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Jan 31
Credo Q3 2026 Earnings Report
Credo Technology Group Holding Ltd reported record financial results for the third quarter of fiscal year 2026, ending January 31, 2026.
Key Takeaways
Credo delivered a record-breaking third quarter with revenue exceeding $400 million, representing over 200% year-over-year growth. The company saw significant expansion in its AI infrastructure solutions, particularly in AECs and ICs, while maintaining strong gross margins and achieving substantial profitability on both a GAAP and non-GAAP basis.
Revenue grew 201.5% year-over-year to $407.0 million, driven by AI infrastructure demand.
Non-GAAP net income reached $208.8 million, or $1.07 per diluted share.
GAAP gross margin remained strong at 68.5%, with non-GAAP gross margin at 68.6%.
The company announced three new multi-billion dollar TAM expansions: ZeroFlap optics, ALCs, and OmniConnect.
Revenue by Geographic Location
Forward Guidance
For the fourth quarter of fiscal 2026, Credo expects continued revenue growth and healthy margins, though slightly lower than Q3 levels.
Positive Outlook
- Expected revenue between $425.0 million and $435.0 million
- Non-GAAP gross margin expected to remain strong between 64.0% and 66.0%
- Confidence in multi-billion dollar TAM expansions
- Continued growth in AECs and ICs
- Strong cash position of $1.3 billion to support innovation
Challenges Ahead
- GAAP gross margin expected to decline sequentially to 63.9% - 65.9%
- Non-GAAP gross margin expected to decline sequentially from 68.6%
- GAAP operating expenses expected to remain high at $125.5M - $129.5M
- Non-GAAP operating expenses expected to increase to $76.0M - $80.0M
Historical Earnings Impact
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Avg. Return Before/After Earnings
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