Credo Q3 Revenue Surges 201% to $407M; Bank of America Cuts Target to $160
Credo Technology Group posted Q3 revenue of $407.01M, up 201.49% y/y, and EPS $1.07, beating estimates by $15.42M and $0.13. Bank of America cut its price target from $200 to $160, raised FY27 EPS by 5% and FY28 by 6%, and guided Q4 revenue at $425M–$435M with 64%–66% gross margin.
1. Q3 Earnings and Performance
Credo posted Q3 revenue of $407.01M, up 201.49% year-over-year, and EPS of $1.07, beating estimates by $15.42M and $0.13.
2. Customer Concentration and Demand Drivers
All top three hyperscaler customers contributed more than 10% each, accounting for 39%, 32% and 17% of revenue, reflecting record demand for connectivity solutions.
3. Guidance and Outlook
Management expects Q4 revenue between $425M and $435M with a 64%–66% gross margin, signaling sustained growth momentum into fiscal Q4.
4. Analyst Ratings and Price Target Changes
William Blair and Bank of America upheld Buy ratings; Bank of America cut its price target from $200 to $160 while raising FY27 and FY28 EPS forecasts by 5% and 6%.