CRUS: Future Revenue Will Rise With Stronger Smartphone Demand And AI-Driven Laptop Trends

Cirrus Logic's analyst price target has been raised from $135.83 to $140.00. Analysts cite stronger-than-expected quarterly results and upbeat guidance, supported by robust demand from flagship customers and optimism around emerging technology trends.

Analyst Commentary

Recent analyst activity around Cirrus Logic demonstrates a mix of optimism about the company’s near-term performance, along with a degree of caution over longer-term headwinds in select markets. The range of price target increases underscores confidence in execution and favorable outcomes, but also highlights points for close investor attention.

Bullish Takeaways

• Bullish analysts cite strong quarterly results and forward guidance that surpassed Wall Street expectations. This positions Cirrus Logic for continued outperformance.
• Upside has been driven in part by resilient demand from flagship smartphone customers. Robust shipment trends and higher content per device are boosting the revenue outlook.
• The company is viewed as well-placed to benefit from emerging technology trends in laptops, especially as voice and AI interfaces become a larger part of the user experience.
• Broad customer exposure in both mobile and PC markets is seen as enabling solid growth and diversification, supporting recent upward valuation revisions.

Bearish Takeaways

• Bearish analysts are cautious about potential headwinds in select end markets such as automotive, particularly as Chinese electric vehicle production slows and global tariff uncertainty persists.
• Some concern remains that near-term growth, while above seasonal norms, could moderate if broader macro or consumer trends turn negative in upcoming quarters.
• Exposure to cyclical industries and a reliance on flagship device launches introduce risk to the consistency of quarterly results. Ongoing monitoring of execution is warranted.

What's in the News

• Company provided earnings guidance for the third quarter of fiscal year 2026, with revenue expected between $500 million and $560 million (Key Developments)
• Repurchased 362,000 shares for $40.02 million in the recent tranche. This completes the repurchase of 801,816 shares for $85.92 million under the current buyback program (Key Developments)
• Cirrus Logic was removed from the PHLX Semiconductor Sector Index (Key Developments)

Valuation Changes

• Consensus Analyst Price Target has risen from $135.83 to $140.00, reflecting increased confidence in the company’s expected performance.
• Discount Rate has fallen slightly from 10.59% to 10.47%, which suggests a modest reduction in perceived risk.
• Revenue Growth projections remain essentially unchanged at approximately 20.14%.
• Net Profit Margin is steady at around 16.86%, showing no material shift in profitability expectations.
• Future P/E has increased from 25.01x to 25.69x, indicating that higher valuation multiples are being assigned to future earnings.