CRDO · Credo Technology Group Holding Ltd

Credo Technology Group delivered a standout fourth quarter to cap a transformative fiscal year 2026, with Q4 revenue of $437.0 million surging 157% year-over-year and 7.4% sequentially, driven by sustained demand for its high-speed interconnect solutions in AI data center buildouts. Full-year revenue more than tripled to $1.3 billion, while non-GAAP net income skyrocketed over fivefold to $662 million, reflecting strong operational leverage. Gross margins remained robust at 68.2% GAAP and 68.3% non-GAAP, supported by a favorable product mix and cost discipline. GAAP diluted EPS of $0.88 and non-GAAP diluted EPS of $1.16 both beat expectations, aided by a 23% year-over-year increase in diluted share count. On the balance sheet, Credo ended the quarter with $1.44 billion in cash and short-term investments, providing ample liquidity for growth initiatives. Management commentary highlighted the company's vertically integrated approach and its role in enabling AI cluster performance, and the outlook for Q1 FY2027 points to continued momentum. Revenue guidance of $465 million to $475 million implies sequential growth of 6.4% to 8.7%, while non-GAAP gross margin guidance of 67.0% to 69.0% suggests stability near current levels. Non-GAAP operating expense guidance of $86 million to $90 million indicates continued investment in R&D and sales. The absence of capital return programs suggests a focus on reinvestment. Overall, Credo's results and guidance underscore its strong positioning in the AI connectivity market, with robust demand trends likely to persist.