Credo Technology posted Q4 adjusted EPS of $1.16 and revenue of $437M, up 157% year-over-year, while guiding Q1 FY27 revenue at $465M–$475M. Shares fell over 12% in after-hours trading despite the beat, likely pressured by a slight drop in GAAP operating margin to 35.7%.
Credo Technology delivered adjusted EPS of $1.16 in Q4, topping analyst estimates of $1.03, as revenue surged 157% to $437 million year-over-year, with GAAP net income of $169.1 million and non-GAAP net income of $226.7 million.
Shares declined 4.21% during the regular session and plunged over 12% in after-hours trading despite the earnings beat and strong top-line growth.
GAAP operating margin fell to 35.7% from 36.8% sequentially, while non-GAAP operating margin held steady at 49.6%, suggesting pressure on profitability from rising costs.
For Q1 FY27, management forecast revenue of $465 million to $475 million versus a $465 million consensus, projected adjusted gross margins of 66.9% to 68.9%, and expected operating expenses between $86 million and $90 million, with cash and short-term investments at $1.4 billion.
Finance
