Credo reported revenue of $437 million for the fourth fiscal quarter of FY2026, up 157% year-over-year, surpassing analysts' expectations of $432.5 million. Non-GAAP diluted earnings per share were $1.16, above the analyst consensus of $1.00. The company provided guidance for next quarter’s revenue in the range of $465 million to $475 million, higher than the analyst expectation of $460.5 million.
$Credo Technology (CRDO.US)$ The company announced its fourth-quarter and full-year results for fiscal 2026 ended May 2, 2026, reporting substantial increases in both revenue and profitability, with annual revenue more than tripling compared to the prior fiscal year—reflecting sustained strong demand for high-speed connectivity solutions driven by AI data center infrastructure build-outs.
Fourth-quarter revenue reached $437 million, representing a 157% year-over-year increase and a 7.4% sequential rise, exceeding analysts’ expectation of $432.5 million; non-GAAP diluted earnings per share were $1.16, above the analyst consensus of $1.00.
The company also issued guidance for the first quarter of fiscal 2027, forecasting revenue between $465 million and $475 million—an implied 7.6% sequential increase at the midpoint of the range—above analysts’ expectation of $460.5 million.
CEO Bill Brennan stated that fiscal 2026 was another defining year for the company, with annual revenue exceeding $1.3 billion and non-GAAP net income increasing more than fivefold to $662 million. Entering fiscal 2027, the company will leverage vertically integrated innovation to continue helping customers accelerate cluster stabilization time, enhance GPU utilization, improve network reliability, and reduce overall infrastructure power consumption and operating costs.
Strong financial performance and positive forward guidance indicate that Credo continues to benefit from the rapid expansion of AI infrastructure, with no signs of slowing demand for large-scale deployment of its high-speed copper cable and optical interconnect products.
Quarterly revenue hits a new record, with margins remaining elevated
Fourth-quarter revenue reached $437 million, up 157% year-over-year from $170 million in the same period last year, and a 7.4% increase from $407 million in the prior quarter, continuing a trajectory of accelerating sequential growth.
On the profitability front, GAAP gross margin stood at 68.2%, while non-GAAP gross margin was 68.3%, slightly down from 68.5% (non-GAAP) in the prior quarter but still remaining at a high level. GAAP net income was $169.1 million, and non-GAAP net income was $226.7 million, yielding a non-GAAP net profit margin of 51.9%. GAAP diluted earnings per share were $0.88, while non-GAAP diluted earnings per share were $1.16, up from $1.07 in the prior quarter.
GAAP operating expenses for the fourth quarter amounted to $142.2 million, up from $129.3 million in the prior quarter, primarily driven by one-time items including $9.3 million in acquisition- and integration-related costs and $0.4 million in amortization of acquired intangible assets.
Total cash and short-term investment balances at period-end amounted to approximately $1.4 billion, a significant increase from approximately $431 million at the end of the prior fiscal year, reflecting a strong financial position.
Full-Year Results: Revenue Triples, Demonstrating Significant Profit Leverage
For the full fiscal year 2026, Credo Technology reported revenue of $1.3351 billion, an increase of approximately 206% compared to $436.8 million in the prior fiscal year, representing nearly triple growth.
Profit expansion was even more pronounced. Full-year GAAP net income surged from $52.2 million in the prior fiscal year to $472.3 million; non-GAAP net income rose from $129.9 million to $661.5 million, an increase of over 400%. Full-year non-GAAP net profit margin improved significantly from 29.7% to 49.5%, highlighting the substantial operating leverage driven by rapid revenue scale-up.
From a balance sheet perspective, as of May 2, 2026, total assets reached $2.2956 billion, a substantial increase from $809.3 million at the end of the prior fiscal year. Cash and cash equivalents rose from $236.3 million to $1.165 billion.
The balance sheet reflects newly added goodwill of $92.8 million and net intangible assets of $29.3 million, both of which were zero at the end of the prior fiscal year, indicating that the company completed an acquisition transaction near the end of the current fiscal year.
Fiscal Year 2027 First Quarter Outlook: Growth Momentum Expected to Continue
The company expects first-quarter revenue for fiscal year 2027 (ending August 1, 2026) to be in the range of $465 million to $475 million. Using the midpoint of $470 million, this represents an increase of approximately 7.6% compared to $437 million in the fourth quarter.
In terms of gross margin, GAAP gross margin is expected to be between 66.9% and 68.9%, while non-GAAP gross margin is forecasted to range from 67.0% to 69.0%. These ranges encompass the actual fourth-quarter levels, indicating management’s confidence in gross margin stability.
Regarding operating expenses, GAAP operating expenses are projected to be between $167.6 million and $171.6 million, up from $142.2 million in the fourth quarter, partly reflecting ongoing costs associated with acquisition integration. Non-GAAP operating expenses are expected to range from $86 million to $90 million, a modest increase from $81.7 million in the fourth quarter, indicating that the company continues to invest in R&D and operations to support its scale-up.
Editor /rice