Cirrus Logic, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Cirrus Logic, Inc. (NASDAQ:CRUS) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of US$561m, some 3.6% above estimates, and statutory earnings per share (EPS) coming in at US$2.48, 24% ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the six analysts covering Cirrus Logic provided consensus estimates of US$1.88b revenue in 2026, which would reflect a measurable 3.7% decline over the past 12 months. Statutory earnings per share are expected to decline 12% to US$6.52 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$1.86b and earnings per share (EPS) of US$5.84 in 2026. Although the revenue estimates have not really changed, we can see there's been a nice increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

View our latest analysis for Cirrus Logic

The consensus price target was unchanged at US$136, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Cirrus Logic, with the most bullish analyst valuing it at US$155 and the most bearish at US$95.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 7.3% by the end of 2026. This indicates a significant reduction from annual growth of 6.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 19% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Cirrus Logic is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Cirrus Logic following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Cirrus Logic's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Cirrus Logic going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Cirrus Logic that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.