EarningsQ1 2027 Earnings Report
MX:CRDON Q1 2027 EPS Results
Actual EPS$21.70
Consensus EPS$21.23
Beat/MissBeat by +$0.47
One Year Ago EPS$9.40
MX:CRDON Q1 2027 Revenue Results
Actual Revenue$8.66B
Expected Revenue$8.56B
Beat/MissBeat by +$103.18M
YoY Revenue Growth+114.73%
Earnings Announcement Details
QuarterQ1 2027
Date09/01/2026
TimeAfter Close
Conference CallTuesday, September 1, 2026
MX:CRDON Upcoming Earnings
Credo Technology Group Holding Ltd's next earnings date is estimated for December 2, 2026, based on past reporting schedules.
Q1 2027 Earnings Call Audio
MX:CRDON Q1 2027 Earnings Call
0:00 / 0:00
Q1 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q1 2027 Earnings Call Summary
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.Company Guidance
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.
Strong Profitability
Non-GAAP gross margin was 68%. Non-GAAP operating income was $230.6 million, with a 48.2% operating margin. Non-GAAP net income reached a record $236.3 million, up 4% sequentially and more than doubling year over year, while non-GAAP net margin was 49.3%.
AEC Business Continues to Grow
AECs remained Credo's largest business and continued to grow, driven by deeper penetration with existing customers, new customer additions, and increasing bandwidth in next-generation clusters. Credo now has deep relationships with 5 hyperscalers, and engagement with Neo Cloud customers continues to expand.
AEC Higher-Speed Roadmap
The company expects 200-gig-per-lane connectivity and 1.6T ports to provide another growth vector. AECs are expected to make some contribution in the second half of fiscal 27, with a much larger contribution in fiscal 28.
Record Optical DSP Revenue
The optical DSP business delivered record revenue in Q1, including deployments across 50-gig-per-lane and 100-gig-per-lane solutions. Credo sees a long tail for 800-gig ports while customer engagement with its 1.6T DSP is strong across fully retimed and LRO solutions.
1.6T DSP Revenue on Track
The company's first 1.6T DSP revenue remains on track for later fiscal 27. Credo also reported design wins with 2 major players for next-generation ramps expected in fiscal 28, potentially beginning in the late part of fiscal 27.
Silicon Photonics PIC Momentum
Credo recognized its first silicon photonics PIC revenue following the Dust Photonics acquisition. Initial wins are in 800-gig and 1.6T optical transceivers, and the company expects these products to ramp throughout the year.
Optical Portfolio Expansion
Credo now combines optical DSPs, silicon photonics PICs, firmware, telemetry, and Pilot software. The company stated that this integrated approach creates opportunities to improve reliability, power, signal integrity, and diagnostics, while positioning it for scale-up architectures moving toward near-package optics.
Near-Package Optics Opportunity
Customer activity around NPO for scale-up networks is increasing, with confirmed design wins expected to begin ramping in fiscal 28. As part of the open CPX MSA consortium, Credo plans to pursue component and complete system-level solutions, initially leading with silicon photonics PICs and potentially offering complete optical engines over time.
Zero-Flap Optics Progress
Zero-Flap Optics production shipments are underway, and Credo expects additional customer ramps during fiscal 27 across both 800-gig and 1.6T products with hyperscalers and Neo Clouds. The company said the offering is designed to continuously monitor link health and identify and mitigate likely link instabilities.
Optical Revenue Target Reaffirmed
Credo remains firmly on track to deliver more than $600 million of optical revenue in fiscal 27, with zero-flap optics, silicon-photonics PICs, and optical DSPs each expected to contribute more than $100 million.
Record Retimer Revenue
The retimer business delivered record revenue in Q1. Growth was primarily driven by scale-up deployments using the Screaming Eagle Retimer at 100-gig-per-lane, with the Blue Heron Retimer beginning to contribute at 200-gig-per-lane.
Retimer Protocol and Product Expansion
Credo continues to see opportunities for the Toucan Retimer as PCIe Gen6 adoption increases and for Screaming Eagle and Blue Heron across Ethernet and UALink. The company's ability to support multiple protocols allows it to participate across different scale-up architectures.
Active LED Cable Development
Credo's Active LED Cable solutions use microemitters to combine reliability and power advantages of copper with reach of up to 30 meters. Customer engagement is increasing, the company plans to demonstrate ALC solutions at OCP in October, and initial revenue remains targeted for fiscal 28.
OmniConnect Inference Opportunity
Credo is seeing strong engagement around its OmniConnect SERDES and Weaver gearbox solutions, which address memory fan-out issues associated with increasing bandwidth and capacity requirements in next-generation AI architectures, particularly inference. Revenue is expected to begin in fiscal 28.
OmniConnect Product Roadmap
The first Weaver gearbox product will support LPDDR5, followed by an LPDDR6 product. Credo stated that the architecture can expand memory capacity to up to 2 terabytes in Positron's first announced product and has a roadmap targeting bandwidth comparable to HBM 5.
Customer Diversification Progress
Credo continues to diversify its revenue base across hyperscalers, Neo Clouds, and other customers, while expanding product-line penetration within existing hyperscaler accounts beyond AECs.
Strong Cash Position and Free Cash Flow
Q1 cash flow from operations was $90.2 million, CapEx was $7.3 million, and free cash flow was $82.9 million. The company ended the quarter with $764.3 million of cash and equivalents and stated that it remains well capitalized to invest in growth opportunities while maintaining a substantial cash buffer.
Positive Fiscal 27 Outlook
Second-quarter fiscal 27 revenue is expected to be between $525 million and $535 million, with non-GAAP gross margin between 67% and 69%. For fiscal 27, Credo continues to expect more than 85% year-over-year total revenue growth, non-GAAP gross margin broadly consistent with fiscal 26 levels, and non-GAAP net margin in the vicinity of 50%.
Operating Leverage Despite Investment
Management said non-GAAP operating expenses are expected to increase approximately 55% year over year, well below the expected revenue growth rate, while the company continues investing in R&D to support new product development and growth opportunities.
Telemetry and Reliability Differentiation
The Pilot platform provides real-time telemetry, including eye height, SNR, and post-FEC histograms, to identify declining link integrity and enable mitigation. Credo said the accumulated data can support better solutions and optimization of next-generation products, while helping customers identify issues such as ESD damage and dust on fiber plants.
Integrated Optical Go-to-Market Advantage
Credo stated that vertical integration across SerDes, DSP, and PIC technologies supports system performance, power, yield, and COGS advantages. The company also expects differentiated features to provide an ASP advantage compared with more standards-based solutions.
Long-Term Market Opportunity
Management expects outsized growth through the 2030 timeframe. It cited forecasts that the optical transceiver pluggable market could grow from 60 million units in 2026 to 175 million units by 2030, and described ALCs, scale-up solutions, and OmniConnect as multibillion-dollar opportunities.
MX:CRDON Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed