| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 12 | 57.2x | 17.8x | Bottom tier | |
Growth | 99 | 165.1% | 7.1% | Top tier | |
Quality | 89 | 28.3% | 4.5% | Top tier | |
Safety | 97 | — | 2.6x | Top tier | |
Capital Return | 52 | — | 2.12% | Around median | |
Momentum | 57 | 103.6% | 2.9% | Around median | |
Sentiment | 37 | 12 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Credo Technology Group develops high-speed connectivity solutions for AI data centers, with a portfolio spanning copper and optical links over distances ranging from millimeters to kilometers. Active Electrical Cables (AEC) remain its largest business, alongside optical Digital Signal Processors (DSP), silicon photonics Photonic Integrated Circuits (PIC), Zero-Flap Optics solutions, Screaming Eagle, Blue Heron, and Toucan retimers; the company generates revenue from component sales and from providing integrated solutions combining silicon, hardware, firmware, telemetry, and Pilot software.
In Q1 fiscal 2027, Credo reported record revenue of $479.0 million, up 10% sequentially and 115% year over year, with GAAP gross profit of $309.1 million, implying a calculated margin of approximately 64.5%, net income of $129.4 million, and earnings per share of $0.67. On a non-GAAP basis, gross margin was 68%, operating income was $230.6 million at a 48.2% margin, and net income was $236.3 million at a 49.3% margin.
Growth was led by the expansion of the AEC business, while optics was the fastest-growing part of the portfolio, and both the optical DSP and retimer businesses posted record revenue in Q1 fiscal 2027. Annual statements for fiscal 2026 show revenue of $1.3 billion, gross profit of $908.3 million, and net income of $472.3 million, while trailing-twelve-month figures during fiscal 2027 rose to revenue of $1.6 billion and net income of $538.3 million.
The average analyst price target is $268.69, within a wide range of $200 to $350, and the consensus rating is Buy; the average is approximately 13% below the 52-week high of $308.67, while the highest target exceeds that high by approximately 13%. The wide 52-week range of $86.485 to $308.67, together with the 19% decline following the September 1, 2026 results despite 115% revenue growth, shows that the market assigns a substantial premium to execution of the optical strategy and may reprice the stock sharply if the targeted ramps falter.
Figures in the text are as of 2026-09-03; the live price is shown at the top of the page.
Revenue reached $479 million, up 10% sequentially and 115% year over year, marking the seventh consecutive quarter of triple-digit year-over-year growth. AEC remained the company's largest business, while optics was the fastest-growing area, and the optical DSP and retimer businesses posted record revenue. Credo also began recording revenue from silicon photonics PIC following the Dust Photonics acquisition.
The company expects revenue of between $525 million and $535 million in Q2 fiscal 2027 and a non-GAAP gross margin of between 67% and 69%. It expects non-GAAP operating expenses of between $100 million and $105 million, compared with expenses of $95.2 million in Q1. For fiscal 2027, it is targeting overall growth exceeding 85% and a non-GAAP net margin of approximately 50%.
Credo is targeting more than $600 million in optical revenue in fiscal 2027, with each of Zero-Flap Optics, PIC, and optical DSP contributing more than $100 million. Production shipments of Zero-Flap Optics have begun, and the company expects additional ramps during fiscal 2027 across 800-gig and 1.6T products. The Dust Photonics team also secured two major design wins whose production is expected to accelerate in fiscal 2028, but the initial two wins do not include DSP, leaving an additional opportunity for future integration.
Automated analysis for informational purposes only — not investment advice.
The largest customer accounted for 33% of Q1 fiscal 2027 revenue, the second for 28%, the third for 13%, and the fourth for 10%. The four largest customers therefore accounted for 84% of revenue, making any change in demand from a major customer material to results. Management expects three to four customers to continue representing more than 10% of revenue each during subsequent quarters and fiscal 2027, despite diversification efforts across Hyperscalers, Neo Clouds, and other customers.
The company is targeting the start of revenue from Active LED Cables in fiscal 2028, solutions that use MicroLED and extend up to 30 meters. It also expects revenue from OmniConnect and the Weaver gearbox in fiscal 2028 to address memory capacity and bandwidth constraints in inference applications, with potential content of thousands of dollars per GPU. In addition, it expects NPO design wins to begin ramping in fiscal 2028, with solutions initially led by silicon photonics PIC and the potential to offer complete optical engines over the longer term.
