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Credo Technology Group Holding Ltd
(NASDAQ:CRDO)
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Rating:74Outperform
Price Target:
$169.00
▼(-25.39% Downside)
Action:Reiterated
Date:10/17/26
High overall score driven primarily by exceptional financial performance (strong margins, improving ROE, and positive free cash flow) and a very upbeat earnings outlook with strong growth and margin guidance. The score is held back by weak technical momentum (price below key moving averages with negative MACD) and a relatively expensive valuation (high P/E), which increases sensitivity to any demand or execution volatility.
Positive Factors
Exceptional Revenue Growth
The sustained period of triple-digit growth indicates broad customer adoption and strong demand for Credo’s connectivity products. Repeated outperformance and expanding deployments across data-center architectures support a durable growth trajectory over the next several quarters.
Negative Factors
High Customer Concentration
Revenue remains concentrated among a small number of customers, making results more sensitive to design decisions, deployment timing, and purchasing changes at individual accounts. Even with stated diversification efforts, this concentration can increase earnings volatility over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional Revenue Growth
The sustained period of triple-digit growth indicates broad customer adoption and strong demand for Credo’s connectivity products. Repeated outperformance and expanding deployments across data-center architectures support a durable growth trajectory over the next several quarters.
Read all positive factors
Credo Technology Group Holding Ltd (CRDO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.38B
Dividend YieldN/A
Average Volume (3M)8.66M
Price to Earnings (P/E)51.2
Beta (1Y)3.69
Revenue Growth165.11%
EPS Growth301.97%
CountryUS
Employees807
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)2.95
Shares Outstanding187,951,920
10 Day Avg. Volume8,036,880
30 Day Avg. Volume8,655,142
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)15.95
Price to Sales (P/S)24.66
P/FCF Ratio80.88
Enterprise Value/Market Cap1.39
Enterprise Value/Revenue24.82
Enterprise Value/Gross Profit37.01
Enterprise Value/Ebitda67.01
Forecast
1Y Price Target
$280.54Price Target Upside23.85% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)6.3
Revenue Forecast (FY)$2.50B
Credo Technology Group Holding Ltd Business Overview & Revenue Model
Company Description
Credo Technology Group Holding Ltd (CRDO) specializes in delivering advanced high-speed connectivity solutions for both optical and electrical Ethernet applications. Its operational reach extends globally, encompassing the United States, Mexico, M...
How the Company Makes Money
Credo primarily makes money by licensing and selling high-speed connectivity technology used in data-center and networking hardware. Key revenue streams include: (1) SerDes IP licensing: Credo licenses its SerDes and related interface IP to semico...
Credo Technology Group Holding Ltd Earnings Call Summary
Earnings Call Date:Sep 01, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Positive
The call was strongly positive, featuring record revenue, more than 100% year-over-year growth for the seventh consecutive quarter, record optical DSP and retimer revenue, expanding customer engagement, and reaffirmed fiscal 27 growth expectations. The main negatives were elevated R&D-related operating expenses, working-capital-driven cash flow pressure, acquisition-related cash usage, higher inventory, customer concentration, and an uncertain tariff regime. Highlights significantly outweighed the lowlights.Positive Updates
Record Revenue and Triple-Digit Growth
First-quarter revenue reached a record $479 million, increasing 10% sequentially and 115% year over year. This marked the seventh consecutive quarter of triple-digit year-over-year revenue growth and was above the high end of guidance.
Negative Updates
Operating Expenses Above Guidance
Total non-GAAP operating expenses were $95.2 million in Q1, above the high end of guidance, due to strong R&D investment. Operating expenses increased 16% sequentially.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Revenue and Triple-Digit Growth
First-quarter revenue reached a record $479 million, increasing 10% sequentially and 115% year over year. This marked the seventh consecutive quarter of triple-digit year-over-year revenue growth and was above the high end of guidance.
Read all positive updates
Company Guidance
For Q2 of fiscal 27, Credo expects revenue to be between $525 million and $535 million, non GAAP gross margin to be within a range of 67% to 69%, non GAAP operating expenses to be between $100 million and $105 million, and diluted weighted average share count to be approximately 200 million shares, based on the current tariff regime, which remains fluid; for fiscal year 2027, it expects more than $600 million in optical revenue, with zero-flap optics, silicon-photonics PICs, and optical DSPs each contributing more than $100 million, resulting in more than 85% year-over-year total revenue growth for the full year, non GAAP gross margin broadly consistent with fiscal year 26 levels, non GAAP operating expenses to increase approximately 55% year-over-year, and non GAAP net margin to be in the vicinity of 50%.Credo Technology Group Holding Ltd Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
95
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.59B | 1.34B | 436.77M | 192.97M | 184.19M | 106.48M |
| Gross Profit | 1.07B | 908.35M | 282.91M | 119.43M | 106.19M | 64.02M |
| EBITDA | 589.37M | 510.07M | 76.81M | -22.52M | -9.31M | -14.04M |
| Net Income | 538.30M | 472.28M | 52.18M | -28.37M | -16.55M | -22.18M |
Balance Sheet | ||||||
| Total Assets | 3.01B | 2.30B | 809.26M | 601.93M | 397.29M | 375.69M |
| Cash, Cash Equivalents and Short-Term Investments | 764.26M | 1.44B | 431.34M | 410.00M | 217.81M | 259.32M |
| Total Debt | 20.74M | 25.45M | 16.04M | 13.87M | 15.50M | 17.19M |
| Total Liabilities | 284.24M | 232.01M | 127.67M | 61.73M | 49.65M | 41.53M |
| Stockholders Equity | 2.73B | 2.06B | 681.58M | 540.20M | 347.63M | 334.16M |
Cash Flow | ||||||
| Free Cash Flow | 438.60M | 407.00M | 29.02M | 17.09M | -46.33M | -48.41M |
| Operating Cash Flow | 500.36M | 464.29M | 65.08M | 32.74M | -24.61M | -30.83M |
| Investing Cash Flow | -947.66M | -253.53M | 111.99M | -249.49M | -130.94M | -17.58M |
| Financing Cash Flow | 693.94M | 717.63M | -7.73M | 175.28M | 4.88M | 204.18M |
Credo Technology Group Holding Ltd Technical Analysis
Negative
226.51
Price Trends
190.00
Negative
215.86
Negative
181.10
Negative
Market Momentum
-9.57
Positive
42.91
Neutral
55.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRDO, the sentiment is Negative. The current price of 226.51 is above the 20-day moving average (MA) of 186.06, above the 50-day MA of 190.00, and above the 200-day MA of 181.10, indicating a bearish trend. The MACD of -9.57 indicates Positive momentum. The RSI at 42.91 is Neutral, neither overbought nor oversold. The STOCH value of 55.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRDO.
Credo Technology Group Holding Ltd Risk Analysis
Credo Technology Group Holding Ltd disclosed 65 risk factors in its most recent earnings report. Credo Technology Group Holding Ltd reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Credo Technology Group Holding Ltd Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $28.38B | 51.18 | 27.16% | ― | 165.11% | 301.97% | |
72 Outperform | $17.90B | 73.25 | 17.09% | ― | 28.36% | ― | |
70 Outperform | $172.22B | 64.41 | 16.22% | 0.12% | 30.62% | ― | |
69 Neutral | $44.88B | 119.22 | 25.24% | ― | 98.48% | 256.17% | |
65 Neutral | $11.89B | 76.86 | 25.26% | ― | 17.84% | 464.80% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | $6.14B | -192.77 | -6.11% | ― | 56.02% | 83.39% |
* Technology Sector Average
CRDO
Credo Technology Group Holding Ltd
150.99
-36.63
-19.52%
MTSI
MACOM Technology Solutions Holdings
234.39
86.26
58.23%
MRVL
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196.40
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109.87%
MXL
Maxlinear
67.47
52.32
345.35%
SMTC
Semtech
127.38
59.52
87.71%
ALAB
Astera Labs, Inc.
258.70
72.02
38.58%
Credo Technology Group Holding Ltd Corporate Events
Executive/Board ChangesShareholder Meetings
Credo Technology Shareholders Approve Governance and Oversight Measures
Positive
Oct 16, 2026
Credo Technology Group Holding Ltd held its 2026 Annual General Meeting on October 12, 2026, where shareholders voted on board, pay and audit-related matters. The meeting addressed the election of Class II directors, advisory approval of executive...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.