Credo Technology Group Holding Ltd Ordinary Shares Q4 2026 Earnings Recap

Shares declined 3.0% as investors digested signs of margin compression and cautious near-term outlook despite solid revenue growth, reflecting concern over slowing momentum in key segments and limited upside in guidance.

Key Takeaways

• Q4 revenue reached a record $437 million, exceeding the entire prior fiscal year's revenue.
• Non-GAAP gross margin was 68.3%, indicating some pressure amid scaling efforts and investments.
• Non-GAAP net income rose to $227 million, more than 30% higher than the year-ago quarter.
• Active Electrical Cables (AEC) continue as a core growth engine; PCIe Gen 6 ADC remains on track but with no new acceleration disclosed.
• Optical business sees an inflection in FY27, supported by the recent Dust Photonics acquisition, but initial revenue from advanced CPO/NPO optics is not expected until FY28.