Overview
- Credo reported record fiscal 2026 results with full-year revenue above $1.3 billion and Q4 revenue of $437 million, driven by demand for AI data‑center connectivity products.
- The company completed the DustPhotonics acquisition for $750 million in cash plus stock to add silicon photonics and photonic integrated circuits to its optical portfolio.
- Management guided Q1 fiscal 2027 revenue to $465 million–$475 million and projected fiscal 2027 revenue growth of more than 80%, with optical expected to contribute over $600 million.
- Shares plunged about 14% in after‑hours trading after the results and call on Monday before trimming losses to close roughly 4% lower as investors reassessed valuation and near‑term margin and ramp risks.
- Credo exited the quarter with strong non‑GAAP gross margins near 68% and roughly $1.4 billion in cash, but faces concentration risk from a few large hyperscaler customers and possible short‑term margin pressure during new‑product production ramps.