q: David Williams asked about supply constraints. Jeff Woolard said no current supply constraints, they manage capacity and products have long life.

Q: David Williams asked about automotive opportunity. John Forsyth said they announced haptic products for automotive, see a healthy SAM, and approach new markets with goal of building to at least 10% business.

Q: Alex asked about seasonality in fiscal '27 and rising cost of largest customer. Jeff Woolard said no significant change to historic seasonality; John Forsyth said normal pricing environment, working collaboratively with customers on pricing, and anticipating further adjustments.