Cirrus Logic, Inc.'s CRUS PC business is emerging as an important growth driver, and management expects this momentum to continue into fiscal 2027. During fiscal 2026, the company delivered strong year-over-year revenue growth in its PC segment, supported primarily by share gains across all PC categories. Cirrus Logic expanded its product portfolio by introducing new amplifiers and codecs designed for a broader range of platforms, including mainstream and AI-enabled PCs.
The company also highlighted that voice will play an increasingly important role in enabling agentic interactions across edge devices, including PCs, and plans to leverage its expertise in audio and high-performance mixed-signal technologies to enhance AI-driven user experiences. With robust design momentum across its PC portfolio, management expects increased adoption of the SoundWire Device Class Audio (SDCA) interface and higher content per device to support another year of strong PC business growth in fiscal 2027.
On the last earnings call, management stated that the PC business grew from revenue in the low tens of millions of dollars in fiscal 2025 to the $40 million range in fiscal 2026. The company exited fiscal 2026 with strong momentum and is now shipping products to the top six laptop vendors. Cirrus Logic identified the ongoing transition from the legacy HDA audio interface to SDCA as a key growth driver. During fiscal 2026, SDCA-related revenue tripled and accounted for nearly 60% of total PC revenue after passing an important inflection point. The company expects SDCA-based designs to contribute nearly 80% of its PC revenue in fiscal 2027, reflecting continued customer adoption of the newer interface.
The company also noted that its penetration into mainstream PC devices continues to improve. While this segment represented only a small portion of revenue in previous years, Cirrus Logic expects more than half of its PC revenue in fiscal 2027 to come from mainstream devices. Management stated that customer design activity remains strong and believes the company can deliver another year of solid PC growth even if the broader PC market experiences some moderation. Cirrus Logic added that its focus on leading OEMs and higher-tier devices provides confidence in the continued expansion of its PC business during fiscal 2027.
For the first quarter of fiscal 2027, the company expects revenues between $430 million and $490 million, implying 3% sequential increase and 13% year-over-year growth at the midpoint of the guidance range.
Taking a Look at CRUS’ Competitors
Qualcomm Incorporated QCOM continues to pivot from a handset-centric model toward a broader connected processor portfolio. Solid traction in the automotive business augurs well, with more than 1 million cars operating ADAS and autonomy on Snapdragon Ride processors. Higher content per vehicle on the Snapdragon Digital Chassis, broader edge AI adoption across devices and data center traction are positives. The Alphawave buyout adds high-speed wired connectivity IP and custom silicon capabilities to help accelerate its expansion into data centers. For the third quarter of fiscal 2026, Qualcomm guided revenues of $9.2-$10.0 billion and non-GAAP earnings of $2.10-$2.30, reflecting expected softness tied to the same memory-driven OEM behavior that shaped the March quarter.
Skyworks Solutions, Inc. SWKS is gaining momentum in Broad Markets, helped by Wi-Fi 7 adoption, automotive infotainment wins and timing products tied to higher data center data rates. Management cited nine consecutive quarters of Broad Markets growth and expects the segment to rise modestly sequentially in the June quarter. In Mobile, a multi-generational design win with a leading Android OEM extends the premium pipeline and supports a steadier content outlook beyond the next seasonal cycle. For the third quarter of fiscal 2026, Skyworks expects revenues in the range of $900 million to $950 million. Management anticipates mobile to decline low single digits sequentially, consistent with typical seasonality, while Broad Markets is expected to rise modestly sequentially and represent about 43% of sales, up high single digits year over year.
CRUS Price Performance, Valuation and Estimates
Shares of CRUS have lost 14.6% in the past month compared with the Electronics-Semiconductors industry’s decline of 4.6%.
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CRUS is trading at a forward 12-month price/earnings ratio of 16.76, lower than the Electronic-Semiconductors sector’s multiple of 32.13.
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The Zacks Consensus Estimate for CRUS’ earnings for fiscal 2027 has been revised up marginally over the past 60 days.
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CRUS currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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