Credo Technology Group Holding Ltd. (CRDO)
NASDAQ:CRDO
Top Page
Credo Technology Group Holding Ltd
(NASDAQ:CRDO)
Select Model
Select Model
Rating:76Outperform
Price Target:
$135.00
▲(12.89% Upside)
Action:ReiteratedDate:04/14/26
The score is driven primarily by strong financial performance (profitability, cash generation, and low leverage) and a bullish earnings-call backdrop supporting continued growth. This is tempered by a mixed technical picture (negative MACD and below longer-term moving averages), a growth-priced valuation (P/E ~35), and event risk from a large optics acquisition alongside customer concentration and near-term margin guidance conservatism.
Positive Factors
High Profitability
Credo's very high TTM gross and net margins indicate structurally strong product pricing and favorable mix in high-speed connectivity chips and IP. Durable high margins support sustained free cash flow, fund R&D and scale production, and create a buffer versus cyclical revenue swings if product mix remains premium.
Negative Factors
Customer Concentration
Revenue is highly concentrated among a few hyperscalers, making Credo's topline and margins vulnerable to order volatility or pricing pressure from a single large buyer. Over the medium term this concentrates execution risk and weakens bargaining leverage until the customer base diversifies materially.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Credo's very high TTM gross and net margins indicate structurally strong product pricing and favorable mix in high-speed connectivity chips and IP. Durable high margins support sustained free cash flow, fund R&D and scale production, and create a buffer versus cyclical revenue swings if product mix remains premium.
Read all positive factors
Credo Technology Group Holding Ltd (CRDO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.06B
Dividend YieldN/A
Average Volume (3M)7.17M
Price to Earnings (P/E)35.2
Beta (1Y)3.33
Revenue Growth224.17%
EPS GrowthN/A
CountryUS
Employees500
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)1.07
Shares Outstanding184,449,940
10 Day Avg. Volume5,123,814
30 Day Avg. Volume7,168,218
Financial Highlights & Ratios
PEG Ratio-0.51
Price to Book (P/B)10.58
Price to Sales (P/S)16.51
P/FCF Ratio248.47
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue22.07
Enterprise Value/Gross Profit32.54
Enterprise Value/Ebitda67.40
Forecast
1Y Price Target
$190.23Price Target Upside59.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)3.3
Revenue Forecast (FY)$1.33B
Credo Technology Group Holding Ltd Business Overview & Revenue Model
Company Description
Credo Technology Group Holding Ltd provides various high-speed connectivity solutions for optical and electrical Ethernet applications in the United States, Mexico, Mainland China, Hong Kong, and internationally. Its products include integrated ci...
How the Company Makes Money
Credo primarily makes money by selling semiconductor connectivity products and by licensing semiconductor intellectual property used in high-speed data links. A key revenue stream is product revenue from the sale of its connectivity chips/componen...
Credo Technology Group Holding Ltd Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 03, 2026
Earnings Call Sentiment Positive
The call conveyed very strong operational and financial momentum: record revenue, robust margins, exceptional cash generation, multiple product ramps (ZeroFlap Optics, AECs, PCIe Gen6, Blue Heron, OmniConnect, ALCs) and an acquisition to expand IP capabilities. Near-term conservatism appears in guidance (lower gross margin midpoint, modest sequential revenue guidance) and there are manageable risks including customer concentration, an inventory build, elevated R&D/OpEx, tariff and memory supply uncertainty, and market noise around CPO/optical competition. On balance, the call emphasized accelerating growth and execution with identifiable but contained risks.Positive Updates
Record Revenue and Rapid Growth
Revenue of $407.0M in Q3 FY26, up 52% sequentially and more than 200% year-over-year (tripled YoY). Management highlighted ~6x revenue growth over two years and expects fiscal '27 revenue growth of >50% YoY (mid-single-digit sequential growth).
Negative Updates
Guidance Shows Lower Near-Term Margins
Q4 FY26 guidance: revenue $425M–$435M (modest sequential increase from $407M) and non-GAAP gross margin guided to 64%–66% (midpoint implies a ~360 bps decline from Q3's 68.6%), indicating conservative near-term margin expectations and mix effects.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Revenue and Rapid Growth
Revenue of $407.0M in Q3 FY26, up 52% sequentially and more than 200% year-over-year (tripled YoY). Management highlighted ~6x revenue growth over two years and expects fiscal '27 revenue growth of >50% YoY (mid-single-digit sequential growth).
Read all positive updates
Company Guidance
Credo guided Q4 FY2026 revenue of $425–$435 million, non‑GAAP gross margin of 64–66%, non‑GAAP operating expenses of $76–$80 million, and a diluted weighted‑average share count of ~197 million (assumptions include the current tariff regime); management described this as a conservative outlook versus Q3’s record results (Q3 revenue $407M; non‑GAAP gross margin 68.6%; non‑GAAP OpEx $77.4M; non‑GAAP operating income $201.8M; non‑GAAP net income $208.8M; non‑GAAP net margin 51.3%; cash from operations $166.2M; free cash flow $139.7M; cash & equivalents $1.3B; ending inventory $208M; CapEx $26.5M). For FY2027, they expect mid‑single‑digit sequential revenue growth that translates to greater than 50% year‑over‑year growth and reiterated a long‑term non‑GAAP gross margin framework around the mid‑60% range.Credo Technology Group Holding Ltd Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 | Apr 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.07B | 436.77M | 192.97M | 184.19M | 106.48M | 58.70M |
| Gross Profit | 724.47M | 282.91M | 119.43M | 106.19M | 64.02M | 38.28M |
| EBITDA | 349.77M | 59.94M | -22.52M | -9.31M | -14.04M | -23.02M |
| Net Income | 339.76M | 52.18M | -28.37M | -16.55M | -22.18M | -27.51M |
Balance Sheet | ||||||
| Total Assets | 2.04B | 809.26M | 601.93M | 397.29M | 375.69M | 155.49M |
| Cash, Cash Equivalents and Short-Term Investments | 1.30B | 431.34M | 410.00M | 217.81M | 259.32M | 103.76M |
| Total Debt | 12.62M | 16.04M | 13.87M | 15.50M | 17.19M | 0.00 |
| Total Liabilities | 188.45M | 127.67M | 61.73M | 49.65M | 41.53M | 210.92M |
| Stockholders Equity | 1.85B | 681.58M | 540.20M | 347.63M | 334.16M | -55.43M |
Cash Flow | ||||||
| Free Cash Flow | 283.69M | 29.02M | 17.09M | -46.33M | -48.41M | -48.42M |
| Operating Cash Flow | 339.87M | 65.08M | 32.74M | -24.61M | -30.83M | -42.36M |
| Investing Cash Flow | -139.74M | 111.99M | -249.49M | -130.94M | -17.58M | -6.06M |
| Financing Cash Flow | 720.99M | -7.73M | 175.28M | 4.88M | 204.18M | 77.89M |
Credo Technology Group Holding Ltd Technical Analysis
Positive
119.59
Price Trends
112.04
Positive
130.88
Positive
131.29
Positive
Market Momentum
1.13
Negative
67.13
Neutral
88.21
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRDO, the sentiment is Positive. The current price of 119.59 is above the 20-day moving average (MA) of 104.73, above the 50-day MA of 112.04, and below the 200-day MA of 131.29, indicating a bullish trend. The MACD of 1.13 indicates Negative momentum. The RSI at 67.13 is Neutral, neither overbought nor oversold. The STOCH value of 88.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $70.14B | 59.35 | 8.26% | ― | 18.79% | 49.53% | |
77 Outperform | $56.02B | 35.83 | 120.56% | 0.49% | 36.77% | 102.83% | |
76 Outperform | $22.06B | 35.18 | 29.56% | ― | 224.17% | ― | |
70 Outperform | $40.26B | 11.10 | 29.57% | 2.51% | 1.04% | ― | |
65 Neutral | $52.73B | 15.06 | 4.38% | 2.26% | 5.05% | 115.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
CRDO
Credo Technology Group Holding Ltd
134.36
95.26
243.63%
CIEN
Ciena
479.90
421.40
720.34%
ERIC
Telefonaktiebolaget LM Ericsson
12.03
4.74
65.11%
NOK
Nokia
10.37
5.50
112.98%
UI
Ubiquiti Networks
951.04
641.58
207.32%
Credo Technology Group Holding Ltd Corporate Events
Business Operations and StrategyM&A Transactions
Credo Technology Announces Acquisition of DustPhotonics to Expand Optics
Positive
Apr 13, 2026
On April 13, 2026, Credo Technology Group Holding Ltd and its subsidiary Credo Semiconductor, Inc. signed a share purchase agreement to acquire 100% of Israeli company DustPhotonics Ltd., paying $750 million in cash plus approximately 0.92 million...
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.