Cirrus Logic (CRUS) has wrapped up FY 2026 with fourth quarter revenue of US$448.5 million and basic EPS of US$1.61, set against trailing twelve month revenue of just under US$2.0 billion and EPS of US$8.10 as the company reports from a position of solid scale and consistent profitability. Over the past year, revenue has moved from US$1.90 billion to US$2.00 billion on a trailing basis while EPS has risen from US$6.24 to US$8.10. This backdrop puts the focus firmly on how sustainable these earnings levels and margins around 20% appear at present. For investors, the key question now is how these margins and earnings trends shape the risk reward trade off implied by the current share price.

See our full analysis for Cirrus Logic.

With the headline numbers on the table, the next step is to set these results against the most common stories around Cirrus Logic and see which narratives the data supports and which ones start to look out of date.

Margins Hold At 20.7% While Revenue Grows 3.5%

• Over the last 12 months, Cirrus Logic generated US$1.997 billion of revenue with a 20.7% net profit margin, compared with 3.5% revenue growth and a margin level that was 17.5% a year ago.
• What stands out for the bullish view is that earnings grew 25.1% over the last year and about 9.6% per year over five years, even though revenue growth of 3.5% per year trails the cited broader US market at 11.4%. This fits the idea that bulls are leaning heavily on margin strength and higher content per device rather than fast top line expansion.
  • Bulls point to Cirrus Logic broadening into mixed signal and AI driven user experiences, and the current 20.7% margin and US$414.4 million of trailing net income show the business is already operating with solid profitability while pursuing those areas.
  • At the same time, the fact that earnings forecasts in the dataset show an expected 2.1% annual decline over the next three years introduces a clear tension for the bullish narrative that assumes durable earnings growth from new endpoints and diversification.

Bulls argue recent margin strength and device content gains could matter more than slower top line growth, and that is exactly the debate this set of figures brings into focus, especially for anyone weighing how long a 20.7% margin can be kept up.

🐂 Cirrus Logic Bull Case

P/E Of 21.1x Versus Peers And DCF Fair Value

• The stock trades on a trailing P/E of 21.1x compared with a US Semiconductor industry average of 53.7x and a peer average of 29.7x, while the current share price of US$171.68 sits well above the cited DCF fair value of about US$91.90.
• Bears focus on the gap between the current price and the DCF fair value, and the forecast 2.1% annual earnings decline over the next three years, arguing that even a below peer P/E can still be demanding if earnings ease off and cash flows line up closer to the US$91.90 DCF estimate.
  • Critics highlight that the DCF comparison in the data explicitly shows the share price of US$171.68 above the future cash flow value given, which squares with the cautious view that recent 25.1% earnings growth may not be a reliable guide to the next few years.
  • At the same time, a 21.1x P/E that is below both industry and peer averages gives some numerical backing to investors who see the stock as cheaper than many semiconductor companies on this single metric, even while the DCF output pulls in the opposite direction.

Skeptics often key in on this mix of a lower P/E than peers but a share price well ahead of the US$91.90 DCF fair value, which makes it important to decide which valuation yardstick you trust most for your own process.

🐻 Cirrus Logic Bear Case

25.1% Earnings Growth Versus Forecast 2.1% Decline

• Trailing earnings grew 25.1% over the last year to US$414.4 million, yet the embedded forecasts show earnings expected to decline about 2.1% per year over the next three years from this base.
• The consensus style narrative around diversification beyond smartphones gets tested here, because the numbers show strong recent profitability and a higher margin of 20.7% versus 17.5% a year earlier, but the same dataset also flags a major risk that earnings are projected to shrink even as the company expands into areas like laptops, automotive and IoT.
  • Consensus commentary points to new design wins and a broader product mix as long term supports, and the five year 9.6% annual earnings growth rate together with the current margin level are consistent with a business that has already been able to grow profits from its existing core.
  • On the other hand, the combination of forecast earnings decline and recent insider selling over the past three months underlines why some investors may treat the recent 25.1% growth and higher margin as potentially peaking, rather than as a straight line guide to the next few years.

For you as an investor, the real work is deciding whether the trailing 25.1% earnings growth or the projected 2.1% annual decline feels more in line with how you think Cirrus Logic's mix of smartphone and newer end markets will perform over time.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Cirrus Logic on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Given the mixed signals on growth, margins and valuation, do you feel the balance tilts more toward risk or opportunity here, and are you ready to move quickly and test that view against the underlying data by checking out the 2 key rewards and 2 important warning signs?

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Cirrus Logic faces tension between a 25.1% earnings jump and forecasts for a 2.1% annual decline, alongside a share price above its cited DCF fair value.

If that mix of potential downside to earnings and valuation makes you cautious, it is worth scanning the 72 resilient stocks with low risk scores today to focus on companies with more resilient profiles.

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.