Credo Technology Group (NASDAQ:CRDO) Posts Earnings Results, Beats Estimates By $0.14 EPS

Credo Technology Group (NASDAQ:CRDO) posted its quarterly earnings data on Monday. The company reported $1.16 earnings per share for the quarter, topping analysts’ consensus estimates of $1.02 by $0.14, FiscalAI reports. The firm had revenue of $437.00 million during the quarter, compared to analysts’ expectations of $431.80 million. Credo Technology Group had a net margin of 35.37% and a return on equity of 36.99%. The firm’s quarterly revenue was up 157.0% on a year-over-year basis. During the same quarter last year, the company posted $0.20 EPS.

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 Up 1.3%

Shares of CRDO stock opened at $229.00 on Wednesday. Credo Technology Group has a 52 week low of $66.75 and a 52 week high of $245.95. The stock has a market capitalization of $42.24 billion, a PE ratio of 92.34 and a beta of 3.22. The firm has a 50 day moving average of $160.55 and a two-hundred day moving average of $145.28.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on CRDO shares. JPMorgan Chase & Co. increased their price objective on shares of Credo Technology Group from $230.00 to $250.00 and gave the stock an “overweight” rating in a research report on Tuesday. The Goldman Sachs Group reaffirmed a “buy” rating and set a $250.00 price objective on shares of Credo Technology Group in a research report on Tuesday. Jefferies Financial Group increased their price objective on shares of Credo Technology Group from $225.00 to $270.00 and gave the stock a “buy” rating in a research report on Tuesday. Mizuho increased their price objective on shares of Credo Technology Group from $260.00 to $290.00 and gave the stock an “outperform” rating in a research report on Tuesday. Finally, Needham & Company LLC increased their price objective on shares of Credo Technology Group from $220.00 to $275.00 and gave the stock a “buy” rating in a research report on Monday. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $248.41.

Key Headlines Impacting Credo Technology Group

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

• Positive Sentiment: Credo reported fiscal Q4 earnings of $1.16 per share on revenue of $437 million, beating expectations and more than doubling revenue year over year, which reinforced demand strength in AI/data-center connectivity. Article Title
• Positive Sentiment: Management signaled an “optical ramp” in fiscal 2027, suggesting a potential second-half acceleration that could improve the revenue mix and extend growth beyond copper interconnect products. Article Title
• Positive Sentiment: Multiple firms raised price targets after the report, including TD Cowen, JPMorgan, Bank of America, Mizuho, and Rosenblatt, reflecting improving confidence in Credo’s growth outlook and AI infrastructure exposure. Article Title
• Positive Sentiment: Analyst coverage and stock-picking pieces highlighted Credo as a profitable June idea and a long-term AI/data-center beneficiary, which can add momentum to the shares. Article Title
• Neutral Sentiment: Some commentary noted that investors were not fully satisfied with the near-term outlook and gross-margin dynamics, which helped explain the initial post-earnings weakness despite strong results. Article Title

Insider Activity at Credo Technology Group

In other Credo Technology Group news, CTO Chi Fung Cheng sold 27,500 shares of the firm’s stock in a transaction that occurred 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 completion of the transaction, the chief technology officer owned 6,272,370 shares of the company’s stock, valued at $737,630,712. This trade represents a 0.44% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO William Joseph Brennan sold 50,000 shares of the firm’s stock in a transaction that occurred on Wednesday, March 11th. The shares were 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 directly owned 1,782,502 shares of the company’s stock, valued at $209,764,835.36. This represents a 2.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 386,608 shares of company stock valued at $50,371,351 in the last three months. 11.84% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Credo Technology Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Alberta Investment Management Corp acquired a new stake in shares of Credo Technology Group in the 4th quarter valued at $4,000,000. Mercer Global Advisors Inc. ADV raised its holdings in shares of Credo Technology Group by 28.5% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 9,010 shares of the company’s stock valued at $1,236,000 after purchasing an additional 2,001 shares in the last quarter. Braeburn Wealth Management LLC acquired a new stake in shares of Credo Technology Group in the 4th quarter valued at $702,000. Vident Advisory LLC raised its holdings in shares of Credo Technology Group by 7.2% in the 4th quarter. Vident Advisory LLC now owns 3,776 shares of the company’s stock valued at $543,000 after purchasing an additional 252 shares in the last quarter. Finally, Delta Global Management LP acquired a new stake in shares of Credo Technology Group in the 4th quarter valued at $2,211,000. 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.