Credo Technology Group Holding (CRDO) Earnings Date & Reports

Key Takeaways

• Fourth-quarter revenue reached $437.0 million, up 157% year over year and 7.4% sequentially.
• GAAP diluted earnings per share totaled $0.88; non-GAAP diluted EPS came in at $1.16.
• Fiscal 2026 full-year revenue more than tripled to $1.335 billion, with non-GAAP net income rising more than fivefold to $662 million.
• Ending cash and short-term investments stood at $1.4 billion.
• First-quarter fiscal 2027 revenue guidance set at $465 million to $475 million.
• Shares declined approximately 10% in after-hours trading following the release.

Earnings Context and Why It Matters

Credo Technology Group Holding Ltd develops high-speed connectivity solutions critical for AI data centers and networking infrastructure. The fourth-quarter and full-year results reflect accelerating adoption of its active electrical cables and optical transceivers amid surging demand from hyperscale customers. Strong sequential and year-over-year growth highlights the company’s positioning in the rapidly expanding AI ecosystem, where reliable, energy-efficient interconnects directly influence cluster performance and operating costs.

Reported Results

For the fourth quarter of fiscal 2026 ended May 2, 2026, Credo reported revenue of $437.0 million, exceeding prior-year levels by 157%. GAAP gross margin reached 68.2%, while non-GAAP gross margin was 68.3%. GAAP net income totaled $169.1 million, or $0.88 per diluted share, and non-GAAP net income was $226.7 million, or $1.16 per diluted share. For the full fiscal year, revenue climbed to $1.335 billion and non-GAAP net income reached $662 million. The company provided first-quarter fiscal 2027 revenue guidance of $465 million to $475 million, along with corresponding margin and operating expense ranges.

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Market Reaction and Investor Sentiment

Following the June 1, 2026 release, CRDO shares fell about 10% in after-hours trading despite beating consensus estimates on revenue and earnings. Investors appeared to focus on the pace of sequential growth and the forward outlook relative to elevated expectations built into the stock price earlier in the year. The reaction underscores the market’s sensitivity to AI-related names where rapid prior gains can lead to heightened scrutiny of incremental progress.

Forward Outlook and Key Factors to Monitor

Credo enters fiscal 2027 with substantial cash reserves and a robust product pipeline targeting AI infrastructure. Management highlighted continued demand for its vertically integrated solutions that reduce power consumption and improve network reliability in large-scale GPU clusters.

Investors should track the company’s ability to meet or exceed quarterly revenue guidance, particularly the $465 million to $475 million range for the first quarter. Gross margin trends, both GAAP and non-GAAP, will remain important given the scale of recent revenue expansion.

Additional areas of focus include updates on new product introductions, such as higher-speed active electrical cables and optical transceivers, along with any commentary on customer concentration or supply-chain dynamics. Broader industry conditions in data center buildouts and hyperscaler capital expenditure plans will also influence Credo’s trajectory in the coming quarters.

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