Cirrus Logic CRUS shares soared 4.5% in the last trading session to close at $131.29. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.7% gain over the past four weeks.
Cirrus Logic’s shares jumped about 4.5% as investors reacted positively to improving fundamentals and renewed confidence in the company’s growth outlook.
Cirrus Logic continues to advance its diversification strategy while gaining solid demand for its components integrated into smartphones. It is winning mainstream laptop designs and sampling AI-driven voice products, showing momentum across new markets, such as PCs, automotive, industrial and professional audio. Going ahead, it aims to leverage mixed-signal expertise, expand the addressable market and drive shareholder value via buybacks.
A stronger product mix is boosting its margins, while an uptick in Opex is driven by rising R&D spending in emerging product lines targeting the PC and general market segments.
Moreover, the company continues to diversify its revenues and increase smartphone content with high-performance mixed-signal solutions. Engagement around its camera controllers remains strong, and the technology emerged as a clear differentiator in the latest device generation. Owing to these factors, the company expects the mixed-signal market to expand from $6.8 billion in 2025 to $8.5 billion in 2029, driven by growth in both audio and high-performance mixed-signal segments.
Cirrus Logic is set to report its third-quarter fiscal 2026 results on Feb. 3, 2026, after market close. For the quarter, the company has guided revenue in the range of $500 million to $560 million.
This chipmaker is expected to post quarterly earnings of $2.42 per share in its upcoming report, which represents a year-over-year change of -3.6%. Revenues are expected to be $536.3 million, down 3.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Cirrus Logic, the consensus EPS estimate for the quarter has been revised 23.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CRUS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Cirrus Logic belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Qualcomm QCOM, closed the last trading session 1.5% higher at $156.37. Over the past month, QCOM has returned -11.8%.
Qualcomm's consensus EPS estimate for the upcoming report has changed -2.5% over the past month to $3.37. Compared to the company's year-ago EPS, this represents a change of -1.2%. Qualcomm currently boasts a Zacks Rank of #3 (Hold).
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