01—Abstract
Summary
Summary of the 10-K filed June 15, 2026. Cited figures are marked; the original filing is the authoritative source.
Credo Technology Group Holding Ltd (CRDO) reported a significant surge in revenue for fiscal year 2026, reaching $1.3 billiona, 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 millionb 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 millionc 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 milliond via an ATM offering to fund its growth initiatives.
02—Key points
Key Highlights
- Revenue 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.
- Net income for fiscal year 2026 was $472.3 million, a substantial improvement from $52.2 million in fiscal year 2025, reflecting strong operational leverage.
- Gross margin improved to 68.0% in fiscal year 2026 from 64.8% in fiscal year 2025, attributed to improved economies of scale.
- Research and Development (R&D) expenses increased by 90.2% to $279.4 million, reflecting continued investment in innovation, especially for AI infrastructure.
- The company raised $736.3 million in net proceeds through an At-The-Market (ATM) offering in fiscal year 2026.
- Customer concentration remains high, with the top 10 customers accounting for 90% of fiscal year 2026 revenue.
- Credo completed two acquisitions: Hyperlume, Inc. for $92.0 million and CoMira Solutions, Inc. for $35.1 million, to enhance its product portfolio.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2026, Credo Technology Group Holding kept $0.35.
- Revenue$1.34B100.0%
- Cost of revenue−$426.8M32.0%
- Gross profit$908.3M68.0%
- Operating costs−$463.3M34.7%
- Operating income$445.0M33.3%
- Interest, other & tax$27.3M2.0%
- Net income$472.3M35.4%
Where FY2026 revenue went
$1.34B- Operating income: $445.0M, 33% of revenue
- Cost of revenue: $426.8M, 32% of revenue
- R&D: $279.4M, 21% of revenue
- SG&A: $184.0M, 14% of revenue
Kept 33% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2026filed June 15, 2026Financial Statements
FY2026 against FY2025
| Line item | FY2026FY2025 | Change |
|---|---|---|
| Revenue | $1.34B$436.77M | +205.7% |
| Cost of Revenue | $426.77M$153.87M | +177.4% |
| Gross Profit | $908.35M$282.91M | +221.1% |
| R&D Expenses | $279.38M$146.87M | +90.2% |
| SG&A Expenses | $183.96M$98.92M | +86.0% |
| Operating Expenses | $463.34M$245.78M | +88.5% |
| Operating Income | $445.00M$37.12M | +1098.7% |
| Net Income | $472.28M$52.18M | +805.0% |
| EPS (Basic) | $2.65$0.31 | +754.8% |
| EPS (Diluted) | $2.51$0.29 | +765.5% |
| Shares Outstanding (Basic) | 178.54M167.50M | +6.6% |
| Shares Outstanding (Diluted) | 188.23M181.16M | +3.9% |
05—Questions
Frequently Asked Questions
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.
06—Continue