CIRRUS LOGIC, INC. Q4 FY2026 earnings call

• Long-term strategy based on three principles: maintain leadership in flagship smartphone audio, expand high-performance mixed signal content, and leverage expertise in new markets.
• In FY26, made progress in flagship smartphone audio with robust demand for latest products.
• High-performance mixed signal business had strong camera controller demand and progress in battery/power applications, including new power solutions for accessory and tablet devices.
• PC business had strong growth in FY26 with share gains, and expects further growth in FY27 with design momentum and SDCA adoption.
• General market product portfolio saw progress with new product families in various end markets.
• Made progress in supply chain diversification and process technology advancements, including joining a customer's American manufacturing program.

In the March quarter of fiscal 2026, revenue was $448.5 million, above the midpoint of guidance. For the full fiscal year 2026, record revenue of $2 billion was achieved, up 5% from the prior year. This was driven by demand for components in smartphones and higher PC sales. The flagship smartphone audio business saw robust demand for latest generation custom boosted amplifier and 22 nanometer smart codec. High-performance mixed signal business had strong camera controller demand and progress in battery and power applications. PC business had strong year-over-year revenue growth in FY26 with share gains across PC segments.

For Q1 fiscal year 2027, revenue is expected in the range of 430 to 490 million, up 3% sequentially and 13% year over year at midpoint. Gross margin expected to range from 51 to 53%. Non-GAAP operating expense expected to range from 132 to 138 million, up sequentially due to R&D increases. FY2027 non-GAAP tax rate expected to be approximately 16% to 18%.

Projections and 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, Form 10-K, and other corporate filings for discussion of risk factors that could cause actual results to differ materially from current expectations.

Q: Yasha on for Christopher Roland asked about seasonality and PC opportunity.

A: Guidance for June reflects continued strength of customers' current products and smaller delta between June and September quarters. PC business had strong growth in FY26, exited with good momentum, expecting strong growth in FY27 with SDCA transition and mainstream device penetration.

Q: Tom O'Malley with Barclays asked about smart power timing and camera controllers.

A: Smart power product is in design stage, likely a couple years before introduction. Camera controllers are in design of next generation components with rich roadmap and close collaboration with customers.

Q: Way Mach on the line for Rick asked about PC market and global foundries collaboration.

A: Maintain view of strong growth in PC business in FY27 despite industry trends. Collaboration with Global Foundries is focused on process technologies for high voltage products, aiming for higher performance, efficiency, and cost-effectiveness for customers.

Q: Tarek of Stiefel asked about new power product and general market milestones.

A: New power product is an exciting area with potential for more content and iteration. General market products are long life cycle with high margins, and the aggregate of these products is expected to grow over time.