Credo (CRDO) Fiscal Q1 2027 Earnings Call: Revenue Jumps 115% as Optics Accelerates
Source Tradingkey
Key Takeaways
- Credo reported record fiscal Q1 2027 revenue of $479 million, up 10% sequentially and 115% year over year. This was its seventh consecutive quarter of triple-digit year-over-year revenue growth.
- Non-GAAP gross margin was 68%, while non-GAAP operating margin reached 48.2%. Non-GAAP net income rose 140% year over year to a record $236.3 million.
- Active Electrical Cables remained Credo’s largest business, supported by relationships with five hyperscalers and expanding engagement with neo-cloud customers. Optical DSP and retimer revenue also reached records.
- Management expects fiscal Q2 revenue of $525 million to $535 million and a non-GAAP gross margin of 67% to 69%.
- Credo maintained its fiscal 2027 outlook for more than 85% total revenue growth and over $600 million of optical revenue. ZeroFlap Optics, silicon photonics PICs and optical DSPs are each expected to contribute more than $100 million.
- Customer concentration remains significant. Credo’s four largest customers represented approximately one-third, 28%, 13% and 10% of quarterly revenue, respectively.
Core Financial Results
| Metric | Fiscal Q1 2027 | Change / Commentary |
|---|---|---|
| Revenue | $479 million | Up 10% QoQ and 115% YoY |
| Non-GAAP gross margin | 68% | At the midpoint of guidance |
| Non-GAAP operating expenses | $95.2 million | Up 16% QoQ, reflecting higher R&D investment |
| Non-GAAP operating income | $230.6 million | Up from $216.7 million in fiscal Q4 2026 |
| Non-GAAP operating margin | 48.2% | Continued operating leverage despite R&D spending |
| Non-GAAP net income | $236.3 million | Up 4% QoQ and 140% YoY |
| Non-GAAP net margin | 49.3% | Record quarterly net income |
| Operating cash flow | $90.2 million | Down $92.0 million QoQ, mainly due to working-capital changes |
| Capital expenditure | $7.3 million | — |
| Free cash flow | $82.9 million | — |
| Cash and equivalents | $764.3 million | Down $679 million QoQ, mainly due to the DustPhotonics acquisition |
| Ending inventory | $313.1 million | Up $62.2 million QoQ |
Business and Operating Performance
AEC remains the largest business
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
The European Central Bank (ECB) wants to issue euros directly onto a blockchain. Executive Board member Isabel Schnabel made that case at the Jackson Hole symposium on Friday, and she was very clear a
Michael Saylor says MicroStrategy is back. The two-word post landed after 10 weeks in which the company, now named Strategy, bought no Bitcoin (BTC) at all.Three things in its finances have quietly sh
Strive, BitMine and MicroStrategy each disclosed fresh crypto purchases on Monday. The two Bitcoin buyers alone spent more than $500 million in a single week.Buying high is the business model, not a f
Bitcoin gained about 26% in a month. Federal Reserve Chairman Kevin Warsh just told the world’s finance chiefs why that run may be ending.Cheap money is over, he argues. Growth is picking up, and cash
MicroStrategy resumed Bitcoin (BTC) accumulation after a 10-week hiatus, buying 4,603 BTC for $369.7 million at an average price of $80,318 per coin.The purchase is the company’s first major acquisiti
