Trading Analysis Report: CRUS
- Analysis date: 2026-06-01
- Processed decision: Buy
- Price Target: 185
I. Analyst Team Reports
Market Analyst
Market Report
Cirrus Logic (CRUS) traded at $169.95 on May 29, 2026. yfinance showed a 52-week range of $92.02-$180.42, a 50-day average of $160.37, and a 200-day average of $134.16.
The stock has already rerated. The local yfinance history showed a 72.8% one-year return and 42.0% YTD return.
CRUS fits the semiconductor queue because it is a fabless mixed-signal semiconductor supplier focused on low-power, high-precision audio, camera, haptics, sensing, and power ICs. Its AI relevance is indirect: premium smartphones, PCs, cameras, audio DSP/smart codecs, haptics, sensing, and power management can benefit from richer on-device AI features and higher device content.
Market read: Buy with a $185 target. The business is highly profitable and cash-generative, but the target is disciplined because the stock is near its 52-week high and customer concentration remains high.
Sentiment Analyst
Sentiment Report
Sentiment is constructive after record FY2026 revenue and EPS.
Q4 FY2026 revenue was $448.5 million. GAAP and non-GAAP gross margin were 53.0%, GAAP EPS was $1.56, and non-GAAP EPS was $1.95.
FY2026 revenue was a record $2.0 billion. GAAP and non-GAAP gross margin were 52.8%, GAAP EPS was $7.85, and non-GAAP EPS was $9.26.
Q1 FY2027 guidance calls for revenue of $430-$490 million and GAAP gross margin of 51%-53%.
Management said record FY2026 performance was primarily driven by smartphone component demand and higher PC sales, and highlighted next-generation camera controllers, a smart power IC, PC momentum, and general market product expansion.
Sentiment read: Buy because execution is strong, but upside should be measured after a large stock move.
News Analyst
News Report
The key current source is Cirrus Logic's May 6, 2026 Q4 and FY2026 results release.
Q4 FY2026 GAAP operating income was $90.3 million, operating profit was 20.1%, non-GAAP operating income was $111.8 million, and non-GAAP operating profit was 24.9%.
FY2026 GAAP operating income was $460.4 million, operating profit was 23.0%, non-GAAP operating income was $548.8 million, and non-GAAP operating profit was 27.5%.
Q4 FY2026 operating cash flow was $151.4 million, and quarter-end cash and cash equivalents were $800.9 million.
The FY2025 Form 10-K describes two product lines: Audio and high-performance mixed-signal, or HPMS. Audio products include amplifiers, codecs, smart codecs, ADCs, DACs, and standalone DSPs. HPMS products include camera controllers, haptics and sensing solutions, and battery and power ICs, with additional automotive, industrial, and imaging applications.
News read: CRUS is a high-quality analog/mixed-signal compounder, but the stock still depends heavily on premium consumer electronics cycles.
Fundamentals Analyst
Fundamentals Report
CRUS fundamentals are strong.
yfinance showed market cap of approximately $8.60 billion, enterprise value of approximately $7.84 billion, total revenue of approximately $2.00 billion, operating cash flow of approximately $650.6 million, free cash flow of approximately $505.7 million, total cash of approximately $887.6 million, and total debt of approximately $134.0 million.
The same snapshot showed revenue growth of 5.7%, gross margin of 52.8%, operating margin of 20.1%, profit margin of 20.7%, trailing P/E of 21.65x, forward P/E of 18.11x, and price/sales of 4.30x.
The company has a net cash position and material free cash flow. That supports buybacks and gives management flexibility while it invests in camera controllers, smart power ICs, PCs, and broader general market products.
Fundamental read: Buy because profitability and cash conversion are strong, but the Apple/customer concentration risk prevents a more aggressive target.
II. Research Team Decision
Bull Researcher
Bull Research
The bull case is quality plus diversification.
FY2026 revenue reached a record $2.0 billion, and non-GAAP EPS reached $9.26. Non-GAAP operating profit was 27.5% for FY2026, while non-GAAP gross margin was 52.8%.
CRUS also has a strong balance sheet. yfinance showed approximately $887.6 million of cash versus approximately $134.0 million of debt, and approximately $505.7 million of free cash flow.
The company is trying to expand beyond its core smartphone audio base into HPMS content, camera controllers, haptics, sensing, smart power ICs, PCs, automotive, industrial, and imaging applications.
Bull conclusion: CRUS can justify a higher multiple if it keeps expanding content per device while proving that non-smartphone revenue can grow.
Bear Researcher
Bear Research
The bear case is concentration and cycle risk.
The FY2025 Form 10-K said the top ten end customers represented about 96% of net sales, and Apple represented about 89% of total net sales through multiple contract manufacturers.
The stock has already gained 72.8% over one year and 42.0% YTD in the local yfinance history. It trades near the $180.42 52-week high.
Risks include smartphone and consumer electronics cycles, customer concentration, product concentration, customer order changes, third-party foundry and assembly/test reliance, capacity reservation commitments, export controls, tariffs, competition, declining average selling prices, and the risk that customers internalize or dual-source components.
Bear conclusion: CRUS could derate if premium smartphone builds weaken, if Apple content changes, or if diversification ramps more slowly than expected.
Research Manager
Research Manager Synthesis
The bull case is record FY2026 revenue and EPS, 52.8% gross margin, strong operating profit, free cash flow, net cash, and credible product expansion into camera controllers, smart power ICs, PCs, haptics, sensing, automotive, industrial, and imaging.
The bear case is heavy Apple exposure, smartphone cycle dependence, and a stock price already near its 52-week high.
The correct conclusion is Buy with a disciplined target. The $185 target is above the yfinance mean analyst target of $181.40 but below the median target of $197.00, reflecting quality while respecting concentration risk.
Synthesis: assign Buy with a $185 target.
III. Trading Team Plan
Trader
Trader View
CRUS is above the $160.37 50-day average and the $134.16 200-day average, and it is close to the $180.42 52-week high.
Upside trigger: Q1 FY2027 revenue above $490 million, gross margin above 53%, stronger PC demand, expanded camera/controller or smart power IC content, or evidence that non-smartphone diversification is accelerating.
Downside trigger: Q1 FY2027 revenue below $430 million, gross margin below 51%, premium smartphone weakness, Apple content risk, customer order cuts, or a broader semiconductor multiple reset.
Trading plan: Buy with a $185 6-12 month base-case target, but avoid chasing if the stock moves materially above target without new evidence.
IV. Risk Management Team Decision
Aggressive Analyst
Aggressive Risk View
Aggressive investors can buy CRUS for profitable mixed-signal semiconductor exposure tied to premium devices, PCs, camera controllers, haptics, sensing, audio DSPs, and power ICs.
The risk is that one major customer and the premium smartphone cycle still dominate the story.
Aggressive conclusion: Buy.
Conservative Analyst
Conservative Risk View
Conservative investors should recognize that CRUS is profitable and cash-rich, but the concentration profile is unusually high.
The stock is also near its 52-week high after a sharp rally.
Conservative conclusion: Hold for risk-sensitive accounts; Buy only with position sizing discipline.
Neutral Analyst
Neutral Risk View
The neutral view is constructive but valuation-aware.
CRUS has strong margins and free cash flow, but the next leg depends on FY2027 execution and evidence that diversification is real.
Neutral conclusion: Buy with a disciplined target.
V. Portfolio Manager Decision
Portfolio Manager
Portfolio Manager Decision
Rating: Buy Price Target: 185
Horizon: 6-12 months Current Price Reference: $169.95 on 2026-05-29
Cirrus Logic is rated Buy. CRUS is included in the web-researched semiconductor queue because it is a fabless mixed-signal semiconductor supplier focused on low-power, high-precision audio, camera, haptics, sensing, and power ICs. Its AI relevance is indirect but credible: on-device AI in premium smartphones and PCs can increase the importance of high-quality audio DSP/smart codecs, camera controllers, sensing, haptics, and power management.
The latest major financial update is Q4 and FY2026 results. Q4 FY2026 revenue was $448.5 million. GAAP and non-GAAP gross margin were 53.0%, GAAP EPS was $1.56, and non-GAAP EPS was $1.95.
FY2026 revenue was a record $2.0 billion. GAAP and non-GAAP gross margin were 52.8%, GAAP EPS was $7.85, and non-GAAP EPS was $9.26.
Q4 FY2026 GAAP operating income was $90.3 million, operating profit was 20.1%, non-GAAP operating income was $111.8 million, and non-GAAP operating profit was 24.9%.
FY2026 GAAP operating income was $460.4 million, operating profit was 23.0%, non-GAAP operating income was $548.8 million, and non-GAAP operating profit was 27.5%.
Q4 FY2026 operating cash flow was $151.4 million, and quarter-end cash and cash equivalents were $800.9 million.
Q1 FY2027 guidance calls for revenue of $430-$490 million and GAAP gross margin of 51%-53%.
The FY2025 Form 10-K says Cirrus Logic's product lines are Audio and HPMS. Audio products include amplifiers, codecs, smart codecs, ADCs, DACs, and standalone DSPs. HPMS products include camera controllers, haptics and sensing solutions, and battery and power ICs. The portfolio also serves automotive, industrial, and imaging applications.
yfinance showed a latest price of $169.95, market cap of approximately $8.60 billion, enterprise value of approximately $7.84 billion, 52-week range of $92.02-$180.42, total revenue of approximately $2.00 billion, revenue growth of 5.7%, gross margin of 52.8%, operating margin of 20.1%, profit margin of 20.7%, operating cash flow of approximately $650.6 million, free cash flow of approximately $505.7 million, total cash of approximately $887.6 million, total debt of approximately $134.0 million, trailing P/E of 21.65x, forward P/E of 18.11x, price/sales of 4.30x, mean analyst target of $181.40, and median analyst target of $197.00.
The main risks are customer concentration, Apple exposure, smartphone and consumer electronics cycles, customer order changes, product concentration, third-party foundry and assembly/test reliance, capacity reservation commitments, export controls, tariffs, competition, declining average selling prices, AI-related emerging technology risk, IP disputes, and valuation after a large rally.
The $185 target reflects record FY2026 execution, more than 50% gross margin, strong free cash flow, net cash, and product expansion into camera controllers, smart power ICs, PCs, haptics, sensing, and broader mixed-signal markets. Buy is appropriate, but the target stays disciplined because the stock is close to its 52-week high and customer concentration is material.