CRDO Stock Drops Over 12% After-Hours Despite 157% Revenue Growth

• Q4 adjusted EPS of $1.16 topped estimates, while revenue jumped 157% year-over-year to $437M.
• Q1 FY27 revenue guidance of $465M to $475M also came in above analyst expectations.
• Retail sentiment on Stocktwits for CRDO was ‘extremely bullish.’

Credo Technology Group Holding Ltd (CRDO) reported stronger-than-expected fourth-quarter results for fiscal 2026 after the close on Monday, but shares fell sharply.

At the time of writing, CRDO stock was down nearly 12% in after-hours trading, after ending the regular session lower by 4.21%.

The company’s margins declined quarter-on-quarter, with GAAP operating margin falling from 36.8% to 35.7% and non-GAAP operating margin remaining flat at 49.6%, which may be weighing on the stock. 

CRDO Q4 Earnings Beat On Strong Revenue Growth

Credo posted adjusted EPS of $1.16, beating analyst consensus estimates of $1.03, according to Koyfin data. Revenue came in at $437 million, above estimates of $433 million, surging 157% year-over-year from $170 million.

For the fourth quarter, GAAP net income was $169.1 million and non-GAAP net income was $226.7 million. GAAP diluted EPS stood at $0.88, while non-GAAP diluted EPS was $1.16.

CRDO Guidance Also Edges Past Estimates

For Q1 FY27, Credo expects revenue between $465 million and $475 million, slightly above the $465 million analyst consensus.

The company also expects adjusted gross margins of 66.9% to 68.9% and non-GAAP gross margins of 67.0% to 69.0%, while operating expenses are projected between $86 million and $90 million (adjusted).

GAAP operating expenses are expected between $167.6 million and $171.6 million. Cash and short-term investments stood at $1.4 billion.

CEO Highlights Strong FY26 Performance

CEO Bill Brennan said fiscal 2026 marked a “defining year,” with revenue more than tripling to $1.3 billion and non-GAAP net income rising more than fivefold to $662 million.

He added that Credo expects continued momentum in FY27, driven by its vertically integrated AI connectivity solutions aimed at improving GPU utilization, network reliability, and infrastructure efficiency.

CRDO Stock: What Stocktwits Retail Sentiment Says

Retail sentiment on Stocktwits for CRDO turned “extremely bullish” on Monday from “neutral” a day ago, while message volume also was in “extremely high” territory.

One user said the stock was up nearly 60% year-to-date, has delivered strong earnings and that staying patient will likely be rewarded.

Another Stocktwits trader said that despite strong earnings and guidance, the stock was already priced for perfection at a high valuation, leaving limited near-term upside and prompting them to wait for a better entry point.

The CRDO stock has gained over 275% in the past 12 months. 

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