Credo Reports 157% Q4 Revenue Surge to $437M, Guides 80% FY27 Growth
CRDO•Credo Technology reported Q4 FY2026 revenue of $437 million, up 157% year-over-year and 7.4% sequentially, with profitability metrics exceeding forecasts. The company guided for over 80% revenue growth in FY2027 and expects optical products to generate more than $600 million, supported by increased inventory.
1. Q4 FY2026 Earnings Beat
Credo Technology delivered Q4 revenue of $437 million, representing a 157% increase year-over-year and a 7.4% sequential rise. Profitability remained strong with margins exceeding internal targets, marking a double beat on both top and bottom lines.
2. Strong FY2027 Revenue Guidance
Management forecasted over 80% revenue growth for FY2027 driven by a second-half inflection in optical products, which are projected to generate more than $600 million. This guidance reflects confidence in accelerating AI infrastructure demand and expanding customer adoption.
3. Inventory Buildup and Risk Factors
The company increased inventory levels to support anticipated demand, signaling operational confidence but introducing execution risk if shipments lag. Customer concentration has improved, yet reliance on key buyers remains a consideration for delivery and margin stability.
