The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 11 | 86.3x | 20.8x | Bottom tier | |
Growth | 99 | 205.7% | 6.1% | Top tier | |
Quality | 88 | 63.8% | 6.6% | Top tier | |
Safety | 98 | — | 0.7x | Top tier | |
Capital Return | 47 | — | 2.02% | Around median | |
Momentum | 84 | 154.1% | 4.1% | Top tier | |
Sentiment | 41 | 12 | 3 | Around median |
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 Holding Ltd, known by the ticker CRDO on the NASDAQ, is a global leader in providing high-speed, energy-efficient connectivity solutions specifically designed to meet the demands of accelerating AI infrastructure and modern data centers. The company generates its revenue primarily through the design and sale of Active Electrical Cables (AECs), Optical Digital Signal Processors (Optical DSPs), Silicon Photonics Photonic Integrated Circuits (SiPho PICs), and Retimers. The company directly serves hyperscalers and emerging cloud service providers (Neo Clouds), enabling them to optimize energy efficiency and network reliability as GPU clusters scale to hundreds of thousands of units.
During the fourth quarter of fiscal year 2026, the company achieved record financial results that exceeded expectations, with quarterly revenue reaching $437 million, representing exceptional year-over-year growth of 157% and a 7% increase compared to the previous quarter, with fourth-quarter revenue alone exceeding the full fiscal year 2025 revenue of $436.8 million. The company recorded a non-GAAP gross margin of 68.3% and non-GAAP net income of $226.7 million, achieving a strong net profit margin of 51.9%. This revenue was distributed across a distinguished customer base that included four domestic customers, each contributing 10% or more of total quarterly sales.
Credo Technology Group Holding Ltd stock enjoys a positive analyst consensus recommending a Buy, with an average price target of $253.6, a high target of $300, and a low target of $200. Looking at the stock's 52-week trading range between $75.505 and $270.212, the valuation reflects the high hopes pinned on the expected surge in optical revenues in the second half of fiscal year 2027. The stock is currently trading in a range close to the average analyst target, supported by strong operational growth and a target net profit margin approaching 50%.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
Credo finalized the acquisition of DustPhotonics in late May 2026 to enhance its optical connectivity solutions using Silicon Photonics (SiPho PIC) technology. This acquisition required a net cash outflow of approximately $750 million in the first quarter of fiscal year 2027, which was easily covered by the company's strong cash balance of $1.4 billion at the end of the fourth quarter of fiscal year 2026. Management expects Silicon Photonics (SiPho PICs) products to contribute more than $100 million in revenue in fiscal year 2027, supporting its overall target of $600 million from the optical segment.
Credo achieved record results in the fourth quarter of fiscal year 2026 with revenue of $437 million, representing 157% year-over-year growth and exceeding the full fiscal year 2025 revenue of $436.8 million. For the full fiscal year 2026, annual revenue more than tripled to reach $1.3 billion, while non-GAAP net income jumped more than 5-fold to reach $662 million. The company also recorded a non-GAAP annual EPS of $3.46, demonstrating the strong operating leverage of its business model.
Credo expects fiscal first quarter 2027 revenue to range between $465 million and $475 million. The company also estimates its non-GAAP gross margin to range between 67% and 69% for the quarter. Non-GAAP operating expenses are expected to range between $86 million and $90 million to support ongoing investment in research and development, with diluted share count estimated at approximately 199 million shares.
Automated analysis for informational purposes only — not investment advice.
Active Electrical Cables (AECs) remain the company's primary growth driver for intra-rack connectivity, thanks to offering 1,000 times higher reliability and significantly lower power consumption compared to traditional laser-based optical modules. In parallel, the ZeroFlap optical platform is gaining massive momentum to solve network instability issues in large AI clusters, with the company expecting this product to contribute more than $100 million in fiscal year 2027. Management expects the optical segment as a whole, including ZeroFlap, DSPs, and SiPho PICs, to contribute over $600 million of total revenue in fiscal year 2027, with this growth concentrated in the second half of the year.
The fourth quarter of fiscal year 2026 results showed significant customer concentration, with the largest customer contributing 34% of revenue, followed by the second at 27%, the third at 16%, and the fourth at 10%. To address this concentration, Credo is actively expanding its business with the emerging cloud service providers (Neo Clouds) category, who are building custom AI infrastructure and are characterized by rapid adoption of innovative solutions. Management expects the Neo Clouds customer cohort to collectively represent about 20% of the company's total revenue in the coming years, contributing significantly to diversifying the revenue base.