Credo Technology falls 14% despite Q4 earnings, revenue beat

SAN JOSE, Calif. - Credo Technology Group Holding Ltd (NASDAQ:CRDO) reported fourth quarter results that exceeded analyst expectations, but shares tumbled 14%.

The connectivity solutions provider posted adjusted EPS of $1.16 for the fourth quarter ended May 2, 2026, beating the analyst consensus of $1.02 by $0.14. Revenue reached $437 million, surpassing the estimate of $431.79 million and representing a 157% increase YoY from $170 million in the prior-year period.

The company’s first quarter fiscal 2027 revenue guidance of $465 million to $475 million, with a midpoint of $470 million, also exceeded the analyst consensus of $464.7 million.

"Fiscal 2026 marked another defining year for Credo," said Bill Brennan, President and CEO. "For the year, revenue more than tripled to $1.3 billion, and adjusted net income increased more than five times to $662 million."

For the fourth quarter, GAAP net income was $169.1 million, or $0.88 per diluted share, compared to $36.6 million, or $0.20 per diluted share, in the year-ago quarter. Adjusted gross margin came in at 68.3%, up from 67.4% a year earlier.

For the first quarter of fiscal 2027, the company expects adjusted gross margin between 67% and 69%, with adjusted operating expenses projected at $86 million to $90 million. The company ended the quarter with cash and short-term investments of $1.4 billion.

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