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Cirrus Logic (CRUS -2%) is trading lower despite upside Q4 (Mar) results last night. CRUS reported a huge EPS beat, its eighth consecutive beat of at least $0.23. Revenue grew 14.2% yr/yr to $424.5 mln, which was above the high end of guidance.

• The guidance was probably even more important to investors as CRUS expects Q1 (Jun) revs of $330-390 mln. A couple of things on the guidance. First, the mid-point of the guidance was above analyst expectations, which is good to see. Second, CRUS is known for being conservative with guidance, so to guide above the mid-point is a good sign.
• In terms of the MarQ results, yr/yr results benefitted from stronger-than-expected smartphone volumes as well as an increase in revenue associated with its latest-generation products. On a sequential basis, revenue was down 24% due primarily to a reduction in smartphone volumes. During Q&A, CRUS was asked if it saw pull-forward sales in MarQ, but they said that was limited.
• Looking back at FY25, most notably, CRUS began shipping two new-generation products in its flagship smartphone audio business, a boosted amplifier and a smart codec. CRUS said the boosted amplifier significantly improves system performance and efficiency. The smart codec is Cirrus Logic's first 22-nanometer product and delivers meaningful advances in audio and mixed-signal processing capabilities. CRUS expects these products will ship from multiple smartphone generations, providing a sustained revenue contribution in the coming years.
• A key goal for CRUS has been to target new applications and new markets outside of smartphones. CRUS remains excited about its burgeoning laptop business. CRUS reported low tens of millions of dollars of revenue in laptops in FY25. In FY26, CRUS expects to double FY25 revenue in the laptop space as it sees more designs coming to market. Also, over the past year, CRUS has seen significant expansion of its funnel of design activity which is a very good leading indicator.

In terms of why CRUS is lower on the results, we are not seeing an obvious reason. It may be a bit of a sell-the-news reaction given the +30% move in the stock in recent weeks.