Credo Technology Group (NASDAQ:CRDO) Releases Earnings Results, Beats Expectations By $0.29 EPS

Credo Technology Group (NASDAQ:CRDO) issued its earnings results on Monday. The company reported $1.07 earnings per share for the quarter, beating the consensus estimate of $0.78 by $0.29, FiscalAI reports. Credo Technology Group had a return on equity of 37.17% and a net margin of 31.81%.The company had revenue of $407.01 million during the quarter, compared to analysts’ expectations of $385.94 million. During the same period in the prior year, the business posted $0.25 EPS. Credo Technology Group’s quarterly revenue was up 201.5% compared to the same quarter last year.

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

• Record Q3 results: Revenue was $407 million (up 52% sequentially and >200% year-over-year) with non-GAAP net income of ~$209 million and record operating cash flow of $166.2 million, leaving the company with ~$1.3 billion in cash.
• Q4 guidance calls for revenue of $425–$435 million and non-GAAP gross margin of 64%–66% (down from Q3’s 68.6%), while management expects mid-single-digit sequential growth and >50% year-over-year growth for fiscal 2027.
• Product roadmap accelerating: ZeroFlap optics are ahead of schedule with production shipments to TensorWave and qualifications with three more customers and a planned ramp in Q1 FY2027; AECs, PCIe Gen6 AECs (sampling), Blue Heron 200Gbps retimers, ALCs, and OmniConnect gearboxes expand multi‑billion-dollar TAMs.
• Customer concentration and inventory risk: the top three customers each represented >10% of revenue (largest was 39%), and ending inventory rose to $208 million, which could increase near-term revenue volatility or working capital strain.
• Strategic tuck-in: the Comera acquisition adds protocol, error‑correction and security IP to strengthen Credo’s end‑to‑end connectivity platform and accelerate system‑level product integration.

Credo Technology Group Stock Up 4.8%

CRDO opened at $101.95 on Wednesday. The stock has a market capitalization of $18.41 billion, a price-to-earnings ratio of 56.61 and a beta of 2.67. The firm has a 50 day moving average price of $132.06 and a 200-day moving average price of $143.44. Credo Technology Group has a twelve month low of $29.09 and a twelve month high of $213.80.

More Credo Technology Group News

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

• Positive Sentiment: Strong beats and guidance — Credo topped revenue and EPS estimates, reported record margins and issued Q4 revenue guidance above consensus, supporting the company’s growth narrative. Credo Q3 Results (Business Wire)
• Positive Sentiment: Partnerships and product ramps — Credo is expanding optical/AEC exposure via TensorWave collaboration and the CoMira acquisition; management expects ZeroFlap optics to accelerate, which could expand TAM for AI data-center interconnects. Credo & TensorWave Team Up (Zacks)
• Positive Sentiment: Management growth outlook — CEO/management project ~50% revenue growth for the coming year and accelerated ZeroFlap ramp timing, signaling continued demand from hyperscalers. Credo Expects >50% Revenue Growth (Seeking Alpha)
• Positive Sentiment: Analyst interest — Credo appears on analyst “top tech picks” lists and some firms reaffirm buy/upside, which supports longer-term conviction among some sell‑side desks. Analysts’ Top Technology Picks (Globe and Mail)
• Neutral Sentiment: Macro volatility — broader market risk (futures slump tied to geopolitical tensions) is pressuring tech names and likely amplified CRDO’s move independent of fundamentals. Futures Plunge / Market Volatility (Benzinga)
• Neutral Sentiment: Short-interest reporting is inconsistent in the feeds (zero/NaN figures), so short-covering/pressure signals are unclear right now.
• Negative Sentiment: Post-earnings sell-off driven by deceleration and margin worries — despite the beat and raised guidance, traders punished the stock on signs of slower AEC growth, conservative gross-margin commentary, and fears the AI hardware cycle may cool. Beat, Raise, Drop (Seeking Alpha)
• Negative Sentiment: Analyst target cuts and forecast resets — several firms trimmed price targets or lowered estimates after the print, increasing near-term downside risk from revised sell‑side expectations. Analysts Slash Forecasts (Benzinga)
• Negative Sentiment: Sector rotation / AI “hangover” — broader AI/optics names saw sharp intraday declines as investors rotated after a huge prior surge, magnifying CRDO’s volatility. AI Stocks Diverge (247WallSt)

Analyst Upgrades and Downgrades

CRDO has been the topic of a number of research reports. Bank of America lifted their target price on shares of Credo Technology Group from $165.00 to $240.00 and gave the company a “buy” rating in a research note on Tuesday, December 2nd. Mizuho cut their price objective on Credo Technology Group from $225.00 to $200.00 and set an “outperform” rating on the stock in a research report on Tuesday. Susquehanna reduced their target price on Credo Technology Group from $230.00 to $170.00 and set a “positive” rating on the stock in a report on Tuesday. Barclays restated an “overweight” rating and issued a $260.00 target price on shares of Credo Technology Group in a research note on Thursday, January 15th. Finally, Rosenblatt Securities dropped their price target on Credo Technology Group from $170.00 to $125.00 and set a “neutral” rating on the stock in a research report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Credo Technology Group has an average rating of “Moderate Buy” and an average price target of $206.33.

Insider Buying and Selling

In related news, Director Sylvia Acevedo sold 2,200 shares of the business’s stock in a transaction that occurred on Tuesday, January 13th. The shares were sold at an average price of $159.18, for a total transaction of $350,196.00. Following the completion of the sale, the director directly owned 18,545 shares in the company, valued at approximately $2,951,993.10. The trade was a 10.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CTO Chi Fung Cheng sold 27,500 shares of the firm’s stock in a transaction on Thursday, January 29th. The stock was sold at an average price of $127.37, for a total value of $3,502,675.00. Following the completion of the transaction, the chief technology officer directly owned 6,299,870 shares in the company, valued at approximately $802,414,441.90. This represents a 0.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 917,976 shares of company stock valued at $136,567,647 over the last ninety days. 11.84% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. State Street Corp raised its position in shares of Credo Technology Group by 23.4% during the fourth quarter. State Street Corp now owns 4,486,320 shares of the company’s stock valued at $645,537,000 after buying an additional 849,654 shares during the last quarter. Alliancebernstein L.P. increased its holdings in Credo Technology Group by 66.0% in the 2nd quarter. Alliancebernstein L.P. now owns 3,064,891 shares of the company’s stock valued at $283,778,000 after acquiring an additional 1,218,504 shares during the last quarter. Bank of America Corp DE lifted its stake in Credo Technology Group by 161.5% in the 3rd quarter. Bank of America Corp DE now owns 2,278,073 shares of the company’s stock worth $331,710,000 after purchasing an additional 1,406,752 shares in the last quarter. Wellington Management Group LLP boosted its holdings in shares of Credo Technology Group by 47.8% during the 3rd quarter. Wellington Management Group LLP now owns 1,624,690 shares of the company’s stock valued at $236,571,000 after purchasing an additional 525,585 shares during the last quarter. Finally, Janus Henderson Group PLC grew its position in shares of Credo Technology Group by 841.9% during the fourth quarter. Janus Henderson Group PLC now owns 1,591,348 shares of the company’s stock valued at $228,979,000 after purchasing an additional 1,422,391 shares in the last quarter. 80.46% of the stock is currently owned by institutional investors.

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.