Credo Technology Raises Q3 2026 Revenue Guidance, Shares Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy CRDO?
Source: seekingalpha
- Revenue Guidance Increase: Credo Technology raised its Q3 2026 revenue guidance to between $404M and $408M, significantly up from the previous range of $335M to $345M, indicating strong demand and growth potential in the semiconductor market.
- Year-over-Year Growth Forecast: Analysts predict that Credo's year-over-year growth for FY26 will exceed 200%, reaching over $1.3B, surpassing earlier expectations of 170%, which reflects the company's ability to sustain robust revenue growth in the coming quarters.
- Improved Profitability: Assuming a 45% net margin for FY26, Credo is expected to deliver more than $3.07 in non-GAAP EPS, which is 9% above the consensus estimate of $2.80, showcasing a significant improvement in the company's profitability.
- Optimistic Market Outlook: BNP analysts noted that Credo's active electrical cables are expected to have an extended lifecycle in AI networks, with anticipated continued revenue growth driven by demand for 800G and 100G cables, further solidifying the company's market position.
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Analyst Views on CRDO
Wall Street analysts forecast CRDO stock price to rise
12 Analyst Rating
12 Buy
0 Hold
0 Sell
Strong Buy
Current: 121.780
Low
165.00
Averages
219.44
High
250.00
Current: 121.780
Low
165.00
Averages
219.44
High
250.00
About CRDO
Credo Technology Group Holding Ltd is a Cayman Islands-based holding company. The Company delivers high-speed solutions to break bandwidth barriers on every wired connection in the data infrastructure market. It provides high-speed connectivity solutions that deliver improved power efficiency as data rates and corresponding bandwidth requirements increase exponentially throughout the data infrastructure market. Its connectivity solutions are optimized for optical and electrical Ethernet applications, including the emerging 100 gigabits per second (G), 200G, 400G, 800G and the emerging 1.6 terabits per second (T) port markets. Its products are based on its Serializer/Deserializer (SerDes) and Digital Signal Processor (DSP) technologies. Its product families include integrated circuits (ICs) for the optical and line card markets, active electrical cables (AECs) and SerDes Chiplets. The Company’s intellectual property (IP) solutions consist primarily of SerDes IP licensing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Data Center Project Development: Fluence is currently developing 36 GWh of data center projects, and while these potential sales are not yet included in the official order backlog, they highlight the company's significant position in the rapidly growing AI data center market.
- Credo Technological Innovation: Credo Technology's high-performance networking tools achieve data flows of up to 0.8 Tbps through its Active Electrical Cables, significantly reducing power consumption and cooling requirements, catering to the urgent demand for efficiency in data centers.
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