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Credo Technology Expects 120% YoY Revenue Growth in FY26, Analyst Says Demand from Hyperscalers Will Drive Growth
ByAinvest
Thursday, Sep 4, 2025 12:08 pm ET1min read
Credo Technology Group Holding Ltd. expects fiscal 2026 revenue to jump 120% YoY, driven by strong demand from hyperscaler customers and adoption of its Active Electrical Cables (AEC) products. Analyst N. Quinn Bolton raised the company's fiscal 2026 revenue estimate to $964 million (+121% YoY) and fiscal 2027 to $1.25 billion (+30% YoY). The company's AEC products remain the main growth driver, supported by multiple hyperscalers.
Title: Credo Technology Group Holding Ltd. Reports Strong Q1 2026 Financials, Guides Fiscal 2026 Revenue GrowthCredo Technology Group Holding Ltd. (NASDAQ: CRDO) has reported robust financial results for Q1 2026, showcasing a 274% year-over-year (YoY) revenue surge to $223.1 million, significantly surpassing analyst expectations. The company's earnings per share (EPS) of $0.52 also exceeded estimates, marking a substantial increase from the previous year [2].
The company's strong performance is driven by surging demand for high-speed connectivity solutions in AI infrastructure and cloud computing. Credo's proprietary SerDes IP and system-level integration have enabled it to deliver high-performance, energy-efficient interconnects, making it a critical enabler of AI infrastructure [1]. The company's strategic partnerships with hyperscalers and its R&D-driven production efficiency have contributed to its operational efficiency and margin resilience [3].
Credo's financial health is further supported by a strong liquidity position, with a current ratio of 6.62 and a minimal debt-to-equity ratio of 0.02. This indicates the company's ability to cover short-term liabilities and maintain financial stability [2].
Looking ahead, Credo expects fiscal 2026 revenue to jump 120% YoY, driven by strong demand from hyperscaler customers and the adoption of its Active Electrical Cables (AEC) products. Analyst N. Quinn Bolton raised the company's fiscal 2026 revenue estimate to $964 million (+121% YoY) and fiscal 2027 to $1.25 billion (+30% YoY) [4]. The company's AEC products remain the main growth driver, supported by multiple hyperscalers.
References
[1] https://www.ainvest.com/news/credo-technology-ai-integration-fueling-sustainable-growth-engine-2509/
[2] https://site.financialmodelingprep.com/market-news/credo-technology-group-holding-ltd-nasdaq-crdo-surpasses-q1-2026-estimates
[3] https://www.ainvest.com/news/credo-technology-crdo-q1-earnings-surge-strategic-play-high-speed-connectivity-ai-cloud-demand-2509/
[4] https://www.ainvest.com/news/credo-technology-group-holding-ltd-nasdaq-crdo-surpasses-q1-2026-estimates
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