Credo Technology Group reports 115% revenue growth amid margin concerns

Credo Technology Group reported strong fiscal 2027 first-quarter results, with net revenue reaching $479 million, a 115% increase year-over-year. The company exceeded analyst estimates for both revenue and adjusted earnings per share of $1.20.

Despite the strong top-line growth, the company's stock experienced significant volatility, including a 20% plunge following the earnings release. This sell-off was largely attributed to investor concerns regarding rising operating expenses and contracting gross margins.

Looking ahead, management has provided optimistic guidance, projecting fiscal 2027 revenue growth of more than 85% and expecting optical revenue to exceed $600 million. Growth is expected to be driven by demand from AI data centers, hyperscalers, and the transition to 1.6T networking. The company also recently acquired DustPhotonics to expand its capabilities in silicon photonics and co-packaged optical technologies.