Revenue slightly missed consensus and Q1 guidance came in below the consensus midpoint, which could pressure the stock in the near term. However, the massive CEO performance award signals confidence in long-term growth. Monitor the Q1 earnings call for commentary on demand trends and the trajectory toward the $5B strategic revenue target.
Price Chart
Executive Summary
Credo Technology reported Q4 FY2026 revenue of $437.0M (+157% YoY) and GAAP diluted EPS of $0.88, with non-GAAP diluted EPS of $1.16. Revenue slightly missed the $470.4M consensus, while non-GAAP EPS matched the $1.16 estimate. The company guided Q1 FY2027 revenue to $465M-$475M, below the $470.4M midpoint of consensus. Separately, the board granted CEO William Brennan a massive performance-based equity award tied to ambitious revenue and stock price targets, signaling strong alignment with long-term shareholder value creation.
Key Financial Metrics
Key Facts
- Q4 FY2026 revenue of $437.0M, up 157% YoY but slightly below $470.4M consensus
- GAAP diluted EPS of $0.88; non-GAAP diluted EPS of $1.16, in line with consensus
- Q1 FY2027 revenue guidance of $465M-$475M, below the $470.4M consensus midpoint
- Full FY2026 revenue of $1.335B, more than tripling from $436.8M in FY2025
- Non-GAAP net income for FY2026 was $661.5M, up from $129.9M in FY2025
- CEO awarded special PSUs for up to 1.437M shares tied to revenue hurdles up to $7.5B and stock price targets up to $489.40
- Cash and short-term investments of $1.4B at quarter end
- GAAP gross margin of 68.2%, non-GAAP gross margin of 68.3%
Financial Impact
Revenue of $437.0M vs $470.4M consensus (-7.1% miss); non-GAAP EPS of $1.16 in line with consensus; Q1 guidance midpoint $470M vs $470.4M consensus
Risk Factors
- Revenue miss vs consensus may trigger short-term selling
- Q1 guidance below consensus midpoint could disappoint growth expectations
- Massive CEO equity award introduces potential dilution if all tranches vest (up to 1.44M shares)
- High valuation at $40B market cap on $1.34B revenue (30x sales) leaves little room for execution missteps
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-039474 |
| Document: crdo-20260528.htm | 0001628280-26-039474 |
| Document: 0001628280-26-039474-index-headers.html | 0001628280-26-039474 |
| Document: 0001628280-26-039474-index.html | 0001628280-26-039474 |
| Document: 0001628280-26-039474.txt | 0001628280-26-039474 |
| 8-K Data (Synthetic) | 0001628280-26-039474 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | Insider Cluster | $147.29 | awaiting T+20 | — | $151.15 (−2.62%) |
Oct 21, 2026 5d ago | Insider Cluster | $162.77 | awaiting T+20 | — | $151.15 (−7.14%) |
Oct 14, 2026 12d ago | Insider Cluster | $178.50 | awaiting T+20 | — | $151.15 (+15.32%) |
Oct 13, 2026 13d ago | 144 | $179.23 | awaiting T+20 | — | $151.15 (−15.66%) |
Oct 13, 2026 13d ago | 144 | $198.31 | awaiting T+20 | — | $151.15 (−23.78%) |
Oct 13, 2026 13d ago | Insider Cluster | $179.23 | awaiting T+20 | — | $151.15 (+15.66%) |
Oct 8, 2026 18d ago | 144 | $216.55 | awaiting T+20 | — | $151.15 (−30.20%) |
Oct 5, 2026 21d ago | Insider Cluster | $220.83 | awaiting T+20 | — | $151.15 (+31.55%) |
Oct 1, 2026 25d ago | Insider Cluster | $218.64 | awaiting T+20 | — | $151.15 (−30.87%) |
Oct 1, 2026 25d ago | Insider Cluster | $218.64 | awaiting T+20 | — | $151.15 (+30.87%) |
US Market Status
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