Cirrus Logic, Inc. (CRUS) - Stock Analysis
Last updated: Jan 19, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Cirrus Logic delivered record fiscal Q2 2026 revenue and EPS beats driven by smartphone and PC demand, with strong liquidity and positive analyst sentiment. Despite some elevated inventory and technical softness, fundamentals support near-term price appreciation in a favorable semiconductor sector environment.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: • High gross margin • Strong liquidity • Rising receivables CRUS combines robust profitability, strong liquidity and free cash flow with low leverage, but expanding valuation multiples and rising receivables require monitoring.
Price Behavior
Key Price Behavior Insights: • Range-bound action • Support ~ $119–120 • Resistance ~ $124–126 Support Level: $119–$120 Resistance Level: $124–$126 Over the last month CRUS has been range-bound with sideways volatility between roughly $118–$126, showing support near $119–$120 and resistance at $124–$126 after a quick dip and recovery in early January. #no-trend
Sentiment & News
Key News Insights: • Analyst upgrades • Institutional buying • Upcoming Q3 Analyst upgrades, selective institutional accumulation, strong earnings surprise history and an upcoming Q3 report position Cirrus Logic well for growth entering early 2026.
AI Summary
Reframe Cirrus Logic as a high-margin mixed-signal specialist whose exceptional free cash flow and ~52–53% gross margins provide the financial optionality to absorb smartphone cyclicality while funding diversification into camera, laptop, and automotive content—near-term upside hinges on visible conversion of those design wins while the biggest risk remains concentrated revenue exposure and rising receivables. Monitor two-quarter proof of design-win revenue ramp and normalized working-capital metrics; failure to deliver would rapidly compress the current elevated multiples.
Description
Cirrus Logic is a fabless semiconductor company that designs low-power, high-precision mixed-signal ICs for audio and related applications. Its product range spans integrated codecs and smart codecs with DSP functionality, audio enhancement software and algorithms (branded SoundClear), as well as mixed-signal components for haptics, camera control, power conversion and fast charging; these parts appear in smartphones, tablets, headsets, PCs, AR/VR devices, automotive infotainment and various industrial and energy systems. The company sells through a combination of direct sales, external representatives and distributors and is headquartered in Austin, Texas, having been incorporated in 1984.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Dec 1 | Dec 8 | CRUS | Cirrus Logic, Inc. | Cirrus Logic delivered record fiscal Q2 2026 revenue and EPS beats driven by smartphone and PC demand, with strong liquidity and positive analyst sentiment. Despite some elevated inventory and technical softness, fundamentals support near-term price appreciation in a favorable semiconductor sector environment. | Closed | +3.5% |