CRDO

It has been about a month since the last earnings report for Broadcom Inc. (AVGO). Shares have lost about 14% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Broadcom Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts. Broadcom reported second-quarter fiscal 2026 non-GAAP earnings of $2.44 per share, which beat the Zacks Consensus Estimate by 1.67% and rose 54% year over year. Revenues rose 48% year over year to $22.19 billion and beat the Zacks Consensus Estimate by 0.68%. The quarter benefited from accelerating AI semiconductor revenues, which reached $10.8 billion, up 143% year over year and exceeding the company’s outlook. Semiconductor solutions revenues (68% of net revenues) totaled $15.01 billion, up 79% year over year. Management said the upside was powered by AI semiconductors, with networking representing almost 40% of AI revenues in the quarter. Infrastructure software revenues (32% of net revenues) climbed 9% year over year to $7.18 billion. Management noted that software bookings stayed strong and the company sustained ARR growth of 17% year over year.Profitability remained a standout despite mix headwinds. Non-GAAP gross margin was 77.1%, down 230 basis points year over year as semiconductors became a larger proportion of the mix. Research and development expenses, as a percentage of net revenues, decreased 290 bps year over year to 7.2%. SG&A expenses, as a percentage of net revenues, decreased 130 bps to 2.6%.Adjusted EBITDA rose 52% year over year to $15.24 billion. The adjusted EBITDA margin was 68.7%, up 210 bps year over year. Operating margin rose 52.4% year over year to a record $14.9 billion, reflecting strong operating leverage as non-GAAP operating margin expanded 200 bps year over year to 67.3%. As of May 3, 2026, cash and cash equivalents were $19.63 billion, up from $14.17 billion as of Feb.1, 2026.Total debt (including the current portion of $3.15 billion) was $66.06 billion as of Feb. 1, 2026 compared with $65.14 billion as of Nov. 2, 2025.Broadcom generated $10.49 billion in cash flow from operations in the quarter compared with $8.26 billion in the...

It has been about a month since the last earnings report for Credo Technology Group Holding Ltd. (CRDO). Shares have added about 18.8% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Credo Technology Group due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Credo Technology Group Holding Ltd. before we dive into how investors and analysts have reacted as of late. Credo Technology reported fourth-quarter fiscal 2026 non-GAAP diluted earnings per share of $1.16, which beat the Zacks Consensus Estimate of $1.03 by 12.6%. GAAP diluted earnings rose to 88 cents from 20 cents in the prior-year quarter.Revenues surged 157% year over year to $437 million and surpassed the consensus mark of $430.1 million by 1.6%. The upside was driven by strong AI connectivity demand, with the top four end customers each contributing at least 10% of revenues. Management said fourth-quarter revenues exceeded the company’s total fiscal 2025 revenues, highlighting the speed of the current AI infrastructure ramp. Fiscal 2026 revenues surpassed $1.3 billion, more than tripling year over year.The company’s portfolio is positioned around high-speed copper and optical interconnects that help large AI clusters improve reliability, power efficiency and signal integrity. Management noted that connectivity has become a critical constraint as clusters scale from tens of thousands to hundreds of thousands of GPUs.AECs remained a key growth engine. In addition to AEC, CRDO is now focusing on the IC portfolio (retimers and DSPs). The company expects mid-single-digit sequential growth in the first half of fiscal 2027, followed by a stronger second-half acceleration buoyed by its optical portfolio. Management projects more than $600 million in optical revenues, with ZeroFlap optics, silicon photonics PICs and optical DSPs each contributing more than $100 million. This is expected to support more than 80% year-over-year revenue growth for the full year.The acquisition of Dust Photonics strengthens Credo’s high-speed optical connectivity portfolio with silicon photonics PIC technology. The deal adds advanced technology, including 800G and 1.6T solutions, and would aid in developing upcoming 3...

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) is one of the best up and coming stocks to buy for the next 3 years. On June 1, Credo Technology Group reported strong FQ4 and full-year fiscal 2026 results, with annual revenue more than tripling to $1.3 billion. FQ4 revenue reached $437.0 million, a 157.0% increase year-over-year, while non-GAAP net income for the fiscal year grew more than fivefold to $662 million. The company concluded the fiscal year with a solid balance sheet, holding $1.4 billion in cash and short-term investments. CEO Bill Brennan credited this performance to the company’s vertically integrated approach, which helps data center customers improve network reliability, maximize GPU utilization, and lower infrastructure power costs. Credo remains focused on maintaining this momentum as it enters fiscal 2027, continuing to provide connectivity solutions that accelerate cluster performance. Looking ahead to FQ1 2027, the company expects revenue to fall between $465.0 million and $475.0 million. Credo Technology Group Holding Ltd. (NASDAQ:CRDO) projects non-GAAP gross margins to remain steady in the 67.0% to 69.0% range, while non-GAAP operating expenses are anticipated to be between $86.0 million and $90.0 million. Credo Technology Group Holding Ltd. (NASDAQ:CRDO) develops high-speed connectivity products and solutions for the data infra market (specifically optical and electrical Ethernet and PCIe applications), including SerDes chiplets, integrated circuits, and electrical cables. The company is based in George Town, Cayman Islands and was founded on 2008 by Chi Fung Cheng and Yat Tung Lam. While we acknowledge the potential of CRDO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. Disclosure: None. Follow Insider Monkey on Google News.

Earlier this month, Credo Technology Group Holding reported fourth-quarter and full-year FY26 results showing sales of US$437.0 million and US$1.34 billion respectively, alongside higher net income and earnings per share versus the prior year, and issued Q1 FY27 revenue guidance of US$465.0 million to US$475.0 million. The company also closed its acquisition of DustPhotonics, adding silicon photonics capabilities and creating an integrated electrical‑optical connectivity portfolio aimed at large AI data-center deployments. We’ll now examine how Credo’s stronger earnings and DustPhotonics acquisition may alter its AI data-center connectivity investment narrative. We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. To own Credo, you need to believe AI and cloud data traffic will keep driving demand for high speed, energy efficient connectivity, and that Credo can defend its margins as it scales. The latest earnings beat and strong Q1 FY27 revenue guidance reinforce AI data center connectivity as the key near term catalyst, while the sharp share price run and ongoing revenue dependence on hyperscalers remain the most immediate risks. The DustPhotonics acquisition is the most relevant development here, because it extends Credo’s reach from copper based AECs into silicon photonics, giving it a fuller electrical optical stack for large AI data centers. If Credo executes well on this integration, it could strengthen the company’s position in future optical upgrade cycles, but it also raises the stakes on product execution and capital allocation at a time when expectations are already high. Yet while the growth story looks appealing on the surface, investors should be aware that... Read the full narrative on Credo Technology Group Holding (it's free!) Credo Technology Group Holding's narrative projects $3.2 billion revenue and $1.2 billion earnings by 2029. This requires 44.2% yearly revenue growth and an earnings increase of about $860 million from $339.8 million. Uncover how Credo Technology Group Holding's forecasts yield a $199.38 fair value, a 21% downside to its current price. Some of the lowest ranked analysts were already cautious, assuming revenue of about US$4.0 billion and earnings of US$1.5 billion by 2029, and the latest DustPhotonics news may either ease their worries about execution and cus...

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the Best Up and Coming AI Stocks to Buy Now. The company recently reported its fiscal Q4 2026 earnings on June 1. Following the release on June 2, Mizuho analyst Vijay Rakesh raised the price target on Credo Technology Group Holding Ltd (NASDAQ:CRDO) from $260 to $290 and maintained an Outperform rating on the shares. ​During the quarter, the company reported strong results with revenue growing 157% year-over-year to $437 million, ahead of the expected $433.3 million. The EPS of $1.16 also topped the $1.03 consensus estimate. Management noted the growth to be driven by surging demand for Active Electrical Cables and AI data center connectivity solutions. The company noted that customers are scaling larger GPU clusters, and Credo is benefiting directly. ​Notably, gross margins remained healthy at around 68%, and non-GAAP net income for the quarter came in at $277 million. Looking ahead, management guided Q1 fiscal 2027 revenue between $465 million and $475 million. ​Analyst Rakesh noted the quarter to be solid and also pointed out the guidance to be above consensus, hence increased the price target. Founded in 2008, Credo Technology Group Holding Ltd (NASDAQ:CRDO) develops high-speed connectivity products and solutions for the data infra market (specifically optical and electrical Ethernet and PCIe applications), including SerDes chiplets, integrated circuits, and electrical cables. The company is based in the Cayman Islands. While we acknowledge the potential of CRDO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 9 Most Undervalued Foreign Stocks to Buy Now and 10 Most Undervalued US Stocks According to Hedge Funds. Disclosure: None. Follow Insider Monkey on Google News.

Credo Technology Group Holding Ltd. (CRDO) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving. Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For Credo Technology Group Holding Ltd., strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The company is expected to earn $1.16 per share for the current quarter, which represents a year-over-year change of +123.1%. The Zacks Consensus Estimate for Credo Technology Group has increased 18.12% over the last 30 days, as four estimates have gone higher compared to no negative revisions. The company is expected to earn $5.94 per share for the full year, which represents a change of +71.7% from the prior-year number. There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, six estimates have moved up for Credo Technology Group versus no negative revisions. This has pushed the consensus estimate 41.65% higher. Thanks to promising estimate revisions, Credo Technology Group currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on Credo Technolog...

This article first appeared on GuruFocus. Credo Technology (NASDAQ:CRDO) shares rose about 1.3% on Tuesday after the company delivered a strong fiscal fourth-quarter report, as investors weighed upbeat results against guidance that some viewed as falling short of the market's most optimistic expectations. Credo Technology reported adjusted earnings of $1.16 a share on revenue of $437 million for the quarter ended May 2. Revenue rose 157% from a year earlier, while full-year sales climbed to $1.3 billion and non-GAAP net income increased to $662 million. Warning! GuruFocus has detected 6 Warning Signs with CRDO. Is CRDO fairly valued? Test your thesis with our free DCF calculator. For the current quarter, Credo Technology guided revenue to $465 million to $475 million and gross margin to 67% to 69%, both above consensus. The company said demand tied to AI networking remains healthy, but the outlook was not enough to extend the stock's rally. Credo Technology's business centers on high-speed connectivity for AI data centers, and shares were down about 5% on Tuesday morning trade after a 157% run since late March. The company said its products aim to improve efficiency in AI networking links for hyperscale customers.

Credo Technology Group Holding Ltd CRDO used its fourth-quarter fiscal 2026 earnings call to shift investor attention from a blockbuster year to the setup for fiscal 2027. Management’s message centered less on the beat and more on an approaching optical revenue inflection. Executives argued that Credo’s next phase will be driven by a broader connectivity stack, deeper system integration and a second-half ramp in optical products that could materially reshape the revenue mix. President, CEO and chairman William Brennan said Credo has built its product road map around AI network reliability as clusters scale to far larger GPU deployments. He framed that as the company’s core differentiator across copper, optics and software. Brennan said the company’s vertically integrated model, spanning SerDes, silicon, firmware, telemetry and system products, is increasingly aligned with what hyperscalers and neo-cloud operators want from connectivity suppliers. That message helped explain why management spent so much time on architecture and deployment conditions rather than on the quarter alone, even after adjusted EPS of $1.16 beat the Zacks Consensus Estimate of $1.03 and revenue of $437 million topped the consensus of $430.08 million. Credo Technology Group Holding Ltd. price-consensus-eps-surprise-chart | Credo Technology Group Holding Ltd. Quote Brennan said fiscal 2027 should mark an inflection point for the optical business. He pointed to momentum in optical DSPs, the newly closed Dust Photonics acquisition and growing traction for ZeroFlap optics. Management said optical DSPs, silicon photonics PICs and ZeroFlap optics should each generate more than $100 million in fiscal 2027 revenue. CFO Daniel Fleming added that, in total, the optical portfolio is expected to contribute more than $600 million, with the ramp accelerating in the second half. That outlook stood out as the most consequential forward message on the call. It also suggested that the company sees optical moving from an emerging opportunity to a major growth engine, with Brennan later indicating ZeroFlap optics should become the largest optical revenue contributor. Even with optics taking center stage, Fleming said the first half of fiscal 2027 should still be driven mainly by the existing copper portfolio, particularly AECs. He described first-half growth as mid-single-digit sequentially, with the bigg...

Dow Jones Futures: Broadcom, Micron, Nvidia and Sandisk were big winners Monday. Credo plunged on earnings late.

This article first appeared on GuruFocus. Release Date: June 01, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Credo Technology Group Holding Ltd (NASDAQ:CRDO) reported a record revenue of $1.3 billion for fiscal year '26, marking a 206% year-over-year increase. The company's non-GAAP net income increased more than five times to $662 million, showcasing strong profitability. Credo's AEC business remains a core growth engine, with substantial long-term opportunities as AI clusters scale. The acquisition of Dust Photonics expands Credo's optics position, enhancing their silicon photonics technology portfolio. Credo's optical DSPs, SIFO PIX, and Zero Flap Optics are expected to contribute more than $600 million in revenue in fiscal '27, indicating strong growth potential. The company faces significant supply chain tightness, which could impact their ability to meet aggressive ramp targets. There is variability in customer revenue contributions, with potential quarter-over-quarter fluctuations. The transition from 800 gig to 1.6T bandwidth is uncertain, with potential delays impacting revenue timing. Despite strong growth, the company expects non-GAAP operating expenses to increase by approximately 50% year-over-year. The company has no immediate plans for share buybacks or additional capital raises, which may limit strategic financial flexibility. Warning! GuruFocus has detected 6 Warning Signs with CRDO. Is CRDO fairly valued? Test your thesis with our free DCF calculator. Q: Is there any optical revenue, ZF Optics, or Dust Photonics in the guidance? And how does the market view discrete DSPs? A: Dan Fleming, CFO: The full-year outlook includes our entire optical portfolio, with each segment expected to contribute over $100 million. The guidance reflects growth from both our optical and copper portfolios, with optical revenue contributing significantly to the overall growth. Q: Which of the three optical segments is expected to contribute the most to the $600 million guidance? A: Bill Brennan, CEO: All three segments are expected to grow significantly, each contributing more than 80% year-over-year. While one segment may lead in revenue, all are experiencing rapid growth. Q: How should we think about the growth contribution from different product lines in the first and second halves of the year? A: Da...

Image source: The Motley Fool. Monday, June 1, 2026 at 5 p.m. ET Chief Executive Officer — William J. Brennan Chief Financial Officer — Daniel Fleming Head of Investor Relations — Daniel J. O'Neil Need a quote from a Motley Fool analyst? Email [email protected] Daniel J. O'Neil: Good afternoon. Thank you all for joining our fourth quarter fiscal 26 earnings call. Today, I am joined by Bill Brennan, Credo's Chief Executive Officer and Daniel Fleming, Credo's Chief Financial Officer. During this call, we will make certain forward looking statements. These forward looking statements are subject to risks and uncertainties discussed in detail in our documents filed with the SEC. These documents can be found in the Investor Relations portion of the company's website. It is now possible for the company's management to predict all risks, nor can the company assess the impact of all factors on its business. Or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward looking statement. Given these risks, uncertainties and assumptions, the forward looking events discussed during this call may not occur. And actual results could differ materially and adversely from those anticipated in or inferred. The company undertakes no obligation to publicly update forward looking statements for any reason after the date of this call. To conform these statements to changes in the company's expectations, to actual results. Except as required by law. Also, during this call, we will refer to certain non GAAP financial measures. Which we consider to be important measures of the company's performance. These non GAAP financial measures are provided in addition to and not as a substitute for or superior to, financial performance prepared in accordance with U. S. GAAP. A discussion of why we use non GAAP financial measures and reconciliations between our GAAP and non GAAP financial measures is available in the earnings release we issued today which can be discussed using the Investor Relations portion of our website. I will now turn the call over to our CEO, Bill? William J. Brennan: Thanks, Daniel, and thank you all for joining our fourth quarter and full fiscal year 26 earnings call. I will begin with a review of our fiscal 2026 performance, discuss the major developments across our business, and share our perspe...

Credo Technology (CRDO) reported fiscal Q4 adjusted earnings late Monday of $1.16 per diluted share,