Credo Technology EPS Beats by 12.6%, Guides Q4 Revenue Above Forecast, Acquires CoMira
Credo Technology reported Q3 adjusted EPS of $1.07 beating estimates by 12.6% and revenue of $407.01 million topping forecasts by $6.8 million, representing 50% sequential and 200% year-over-year growth. The company issued Q4 revenue guidance of $425 million–$435 million above consensus and completed the CoMira Solutions acquisition.
1. Strong Third-Quarter Performance
Credo Technology posted Q3 adjusted EPS of $1.07, exceeding the $0.95 consensus, with revenue of $407.01 million versus the $400.23 million forecast. Sequential revenue growth exceeded 50%, while year-over-year sales tripled by 200%, driven by robust demand for AI data center connectivity products.
2. Upbeat Fourth-Quarter Guidance
Management projected Q4 revenue between $425 million and $435 million, above the $422.61 million analysts’ estimate, and expects adjusted gross margins of 64%–66%. This guidance reflects anticipated expansion in total addressable market through new optics and connectivity solutions.
3. Acquisition of CoMira Solutions
The company acquired CoMira Solutions to gain specialized link layer, error correction and security semiconductor IP, supporting development of advanced system-level AI architectures. This strategic purchase aims to broaden Credo’s product offerings in scale-up and scale-out AI infrastructure.
4. Stock Slide and Technical Indicators
Despite strong fundamentals, shares slid over 14% in premarket trading, trading near $98. Key technical indicators show the stock 9.8% below its 20-day average and 4.1% under its 100-day average, signaling short-to-medium-term bearish momentum.