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Cirrus Logic (CRUS +7%) is moving sharply higher following its upside Q3 (Dec) earnings report, as the company delivered better-than-expected results and issued surprisingly strong Q4 (Mar) guidance despite its reputation for conservative guidance. CRUS once again posted a sizable EPS beat—its fifth consecutive quarter with an upside of at least $0.40—while also defying expectations for a year-over-year revenue decline.

• Q3 revenue increased 4.5% yr/yr to $580.62 mln, topping expectations as analysts had been braced for a decline.
• The standout takeaway was Q4 revenue guidance well above consensus, a notable development given CRUS's long-standing reputation for conservative forecasting. The guidance upside appears to be the primary catalyst for today's move.
• Results benefited from stronger-than-anticipated demand for smartphone components and a favorable mix of end devices.
• CRUS's largest customer remains Apple (AAPL), which accounted for 89% of FY25 revenue, up from 87% in FY24 and 83% in FY23, reinforcing the tight correlation between CRUS performance and iPhone demand. Apple's recent blowout results helped set a constructive backdrop for CRUS. 

Briefing.com Analyst Insight:

CRUS delivered a convincing upside quarter, but the real surprise came from its Q4 guidance, which stood out as unusually aggressive for a company known for setting a low bar. The results underscore the strength of current smartphone demand—particularly tied to Apple—and validate Cirrus Logic's positioning in premium audio components. While customer concentration remains a long-term risk, near-term momentum appears solid given the favorable device mix and continued design wins. Encouragingly, progress in PCs and camera controllers suggests diversification efforts are gaining traction, even if smartphones will remain the dominant driver for now. With visibility improving into Q4, sentiment toward CRUS should remain constructive in the near term.