Credo Reports Record Q3 on AI Infrastructure Demand, Raises Outlook and Accelerates ZeroFlap Ramp

Management targets more than 50% growth next year despite reliance on three hyperscalers.

Overview

Revenue reached $407 million in fiscal Q3, up 52% sequentially and more than 200% year over year, led by hyperscaler orders.
Non-GAAP gross margin was 68.6% with a 49.6% operating margin, operating cash flow hit a record $166.2 million, and cash ended at $1.3 billion after an at‑the‑market offering and free cash flow.
Three hyperscale customers contributed 88% of quarterly revenue at approximately 39%, 32% and 17%, a concentration management says will persist.
Guidance calls for $425–$435 million in Q4 revenue and more than 50% year-over-year growth in fiscal 2027, with forecasts assuming the current tariff regime.
ZeroFlap optics entered production with TensorWave and the broader ramp was pulled forward to fiscal Q1 2027, while Credo closed the Comera acquisition and outlined ALC sampling in fiscal 2027 and OmniConnect production in 2028.