CRDO earnings analysis
What we found in CRDO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Credo delivered Q1 FY2027 revenue of $479.003 million and non-GAAP diluted EPS of $1.20, beating consensus revenue of $471.515 million and EPS of $1.12. The associated Q2 revenue outlook was raised to $525 million-$535 million from $465 million-$475 million, supporting a bullish earnings trajectory. However, the expected Q2 GAAP gross-margin range of 62.9%-64.9% signals potential margin compression, and the 440,000-share CEO trading plan creates a modest supply overhang.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue beat and strong year-over-year growth
- Q1 FY2027 revenue was $479.003 million, exceeding the $471.515 million consensus estimate by $7.488 million, or 1.6%. Revenue also increased 114.7% year over year.
- EPS exceeded consensus by $0.08
- Non-GAAP diluted EPS was $1.20 versus the $1.12 consensus estimate, a $0.08 beat or 7.1%.
- Revenue outlook raised materially
- Q2 FY2027 revenue outlook of $525 million-$535 million was raised from the prior $465 million-$475 million outlook, representing a $60 million-$70 million increase at the respective endpoints.
- Market-risk profile unchanged
- Management reported no material changes to the company’s market-risk assessment during the three months ended August 1, 2026.
- Internal controls remained effective
- Disclosure controls and procedures were concluded effective at the reasonable-assurance level as of August 1, 2026, with no change in internal control over financial reporting during the quarter.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Forward gross-margin compression
- Expected Q2 GAAP gross margin of 62.9%-64.9% is below the reported Q1 non-GAAP gross margin of 67.0%-69.0% cited in the associated outlook, indicating potential margin pressure despite higher revenue expectations.
- Potential insider share-sale overhang
- The CEO’s Rule 10b5-1 plan permits the sale of a maximum of 440,000 ordinary shares between September 14, 2026 and September 14, 2027, creating a potential source of insider selling pressure.
- Uncertain litigation exposure
- The company states that litigation outcomes cannot be predicted with certainty and that litigation may impose defense and settlement costs, although it was not presently party to litigation expected to have a material adverse effect as of September 2, 2026.
- Controls do not eliminate all error risk
- The company disclosed that its controls provide reasonable, not absolute, assurance and cannot prevent all error or fraud, reflecting residual financial-reporting control risk.
- No new formal risk-factor changes
- The filing states that there were no material changes to previously disclosed risk factors from the May 2, 2026 Form 10-K, so no new filing-specific risk-factor developments were identified.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.2
What they said about what is next.
The filing text provided does not include numeric guidance, but the associated Q2 FY2027 outlook was revenue of $525 million-$535 million, raised from the prior $465 million-$475 million outlook. Expected Q2 GAAP gross margin was 62.9%-64.9% and non-GAAP gross margin was 67.0%-69.0%.
The filing reads better than the one before it.
What came before.
- 10-K · June 15, 2026
- Credo Technology Group reported remarkable growth in fiscal 2026, with revenue up 205.7% year-over-year to $1.34 billion, driven by increased demand for its Active Electrical Cables (AECs). The company achieved…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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