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

Credo Technology Group (NASDAQ:CRDO) announced its quarterly earnings data on Tuesday. The company reported $1.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.17 by $0.03, FiscalAI reports. The firm had revenue of $479.00 million for the quarter, compared to analysts’ expectations of $473.30 million. Credo Technology Group had a return on equity of 32.30% and a net margin of 35.37%.The firm’s revenue for the quarter was up 114.7% on a year-over-year basis. During the same period last year, the business posted $0.52 earnings per share.

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 Price Performance

Shares of CRDO opened at $206.63 on Wednesday. Credo Technology Group has a 12 month low of $86.49 and a 12 month high of $308.67. The stock has a fifty day moving average price of $235.81 and a 200 day moving average price of $188.53. The company has a market cap of $38.83 billion, a P/E ratio of 83.32, a PEG ratio of 1.02 and a beta of 3.22.

Key Credo Technology Group News

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

• Positive Sentiment: Results exceeded expectations: Credo reported fiscal Q1 2027 earnings of $1.20 per share versus the $1.17 consensus estimate, while revenue of $479 million topped forecasts of $473.3 million. Revenue increased 114.7% year over year, and EPS more than doubled from $0.52 a year earlier. Credo Q1 earnings and revenues beat estimates
• Positive Sentiment: Above-consensus outlook: Management guided fiscal Q2 revenue to $525 million-$535 million, ahead of the approximately $513.8 million analyst estimate. The outlook supports continued demand from AI-related data-center and connectivity customers. Credo Q1 2027 earnings call transcript
• Positive Sentiment: Long-term technology opportunity: Credo joined the Open CPX MSA organization, which is focused on interoperable near-package and co-packaged optical interconnects for AI infrastructure. Credo joins Open CPX MSA organization
• Neutral Sentiment: Expectations were elevated: Analysts’ consensus price target implied roughly 28% additional upside, but Credo’s high beta, substantial gain over the past year and trading well above its 200-day average increased the risk of profit-taking after earnings. Wall Street analysts and Credo price target
• Negative Sentiment: Margin concerns drove the reaction: Reports indicated that pressure on margins outweighed the earnings and revenue beats, raising questions about how profitably Credo can convert rapid AI-driven growth into earnings. Credo shares fall as margin pressure overshadows earnings beat
• Negative Sentiment: Rich valuation leaves little room for disappointment: With shares valued at a high earnings multiple and having risen more than twelvefold over three years, investors are questioning whether the current price already reflects much of Credo’s AI growth potential. Is Credo priced for perfection?

Insider Buying and Selling at Credo Technology Group

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of CRDO. Acumen Wealth Advisors LLC acquired a new stake in shares of Credo Technology Group in the fourth quarter valued at approximately $25,000. Van ECK Associates Corp acquired a new position in shares of Credo Technology Group during the fourth quarter worth approximately $37,000. Quarry LP boosted its position in shares of Credo Technology Group by 642.5% during the third quarter. Quarry LP now owns 297 shares of the company’s stock worth $43,000 after buying an additional 257 shares during the period. EverSource Wealth Advisors LLC grew its holdings in Credo Technology Group by 198.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 501 shares of the company’s stock worth $46,000 after buying an additional 333 shares in the last quarter. Finally, Transamerica Financial Advisors LLC grew its holdings in Credo Technology Group by 268.6% in the 4th quarter. Transamerica Financial Advisors LLC now owns 317 shares of the company’s stock worth $46,000 after buying an additional 231 shares in the last quarter. 80.46% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of analysts have weighed in on CRDO shares. Weiss Ratings reissued a “hold (c+)” rating on shares of Credo Technology Group in a report on Friday, August 21st. Evercore initiated coverage on shares of Credo Technology Group in a report on Monday, June 22nd. They issued an “outperform” rating and a $325.00 price target for the company. The Goldman Sachs Group reaffirmed a “buy” rating and set a $250.00 price objective on shares of Credo Technology Group in a research report on Tuesday, June 2nd. JPMorgan Chase & Co. boosted their price objective on shares of Credo Technology Group from $230.00 to $250.00 and gave the company an “overweight” rating in a research report on Tuesday, June 2nd. Finally, Zacks Research lowered shares of Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $268.39.

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.