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…
Earnings analysis · 10-Q
CRDO earnings analysis
Filed September 2, 2026 · Our reading of the company's report
The latest report
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…
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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.
Reported figures
- Earnings per share
- $1.2
What stood out
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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.
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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%.
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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.
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Market-risk profile unchanged
Management reported no material changes to the company’s market-risk assessment during the three months ended August 1, 2026.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
Management's outlook
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%.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.