Apple Is Now About 93% Of Cirrus Logic's Sales, Up From 90%, As Revenue Stalls
Cirrus Logic's quarterly sales were flat at $559.5 million while it added a $500 million buyback and a $600 million wafer commitment.
Apple bought about 93 percent of Cirrus Logic's net sales in the quarter ended September 26, up from 90 percent a year earlier, even as total sales slipped $1.5 million to $559.5 million. Cirrus, which designs low-power chips that handle sound and other signals in phones and other electronics, filed the 10-Q Wednesday and also disclosed a new $500 million buyback.
One customer, a bigger share
The 93 percent compares with 90 percent in the second quarter of fiscal 2026. For the first six months of fiscal 2027, Apple was about 92 percent of sales, against 88 percent a year earlier. Apple buys through multiple contract manufacturers, the filing says, and no other end customer topped 10 percent.
The ten largest end customers made up about 97 percent of net sales in the quarter. The risk factors say most customers can stop using Cirrus products on limited notice with little or no penalty, and their agreements typically carry no minimum purchase. The filing adds that the company's reliance on certain customers may continue to increase.
In its shareholder letter, Cirrus said its relationship with its largest customer "remains outstanding."
Flat sales, shifting mix
Audio sales fell $3.7 million from a year earlier, which the filing attributes mainly to lower general market sales. Sales of the second product line, high-performance mixed-signal chips, rose $2.2 million, helped by components shipping into smartphones.
By ship-to location, Hong Kong sales fell to $40.5 million from $69.3 million, and South Korea fell to $16.4 million from $34.2 million. China rose to $329.5 million from $303.0 million.
Gross margin was 53.7 percent, up from 52.5 percent, helped by product mix, lower inventory reserves and a temporary benefit from wafers bought under earlier GlobalFoundries agreements. Net income fell to $114.7 million from $131.6 million, and diluted earnings per share were $2.23 against $2.48. Operating expenses included acquisition-related costs.
Buybacks and a fixed wafer bill
Cirrus repurchased 1.0 million shares for $125.5 million in the quarter, while operating cash flow was $50.9 million. The board authorized up to an additional $500 million on October 26, on top of about $114.1 million left under the March 2025 program. Through October 30 it had spent a further $18.6 million on 0.2 million shares at an average $108.67.
On the supply side, a new GlobalFoundries agreement signed June 30 covers calendar 2027 and 2028, and Cirrus estimates it will buy at least about $600 million of wafers under it. Unconditional purchase commitments total $961.7 million, with $296.0 million due in the rest of fiscal 2027.
After the quarter ended, Cirrus bought INVENTVM, an Italian fabless chip company, on October 6. The filing calls the deal not material to its financial statements.
A guidance range that brackets the flat line
For the December quarter, Cirrus guided to revenue of $510 million to $570 million, with gross margin of 51 percent to 53 percent. The company put the midpoint at down three percent sequentially and seven percent from a year earlier.
Cirrus's market value stood at $5.6 billion in Wednesday's report, set against a $961.7 million bill of purchase commitments it must honor whatever Apple orders.
Sources
- 10-Q Filing — Cirrus Logic (CRUS) — SEC EDGAR
- 10-Q Filing — Cirrus Logic (CRUS), Q1 FY2027 filed 2026-08-05 (comparison basis) — SEC EDGAR
- 8-K Filing — Cirrus Logic, filed 2026-11-04 (Items 2.02, 7.01, 8.01, 9.01) — SEC EDGAR
- Earnings release (8-K Item 2.02, shareholderletter.htm) — Cirrus Logic, filed 2026-11-04 — SEC EDGAR
