Credo Technology Group Holding Ltd

Credo reported fiscal 2026 revenue of $1.3 billion, up 206% year over year. Fiscal 2026 non-GAAP gross margin was 68.1%, up 310 basis points year over year, and non-GAAP EPS was $3.46, up $2.76, or 392% year over year. In Q4, revenue was a record $437 million, up 157% year over year and 7% sequentially; Q4 non-GAAP gross margin was 68.3%; non-GAAP operating income was $216.7 million; and non-GAAP net income was $226.7 million. Cash flow from operations in Q4 was a record $182.2 million, capex was $4.8 million, free cash flow was $177.5 million, and cash and equivalents ended at $1.4 billion. For Q1 fiscal 2027, management guided revenue of $465 million-$475 million, non-GAAP gross margin of 67%-69%, non-GAAP operating expenses of $86 million-$90 million, and diluted weighted average shares of approximately 199 million. For fiscal 2027, management expects revenue growth of more than 80% year over year, gross margin broadly consistent with fiscal 2026, operating expenses up about 50% year over year, and non-GAAP net margin near 50%.

Bill Brennan framed fiscal 2026 as a defining year and said Credo is benefiting from a structural shift in AI infrastructure where reliability, power efficiency, signal integrity, and telemetry matter more as clusters scale. He emphasized Credo’s strategy of spanning the full connectivity stack, from copper to optics, and said the company is still in the early innings of the opportunity. His tone was upbeat and confident, especially around the optical portfolio, Dust Photonics, and newer products like ALC and OmniConnect.

Daniel Fleming highlighted the scale and profitability of the business, pointing to 206% fiscal 2026 revenue growth, 68.1% gross margin, and 392% EPS growth to $3.46. He said Q4 revenue of $437 million and non-GAAP net income of $226.7 million reflected strong leverage, while cash from operations was $182.2 million and free cash flow was $177.5 million. He also said the company ended with $1.4 billion in cash, expects Q1 revenue of $465 million-$475 million, and plans for fiscal 2027 operating expenses to rise about 50% year over year as it invests in R&D.

Analysts focused on how much of fiscal 2027 guidance depends on optics, especially ZF Optics and Dust Photonics, and whether discrete DSPs are sold directly or inside modules. Management said the guided growth already includes the full optical portfolio, with about half of fiscal 2027 absolute dollar growth expected from optics and about half from the existing copper portfolio. Other questions centered on supply, scale-up timing, customer concentration, and capital allocation; management said supply commitments are in place, scale-up will be more meaningful in fiscal 2028 than fiscal 2027, customer diversification should improve, and there are no current plans for a capital raise or buyback.