Key Takeaways:
Credo Technology Group Holding Ltd. (CRDO) reported fiscal first-quarter adjusted earnings of $1.20 per share, beating the $1.17 consensus, with revenue of $479 million also topping estimates for the quarter ended July 2026.
"Our portfolio now spans connectivity from millimeters to kilometers, with solutions across optics and copper. As AI infrastructure scales, we will continue to provide an innovative suite of reliable and energy-efficient connectivity solutions for the data center," Bill Brennan, president and chief executive officer of Credo Technology, said.
Revenue rose 114.7 percent from $223.07 million a year earlier and 9.6 percent sequentially, marking the fourth straight quarter the company topped both earnings and revenue estimates. Gross margin came in at 64.5 percent, or 68 percent on an adjusted basis, while the company exited the period with $764.3 million in cash and short-term investments.
Credo Technology guided second-quarter revenue to a range of $525 million to $535 million, above the $515.79 million consensus, with adjusted gross margin of 67 percent to 69 percent. The company's shares fell 4.8 percent in extended trading to about $197.47, after closing down 8.65 percent at $206.63, as investors weighed declining profitability and rising operating expenses against the better-than-expected results.
The earnings beat extends a strong run for the connectivity-solutions maker, whose shares have gained about 57.2 percent since the start of the year versus the S&P 500's 12.3 percent advance. The company, which competes in the AI data-center interconnect market, carries a Zacks Rank #2 (Buy), reflecting a favorable estimate-revision trend ahead of the release.
The margin outlook will be the key test for Credo Technology in coming quarters, as research and development and selling, general and administrative costs rise faster than revenue. Investors will watch the earnings call scheduled for 5 p.m. ET for updated segment margins, while peer Ambarella Inc. (AMBA) reports results for the quarter ended July 2026 on Sept. 3, with consensus EPS of $0.16 on revenue of $108.03 million.
This article is for informational purposes only and does not constitute investment advice.
