SAN JOSE, California, September 1, 2026, 13:47 PDT —
- Revenue for the fiscal first quarter increased 114.7% to $479.0 million.
- GAAP gross margin declined to 64.5%, down from 68.2% in the prior period.
- Credo finished the session down 8.65% and widened its decline in after-hours trading.
Credo Technology Group Holding Ltd NASDAQ:CRDO continued to fall following its earnings release. The company’s revenue surged over twofold, while its gross margin declined significantly.
The split is significant as another quarter of strong growth is projected. Credo’s guidance midpoint suggests sequential revenue will increase by 10.6%. However, its GAAP margin midpoint signals a decline of 60 basis points.
Shares ended the session at $206.63, declining 8.65%. At 16:47 EDT, they were last quoted at $199.50, reflecting an 11.8% drop from Monday. Trading during the regular session totaled 7.36 million shares, 1.57 times the usual average.
Credo’s selloff continued after the close
USD per share ·
Source: Google Finance. After-hours trading is less liquid and can change quickly.
Credo posted fiscal first-quarter revenue of $479.0 million, rising 9.6% from the preceding quarter and surging 114.7% year-on-year. The result came in $4 million above the top end of previous guidance.
Revenue doubled, and the guide points higher
USD millions · fiscal quarters
Guidance uses the $525–535 million midpoint. Source: Credo SEC filing, September 1, 2026.
Non-GAAP diluted earnings amounted to $1.20 per share, while GAAP diluted earnings stood at $0.67. The gap was primarily due to stock-based compensation and acquisition-related costs.
Chief Executive Bill Brennan stated that the portfolio now covers connectivity “from millimeters to kilometers.” He noted this includes optical as well as copper products. These links transfer data inside growing AI clusters.
Growth occurred alongside softer reported financials. GAAP gross margin declined by 370 basis points from the previous quarter, reaching 64.5%. Guidance for the following quarter is between 62.9% and 64.9%.
Reported margin is moving against revenue
GAAP gross margin · basis-point change shown versus the prior period
Source: Credo SEC filing. Guidance is preliminary and forward-looking.
Cash and short-term investments declined to $764.3 million, down from $1.44 billion. Goodwill increased by $893.6 million. Acquired intangible assets climbed by $349.6 million.
During the quarter, stock compensation totaled $88.0 million, while acquisition and integration expenses contributed an additional $10.4 million. These factors account for the majority of the $106.8 million difference between GAAP and adjusted net income.
Priced at $199.50, the stock has an implied market capitalization of roughly $37.5 billion. This calculation reflects 187.9 million shares outstanding as of August 20. That valuation represents around 17.7 times annualized revenue guidance for the second quarter.
Analysts were bullish before the release
Ratings and 12-month targets published before the latest results
Source: Google Finance, 15 analysts over the prior three months. Targets predate this earnings release and may change.
Risks: GAAP margins may remain challenged by product mix and acquisition amortization. Factors such as pricing, customer concentration, and execution are also important. Credo outlines these risks in its annual filing.
The upcoming earnings call at 17:00 EDT is seen as the next driver. Investors are expected to monitor optical mix, costs for acquired products, and the longevity of copper demand. Revenue growth by itself left those issues unresolved.
