$CRDO triples revenue
What happened
CK Capital flagged that $CRDO tripled revenue to $407M in Q3 FY26 with 68% margins, driven by growth in AI data‑center connectivity cables that trade optics for lower‑power AEC tech. That’s a rare, high‑margin hardware play tied to hyperscaler AI demand. (x.com)
Why it matters
Non‑GAAP net income reached $208.8 million while GAAP net income was $157.1 million, with GAAP diluted EPS of $0.82 and non‑GAAP diluted EPS of $1.07 (investors.credosemi.com). (investors.credosemi.com) Credo exited the quarter with $1.3 billion in cash and short‑term investments, generated $166.2 million of cash from operations, produced $139.7 million of free cash flow, and held $208 million of inventory at quarter end (motleyfool.com). (fool.com) Three customers accounted for the bulk of sales, contributing roughly 39%, 32% and 17% of revenue respectively (motleyfool.com). (fool.com) Management guided Q4 FY26 revenue to a $425–$435 million range and reiterated an outlook for fiscal 2027 top‑line growth of more than 50% year‑over‑year (investors.credosemi.com). (investors.credosemi.com) Product milestones disclosed on the earnings call include production shipments of Zero‑Flat Optics to customer TensorWave with qualification at three other customers and an accelerated production‑ramp target in Q1 FY27, PCIe Gen‑6 AEC sampling with mass production planned in H1 FY27, and Active LED Cable sampling in FY27 with a production ramp envisioned in FY28. (motleyfool.com). (fool.com) Corporate moves announced around the quarter include the acquisition of CoMira (CoMira Solutions) to add link‑layer and ECC IP, and a cross‑license settlement with Molex that ends the companies’ AEC‑related patent disputes (businesswire.com; investors.credosemi.com). (businesswire.com)
Key numbers
- CK Capital flagged that $CRDO tripled revenue to $407M in Q3 FY26 with 68% margins, driven by growth in AI data‑center connectivity cables that trade optics for lower‑power AEC tech.
- (x.com) Non‑GAAP net income reached $208.8 million while GAAP net income was $157.1 million, with GAAP diluted EPS of $0.82 and non‑GAAP diluted EPS of $1.07 (investors.credosemi.com).
- (fool.com) Three customers accounted for the bulk of sales, contributing roughly 39%, 32% and 17% of revenue respectively (motleyfool.com).
- (fool.com) Management guided Q4 FY26 revenue to a $425–$435 million range and reiterated an outlook for fiscal 2027 top‑line growth of more than 50% year‑over‑year (investors.credosemi.com).
Quick answers
What happened in $CRDO triples revenue?
CK Capital flagged that $CRDO tripled revenue to $407M in Q3 FY26 with 68% margins, driven by growth in AI data‑center connectivity cables that trade optics for lower‑power AEC tech. That’s a rare, high‑margin hardware play tied to hyperscaler AI demand. (x.com)
Why does $CRDO triples revenue matter?
Non‑GAAP net income reached $208.8 million while GAAP net income was $157.1 million, with GAAP diluted EPS of $0.82 and non‑GAAP diluted EPS of $1.07 (investors.credosemi.com). (investors.credosemi.com) Credo exited the quarter with $1.3 billion in cash and short‑term investments, generated $166.2 million of cash from operations, produced $139.7 million of free cash flow, and held $208 million of inventory at quarter end (motleyfool.com). (fool.com) Three customers accounted for the bulk of sales, contributing roughly 39%, 32% and 17% of revenue respectively (motleyfool.com). (fool.com) Management guided Q4 FY26 revenue to a $425–$435 million range and reiterated an outlook for fiscal 2027 top‑line growth of more than 50% year‑over‑year (investors.credosemi.com). (investors.credosemi.com) Product milestones disclosed on the earnings call include production shipments of Zero‑Flat Optics to customer TensorWave with qualification at three other customers and an accelerated production‑ramp target in Q1 FY27, PCIe Gen‑6 AEC sampling with mass production planned in H1 FY27, and Active LED Cable sampling in FY27 with a production ramp envisioned in FY28. (motleyfool.com). (fool.com) Corporate moves announced around the quarter include the acquisition of CoMira (CoMira Solutions) to add link‑layer and ECC IP, and a cross‑license settlement with Molex that ends the companies’ AEC‑related patent disputes (businesswire.com; investors.credosemi.com). (businesswire.com)
