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Key Stats for Credo Technology Stock
- Today’s Price Change: 12%
- Current Share Price: $70
- 52-Week High: $87
- CRDO Stock Price Target: $67
What Happened?
Credo Technology (CRDO) shares surged more than 12% following the release of its outstanding fourth-quarter fiscal 2025 (ended in April) earnings, which exceeded analyst expectations across all key metrics.
The high-speed connectivity solutions provider reported adjusted earnings per share of $0.35, beating estimates by $0.08, while revenue of $170 million came in well above the consensus estimate of $159.59 million.
Credo delivered exceptional growth with revenue increasing 26% sequentially and a remarkable 180% year-over-year, driven by surging demand for AI infrastructure connectivity solutions.
Credo’s non-GAAP gross margin reached 67.4%, demonstrating strong pricing power and operational leverage as the company benefits from increased scale in its core markets.
Perhaps most impressive was Credo’s forward guidance, which exceeded Wall Street expectations. The company projected Q1 2026 revenue of $185-$195 million versus the analyst consensus of just $162 million, indicating strong sequential growth.
For the full fiscal year 2026, management expects revenue to exceed $800 million, indicating year-over-year growth of more than 85%.
CEO Bill Brennan highlighted Credo’s record-breaking fiscal 2025 performance, with full-year revenue growing 126% to $437 million, driven by the increasing adoption of Active Electrical Cable (AEC) solutions and optical connectivity products among hyperscale data center operators building AI infrastructure.
See Credo’s full analyst estimates, earnings results, and earnings transcript (It’s free) >>>
What the Market Is Telling Us
The dramatic surge in CRDO stock reflects investor enthusiasm for Credo’s positioning at the center of the AI infrastructure buildout, as hyperscalers expand their data center capabilities to support advanced AI workloads.
The company’s customer diversification strategy is paying off. Three hyperscalers each contributed over 10% of revenue in Q4, and management is looking to continue reducing customer concentration while maintaining strong growth momentum.
Investors appear particularly excited about Credo’s expanding total addressable market as AI networking requirements become more sophisticated.
Its AEC products have become the de facto standard for intra-rack applications. They are gaining traction for rack-to-rack connections up to 7 meters, offering significantly better reliability than traditional optical solutions while reducing power consumption.
The strong guidance suggests management is confident in sustaining the current growth trajectory, with plans to add two additional hyperscale customers in the second half of fiscal 2026.
This customer expansion, combined with increasing adoption of higher-speed 100 gigabit per lane solutions and growing demand for PCIe Gen6 products for scale-up AI networks, provides multiple growth vectors.
Credo’s technological differentiation is evident in its system-level approach, which encompasses the entire solution stack, from SerDes IP to retimer ICs and complete cable assemblies.
This vertical integration allows for faster innovation cycles and better optimization for customer-specific requirements, creating competitive advantages that are difficult to replicate as the market becomes increasingly crowded with new entrants.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
