Cirrus Logic is seeing considerable customer interest in its latest smart codec for AI-enabled PCs and is working with multiple customers on designs planned for calendar 2027, creating a potential new growth vector as the semiconductor company expands beyond its traditional smartphone exposure.
The PC opportunity comes as Cirrus reported record fiscal Q1 2027 revenue of $459.7 million, up from $407.3 million a year earlier, an increase of about 13%.
Cirrus said strong demand for custom components shipping into smartphones contributed to the record quarter, but the company is also pursuing additional markets where it can apply its low-power, high-precision mixed-signal design capabilities.
High-Performance Mixed-Signal revenue was a major contributor to that diversification. Segment revenue increased to $210.7 million from $167.2 million, up about 26%. Audio revenue increased more modestly to $249 million from $240 million.
High-Performance Mixed-Signal products therefore accounted for nearly 46% of total quarterly sales, making that business increasingly significant alongside the company’s audio portfolio.
Cirrus generated gross profit of $241.9 million and maintained a GAAP gross margin of 52.6%, unchanged from the year-earlier quarter. Operating income increased to $84.4 million from $72.4 million.
Net income increased to approximately $76.9 million from $60.7 million, while GAAP diluted EPS reached $1.47 and non-GAAP EPS was $1.84.
The AI-PC smart codec is one element of Cirrus’ broader effort to expand into additional mixed-signal applications. Management said it has engaged multiple potential customers on designs for the next calendar year, providing a more tangible timeline for potential commercial adoption.
The company is also expanding its general-market portfolio in industrial applications. Cirrus recently taped out a new high-performance analog front-end component targeting metrology applications, another area where it intends to leverage its mixed-signal engineering capabilities.
Cirrus expects growth to continue into fiscal Q2 2027. Revenue guidance is $510 million to $570 million, implying a midpoint of $540 million compared with $459.7 million in fiscal Q1.
The company expects GAAP gross margin of 52% to 54%, while combined GAAP R&D and SG&A expenses are projected at $163 million to $169 million. Non-GAAP operating expenses are expected to range from $140 million to $146 million.
The emerging AI-PC opportunity is particularly notable because it could give Cirrus another pathway for its audio and mixed-signal technology outside smartphones. Customer design activity for 2027, combined with rapid growth in High-Performance Mixed-Signal revenue, provides an early indicator of that diversification strategy.
KEY QUOTES:
“Cirrus Logic delivered record first quarter revenue and earnings per share in the June quarter. During the quarter, we experienced strong demand for custom components shipping into smartphones.”
“The company also made meaningful progress executing on key strategic initiatives. In our PC business, we saw considerable interest in our latest smart codec for AI-enabled PCs and are engaged with multiple customers on designs for next calendar year. We also recently taped out a new high-performance analog front-end component targeting metrology applications, further strengthening our general market portfolio. Looking forward, we remain confident in our ability to leverage our mixed-signal design expertise to drive growth across new applications and markets for years to come.”
John Forsyth, President and CEO of Cirrus Logic
