Credo Technology Group (NASDAQ:CRDO) Announces Quarterly Earnings Results

Credo Technology Group (NASDAQ:CRDO) announced its quarterly earnings results on Monday. The company reported $1.16 EPS for the quarter, beating the consensus estimate of $1.02 by $0.14, FiscalAI reports. Credo Technology Group had a net margin of 31.81% and a return on equity of 29.63%. The firm had revenue of $437.00 million during the quarter, compared to the consensus estimate of $431.80 million. During the same period last year, the firm earned $0.20 EPS. The business’s quarterly revenue was up 157.0% compared to the same quarter last year.

Here are the key takeaways from Credo Technology Group’s conference call:

• Credo reported a record fiscal 2026 with revenue of $1.3 billion (up 206% year over year) and non-GAAP net income of $662 million, highlighting strong operating leverage and margin expansion.
• Q4 revenue hit a new high of $437 million, with non-GAAP gross margin of 68.3% and record non-GAAP net income of $226.7 million, while cash flow from operations and free cash flow also set records.
• Management said fiscal 2027 optical revenue is expected to be an inflection point, with optical DSPs, silicon photonics PICs, and ZeroFlap Optics each projected to exceed $100 million and total optical revenue expected to top $600 million.
• The company sees its AI connectivity strategy benefiting from the shift toward larger AI clusters, with strong demand for AECs, retimers, and new products like OmniConnect and Weaver, which are expected to start ramping in fiscal 2028.
• Credo expects first-quarter fiscal 2027 revenue of $465 million to $475 million and said growth should be mid-single digits in the first half before an inflection in the second half, driven mainly by optical products; management also noted customer concentration remains high, though diversification is improving.

Credo Technology Group Stock Down 4.2%

Shares of NASDAQ:CRDO opened at $226.10 on Tuesday. The stock has a market cap of $41.70 billion, a PE ratio of 125.61 and a beta of 3.22. The company’s fifty day moving average is $160.55 and its 200 day moving average is $145.28. Credo Technology Group has a 52 week low of $59.88 and a 52 week high of $243.21.

Key Headlines Impacting Credo Technology Group

Here are the key news stories impacting Credo Technology Group this week:

• Positive Sentiment: Credo beat analyst expectations with Q4 EPS of $1.16 versus consensus around $1.02-$1.03, while revenue of $437.0 million also topped estimates. Credo Technology Group Holding Ltd Reports Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Revenue jumped 157% year over year, highlighting continued demand for Credo’s high-speed connectivity products used in AI and data center infrastructure. Credo Technology Group Holding Ltd Reports Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Mizuho raised its price target on CRDO to $260 from $220 and kept an outperform rating, signaling confidence in further upside. Mizuho price target update
• Neutral Sentiment: The company guided first-quarter fiscal 2027 revenue to $465 million-$475 million, slightly above the Street’s estimate, but the earnings guidance detail was not clearly provided in the release. Credo Technology Group Holding Ltd Reports Fourth Quarter and Fiscal Year 2026 Financial Results
• Negative Sentiment: Despite the strong print, the stock declined after hours as investors appeared concerned about gross margin trends and the possibility that expectations had become too elevated after a big run-up. Credo Technology Stock Dives Despite Q4 Earnings Beat

Wall Street Analysts Forecast Growth

Several research analysts have commented on CRDO shares. Rothschild & Co Redburn started coverage on shares of Credo Technology Group in a report on Friday, May 1st. They issued a “buy” rating and a $206.00 price target for the company. Weiss Ratings raised shares of Credo Technology Group from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, May 26th. Stifel Nicolaus set a $250.00 price objective on shares of Credo Technology Group in a report on Wednesday, May 27th. The Goldman Sachs Group lifted their price objective on shares of Credo Technology Group from $150.00 to $170.00 and gave the stock a “buy” rating in a report on Thursday, April 16th. Finally, Susquehanna dropped their price objective on shares of Credo Technology Group from $230.00 to $170.00 and set a “positive” rating for the company in a report on Tuesday, March 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, Credo Technology Group currently has an average rating of “Buy” and a consensus target price of $225.65.

Insiders Place Their Bets

In related news, CTO Chi Fung Cheng sold 27,500 shares of Credo Technology Group stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $117.60, for a total value of $3,234,000.00. Following the transaction, the chief technology officer owned 6,272,370 shares in the company, valued at $737,630,712. This trade represents a 0.44% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO William Joseph Brennan sold 50,000 shares of Credo Technology Group stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $117.68, for a total transaction of $5,884,000.00. Following the completion of the transaction, the chief executive officer owned 1,782,502 shares in the company, valued at approximately $209,764,835.36. The trade was a 2.73% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 386,608 shares of company stock worth $50,371,351. 11.84% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Credo Technology Group

A number of large investors have recently added to or reduced their stakes in the business. NewEdge Advisors LLC increased its position in shares of Credo Technology Group by 128.4% in the first quarter. NewEdge Advisors LLC now owns 7,066 shares of the company’s stock valued at $284,000 after acquiring an additional 3,972 shares during the period. Goldman Sachs Group Inc. increased its position in shares of Credo Technology Group by 63.0% in the first quarter. Goldman Sachs Group Inc. now owns 1,524,788 shares of the company’s stock valued at $61,235,000 after acquiring an additional 589,151 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Credo Technology Group by 2.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 310,763 shares of the company’s stock valued at $12,480,000 after acquiring an additional 7,107 shares during the period. CW Advisors LLC purchased a new position in shares of Credo Technology Group in the second quarter valued at about $288,000. Finally, EverSource Wealth Advisors LLC increased its position in shares of Credo Technology Group by 198.2% in the second quarter. EverSource Wealth Advisors LLC now owns 501 shares of the company’s stock valued at $46,000 after acquiring an additional 333 shares during the period. Hedge funds and other institutional investors own 80.46% of the company’s stock.

About Credo Technology Group

Credo Technology Group, Inc (NASDAQ: CRDO) is a fabless semiconductor company that develops high?speed connectivity solutions for cloud, enterprise and telecommunications infrastructure. The company focuses on semiconductors and related IP that enable reliable, low?latency movement of large volumes of data between servers, switches and optical modules in data centers and network equipment.

Credo’s product portfolio centers on high?speed analog and mixed?signal devices designed to preserve signal integrity and extend reach over copper and optical links.