CRUS

Cirrus Logic designs low-power, high-precision mixed-signal and audio chips, with a leadership position in smartphone audio and a growing high-performance mixed-signal (HPMS) franchise. FY2026 was strong: revenue rose 5.3% to $2.00B, net income jumped 25.0% to $414M, and diluted EPS rose 30.8% to $7.85 (outpacing net income on buybacks). Profitability is excellent for a fabless chipmaker — 52.8% gross margin, 23.0% operating margin, 20.7% net margin, and a 19.5% ROE — and the balance sheet is pristine: $801M cash (+48.4%), essentially no debt, and tiny capex of $14M (it's fabless), enabling $651M of operating cash flow (+46.4%).

The MD&A shows a credible diversification path away from its core smartphone-audio reliance. The company is ramping a new custom boosted amplifier and 22nm smart codec, gaining PC share across segments (including AI PCs), expanding HPMS into camera controllers and battery/power, and developing a smart power IC to support its largest customer's FaceID implementation. It also joined that customer's American Manufacturing Program, working with GlobalFoundries at Malta, NY. These are genuine content-growth and TAM-expansion vectors that, if they land, reduce the single-product, single-customer risk over time.