CIRRUS LOGIC, INC. Annual Report - How They Did This Year

Let’s look at how Cirrus Logic (ticker: CRUS) performed this past year. We will break down their results in plain English, just like we are chatting over coffee.

Their official filing for the fiscal year ending March 28, 2026, shows a fantastic year. Profit jumped 25% to $414.4 million. Cash from running the business rose to $650.6 million.

Who is Cirrus Logic?

Based in Austin, Texas, Cirrus Logic designs computer chips for consumer electronics. Valued at $5 billion with 50.6 million shares, they outsource their manufacturing. They employ 1,668 people and have a very low 7% employee turnover rate.

1. The Big Elephant in the Room: The Apple Dependency is Growing

Imagine a bakery where one customer buys almost all the cupcakes. If they go on a diet, you are in trouble. That is Cirrus Logic's reality.

Apple accounted for 91% of Cirrus Logic's sales in fiscal year 2026. This is up from 89% in 2025 and 87% in 2024.

• The Power Dynamic: Apple can pressure Cirrus to lower prices, which squeezes their profits.
• The "Do-It-Yourself" Threat: If Apple designs its own chips, Cirrus could lose its main revenue overnight.

2. Virtually No Sales at Home: The 99% International Reality

International sales make up 99% of their business, hitting $2.0 billion this year (up from $1.9 billion in 2025). Total revenue is about $2.02 billion.

• The Currency Headache: They price chips in U.S. dollars but pay UK staff in British pounds. A weaker dollar raises their operating costs.
• Geopolitical Hotspots: Most manufacturing happens in Taiwan and China. Any political conflicts could instantly disrupt their supply chain.

3. What Do They Actually Make?

Cirrus designs chips but outsources the expensive manufacturing. They have two main product lines:

• Audio Products (The Bread and Butter): These chips handle sound in phones, tablets, and PCs. Sales grew 2% to $1.18 billion (58% of revenue).
• High-Performance Mixed-Signal (HPMS) Products (The Growth Engine): These chips control cameras, manage batteries, and power screen vibrations. Sales jumped 10% to $837.4 million (42% of revenue).

4. The Financial Scorecard: Profits & Cash Flow

Here is how the business performed financially:

• Profit: Jumped 25% to $414.4 million (up from $331.5 million).
• Profit Margin (What they keep after manufacturing costs): Rose to 52.8% (from 52.5%) because they sold more high-margin chips.
• The Tax Windfall: Their tax rate fell from 25.5% to 16.6%. A new law (the "One Big Beautiful Bill Act") let them write off research costs immediately instead of spreading them out.
• Cash is King: They generated $650.6 million in cash from running the business (up from $444.4 million) by clearing old inventory.

5. Share Buybacks & Stock Performance: How They Reward Investors

Cirrus rewards investors through share buybacks instead of dividends.

• The Buyback Boost: They spent $280 million buying back their own stock (up from $261 million). This reduces total shares, making your remaining shares more valuable.
• The 5-Year Scorecard: A $100 investment five years ago would be worth $172.65 today. They beat the broader U.S. market ($163.41) but lagged behind the booming chip industry ($253.82).

6. Key Risks & Financial Safety Net

Cirrus maintains a strong balance sheet to protect against market volatility:

• Zero Debt: Cirrus has no outstanding debt on its $300 million credit line, giving them easy access to interest-free cash.
• The Inventory Guessing Game: They must order chips from TSMC months in advance. Any canceled orders from Apple could leave them with millions in useless stock.

The Bottom Line: The Investor's Decision

Cirrus Logic is a highly profitable, debt-free cash generator with a solid track record of rewarding shareholders through buybacks. However, investing here is a direct bet on their relationship with Apple.

If you believe Apple will continue to rely on Cirrus for its audio and mixed-signal chips, the company's strong financials and high margins make it an attractive option. If the 91% revenue concentration makes you nervous, you may want to weigh this risk heavily before buying in.