What were the primary drivers of Credo's significant revenue growth in fiscal year 2026?

Credo's revenue experienced a substantial increase of 205.7% to $1.3 billion in fiscal year 2026. This growth was primarily driven by a significant increase in the volume of Active Electrical Cable (AEC) product shipments, which accounted for over 99% of the revenue increase. These shipments were largely to hyperscale data center customers, indicating strong demand for Credo's high-speed connectivity solutions in the AI infrastructure market.

How has Credo's profitability evolved, and what is the outlook?

Credo has shown a strong improvement in profitability. In fiscal year 2026, the company reported a net income of $472.3 million, a substantial jump from $52.2 million in fiscal year 2025. This significant increase in net income, coupled with an expanding gross margin to 68.0%, suggests effective cost management and economies of scale as revenue grew. The company's continued investment in R&D indicates a commitment to maintaining its competitive edge and driving future growth, which should support ongoing profitability.

What are the key risks that investors should be aware of based on this filing?

A key risk highlighted is customer concentration, with the top 10 customers representing 90% of fiscal year 2026 revenue, and two customers alone accounting for over 10% each. This reliance on a few large customers could negatively impact revenue and operations if any of these relationships change. Additionally, the company is investing heavily in R&D ($279.4 million in FY2026), which, while crucial for innovation, could impact short-term profitability if those investments do not yield expected returns. The competitive landscape in the semiconductor and data infrastructure markets is also intense.

What strategic moves has Credo made to support its growth, particularly in the AI space?

Credo is focusing on several strategic areas, including extending its leadership in SerDes technologies, broadening its product portfolio, and actively acquiring new customers. To bolster its capabilities, Credo acquired Hyperlume, Inc., a microLED optical interconnect technology developer, and CoMira Solutions, Inc., a high-speed connectivity IP innovator. These acquisitions, along with significant R&D investment, position Credo to capitalize on the increasing demands of AI infrastructure, including addressing memory constraints with solutions like its OmniConnect platform.

CRDO 10-K FY2026 Annual Report — Revenue, Net Income, EPS

Summary

Credo Technology Group Holding Ltd (CRDO) reported a significant surge in revenue for fiscal year 2026, reaching $1.3 billion, a substantial increase from $436.8 million in fiscal year 2025. This growth was primarily driven by a dramatic increase in the volume of Active Electrical Cable (AEC) shipments to hyperscale data center customers, which contributed over 99% of the revenue increase. The company also demonstrated strong profitability, achieving a net income of $472.3 million in fiscal year 2026, a significant turnaround from a net loss in the prior year. This strong financial performance is underpinned by Credo's focus on high-speed connectivity solutions critical for AI infrastructure, leveraging its proprietary SerDes and DSP technologies. The company's strategic focus on extending its SerDes leadership, broadening its product portfolio, and acquiring new customers appears to be yielding positive results. Significant investments in research and development, totaling $279.4 million in fiscal year 2026, highlight a commitment to innovation, particularly in areas like microLED technology and memory fanout solutions to address AI memory constraints. Despite substantial revenue growth and improved profitability, investors should note the continued customer concentration, with the top 10 customers accounting for approximately 90% of revenue in fiscal year 2026, and two customers representing over 10% each. The company also executed a substantial equity raise of $736.3 million via an ATM offering to fund its growth initiatives.

Financial Highlights

48 data points

Beta

Revenue

$1.34B

0.7% Gross Margin

Net Income

$472.28M

0.4% Net Margin

EPS (Diluted)

$2.51

Total Assets

$2.30B

Cash & Equivalents

$1.16B

Free Cash Flow

$407.00M

Financial Statements

Beta

Revenue	$1.34B
Cost of Revenue	$426.77M
Gross Profit	$908.35M
R&D Expenses	$279.38M
SG&A Expenses	$183.96M
Operating Expenses	$463.34M
Operating Income	$445.00M
Net Income	$472.28M
EPS (Basic)	$2.65
EPS (Diluted)	$2.51
Shares Outstanding (Basic)	178.54M
Shares Outstanding (Diluted)	188.23M

Key Highlights

1Revenue for fiscal year 2026 reached $1.3 billion, a 205.7% increase compared to $436.8 million in fiscal year 2025, driven by a significant ramp-up in AEC product shipments.
2Net income for fiscal year 2026 was $472.3 million, a substantial improvement from $52.2 million in fiscal year 2025, reflecting strong operational leverage.
3Gross margin improved to 68.0% in fiscal year 2026 from 64.8% in fiscal year 2025, attributed to improved economies of scale.
4Research and Development (R&D) expenses increased by 90.2% to $279.4 million, reflecting continued investment in innovation, especially for AI infrastructure.
5The company raised $736.3 million in net proceeds through an At-The-Market (ATM) offering in fiscal year 2026.
6Customer concentration remains high, with the top 10 customers accounting for 90% of fiscal year 2026 revenue.
7Credo completed two acquisitions: Hyperlume, Inc. for $92.0 million and CoMira Solutions, Inc. for $35.1 million, to enhance its product portfolio.

Credo Technology Group Holding Ltd Annual Report, Year Ended May 2, 2026

Summary

Financial Highlights

Key Highlights

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