Cirrus Logic Confirms Record FY26 Results, Details IRS Dispute, and Expands Credit Facility

summarizeSummary

Cirrus Logic reported record fiscal year 2026 net sales of $2.00 billion and diluted EPS of $7.85, while also disclosing a significant IRS tax dispute and an expanded $350 million credit facility.

check_boxKey Events

• Record Fiscal Year 2026 Financials Confirmed

  The company reported record net sales of $2.00 billion, a 5% increase from fiscal year 2025, and diluted EPS of $7.85, a 31% increase. Net income rose 25% to $414.4 million.

• Significant IRS Tax Dispute Disclosed

  Cirrus Logic is vigorously disputing a proposed IRS adjustment of $168.3 million in additional tax and $63.7 million in penalties for fiscal years 2017-2019, totaling over $230 million in potential liability.

• Revolving Credit Facility Expanded and Extended

  The company amended its credit agreement, increasing the revolving credit facility to $350 million (from $300 million) and extending its maturity to May 4, 2031 (from July 8, 2026). This was previously announced on May 6, 2026.

• Ongoing Share Repurchase Program

  The company repurchased $280.0 million of common stock (2.5 million shares) during fiscal year 2026, with $274.1 million remaining available under the current authorization.

auto_awesomeAnalysis

This 10-K filing confirms Cirrus Logic's strong financial performance for fiscal year 2026, which included record net sales and diluted EPS, following a preliminary announcement on May 6, 2026. The report provides full audited financials and details a significant, albeit disputed, IRS tax liability of over $230 million. Additionally, the company has enhanced its financial flexibility by increasing and extending its revolving credit facility. While the strong results are positive, the ongoing IRS dispute introduces a material financial risk. The company's high customer concentration with Apple Inc. (91% of net sales) remains a key business risk.