Credo Technology Boosts Q3 Guidance to $408M, Eyes 200% Growth and PCIe 6.0 Certification
Credo Technology raised preliminary Q3 FY2026 revenue guidance to $404–408 million versus $335–345 million prior, implying over 200% year-on-year growth and lifted Q3 projection to $1.3 billion. The company also forecast near $2 billion in FY2027 revenue with 45% net margins and secured PCIe 6.0 compliance for its Toucan retimer.
1. Record Preliminary Q3 Revenue Forecast
Credo Technology’s preliminary Q3 FY2026 revenue outlook was raised to $404 million–$408 million, topping the prior $335 million–$345 million range and signaling more than 200% year-on-year growth. This guidance revision underpinned a more-than-9% jump in the company’s share price.
2. Aggressive FY2027 Targets and Margin Guidance
Alongside Q3 revisions, management projected $1.3 billion in Q3 revenue and near $2 billion for FY2027, with net margins guided at approximately 45%. These targets reflect robust demand in AI data-center connectivity and strengthen the long-term growth trajectory.
3. Toucan PCIe 6.0 Retimer Gains Certification
The company announced that its Toucan PCIe 6.0-capable retimer has achieved PCI-SIG compliance, ensuring interoperability, signal integrity and low-power performance. This certification positions Credo’s solution for seamless deployment in existing and next-generation server infrastructures.
4. Valuation Multiple Adjustment
Following the upbeat guidance and product milestone, forward EV/revenue multiples cooled from around 22x to 16.5x, with FY2027 estimates implying roughly 11x. Analysts view the reset as an opportunity for fresh long positions given the strengthened growth outlook.