Credo Technology Q3 Revenue Soars 200% to $407M, Stock Drops 10%
Credo Technology reported Q3 revenue of $407 million, up 200% year-over-year, beating internal guidance and consensus while issuing Q4 FY26 guidance above expectations. Needham raised its FY27 revenue outlook to $2 billion from $1.92 billion despite a 10% premarket drop over shifting demand from copper AECs to optical interconnects.
1. Q3 Financial Performance
Credo Technology delivered Q3 revenue of $407 million, marking a 200% year-over-year increase and surpassing both internal guidance and market expectations.
2. Guidance and Analyst Outlook
The company issued Q4 FY26 revenue guidance above consensus, while Needham lifted its FY27 revenue forecast to $2 billion from $1.92 billion, citing ongoing growth in Active Electrical Cables deployments and strong demand for ZF Optics following production pull-forward and the CoMira Solutions acquisition.
3. Market Reaction and Risks
Despite the beat-and-raise report, shares dropped 10% premarket as investors weigh the prospect of hyperscalers delaying co-packaged optics deployments and an industry-wide shift from copper AECs toward optical interconnects that could temper future growth.