Overview
- Credo closed its purchase of DustPhotonics on May 28 and then reported a fiscal Q4 beat on June 1 with $437 million in revenue and $1.16 in EPS, and guided Q1 fiscal 2027 revenue to $465 million–$475 million.
- Analysts raised valuations after the results, with Mizuho lifting its price target to $290 and TD Cowen to $260 while most sell‑side coverage remains bullish on the company's AI‑data‑center exposure.
- The DustPhotonics deal brings silicon photonics and photonic integrated circuit technology that, together with Credo’s Active Electrical Cables, SerDes chiplets and DSPs, aims to support 800G to 3.2T optical links for hyperscaler GPU clusters.
- Credo reported very strong profitability and liquidity, with non‑GAAP gross margins near the high‑60s percent range and about $1.3 billion in cash and investments to fund product ramps and integration.
- Coverage also warns of near‑term execution risks including elevated inventory levels, heavy revenue concentration in a top customer (reported near one‑third of sales), and supply or margin pressure during high‑volume production ramps that could drive stock volatility.