Credo Technology Group (NASDAQ:CRDO) Posts Earnings Results, Beats Estimates By $0.03 EPS

Credo Technology Group (NASDAQ:CRDO) announced its earnings results on Tuesday. The company reported $1.20 EPS for the quarter, beating the consensus estimate of $1.17 by $0.03, FiscalAI reports. The company had revenue of $479.00 million for the quarter, compared to analyst estimates of $473.30 million. Credo Technology Group had a return on equity of 32.91% and a net margin of 33.83%.The firm’s revenue for the quarter was up 114.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.52 EPS.

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

• Record Q1 results included revenue of $479 million, up 10% sequentially and 115% year over year, while non-GAAP net income rose 140% year over year to $236.3 million.
• Management reiterated its fiscal 2027 outlook for more than 85% year-over-year revenue growth, including over $600 million in optical revenue, with optical DSPs, silicon photonics PICs, and ZeroFlap Optics each expected to contribute more than $100 million.
• Credo reported record revenue in its AEC, retimer, and optical DSP businesses, while 1.6T AEC and DSP products, ZeroFlap Optics ramps, and near-package optics design wins are expected to support growth in the second half of fiscal 2027 and beyond.
• Emerging products Active LED Cables and OmniConnect are targeted for initial revenue in fiscal 2028; management described OmniConnect as potentially representing thousands of dollars of content per GPU, particularly in inference architectures facing memory-bandwidth and capacity constraints.
• Customer concentration remains significant, with the top four customers accounting for 33%, 28%, 13%, and 10% of Q1 revenue, although management said it is diversifying across hyperscalers, neo-clouds, and product lines. Q2 guidance calls for $525 million–$535 million of revenue and is based on the current, fluid tariff regime.

Credo Technology Group Trading Down 20.0%

Credo Technology Group stock opened at $165.22 on Thursday. The company has a market cap of $31.05 billion, a price-to-earnings ratio of 58.80, a PEG ratio of 0.93 and a beta of 3.22. The business’s 50 day simple moving average is $233.75 and its 200 day simple moving average is $188.83. Credo Technology Group has a 12 month low of $86.49 and a 12 month high of $308.67.

Key Credo Technology Group News

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

• Positive Sentiment: Credo reported fiscal Q1 2027 earnings of $1.20 per share versus the $1.17 consensus estimate, while revenue reached $479 million, ahead of the $473.3 million forecast. Revenue increased 114.7% year over year. Credo Q1 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management forecast fiscal Q2 revenue of $525 million to $535 million, above the roughly $513.8 million analyst estimate, indicating continued demand for active electrical cables and AI data-center connectivity products. Credo Expects Q2 Revenue Range
• Positive Sentiment: Credo said optical products are becoming its next major growth engine, with fiscal 2027 optical revenue potentially exceeding $600 million as optical demand expands alongside its AEC business. Credo Earnings Call Highlights Optics
• Positive Sentiment: The company’s Toucan Gen6x16 PCIe retimer achieved PCI Express 6.x compliance, supporting its positioning in next-generation AI and high-performance-computing infrastructure. Credo Achieved PCIe 6.x Compliance
• Neutral Sentiment: Analysts remained broadly constructive but lowered or adjusted targets: JPMorgan cut its target to $310 while retaining an overweight rating, and Bank of America reduced its target to $275 while keeping a buy rating. Rosenblatt raised its target to $235 but maintained a neutral rating.
• Negative Sentiment: Investors focused on shrinking margins and rising costs despite the earnings beat. The stock’s substantial prior rally and elevated valuation also left it vulnerable to profit-taking and a “priced for perfection” reaction. Why Is Credo Technology Stock Sinking
• Negative Sentiment: Credo fell below its 200-day moving average after the results, worsening technical momentum and increasing selling pressure. Concerns about customer concentration, optical execution and semiconductor-sector weakness added to the bearish reaction. Credo Breaks Below 200-Day Moving Average

Insider Buying and Selling at Credo Technology Group

In related news, COO Yat Tung Lam sold 55,441 shares of the company’s stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $213.02, for a total transaction of $11,810,041.82. Following the sale, the chief operating officer directly owned 2,529,169 shares in the company, valued at approximately $538,763,580.38. This represents a 2.15% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Fung Cheng sold 27,473 shares of the stock in a transaction on Friday, July 31st. The stock was sold at an average price of $209.53, for a total value of $5,756,417.69. Following the sale, the chief technology officer owned 5,772,397 shares in the company, valued at approximately $1,209,490,343.41. This represents a 0.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 435,076 shares of company stock valued at $101,043,506 over the last three months. 9.06% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Credo Technology Group

Hedge funds and other institutional investors have recently bought and sold shares of the stock. NewEdge Advisors LLC raised its holdings in shares of Credo Technology Group by 128.4% during the 1st quarter. NewEdge Advisors LLC now owns 7,066 shares of the company’s stock valued at $284,000 after buying an additional 3,972 shares in the last quarter. Goldman Sachs Group Inc. raised its stake in shares of Credo Technology Group by 63.0% during the first quarter. Goldman Sachs Group Inc. now owns 1,524,788 shares of the company’s stock worth $61,235,000 after acquiring an additional 589,151 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Credo Technology Group by 2.3% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 310,763 shares of the company’s stock worth $12,480,000 after acquiring an additional 7,107 shares during the last quarter. CW Advisors LLC purchased a new stake in shares of Credo Technology Group in the 2nd quarter valued at $288,000. Finally, EverSource Wealth Advisors LLC grew its holdings in shares of Credo Technology Group by 198.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 501 shares of the company’s stock valued at $46,000 after purchasing an additional 333 shares during the last quarter. Hedge funds and other institutional investors own 80.46% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts have recently commented on the stock. Bank of America reduced their price objective on shares of Credo Technology Group from $340.00 to $275.00 and set a “buy” rating for the company in a research report on Wednesday. Needham & Company LLC upped their price objective on shares of Credo Technology Group from $220.00 to $275.00 and gave the company a “buy” rating in a report on Monday, June 1st. Weiss Ratings restated a “hold (c+)” rating on shares of Credo Technology Group in a research note on Friday, August 21st. The Goldman Sachs Group reiterated a “buy” rating and issued a $250.00 price target on shares of Credo Technology Group in a report on Tuesday, June 2nd. Finally, Susquehanna increased their target price on Credo Technology Group from $235.00 to $250.00 and gave the stock a “positive” rating in a report on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $267.39.

Credo Technology Group Company Profile

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.