Key Highlights

  • Net sales were USD 559.5 million against an estimate of USD 540.37 million and USD 561.0 million a year earlier.
  • EPS of USD 2.70 compares with an estimate of USD 2.42; GAAP diluted EPS was USD 2.23.
  • Gross Margin was 53.7% against 52.5% a year earlier, and Net Income was USD 114.7 million.
  • The board authorized another USD 500 million of repurchases on October 26, and INVENTVM was acquired on October 6.

Cirrus Logic (NASDAQ:CRUS) used the weeks after its fiscal second quarter to set two Capital moves in motion. On October 6, 2026 it acquired INVENTVM Semiconductor, a fabless Italian company focused on mixed-signal power management and audio chips, and on October 26 its board authorized up to an additional USD 500 million of share repurchases. Those steps followed fiscal second quarter net sales of USD 559.5 million, against an estimate of USD 540.37 million.

Priorities and Disclosed Events After the Quarter

No numeric guidance was given, so the stated priorities come from product and capital decisions. Management said INVENTVM expands engineering capacity and its position in consumer wearable and AI gadget markets. The company described the deal as not material to its consolidated financial statements.

The new repurchase authorization has no expiration date, is funded from existing cash and sits on top of about USD 114.1 million left under the March 2025 program. Through October 30, the company spent USD 18.6 million on 0.2 million shares under a Rule 10b5-1 plan.

The Quarter in Detail

Net sales of USD 559.5 million compare with USD 561.0 million in the second quarter of fiscal 2026. Gross Profit was USD 300.6 million and gross margin was 53.7%, against 52.5%. The company cited product mix, lower inventory reserves and a temporary benefit from wafers purchased under earlier GlobalFoundries agreements, partly offset by higher freight and Supply chain costs.

Research and development expense was USD 123.3 million against USD 110.0 million, which the company linked to employee costs including acquisition-specific Bonus and retention payments, plus IT, facilities and product development. Selling, general and administrative expense was USD 44.8 million against USD 39.6 million. Income from operations was USD 132.4 million against USD 144.8 million, and net income was USD 114.7 million against USD 131.6 million. GAAP diluted EPS was USD 2.23 against USD 2.48 a year earlier.

Audio, HPMS and Customer Concentration

Audio product sales decreased USD 3.7 million, mainly on lower general market sales, while HPMS product sales increased USD 2.2 million on higher smartphone component shipments, offset in part by lower general market sales and pricing reductions. One end customer, purchasing through multiple contract manufacturers, represented about 93% of net sales against about 90% a year earlier.

The company described its latest custom boosted amplifier and 22-nanometer smart codec as featured in newly launched smartphones, noted the tape-out of a fourth-generation camera controller, and said its smart power IC for 3D sensing remains on schedule.

Cash and cash equivalents were USD 720.1 million and short-term marketable securities USD 31.9 million at quarter end. Nothing was outstanding on the USD 350 million revolving Credit facility. Six-month Operating Cash Flow was USD 115.0 million against USD 208.3 million.

Reference Points for Investors

Net sales of USD 559.5 million sit alongside gross margin of 53.7%, GAAP diluted EPS of USD 2.23 and cash and cash equivalents of USD 720.1 million. The company repurchased 1.0 million shares for USD 125.5 million during the quarter.

Management named the October 6 INVENTVM acquisition, the additional USD 500 million authorization dated October 26 and the USD 114.1 million remaining under the earlier program. It also listed Manufacturing purchase obligations of USD 273.6 million payable in the rest of fiscal 2027.