How strong was Credo's fiscal 2026 growth and profitability?

Revenue rose to $1,335.1M from $436.8M, and GAAP net income rose to $472.3M from $52.2M. Non-GAAP net income reached $661.5M, up from $129.9M. Non-GAAP operating margin was 47.8% for the year, versus 26.4% in fiscal 2025, showing strong operating leverage.

What does the Q1 FY2027 guidance imply for growth?

Guided revenue of $465M to $475M compares with $437.0M in Q4, implying about 6% to 9% sequential growth. That is a notable slowdown from the 7.4% sequential growth in Q4 and far below the year-over-year pace. Guided gross margin is modestly lower than the Q4 level, at 67% to 69% non-GAAP.

What is the CEO's new performance award and how could it affect shareholders?

The award covers up to 1,437,000 shares in six 239,500-share tranches. Each tranche requires both a trailing four-quarter revenue hurdle (from $2.5B to $7.5B) and a stock price hurdle (from $244.70 to $489.40), measured over a five-year period ending June 30, 2031. The first two tranches (479,000 shares) vest if revenue reaches $5B, regardless of stock price. Vested shares are subject to a one-year sale restriction. The award is a potential source of dilution, but it vests only if the company meets ambitious revenue and share price targets. The stock was recently near 2026 highs, and the April 2026 30-day average price was $150.02.

Did Credo make an acquisition, and what are the near-term costs?

The balance sheet shows $92.8M of new goodwill and $29.3M of intangible assets. Q4 included $9.3M of acquisition and integration costs, and the company guides to $11.0M in such costs for Q1 FY2027, with $0.6M of amortization of acquired intangibles. The filing does not name the acquired business, so investors should review the company's 10-Q or other disclosures for details.

How much cash does Credo have, and does it affect the outlook?

Cash and cash equivalents were $1,165.0M and short-term investments were $278.3M, for a total of about $1.44B. Total liabilities were only $232.0M against $2.06B of shareholders' equity. This gives the company substantial financial flexibility for investment, acquisitions, or capacity expansion, and the balance sheet strengthened significantly during the year, partly reflecting an equity raise (additional paid-in capital rose to $1.67B from $765M).

CRDO 8-K: Earnings & Results & Leadership Changes

01—Abstract

Summary

Summary of the 8-K filed June 1, 2026. Cited figures are marked; the original filing is the authoritative source.

Credo reported fourth-quarter and fiscal 2026 results (ended May 2, 2026) that show very rapid growth.

Q4 revenue was $437.0 million^a, up 7.4% sequentially and 157% year over year. Full-year revenue reached $1,335.1 million, more than triple the $436.8 million reported in fiscal 2025. Profitability scaled faster than revenue: GAAP net income was $472.3 million for the year, and non-GAAP net income was $661.5 million, or $3.46 per diluted share.

Q4 GAAP gross margin was 68.2% and non-GAAP gross margin was 68.3%. Ending cash and short-term investments totaled about $1.44 billion^b, up from roughly $431 million a year earlier, and the balance sheet now includes goodwill of $92.8 million and intangible assets of $29.3 million, which indicates a recent acquisition. For fiscal Q1 2027, management guided revenue to $465 million to $475 million, implying roughly 6% to 9% sequential growth.

Guided non-GAAP gross margin is 67% to 69%, and non-GAAP operating expenses are $86 million to $90 million^c. GAAP operating expenses are guided to $167.6 million to $171.6 million, which includes about $81.6 million of adjustments, mainly share-based compensation and $11.0 million of acquisition and integration costs. Investors should note that the guided sequential revenue growth is considerably slower than the Q4 pace, and that gross margin is guided modestly lower than the current level.

A separate Item 5.02 disclosure describes a one-time performance-based RSU award to CEO William Brennan covering six tranches of 239,500 shares each, or 1,437,000 shares in total at target. Vesting requires both a trailing four-quarter revenue goal, rising from $2.5 billion to $7.5 billion^d by fiscal 2031, and a stock price goal, rising from $244.70 to $489.40. The first two tranches vest automatically if revenue reaches $5 billion during the period, regardless of stock price.

The award is designed to tie CEO compensation to substantial outperformance of the strategic plan and to sustained share price appreciation. Investors should weigh the award's potential dilution against the revenue and price thresholds it sets.

02—Key points

Key Highlights

Q4 FY2026 revenue of $437.0M grew 157% year over year and 7.4% sequentially; FY2026 revenue of $1,335.1M was roughly 3.1x the prior year.
Q4 GAAP gross margin was 68.2% and non-GAAP gross margin was 68.3%; full-year non-GAAP gross margin was 68.1%, up from 65.0% in FY2025.
Q4 GAAP diluted EPS was $0.88 and non-GAAP diluted EPS was $1.16; full-year GAAP diluted EPS was $2.51 and non-GAAP was $3.46.
Cash and short-term investments of about $1.44B at fiscal year-end, versus about $431M a year earlier.
Q1 FY2027 guidance calls for revenue of $465M to $475M, with non-GAAP gross margin of 67% to 69% and non-GAAP operating expenses of $86M to $90M.
New goodwill ($92.8M) and intangibles ($29.3M) on the balance sheet, plus $11.0M of guided Q1 acquisition and integration costs, point to a recent acquisition.
CEO William Brennan received a one-time performance RSU award of up to 1,437,000 shares, vesting on revenue of $2.5B to $7.5B (trailing four quarters) and stock prices of $244.70 to $489.40, with the first two tranches accelerating if revenue reaches $5B.

03—Questions

Frequently Asked Questions

How strong was Credo's fiscal 2026 growth and profitability?
Revenue rose to $1,335.1M from $436.8M, and GAAP net income rose to $472.3M from $52.2M. Non-GAAP net income reached $661.5M, up from $129.9M. Non-GAAP operating margin was 47.8% for the year, versus 26.4% in fiscal 2025, showing strong operating leverage.
What does the Q1 FY2027 guidance imply for growth?
Guided revenue of $465M to $475M compares with $437.0M in Q4, implying about 6% to 9% sequential growth. That is a notable slowdown from the 7.4% sequential growth in Q4 and far below the year-over-year pace. Guided gross margin is modestly lower than the Q4 level, at 67% to 69% non-GAAP.
What is the CEO's new performance award and how could it affect shareholders?
The award covers up to 1,437,000 shares in six 239,500-share tranches. Each tranche requires both a trailing four-quarter revenue hurdle (from $2.5B to $7.5B) and a stock price hurdle (from $244.70 to $489.40), measured over a five-year period ending June 30, 2031. The first two tranches (479,000 shares) vest if revenue reaches $5B, regardless of stock price. Vested shares are subject to a one-year sale restriction. The award is a potential source of dilution, but it vests only if the company meets ambitious revenue and share price targets. The stock was recently near 2026 highs, and the April 2026 30-day average price was $150.02.
Did Credo make an acquisition, and what are the near-term costs?
The balance sheet shows $92.8M of new goodwill and $29.3M of intangible assets. Q4 included $9.3M of acquisition and integration costs, and the company guides to $11.0M in such costs for Q1 FY2027, with $0.6M of amortization of acquired intangibles. The filing does not name the acquired business, so investors should review the company's 10-Q or other disclosures for details.
How much cash does Credo have, and does it affect the outlook?
Cash and cash equivalents were $1,165.0M and short-term investments were $278.3M, for a total of about $1.44B. Total liabilities were only $232.0M against $2.06B of shareholders' equity. This gives the company substantial financial flexibility for investment, acquisitions, or capacity expansion, and the balance sheet strengthened significantly during the year, partly reflecting an equity raise (additional paid-in capital rose to $1.67B from $765M).

04—Continue

← View all 8-K filings