Credo Technology Reports Strong Q1 Earnings But Faces Margin Pressure
Credo Technology's stock edged higher in premarket trading on Thursday after a sharp decline the previous session. The company reported fiscal 2027 first-quarter revenue of $479 million, surpassing estimates and delivering adjusted earnings above expectations. However, investors remain cautious due to declining gross margins and rising operating expenses that more than doubled compared to the prior quarter. The CEO highlighted AI infrastructure spending as a key growth driver for Credo's connectivity products. The company is expanding its optical business, which management expects to exceed $600 million in revenue this fiscal year. Recent design wins from an acquisition are expected to ramp up in 2028 and support long-term growth. CFO Dan Fleming forecasted strong second-quarter results with a projected revenue range of $525–$535 million, along with improved gross margins. The company anticipates more than 85% year-over-year revenue growth for fiscal 2027, driven by its optical business expansion and new product launches expected to begin generating revenue in the next fiscal year.
Tickers: $CRDO
Topics: AI infrastructure connectivity products financial results stock price