Credo Reports $407M Q3 Revenue with 52% Sequential Growth, Guides $425–435M Q4
Credo reported record Q3 revenue of $407 million, up 52% sequentially and over 200% year-over-year, with non-GAAP gross margin of 68.6% and operating margin of 49.6%. Management guided Q4 revenue $425–435 million, >50% growth, forecasting ZeroFlap optics ramp in Q1 FY2027 and PCIe 6.0 AEC production in H1 FY2027.
1. Q3 Financial Results
Credo delivered record Q3 revenue of $407 million, marking a 52% sequential increase and over 200% year-over-year growth. The company achieved non-GAAP gross margin of 68.6%, operating margin of 49.6% and net margin of 51.3%, while generating $166.2 million in operating cash flow and ending with $1.3 billion in cash.
2. Guidance and Outlook
Management set Q4 revenue guidance at $425–435 million, implying more than 50% year-over-year growth. The company reaffirmed its objective to triple revenue in fiscal 2026 and highlighted sustained demand across its hyperscale customer base.
3. Customer Concentration
The top three customers accounted for 39%, 32% and 17% of Q3 revenue, with management expecting 3–4 customers to represent over 10% of revenue in coming quarters. This concentration underscores the strategic importance of hyperscale partnerships for future growth.
4. Product Roadmap
Credo forecasted a ramp of ZeroFlap optical modules in Q1 FY2027 and PCIe 6.0 AEC production in H1 FY2027. The roadmap also includes accelerated deployments of optical DSPs, Ethernet retimers and co-packaged optics readiness to support evolving AI infrastructure requirements.